What to Do With Property Blight in a Changing Commercial Landscape
Allegheny County is a county of industry and foresight. It tends to change with the times and adapt to technological developments. It was, after all, the birthplace of U.S. Steel. However, historical developments do not make up for modern struggles. From shuttered storefronts to struggling corridors, commercial property blight has become one of Allegheny County’s most persistent economic and legal challenges. Empty retail spaces, neglected industrial sites, and declining property values ripple outward, affecting local governments, landlords, small business owners, and community developers alike. While the issue of property blight is not relegated to Allegheny County alone (many counties across the country are experiencing shifts in use of large commercial spaces for a number of reasons mainly due to technological developments), for the legal community and our clients, understanding the adjacent legal implications is critical.
What is Property Blight?
“Blighted property” is defined by Pennsylvania Act 79 of 2019 (Act of Nov. 7, 2019, P.L. 611, No. 79.), and includes eight separate criteria:
1. A property deemed a public nuisance or containing an attractive nuisance;
2. A dwelling unfit for occupancy;
3. A structure determined to be a fire hazard;
4. A lot that is neglected, vacant, and accumulated trash, rodents, or both;
5. A vacant property receiving notice for corrective action and not rehabilitated within one year of that notice;
6. A vacant parcel for which there is an unpaid municipal lien for the cost of demolition of a structure;
7. A vacant parcel on which municipal liens are greater than one and a half times its fair market value; or
8. A property abandoned by the owner, stipulated by writing.
In practice, municipalities have used blight designations to secure federal funding, attract developers, and assemble land for new development projects. However, declaring commercial blight is a double-edged sword. While it can unlock redevelopment financing, it also signals high risk.
Property Blight’s Legal Burden on Neighborhoods
For existing business owners and residential neighborhoods caught in or near a blight-designated zone, the consequences can be significant. Property values can experience decline with a formal label of property blight. Vacant or partially used commercial properties face heightened scrutiny under local code enforcement.
There is also environmental responsibility for blighted areas: older industrial properties may contain hazardous materials like asbestos, oil tanks, or contaminated soil that trigger obligations to maintain safety. Business owners seeking to sell or lease such properties may have to conduct an elongated environmental due diligence process to avoid future liability. Commercial property owners must also take into consideration the possibility of eminent domain and due process.
Financing and Tax Implications
Blight also changes how financing and taxation works for commercial properties. Lenders often treat blighted areas as “high-risk,” requiring higher interest rates or rejecting loan applications outright. This limits small businesses’ ability to expand or renovate. Many commercial blight areas suffer from cyclical tax delinquency.
On the other hand, Pennsylvania law offers incentives like the Local Economic Revitalization Tax Assistance Act (LERTA), which allows municipalities to exempt improvements from property taxes for up to ten years. Attorneys can play a direct role in helping small business owners navigate these programs. Structuring a redevelopment deal to capture tax abatements or grants can make the difference between a feasible project and one that stalls indefinitely.
A Key Issue with Zoning
Another key dimension of commercial blight lies in Allegheny County’s zoning rigidity. Many blighted commercial areas in Allegheny County are zoned for outdated uses, and neighborhoods that wish to rebuild often encounter a laborious process to do so. Property owners often face lengthy variance or conditional-use hearings to repurpose buildings into modern business spaces. Add to that the cost of bringing old structures up to Americans with Disabilities Act (ADA) or fire safety code, and many owners simply abandon the properties.
One solution to this is for municipalities to revise their zoning maps to promote business redevelopment and new construction builds, or for municipalities to ease the variance process in favor of new business and property development. For business owners, proactively seeking zoning relief or conditional use approval early in the process can prevent costly delays or non-conforming use disputes later.
Emerging Solutions and the Legal Community Next Steps
Recognizing the magnitude of the problem, Allegheny County is expanding its anti-blight toolkit. The Allegheny County Vacant Property Recovery Program (VPRP) allows individuals, nonprofits, and businesses to acquire tax-delinquent properties for reuse, provided they demonstrate the capacity to rehabilitate them. Further, the Act 152 Blight Removal program provides funds for demolition of blighted properties and blight remediation planning. Such programs put property use directly into the hands of those who wish to redevelop their own neighborhoods. Encouraging affordability for new business owners stimulates economic growth in the county, and therefore a better standard of living.
Commercial blight presents both challenge and opportunity. Corporate transactional attorneys can guide clients in acquiring distressed assets and structuring deals that comply with redevelopment requirements. Estate and probate practitioners increasingly encounter commercial properties trapped in long-dormant estates, which is a common root of blight, and advise individual and corporate clients accordingly to quiet title. For the litigators, they could encounter more disputes over code enforcement, tax foreclosure, and redevelopment agreements as municipalities accelerate revitalization efforts.
The Road Ahead for Improving Property Sites in Allegheny County
While the county eyes its next phase of revitalization, particularly with the 2026 NFL Draft, the Cultural District revitalization, local artificial intelligence (AI) data center growth, and new construction on Market Square, attorneys stand at the intersection of policy, property, and progress with the juxtaposing blight issue that stands out like a sore thumb. The law itself cannot rebuild a storefront or reopen a factory, but it can lay the foundation for a fairer, faster, and more resilient redevelopment future.
Allegheny County has the opportunity to seize a moment of great new development, as do other counties nation-wide. New and beautiful architecture with truly unique and inspiring buildings could experience a new dawn. Community spaces that encourage kids and families and mentorships have a moment to encourage a new generation that deeply craves friendship. The ideas for new business and neighborhood revitalization are endless. Property blight is not the ultimate termination of a community’s heartbeat. It is the end of an era, yes – but if coordinated properly, it can make way for a new beginning.
Julia Nista, Esquire is CEO and Founding Attorney of Nista Enterprise Legal Services, LLC. She practices Estate Planning and Business Law, and is a member of the 2025-2026 ACBA Bar Leadership Initiative. Reach out to Julia at jnista@nistaenterprise.com.