Pennsylvania HB 914: An Act amending the act of April 6, 1951 (P.L.69, No.20), known as The Landlord and Tenant Act of 1951, providing for limitations on rent increases; and imposing duties on the Pennsylvania Housing Finance Agency.

Bill Text

PRINTER'S NO. 963
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 914
Session of
2025
INTRODUCED BY PROKOPIAK, GUENST, HILL-EVANS, KHAN, WAXMAN,
DEASY, GIRAL, PROBST, KENYATTA, BOROWSKI, CERRATO, CEPEDA-
FREYTIZ, SANCHEZ, BOYD AND RIVERA, MARCH 17, 2025
REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
MARCH 17, 2025
AN ACT
Amending the act of April 6, 1951 (P.L.69, No.20), entitled "An
act relating to the rights, obligations and liabilities of
landlord and tenant and of parties dealing with them and
amending, revising, changing and consolidating the law
relating thereto," providing for limitations on rent
increases; and imposing duties on the Pennsylvania Housing
Finance Agency.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of April 6, 1951 (P.L.69, No.20), known
as The Landlord and Tenant Act of 1951, is amended by adding an
article to read:
ARTICLE V-C
LIMITATIONS ON RENT INCREASES
Section 501-C. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Agency." The Pennsylvania Housing Finance Agency.
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"Banked amount." The dollar amount of an annual rent
increase allowance that a landlord did not use to increase the
rent for a regulated unit.
"Base rent." Rent charged for a regulated unit under a
lease, exclusive of any rental discounts, incentives,
concessions or credits that are:
(1) offered by the landlord;
(2) accepted by the tenant; and
(3) itemized in the lease separate from the rent.
"Capital improvements."
(1) Permanent structural alterations to a regulated unit
or mobile home park in which a regulated unit is located
intended to enhance the value of the unit, including the
following:
(i) Structural alterations required under Federal,
State or local law.
(ii) Improvements in amenities or services offered
in the mobile home park.
(2) The term does not include ordinary repair or
maintenance of existing structures.
"CPI-U." The Consumer Price Index for All Urban Consumers
for the Middle Atlantic census division, published by the United
States Department of Labor, Bureau of Labor Statistics.
"Executive director." The executive director of the
Pennsylvania Housing Finance Agency.
"Fair return." A return on investment that is sufficient to
offset operating expenses and commensurate with returns on
investments in other enterprises having comparable risks.
"Landlord." As defined under section 501-B. The term shall
include the owner of a mobile home park.
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"Regulated unit." A rental unit that is not exempted under
section 504-C, including a unit located on a mobile home space.
"Substantial renovation." Permanent alterations to a
building or mobile home park that:
(1) are intended to enhance the value of the building or
mobile home park; and
(2) cost an amount equal to at least 40% of the value of
the building or mobile home park as assessed by the county
assessment office of the county in which the building or
mobile home park is located.
Section 502-C. Annual rent increase allowance.
(a) Annual rent increase allowance.--The executive director
shall annually calculate a rent increase allowance for regulated
units equal to the lesser of:
(1) the CPI-U plus 3% of the base rent; or
(2) 6% of the base rent.
(b) Publication.--The executive director shall publish the
annual rent increase allowance on the agency's publicly
accessible Internet website.
(c) Duration.--A rent increase allowance under subsection
(a) shall remain in effect for a 12-month period, beginning July
1 of each year and ending on June 30 of the following year.
Section 503-C. Rent increases and limited surcharges for
capital improvements.
(a) Rent increase.--
(1) Except as provided under subsections (b) and (c)(2)
and subject to paragraph (2), upon a lease renewal or new
lease agreement, a landlord may not increase the rent of a
regulated unit to an amount greater than:
(i) the base rent; plus
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(ii) the rent increase allowance under section 502-
C; plus
(iii) any banked amount.
(2) A rent increase under paragraph (1) may not exceed
10% of the base rent.
(b) Rent increase in vacant regulated units.--The agency
shall adopt an annual determination of the allowable rent
increase for a regulated unit that:
(1) has been vacant for more than 12 months;
(2) does not have an active lease, either by a written
or oral agreement; and
(3) has returned to the market for rent.
(c) Fair return rent increase.--
(1) A landlord may file a petition with a magisterial
district court to increase rent of a regulated unit in an
amount that exceeds the annual rent increase under subsection
(a).
(2) A court shall grant the petition