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PRINTER'S NO. 2276
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1983
Session of
2021
INTRODUCED BY GAYDOS, CIRESI, HILL-EVANS AND INNAMORATO,
OCTOBER 19, 2021
REFERRED TO COMMITTEE ON URBAN AFFAIRS, OCTOBER 19, 2021
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," in recovery of possession, providing for
fee in lieu of escrow funds.
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 a
section to read:
Section 511.4. Fee in Lieu of Escrow Funds.--(a)
Notwithstanding any other provision of law, a landlord may
choose to waive an escrow funds payment and a tenant may choose
to pay a fee in lieu of escrow funds. The payment of the fee in
lieu of escrow funds shall discharge the landlord's escrow fund
requirement and the tenant's escrow fund payment obligation.
(b) A fee in lieu of escrow funds:
(1) May be entirely or partially nonrefundable. If the fee
is not refundable, the landlord shall disclose that information
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in the lease and have it separately acknowledged by the tenant.
(2) May be utilized by the landlord to purchase insurance
coverage for unpaid rent or unit damage.
(3) May be a recurring monthly fee or payable on a schedule
in an amount upon which the landlord and tenant agree.
(4) May not be considered by a court, arbitrator, mediator
or another dispute resolution adjudicator to be escrow funds as
described in sections 511.1, 511.2 and 511.3 or other laws of
this Commonwealth or local codes governing escrow funds or
security deposits.
(c) If a landlord chooses to waive an escrow funds payment,
the landlord shall:
(1) Ensure that the fee is optional for the tenant and
inform the tenant that the tenant may choose to pay full escrow
funds rather than the fee.
(2) Not use a prospective tenant's choice of either paying
escrow funds or paying a fee in lieu of escrow funds in
consideration of whether to approve an application for
occupancy.
(3) Offer a fee in lieu of escrow funds to every other
prospective tenant whose application for occupancy has been
approved, whereby such a fee is offered without regard to
income, race, gender, disability, sexual orientation,
immigration status, size of household or credit score.
(4) Allow a tenant who agrees to pay a fee in lieu of escrow
funds to opt out of the continuing fee obligation upon full
payment of escrow funds that is otherwise in effect for the
tenant's residence on the day of the opt-out.
(d) When a landlord offers to a prospective tenant to waive
an escrow funds payment and instead for the tenant to pay a fee
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in lieu of escrow funds, the landlord shall notify the tenant in
writing:
(1) That the tenant may pay the full amount of escrow funds
instead of the fee.
(2) That the tenant has the option to terminate the
agreement to pay the fee in lieu of escrow funds at any time and
instead pay escrow funds in the amount that is otherwise offered
to new tenants for substantially similar housing on the date
that the tenant terminates the fee agreement.
(3) The amount of money to be paid for either paying the
full escrow funds or paying the fee in lieu of escrow funds.
(4) That the fee is being paid only to secure occupancy
without a requirement of paying escrow funds.
(5) That the fee, unless otherwise specified, is not
refundable.
(6) That payment of the fee, unless otherwise specified,
does not eliminate, release or otherwise limit the requirements
of the lease, including that the tenant must pay:
(i) rent as the rent becomes due; and
(ii) the cost of repairing damages that
the tenant is legally liable for under the law and lease.
(e) If a landlord chooses to waive an escrow funds payment
and a tenant instead agrees to pay a fee in lieu of escrow
funds, the agreement to collect the fee must be in writing and
signed by the landlord, or the landlord's legal representative,
and the tenant.
(f) After a landlord chooses to waive an escrow funds
payment and a tenant instead agrees to pay a fee in lieu of
escrow funds, the following terms shall be clearly specified in
writing in the lease:
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(1) The fee is being paid only to secure occupancy without a
requirement of paying escrow funds.
(2) The fee, unless otherwise specified, is not refundable.
(3) The payment of the fee, unless otherwise specified, does
not eliminate, release or otherwise limit the requirements of
the lease, including that the tenant must pay:
(i) rent as the rent becomes due; and
(ii) the cost of repairing damages that the tenant is
legally liable for under the law and lease.
Section 2. This act shall apply to all lease agreements
entered into or renewed on or after the effective date of this
act.
Section 3. This act shall take effect in 60 days.
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