PRINTER'S NO. 475
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
506
Session of
2023
INTRODUCED BY GUENST, HILL-EVANS, MADDEN, SMITH-WADE-EL,
NEILSON, BURGOS, KRAJEWSKI, OTTEN, McNEILL, CERRATO AND
N. NELSON, MARCH 17, 2023
REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
MARCH 17, 2023
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 penalties.
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:
"Duplex." A structure of one or more stories, including any
land appurtenant to the structure, in which exactly two units of
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residential dwelling space are occupied, or are intended to be
occupied by two or more persons who live independently of each
other.
"Dwelling unit." A structure, or a room or group of rooms
within a structure, used or intended for use, in whole or in
part, for residential purposes.
"Percentage change in the cost of living." The term shall
include:
(1) the percentage change from February 1 of the prior
year to February 1 of the current year in the regional
Consumer Price Index for the region where the dwelling unit
is located, as published by the United States Bureau of Labor
Statistics; or
(2) any alternative source for determining the
percentage change in the cost of living that the secretary
deems necessary to effectuate the provisions of this article.
"Secretary." The Secretary of Labor and Industry of the
Commonwealth.
"Single family dwelling unit." A building or structure of
one or more stories, including any land appurtenant to the
structure, in which exactly one unit of residential dwelling
space is occupied, or intended to be occupied, by one or more
persons.
"Tenancy." The lawful occupation of a dwelling unit to
include a lease or sublease.
Section 502-C. Limitations on rent increases.
(a) Rent increase limitation.--Except as provided in section
503-C, residential landlords are prohibited from increasing rent
on a dwelling unit by more than 5% plus the percentage change in
the cost of living or 10%, whichever is lower, of the lowest
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rental rate charged for the dwelling unit at any time during the
12 months prior to the date when the increase takes effect.
(b) Sublease limitation.--A tenant of residential real
property subject to this section may not enter into a sublease
that results in a rental rate for the dwelling unit that exceeds
the allowable rental rate under subsection (a). Nothing in this
subsection authorizes a tenant to sublet or assign the tenant's
interest where otherwise prohibited.
Section 503-C. Exceptions and notice requirements.
The following apply:
(1) The rent and sublease limitations under section 502-
C shall not apply to the following:
(i) Nonresidential real property.
(ii) A dwelling unit restricted by deed, regulatory
restriction contained in an agreement with a government
agency or other recorded document as affordable housing
for persons and families of very low, low or moderate
income.
(iii) A dormitory constructed and maintained in
connection with an institution of higher education for
the use and occupancy of students in attendance at the
institution.
(iv) A dwelling unit that has been newly constructed
and issued a certificate of occupancy within the previous
15 years.
(v) A single family dwelling unit to which the
following apply:
(A) A real estate investment trust, as defined
in 26 U.S.C. ยง 856 (relating to definition of real
estate investment trust).
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(B) A corporation.
(C) A limited liability company in which at
least one member is a corporation.
(vi) A duplex in which the landlord occupies one of
the units as the landlord's principal place of residence
at the beginning of the tenancy.
(vii) A new tenancy in which no tenant from the
prior tenancy remains in lawful possession of the
dwelling unit.
(2) The tenant shall be provided written notice that the
dwelling unit is exempt from the requirements of section 502-
C using the following statement:
This property is not subject to the rent limits
imposed in section 502-C(a) of Article V-C of the
Landlord and Tenant Act of 1951. The landlord is
not any of the following: (1) a real estate
investment trust; (2) a corporation; or (3) a
limited liability company in which at least one
member is a corporation.
(3) For a tenancy for a single family dwelling unit in
existence prior to the first day of the third month following
the effective date of this paragraph, the notice required
under paragraph (2) is not required to be provided in the
rental agreement.
(4) For a tenancy for a single family dwelling unit
commenced or renewed on or after the first day of the third
month following the effective date of this paragraph, the
notice required under paragraph (2) must be provided in the
rental agreement.
Section 504-C. Preemption.
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The following shall apply:
(1) The provisions of this article shall not preempt an
ordinance, rule, regulation or other law regarding rent
control, rent leveling or rent subsidization adopted by the
governing body of a municipality that would result in a lower
permitted rent increase on a dwelling unit over the course of
a 12-month period.
(2) The provisions of this article shall preempt an
ordinance, rule, regulation or other law regarding rent
control, rent leveling or rent stabilization adopted by the
governing body of a municipality that would result in a
higher permitted rent increase on a dwelling unit over the
course of a 12-month period.
Section 505-C. Violations and remedies.
(a) Violation.--A violation of this article constitutes an
unlawful practice under the act of December 17, 1968 (P.L.1224,
No.387), known as the Unfair Trade Practices and Consumer
Protection Law, and shall subject the offending landlord to all
remedies and penalties available to an aggrieved consumer under
the act.
(b) Termination of lease.--A tenant may petition a court of
competent jurisdiction to terminate a lease containing a
provision in violation of this article.
(c) Defense to eviction.--A tenant may assert a violation of
this article as a defense to an eviction action.
Section 506-C. Rules and regulations.
The secretary is authorized to promulgate rules and
regulations necessary to effectuate the purposes of this
article.
Section 507-C. Applicability.
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This article shall apply to rental contracts and rent
increases implemented on or after January 1, 2024.
Section 2. This act shall take effect in 60 days.
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