PRINTER'S NO. 3803
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2654
Session of
2024
INTRODUCED BY GREEN, McNEILL, WAXMAN, GUENST, HILL-EVANS AND
SANCHEZ, OCTOBER 25, 2024
REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
OCTOBER 25, 2024
AN ACT
1 Amending the act of April 6, 1951 (P.L.69, No.20), entitled "An
2 act relating to the rights, obligations and liabilities of
3 landlord and tenant and of parties dealing with them and
4 amending, revising, changing and consolidating the law
5 relating thereto," in tenement buildings and multiple
6 dwelling premises, further providing for definitions and
7 providing for borrowing requirements, for abandonment of
8 residential rental property and for maintenance by receiver;
9 and imposing penalties.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. Section 501-A of the act of April 6, 1951
13 (P.L.69, No.20), known as The Landlord and Tenant Act of 1951,
14 is amended by adding definitions to read:
15 Section 501-A. Definitions.--As used in this article, the
16 following terms shall have the meanings ascribed to them in this
17 section unless the context otherwise indicates:
18 * * *
19 (4) "Abandoned" when the landlord of a residential rental
20 property fails to:
21 (i) make repairs or perform maintenance on a timely basis to
1 ensure that the residential rental property is habitable, safe
2 and sanitary for tenants currently residing in the property;
3 (ii) respond to contact attempts, for at least one month, by
4 a tenant or tenants who reside in the residential rental
5 property to rectify an issue with the residential rental
6 property; and
7 (iii) rectify a municipal code violation of the residential
8 rental property on a timely basis.
9 (5) "Receiver" a court-appointed third party that takes
10 control of a residential rental property and makes decisions
11 about the management and operation of the residential rental
12 property.
13 (6) "Receivership" a legal remedy where residential rental
14 property is placed into legal custody and the court transfers
15 ownership of the residential rental property to a receiver.
16 Section 2. The act is amended by adding sections to read:
17 Section 506-A. Borrowing Requirements.--(a) When the
18 landlord of a residential rental property seeks a home equity
19 loan, a home equity line of credit or any other financial
20 instrument in which the landlord borrows against the equity of
21 the residential rental property through a lender, the lender
22 shall investigate the need for and purpose of the borrowing. If
23 the loan, line of credit or other financial instrument is
24 granted, the landlord shall:
25 (1) Notify any tenants at the residential rental property
26 about the existence and purpose of the borrowing.
27 (2) Provide to any tenants at the residential rental
28 property contact information for the lender.
29 (b) As part of the loan agreement described in subsection
30 (a), the lender shall require the landlord to ensure that the
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1 residential rental property is habitable, safe and sanitary,
2 which shall include making repairs or upgrades on a timely
3 basis. The following apply:
4 (1) The lender shall determine the time schedule for any
5 necessary repairs or upgrades to the residential rental
6 property.
7 (2) If the landlord fails to make necessary repairs or
8 upgrades to the residential rental property on a timely basis,
9 as determined by the lender, the lender may call in the loan for
10 the full amount.
11 (c) A tenant at the residential rental property may notify
12 the lender if the landlord fails to ensure that the residential
13 rental property is habitable, safe and sanitary in accordance
14 with subsection (b).
15 Section 507-A. Abandonment of Residential Rental Property.--
16 (a) If a tenant has reasonable cause to suspect that a landlord
17 has abandoned the residential rental property that the tenant
18 currently resides in, the tenant may petition the municipality
19 in which the subject residential rental property is located to
20 investigate whether the landlord abandoned the residential
21 rental property.
22 (b) Within one month of receipt of a petition under
23 subsection (a), the municipality in which the subject
24 residential rental property is located:
25 (1) Shall investigate whether the subject residential rental
26 property is abandoned.
27 (2) May, if the municipality determines that the residential
28 rental property is abandoned, impose a civil penalty on the
29 landlord which shall, at minimum, include the cost of
30 rehabilitating the residential rental property to correct any
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1 municipal code violation.
2 (c) Before imposing a civil penalty under subsection (b):
3 (1) The municipality must attempt to contact the landlord of
4 the residential rental property.
5 (2) The landlord of the residential rental property shall
6 have the opportunity to furnish evidence to the municipality to
7 demonstrate that:
8 (i) The residential rental property is not abandoned.
9 (ii) The landlord will rehabilitate the residential rental
10 property to correct any municipal code violation on a timely
11 basis as determined by the municipality.
12 (d) As used in this section, the term "municipality" means a
13 county, city, borough, incorporated town or township of this
14 Commonwealth.
15 Section 508-A. Maintenance by Receiver.--(a) If a
16 residential rental property goes into receivership, the receiver
17 shall:
18 (1) Ensure that the residential rental property is
19 habitable, safe and sanitary, which shall include making repairs
20 or upgrades on a timely basis, as provided under subsection (b).
21 (2) Notify the municipality in which the residential rental
22 property is located.
23 (b) A municipality, within thirty days of receiving
24 notification from a receiver about the receipt of a residential
25 rental property that is located in the municipality, shall
26 determine the habitability of the residential rental property.
27 The following apply:
28 (1) If the municipality determines that the residential
29 rental property is uninhabitable, the municipality shall require
30 the receiver to make necessary repairs or upgrades to the
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1 residential rental property on a timely basis, as determined by
2 the municipality.
3 (2) If the receiver does not comply with paragraph (1), the
4 municipality may impose a civil penalty on the receiver, which
5 shall, at a minimum, be the cost of rehabilitating the
6 residential rental property to correct violations of municipal
7 code.
8 (c) As used in this section, the term "municipality" means a
9 county, city, borough, incorporated town or township of this
10 Commonwealth.
11 Section 3. This act shall take effect in 60 days.
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Statutes/Laws affected: Printer's No. 3803: P.L.69, No.20