PRINTER'S NO. 298 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL No.343 Session of 2025 INTRODUCED BY GREEN, HOWARD, SANCHEZ, HILL-EVANS, HOHENSTEIN, CIRESI, FIEDLER AND KENYATTA, JANUARY 27, 2025 REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT, JANUARY 27, 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," in tenement buildings and multiple dwelling premises, further providing for definitions and providing for borrowing requirements, for abandonment of residential rental property and for maintenance by receiver; and imposing penalties. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Section 501-A of the act of April 6, 1951 (P.L.69, No.20), known as The Landlord and Tenant Act of 1951, is amended by adding definitions to read: Section 501-A. Definitions.--As used in this article, the following terms shall have the meanings ascribed to them in this section unless the context otherwise indicates: * * * (4) "Abandoned" when the landlord of a residential rental property fails to: (i) make repairs or perform maintenance on a timely basis to 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 ensure that the residential rental property is habitable, safe and sanitary for tenants currently residing in the property; (ii) respond to contact attempts, for at least one month, by a tenant or tenants who reside in the residential rental property to rectify an issue with the residential rental property; and (iii) rectify a municipal code violation of the residential rental property on a timely basis. (5) "Receiver" a court-appointed third party that takes control of a residential rental property and makes decisions about the management and operation of the residential rental property. (6) "Receivership" a legal remedy where residential rental property is placed into legal custody and the court transfers ownership of the residential rental property to a receiver. Section 2. The act is amended by adding sections to read: Section 506-A. Borrowing Requirements.--(a) When the landlord of a residential rental property seeks a home equity loan, a home equity line of credit or any other financial instrument in which the landlord borrows against the equity of the residential rental property through a lender, the lender shall investigate the need for and purpose of the borrowing. If the loan, line of credit or other financial instrument is granted, the landlord shall: (1) Notify any tenants at the residential rental property about the existence and purpose of the borrowing. (2) Provide to any tenants at the residential rental property contact information for the lender. (b) As part of the loan agreement described in subsection (a), the lender shall require the landlord to ensure that the 20250HB0343PN0298 - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 residential rental property is habitable, safe and sanitary, which shall include making repairs or upgrades on a timely basis. The following apply to necessary repairs or upgrades to the residential rental property: (1) The lender shall determine the time schedule for any necessary repairs or upgrades to the residential rental property. (2) If the landlord fails to make necessary repairs or upgrades to the residential rental property on a timely basis, as determined by the lender, the lender may call in the loan for the full amount. (c) A tenant at the residential rental property may notify the lender if the landlord fails to ensure that the residential rental property is habitable, safe and sanitary in accordance with subsection (b). Section 507-A. Abandonment of Residential Rental Property.-- (a) If a tenant has reasonable cause to suspect that a landlord has abandoned the residential rental property that the tenant currently resides in, the tenant may petition the municipality in which the subject residential rental property is located to investigate whether the landlord abandoned the residential rental property. (b) Within one month of receipt of a petition under subsection (a), the municipality in which the subject residential rental property is located: (1) Shall investigate whether the subject residential rental property is abandoned. (2) May, if the municipality determines that the residential rental property is abandoned, impose a civil penalty on the landlord which shall, at minimum, include the cost of 20250HB0343PN0298 - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 rehabilitating the residential rental property to correct any municipal code violation. (c) Before imposing a civil penalty under subsection (b): (1) The municipality must attempt to contact the landlord of the residential rental property. (2) The landlord of the residential rental property shall have the opportunity to furnish evidence to the municipality to demonstrate that: (i) The residential rental property is not abandoned. (ii) The landlord will rehabilitate the residential rental property to correct any municipal code violation on a timely basis as determined by the municipality. (d) As used in this section, the term "municipality" means a county, city, borough, incorporated town or township of this Commonwealth. Section 508-A. Maintenance by Receiver.--(a) If a residential rental property goes into receivership, the receiver shall: (1) Ensure that the residential rental property is habitable, safe and sanitary, which shall include making repairs or upgrades on a timely basis, as provided under subsection (b). (2) Notify the municipality in which the residential rental property is located. (b) A municipality, within thirty days of receiving notification from a receiver about the receipt of a residential rental property that is located in the municipality, shall determine the habitability of the residential rental property. The following apply: (1) If the municipality determines that the residential rental property is uninhabitable, the municipality shall require 20250HB0343PN0298 - 4 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 the receiver to make necessary repairs or upgrades to the residential rental property on a timely basis, as determined by the municipality. (2) If the receiver does not comply with paragraph (1), the municipality may impose a civil penalty on the receiver, which shall, at a minimum, be the cost of rehabilitating the residential rental property to correct violations of municipal code. (c) As used in this section, the term "municipality" means a county, city, borough, incorporated town or township of this Commonwealth. Section 3. This act shall take effect in 60 days. 20250HB0343PN0298 - 5 - 1 2 3 4 5 6 7 8 9 10 11 12