PRINTER'S NO. 571
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.546
Session of
2025
INTRODUCED BY CAPPELLETTI, COLLETT, SAVAL, SCHWANK, HAYWOOD,
COSTA, TARTAGLIONE AND KANE, APRIL 9, 2025
REFERRED TO URBAN AFFAIRS AND HOUSING, APRIL 9, 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 preliminary provisions, providing for
residential rental property rate increases; and establishing
the Rent Control Advisory Board.
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 106. Residential Rental Property Rate Increases.--
(a) A lessor of a residential rental property of a tenant may
not increase the gross rental amount for the residential rental
property of the tenant by an amount greater than ten per cent
above the lowest gross rental amount charged for the residential
rental property at any time during the twelve-month period prior
to the effective date of the increase in the gross rental amount
or by a rate greater than the percentage increase in the annual
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20 area median income of the county in which the residential rental
property is located, whichever is greater. The following apply:
(1) In determining the lowest gross rental amount, any rent
discount, incentive, concession or credit offered by the lessor
and accepted by the tenant shall be excluded.
(2) The gross rental amount and any rent discount,
incentive, concession or credit shall be separately listed and
identified in the rental agreement, and in any amendment of the
rental agreement, of the tenant.
(3) If the same tenant remains in occupancy of a residential
rental property over any twelve-month period, the lessor may not
increase the gross rental amount more than once during that
twelve-month period unless stipulated in the rental agreement.
(b) The following apply to notice of an increase in the
gross rental amount for a tenant by a lessor:
(1) The lessor shall provide the tenant with written notice
of the increase at least ninety days prior to the effective date
of the increase.
(2) The written notice of the increase must specify all of
the following:
(i) The amount of the increase.
(ii) The new gross rental amount.
(iii) The facts supporting an exception authorized under
subsection (h) for any increase exceeding the limitations under
subsection (a), if applicable.
(iv) The date on which the increase becomes effective.
(c) A lessor may not increase the gross rental amount for a
new tenant more than fifteen per cent above the gross rental
amount paid by the tenant who occupied the residential rental
property immediately prior to the occupancy of the new tenant.
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30 The lessor shall disclose the gross rental amount paid by the
previous tenant to the new tenant before or at the time of the
execution of the rental agreement by the new tenant.
(d) A lessor that increases gross rental amounts in
violation of this section is liable to the tenant in an amount
equal to three months' rent of the tenant plus actual damages
suffered by the tenant.
(e) Nothing in this section shall be construed to affect or
impair the right of a tenant to pursue a private cause of action
or seek other relief.
(f) The Rent Control Advisory Board is established to
administer this section. The following apply:
(1) The appointment of members of the board shall be as
follows:
(i) The Governor shall appoint as a member of the board an
individual representing tenants.
(ii) The President pro tempore of the Senate shall appoint
the following as members of the board:
(A) An individual representing the Department of Military
and Veterans Affairs.
(B) An individual representing recipients of low-income
housing.
(iii) The Minority Leader of the Senate shall appoint the
following as members of the board:
(A) An individual representing developers.
(B) An individual representing persons with disabilities.
(iv) The Speaker of the House of Representatives shall
appoint the following as members of the board:
(A) An individual representing the building or construction
trades.
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30 (B) An individual representing the Housing Alliance of
Pennsylvania.
(v) The Minority Leader of the House of Representatives
shall appoint the following as members of the board:
(A) An individual representing the Pennsylvania Housing
Finance Agency.
(B) An individual representing lessors.
(2) The members of the board shall be appointed as follows:
(i) Except as provided in subparagraph (ii), members of the
board shall be appointed for a term of three years and may be
reappointed.
(ii) Members of the board first appointed shall be appointed
for staggered terms so that the terms of no more than four
members shall expire at the same time thereafter. The following
apply:
(A) The members of the board listed in paragraph (1)(i)
shall initially be appointed for a one-year term.
(B) The members of the board listed in paragraph (1)(ii) and
(iii) shall initially be appointed for a two-year term.
(C) The members of the board listed in paragraph (1)(iv) and
(v) shall initially be appointed for a three-year term.
(3) The m embers of the board shall serve without pay.
(4) A vacancy on the board that occurs other than by the
expiration of the term of the board member shall be filled for
the unexpired term in the same manner as the original
appointment.
(5) T he appointing authority may remove any of its members
of the board for misconduct or malfeasance in office, incapacity
or neglect of duty.
(6) A member of the board must be a resident of this
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30 Commonwealth.
(7) The board shall meet at least every six months to
discuss the effects of the measures under this section as they
relate to lessors, tenants, residential rental property and
other related matters.
(8) The members of the board shall choose a chairperson and
vice chairperson of the board.
(9) A majority of the members of the board shall constitute
a quorum to conduct the official business of the board.
(10 ) The Office of the Governor shall ensure that reasonable
staff and support are made available to the board to carry out
its duties.
(11) The following apply to reports:
(i) No later than one year after the effective date of this
section and annually thereafter, the board shall issue a report
of its findings and recommendations regarding the e ffects of the
measures under this section as they relate to lessors, tenants,
residential rental property and other related matters.
(ii) Each report under this paragraph shall be submitted to:
(A) The Governor.
(B) The President pro tempore of the Senate.
(C) The Minority Leader of the Senate.
(D) The Speaker of the House of Representatives.
(E) The Minority Leader of the House of Representatives.
(F) The chairperson and minority chairperson of the Urban
Affairs and Housing Committee of the Senate.
(G) The chairperson and minority chairperson of the Housing
and Community Development Committee of the House of
Representatives.
(12) On an annual basis, the board shall ascertain the area
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30 median income and the percentage increase in the area median
income for each county in this Commonwealth and shall transmit
that information to the Legislative Reference Bureau for
publication in the next available issue of the Pennsylvania
Bulletin.
(g) A lessor may evict a tenant from a residential rental
property only for good cause.
(h) A lessor may file an action with the magisterial
district judge with jurisdiction over the location in which the
residential rental property is located to appeal the
prohibition under subsection (a) or (c). The following apply:
(1) The appeal must be based on financial hardship that:
(i) is caused by the prohibition;
(ii) is caused through no fault of the lessor; and
(iii) constitutes severe or irreparable economic or
financial burden on the part of the lessor and not merely the
lack of profitability.
(2) The remedy sought under the appeal regarding subsection
(a) shall constitute a one-time exemption from the prohibition
under subsection (a), with the new cap not to exceed twenty per
cent of the amount specified under subsection (a).
(3) The remedy sought under the appeal regarding subsection
(b) shall be an upward adjustment of the gross rental amount not
to exceed fifteen per cent.
(i) This section does not apply in any of the following
cases:
(1) The residential rental property has been newly
constructed and issued a certificate of occupancy as a result of
its completion, less than ten years from the effective date of
the increase in the gross rental amount.
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30 (2) The residential rental property is regulated or
certified as affordable housing by a Federal, State or local
government and the change in rent:
(i) does not increase the tenant's portion of the rent; or
(ii) is required by program eligibility requirements or by a
change in the tenant's income.
(3) Except as provided in subsection (c), the lessor is
entering into a new rental agreement in which no tenant from the
prior rental agreement remains in lawful possession of the
residential rental property. In such a case, the following
apply:
(i) Subsection (a) shall not apply to the establishment by
the lessor of the initial gross rental amount of the residential
rental property.
(ii) Subsection (a) shall apply to any subsequent increase
in the gross rental amount after the establishment of the
initial gross rental amount under this subsection.
(4) The residential rental property is the subject of a
countywide revision of reassessment regarding real property
taxes during the period of the rental agreement.
(5) The lessor is a small landlord.
(6) The residential rental property is a dormitory.
(j) This section shall not apply on or after the date that
is fifteen years after the effective date of this subsection.
(k) As used in this section, the following words and phrases
shall have the meanings given to them in this subsection:
"Area median income." The midpoint of a specific area's
household income distribution, as calculated on an annual basis
by the United States Department of Housing and Urban
Development.
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30 "Board." The Rent Control Advisory Board established under
subsection (f).
"Dormitory." A building constructed and maintained in
connection with an institution of higher education for the use
and occupancy of students in attendance at the institution of
higher education.
"Good cause." Any of the following:
(1) Failure of the tenant to pay the gross rental amount.
(2) Violation by the tenant of a material term of the rental
agreement, after being given a written notice to correct the
violation.
(3) Criminal activity by the tenant on the residential
rental property, including any common area, or criminal activity
or criminal threat on or off the residential rental property
that is directed at the lessor or an agent of the lessor.
(4) Failure of the tenant to vacate the residential rental
property after the termination of the rental agreement or the
end of the rental period under the rental agreement.
"Gross rental amount." As follows:
(1) The monthly amount of money paid by a tenant for rent
for a residential rental property, as specified in the rental
agreement of the tenant.
(2) The term does not include fees, penalties or the costs
of utilities for the residential rental property.
"Institution of higher education." As defined in section
118(c) of the act of March 10, 1949 (P.L.30, No.14), known as
the Public School Code of 1949.
"Lessor." A person, who is a landlord, with an ownership
stake in owning, controlling, leasing, operating or managing a
residential rental property of a tenant.
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30 "Rental agreement." As follows:
(1) A contract or other agreement under which a lessor
allows a tenant to use and occupy a residential rental property.
(2) The term includes a lease or sublease.
"Residential rental property." A dwelling, or unit within a
dwelling, that is used or intended to be used as a place of
human habitation and is the subject of a rental agreement.
"Small landlord." A lessor, who is a landlord, with an
ownership stake in owning, controlling, leasing, operating or
managing fewer than fifteen units in a residential rental
property or in multiple residential rental properties.
"Tenant." An individual who lawfully occupies or intends to
lawfully occupy a residential rental property.
Section 2. This act shall take effect in 60 days.
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