Last week, the Philadelphia City Council passed legislation as part of the “Safe Healthy Homes Act” introducing new compliance obligations, along with severe penalties for non-compliance, for landlords operating within the city. The ordinance, expected to become effective in November 2026, reflects a clear policy shift toward enhanced tenant protections and more aggressive compliance procedures.
Highlights & Key Provisions Landlords Need to Know
Although the full scope of obligations will depend on final regulatory interpretation, several provisions are particularly noteworthy for landlords:
- Mandatory Correction of Serious Violations; No Rent Collection While Noncompliant: Landlords must correct any unsafe, unfit, or imminently dangerous violations within 30 days of receiving notice, unless a timely appeal is filed. Failure to correct within 30 days, absent a timely appeal, will result in the landlord being deemed noncompliant. During any period of noncompliance or license suspension, landlords must not collect rent or recover possession.
- Expanded Tenant Private Right of Action: Tenants now have a private right of action to: (a) compel compliance; (b) seek injunctive relief; (c) recover compensatory damages or $1,000 per violation, whichever is greater; and (d) recover attorney’s fees.
- Rent Abatement and Refunds for Unlawfully Collected Rent: Tenants are entitled to rent abatement and a refund for any period in which an owner collected rent without a valid rental license or certificate of rental suitability.
Impact on Property Owners
This legislation significantly increases the risk for landlords in Philadelphia, particularly those who may have informal compliance practices, legacy licensing gaps, or open code violations. The introduction of a private right of action, coupled with monetary damages and fee-shifting provisions creates a heightened litigation environment that is likely to encourage tenant-driven enforcement.
The City’s expanded enforcement framework makes proactive compliance more important than ever, as regulatory violations may now expose landlords to both municipal enforcement actions and private claims by tenants.
Call to Action
In anticipation of the law’s effective date, landlords should take immediate steps to review and confirm full compliance with all applicable Philadelphia licensing, permitting, and rental registration requirements. This includes:
- Conducting a comprehensive audit of zoning, rental licenses, and property registrations.
- Verifying compliance with all applicable housing and safety regulations.
- Reviewing lease forms and rent collection practices for conformity with new requirements.
- Addressing any outstanding or historical compliance gaps before the law takes effect.
Early action is strongly recommended since there is potential for significant financial risk for landlords, including damages, rent refunds, and attorneys’ fees if action is not taken.
Flaster Greenberg Philadelphia Real Estate Attorneys Can Help
Flaster Greenberg’s Real Estate & Land Use Practice Group is closely monitoring its implementation and is available to assist property owners and landlords in proactively addressing compliance risks by
- Conducting licensing and regulatory compliance audits.
- Identifying and remediating potential violations before enforcement begins.
- Assisting with applications and appeals for necessary zoning approval.
- Evaluating exposure under the new private right of action framework.
- Developing risk mitigation strategies tailored to individual portfolios.
The legislation may be subject to legal challenge or appeal before or after it takes effect, which could impact the scope, timing, or enforceability of certain provisions. Already a federal lawsuit threatening to invalidate the legislation was filed. Flaster Greenberg will continue to monitor the situation, but proactively addressing compliance is always recommended.
For questions or assistance, please contact Michael Egnal, Esq. or any member of Flaster Greenberg’s Real Estate & Land Use Group.
