Philadelphia Enacts New Habitability and Lease Renewal Rules

Philadelphia's landlord-tenant laws have long sought to balance the rights of property owners with protections for tenants.  That balance is set to shift significantly with the Safe Healthy Homes Act (“SHHA”), signed by Mayor Cherelle Parker and effective November 1, 2026.  The legislation marks one of the most significant overhauls of Philadelphia’s residential landlord-tenant laws in recent years, expanding tenant protections, creating new remedies for housing-code violations, and imposing additional obligations on landlords. 

This article is the first installment of a two-part series examining the practical and legal implications of SHHA.  This installment focuses on two of the newly enacted legislation's most significant reforms: the expansion of tenants' rights relating to habitability and the extension of Philadelphia's good-cause requirement to virtually all residential lease non-renewals.  Each provision has the potential to reshape how residential properties are managed, how maintenance issues are addressed, and how lease-renewal decisions are made. 

Expanded Habitability Rights Under SHHA 

Pennsylvania courts have recognized the implied warranty of habitability for decades.  Under that doctrine, residential tenants are entitled to premises that are safe, sanitary, and fit for human habitation.  SHHA builds upon those existing protections by expressly codifying a tenant’s right to facilities and services vital to life, health, and safety throughout the duration of the tenancy.  Under SHHA, it unlawful for a landlord, property owner, or property manager to engage in conduct that materially interferes with a tenant's right to habitability.  

SHHA also places renewed emphasis on a landlord's obligation to promptly investigate and correct potentially hazardous conditions. Specifically, landlords in Pennsylvania will now be required to perform repairs and maintenance in a reasonably timely manner and in accordance with applicable standards designed to minimize tenant exposure to mold, lead paint and dust, asbestos, and other conditions that may adversely impact health and safety.  Although what constitutes a "reasonably timely manner" will depend on the particular circumstances, including the severity of the condition and the risk posed to occupants, SHHA leaves little doubt that delays in addressing maintenance issues may create substantial legal exposure.  

New Habitability Presumptions for Philadelphia Landlords 

Perhaps the most significant aspect of SHHA is its creation of a rebuttable presumption of a breach of the implied warranty of habitability.  Historically, tenants asserting habitability claims typically bore the burden of establishing that defective conditions existed, that the landlord had notice of those conditions, and that adequate corrective measures were not taken. SHHA substantially alters that framework.  

Under SHHA, a presumption of a breach arises when a property is in violation of the Philadelphia Property Maintenance Code or Philadelphia Fire Code, the City of Philadelphia’s Department of Licenses and Inspections (“L&I”) has issued a notice of violation, the deadline for curing the violation has expired, no appeal of the violation remains pending, and the cited conditions have not been corrected.  Once those conditions exist, a court may presume that the landlord had notice of the condition, had a reasonable opportunity to correct it, and failed to do so.  

From a practical standpoint, these provisions may significantly alter the dynamics of habitability litigation.  Once the statutory conditions are satisfied, landlords may find themselves rebutting a presumption of liability rather than forcing tenants to prove their claims from the outset.  As a result, documentation relating to property inspections, repair requests, contractor communications, tenant access, and remediation efforts may become increasingly important in defending against habitability claims.  

Rent Abatement Creates New Financial Exposure 

SHHA’s expanded remedies may prove to be just as impactful as the new presumptions of liability.  Under SHHA, if L&I determines that a rental property is unfit, unsafe, or imminently dangerous and the violation is not timely addressed, tenants in Philadelphia may be entitled to full rent abatement during the period of noncompliance.  The abatement may continue until repair work has begun, is actively progressing, and adequate interim measures have been implemented to protect tenant safety and maintain habitability.  

For landlords in Philadelphia, the financial implications can be substantial.  In addition to potential code-enforcement consequences, these landlords may face the prospect of collecting little or no rent while simultaneously incurring the cost of remediation efforts.  The availability of complete rent abatement is also likely to become a powerful settlement and litigation tool for tenants and their counsel.  

SHHA does provide several avenues through which a landlord may rebut the presumption of a breach. For example, a landlord may demonstrate that the tenant denied access necessary to complete repairs, that the alleged violation did not materially affect habitability, that the tenant caused the condition at issue, or that the violations have been corrected.  Nevertheless, landlords in Philadelphia should anticipate that courts will carefully scrutinize the evidence supporting such defenses.  

Good Cause Required for All Lease Non-Renewals

The second major reform contained in SHHA concerns the termination and non-renewal of residential leases. 

Philadelphia has historically imposed certain good-cause requirements in connection with residential tenancies.  SHHA expands those protections by requiring landlords in Philadelphia to establish good cause before taking action to terminate a tenancy upon the expiration of any residential lease, regardless of its duration.  In effect, the mere expiration of a lease term will no longer provide an automatic basis for ending a residential tenancy.  

SHHA further requires landlords in Philadelphia to provide written notice identifying, with reasonable specificity, the basis for the asserted good cause.  Failure to comply with those notice requirements carries meaningful consequences.  Under SHHA, a lease may automatically renew on a month-to-month basis unless the tenant elects otherwise.  As a result, landlords will need to ensure not only that good cause exists, but that it is properly documented and clearly communicated.  

This requirement is likely to affect many common property-management decisions.  Landlords in Philadelphia who previously viewed the expiration of a lease term as a straightforward opportunity to regain possession of a rental unit will now need to identify and articulate a legitimate justification for their decision. 

Litigation Likely Over the New Good-Cause Standard 

Although SHHA identifies certain examples of good cause, it intentionally leaves substantial room for interpretation.  Among other examples, good cause may exist where a landlord possesses grounds for eviction under applicable Pennsylvania law or where the owner has entered into a bona fide agreement of sale with a purchaser who intends to occupy the premises as a principal residence and satisfies specified notice and documentation requirements.  

Significantly, however, SHHA makes clear that these examples are not exhaustive.  The absence of a comprehensive definition almost guarantees future litigation concerning the scope of permissible non-renewal decisions and the limits of a landlord's discretion.  Courts will likely be asked to determine whether redevelopment plans, substantial renovations, changes in business strategy, chronic lease-compliance issues that fall short of eviction grounds, and other operational considerations constitute good cause under the ordinance.  

Landlords in Philadelphia may attempt to address some of these uncertainties through careful lease drafting.  It is foreseeable that future residential leases will contain more detailed provisions addressing circumstances that the parties agree constitute good cause.  Whether those provisions will withstand judicial scrutiny remains uncertain, particularly because SHHA expressly prohibits contractual waivers of statutory tenant protections.  As has occurred with other significant landlord-tenant reforms, the courts will likely play an important role in defining the contours of SHHA over time.  

What Philadelphia Landlords Should Do Before SHHA Takes Effect 

SHHA represents a substantial expansion of tenant rights and a corresponding increase in landlord responsibilities.  Property owners, managers, and their counsel would be well served to begin preparing now rather than waiting for its effective date of November 1, 2026.   

Internal maintenance procedures, inspection protocols, repair documentation systems, lease forms, and tenant communication practices should all be reviewed with these new requirements in mind.  

Perhaps most importantly, landlords should recognize that SHHA reflects a broader shift in Philadelphia housing policy toward enhanced tenant protections and expanded enforcement mechanisms.  SHHA not only increases the consequences associated with unresolved property-condition issues but also restricts the circumstances under which residential tenancies may be terminated.  As a result, proactive compliance, prompt attention to maintenance issues, and careful documentation may prove to be the most effective risk-management tools available to residential property owners.  

SHHA reflects City Council’s continued effort to expand tenant rights while increasing accountability for residential property owners.  Whether the newly enacted legislation ultimately produces safer housing conditions or simply generates additional litigation remains to be seen.  What is already clear, however, is that property owners, managers, and their counsel should begin evaluating existing maintenance protocols, recordkeeping procedures, and lease forms well before SHHA’s effective date of November 1, 2026. 

This article has addressed only part of SHHA's sweeping reforms.  In the second installment of this series, we will examine SHHA’s restrictions on self-help evictions, expanded tenant-organizing rights, enhanced anti-retaliation protections, and new remedies available to tenants.  Together, those provisions are likely to further reshape the relationship between landlords and tenants throughout Philadelphia for years to come. 

Have questions? Reach out to Alan or Dylan to learn more. 

This article was prepared by a licensed Pennsylvania attorney at Nochumson P.C., a Philadelphia-based law firm with extensive experience in all thing's real estate, litigation, land use and zoning, and business counseling.

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