PRINTER'S NO. 3517
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2498
Session of
2024
INTRODUCED BY HOWARD, KHAN, KINSEY, SCHLOSSBERG, SANCHEZ,
CERRATO, CONKLIN, DELLOSO, D. WILLIAMS, DALEY AND GREEN,
JULY 23, 2024
REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
JULY 23, 2024
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 creation of leases, statute of frauds
and mortgaging of leaseholds, further providing for leases
for not more than three years and for leases for more than
three years and providing for notice of building credit
through rent reporting program for residential leases; and
providing for reporting rent payment information to consumer
reporting agency program.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 201 and 202 of the act of April 6, 1951
(P.L.69, No.20), known as The Landlord and Tenant Act of 1951,
are amended to read:
Section 201. Leases for Not More Than Three Years.--[Real]
Subject to section 207, real property, including any personal
property thereon, may be leased for a term of not more than
three years by a landlord or his agent to a tenant or his agent,
by oral or written contract or agreement.
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Section 202. Leases for More Than Three Years.--[Real]
Subject to section 207, real property, including any personal
property thereon, may be leased for a term of more than three
years by a landlord to a tenant or by their respective agents
lawfully authorized in writing. Any such lease must be in
writing and signed by the parties making or creating the same,
otherwise it shall have the force and effect of a lease at will
only and shall not be given any greater force or effect either
in law or equity, notwithstanding any consideration therefor,
unless the tenancy has continued for more than one year and the
landlord and tenant have recognized its rightful existence by
claiming and admitting liability for the rent, in which case the
tenancy shall become one from year to year.
Section 2. The act is amended by adding a section to read:
Section 207. Notice of Building Credit through Rent
Reporting Program for Residential Leases.-- (a) Except as
provided in subsection (c), a lease made under section 201 or
202 for an individual dwelling unit on residential property with
a landlord or a landlord's agent which is required to establish
a Building Credit through Rent Reporting Program under Article
II-A, shall include written notice of the program in a form
prescribed by Article II-A and a written receipt of notice that
shall be signed by the tenant or the tenant's agent at the time
of entering the lease regardless of the tenant's eligibility for
the program.
(b) Written notice and signed receipt are required under
subsection (a) whether the lease is oral or written and does not
depend on the duration of the term of the lease.
(c) Unless otherwise required by law or the program
established by a landlord or the landlord's agent, when a
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landlord or the landlord's agent is in possession of a receipt
of notice signed by a tenant or the tenant's agent, no
additional receipt of notice is required at the time of entering
or renewal of the subsequent and consecutive lease if the
subsequent and consecutive lease is for the same individual
dwelling unit with a term of equal duration entered or renewed
by automatic, reconstitution or holdover.
(d) As used in this section, the following words and phrases
shall have the meanings given to them in this subsection unless
the context clearly indicates otherwise:
"Dwelling unit" means a portion of real property, including
any personal property, designated for a separate occupancy, the
boundaries of which are determined by a landlord subject to the
terms of the lease. The term does not include a portion of real
property or space owned by a landlord and subject to lease for
the placement of a home owned by a tenant.
"Program" means a building credit through rent reporting
program established by a landlord under Article II-A.
"Written notice" means any writing by hand or typed,
including an electronic communication if the electronic
communication is sent to an email address specified by the
receiving party.
Section 3. The act is amended by adding an article to read:
ARTICLE II-A.
REPORTING RENT PAYMENT INFORMATION
TO CONSUMER REPORTING AGENCY PROGRAM.
Section 201-A. Scope of article.
This article provides for the reporting of a tenant's on-time
rent payment information to consumer reporting agencies through
an opt-in program offered by the landlord or the landlord's
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agent to a tenant leasing an individual dwelling unit of real
property, including personal property within the property, for
residential purposes.
Section 202-A. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Committee." The Legislative Budget and Finance Committee.
"Consumer reporting agency." As follows:
(1) An entity:
(i) As defined under 15 U.S.C. § 1681a(p) (relating
to definitions; rules of construction); or
(ii) As defined under 15 U.S.C. § 1681a(f) so long
as the consumer reporting agency resells or otherwise
furnishes rental payment information to a nationwide
consumer reporting agency as defined under 15 U.S.C. §
1681a(p).
(2) The term includes, but is not limited to, Experian,
Equifax, TransUnion or other third-party vendor that reports
rent payments to a nationwide consumer reporting agency as
described under paragraph (1).
"Dwelling unit." A portion of the real property, including
any personal property, designated for separate occupancy, the
boundaries of which are determined by the landlord and subject
to the terms of the lease. The term does not include a portion
of real property or space owned by a landlord and subject to
lease for the placement of a home owned by a tenant.
"Eligible tenant." A tenant:
(1) Who has a lease with a landlord for a residential
dwelling unit.
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(2) Whose lease complies with section 201 or 202.
(3) Whose name appears on the lease.
"Landlord." A person or a person's agent that owns 15 or
more leased individual dwelling units for residential purposes.
The leased units may be situated in one or more locations and
may be contained in single or multiple structured sites. All
residential properties that the landlord has 50% or more
ownership or 50% or more stock holdings in the owner of the real
property or any subsidiary or parent entity of the landlord,
shall be included when determining the number of individual
dwelling units leased by the landlord.
"Opt-in" or "opt into." A mechanism that requires a tenant
to take an affirmative action to provide consent to join or take
part in a program.
"Person." A natural person, corporation, partnership,
association, trust, other entity or any combination thereof.
"Positive rent payment." Payment of rent by a tenant to a
landlord in full on or before the due date as required under the
terms of a lease.
"Program." A building credit through rent reporting program
established by a landlord under section 203-A.
"Rent payment information." Information concerning a
tenant's timely payment of rent and fees. The term includes fees
that may be included at a landlord's sole discretion which are
specified in the terms of the lease, including late rent payment
fees and costs or services related to the occupancy of the
individual dwelling unit, such as garbage collection, fee for
participation in the program or other pass-through billing.
"Third-party vendor." An entity that contracts with a
landlord to provide the technology capabilities and opt-in
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platforms that furnish data of a tenant's positive rent payment
to at least one nationwide consumer reporting agency.
"Written election." A communication of election of a tenant
that may be handwritten, typed, electronic or other manner that
is not oral if the election clearly identifies the sending party
and intent of the sending party.
"Written notice." A notice that is handwritten, typed or an
electronic communication if the electronic communication is sent
to the email address specified by the receiving party.
Section 203-A. Establishment.
(a) General rule.--Except as provided under subsection (b),
within six months of the effective date of this subsection, a
landlord shall establish an opt-in program to allow an eligible
tenant to request and consent to positive rent payment
information reporting to a consumer reporting agency. The
following shall apply:
(1) The landlord, in the landlord's sole discretion,
shall submit or hire a third-party vendor to submit a
tenant's positive rent payment information to at least one
consumer reporting agency.
(2) After establishment of the program, all tenants
shall be provided a copy of the requirements to participate
in the program.
(3) A standard form developed under section 207-A must
be provided to all tenants at the time of entering a lease
for a residential dwelling unit under sections 201 and 202.
(4) Any time after tenancy occurs, a tenant may request
the standard form under section 207-A. If a tenant requests a
standard form, the form shall be provided to the tenant
within five days of the request.
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(5) To participate in the program, a tenant must:
(i) Be an eligible tenant.
(ii) Submit a written election.
(b) Exceptions.--
(1) The requirement under subsection (a) may not apply
to a landlord who offers to a tenant positive rent payment
reporting to a consumer reporting agency prior to the
effective date of subsection (a).
(2) This subsection shall not apply if the landlord
discontinues a positive rent payment reporting program
established prior to the effective date of subsection (a).
Section 204-A. Notice.
Within 30 days of the establishment of a program under
section 203-A, a landlord shall provide written notice of the
establishment of the program to each of the tenants named on a
lease and post the information:
(1) On a publicly accessible Internet website of the
landlord, if applicable.
(2) At any locations in which in-person rent payments
are accepted.
Section 205-A. Offer of rent reporting.
(a) General rule.--A landlord shall offer to all eligible
tenants the option to participate in the program in accordance
with all requirements under this article.
(b) Contents of offer.--Each eligible tenant shall receive
an offer to opt into the program that contains the following
information:
(1) The eligible tenant's participation in the program
is voluntary.
(2) To participate in the program the eligible tenant
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must submit a written election.
(3) At any time an eligible tenant may withdraw from
participation in the program by submitting a written election
to withdraw.
(4) The name of the consumer reporting agency to which
the eligible tenant's rent payment information will be
submitted.
(5) In accordance with section 208-A(a), the fee, if
any, that will be charged to the eligible tenant to
participate in the program.
(6) The address to which an eligible tenant shall submit
a required written election.
(7) Failure to pay the fee charged for an eligible
tenant to participate in the program shall result in removal
from the program.
(8) An eligible tenant's written election to withdraw
from the program after participation was elected shall
prohibit participation in the program by the withdrawing
tenant for six months after the election to withdraw occurs.
(c) Standard form.--A copy of the standard form developed
under section 207-A shall be affixed to the offer to opt into
the program.
Section 206-A. Acceptance.
(a) General rule.--Except as provided in subsection (b), an
eligible tenant may opt in at any time after notification of the
availability of the program. The offer to provide a written
election to opt in does not expire and shall not need to be
accepted at the time of offer.
(b) Exception.--An offer may not be accepted if a tenant is
not an eligible tenant or if the eligible tenant owes past due
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rent or fees under the terms of the lease.
Section 207-A. Standard form.
The Bureau of Consumer Protection within the Office of
Attorney General shall develop a standard form for completion by
an eligible tenant with an affixed signature block that the
eligible tenant shall date and sign to accept the offer of rent
payment information reporting. The standard form shall include
the contents of the offer required under section 205-A(b) and
any other information the landlord includes to assist an
eligible tenant with participating in the program and efforts to
build a positive credit history responsibly, including the
availability of financial education courses and online solutions
to learn more about data accuracy, transparency and consumer
data control and dispute rights under the law.
Section 208-A. Fees.
(a) General rule.--When an eligible tenant elects to
participate in the program, a landlord may require the eligible
tenant to pay a fee prior to participation and monthly
thereafter as a condition of participation in the program.
(b) Amount of fee.--A fee charged under subsection (a) shall
be equal to the actual cost required to submit data to a
consumer reporting agency, or $5, whichever is less.
(c) Failure to pay fee.--
(1) The failure to pay a fee charged under this section:
(i) Shall be grounds for removal of a tenant from
the program in accordance with paragraph (3).
(ii) May not be a cause for termination of tenancy
under the terms of the lease.
(2) Any unpaid fee under this section:
(i) May not be deducted from a tenant's security
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deposit.
(ii) Shall be collectable as money past due.
(3) If the fee remains unpaid for 30 days or more, an
eligible tenant shall be deemed as terminating participation
in the program and may be removed from the program.
Section 209-A. Withdrawal, removal and discontinuance of the
program.
(a) Withdrawal.--A tenant may withdraw from participation in
the program at any time by submitting a written election to
withdraw from the program to the tenant's landlord or a third-
party vendor that administers the program for a landlord. If a
written election to withdraw is received after reporting of rent
payment information has occurred for the reporting period, the
withdrawal shall begin the reporting period immediately
following receipt.
(b) Removal from program.--
(1) An eligible tenant shall be removed from the program
when the tenant:
(i) is no longer an eligible tenant; or
(ii) fails to pay the fee required under section
208-A.
(2) An eligible tenant that is removed from the program
under this subsection may be barred from electing to
participate in the program for a period of one year after
removal.
(3) An eligible tenant who holds rent in an escrow
account for legal cause:
(i) May not be removed from the program.
(ii) Shall not be in violation of withholding a
required fee under section 208-A.
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(c) Discontinuance.--If at any time a landlord no longer
meets the requirements of a landlord under this article, the
landlord may discontinue the program in its entirety. Written
notice of the discontinuance of the program shall be provided to
all tenants participating in the program. Fees related to the
program may not be charged to the tenant from the date of
discontinuance. Within five days of discontinuance of the
program, unused or prepaid fees shall be refunded to the tenant
who paid the fees.
Section 210-A. Third-party vendor contracts.
A landlord may contract with a third-party vendor that
specializes in rent reporting to meet the requirements of this
article.
Section 211-A. Duties of committee.
(a) Data review.--The committee shall:
(1) Develop a rubric for data review of the outcomes of
the program.
(2) Develop criteria to measure the effectiveness of the
program.
(3) Request information that is not protected from
disclosure from State and local agencies for the report
required under subsection (b).
(4) Request information or input from individuals,
groups or organizations within the industry that have a
purpose related to tenant's or landlord rights to develop the
rubric, determine effectiveness of the program and to make
findings or recommendations.
(b) Report.--Every four years, the committee shall submit to
the chairperson and minority chairperson of the Urban Affairs
and Housing Committee of the Senate and the chairperson and
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minority chairperson of the Housing and Community Development
Committee of the House of Representatives a report on:
(1) The impact of the program on credit visibility.
(2) Public policy effects of the program.
Section 4. This act shall take effect in six months.
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