The Big Picture
Philadelphia has finalized the Safe Healthy Homes Act, a package of local ordinances that establishes new landlord-tenant requirements, substantially expanding and complicating compliance obligations for housing providers across the city. The final two measures were approved by the Philadelphia City Council in April and signed by Mayor Cherelle Parker, effective November 1, 2026.
The legislation strengthens “anti-retaliation” measures, expands existing lease termination requirements, enhances rental licensing obligations and authorizes a proactive rental inspection program. Together, the measures create new administrative, compliance and litigation risks for housing providers while adding complexity to rental housing operations.
During consideration of the Safe Healthy Homes Act, the Pennsylvania Apartment Association (PAA) informed policymakers about potential adverse impacts to rental housing and advocated for approaches that enable housing providers to operate efficiently while preserving the city’s housing supply.
PAA’s Vice President of Government Affairs, Steve Chintaman, quoted “Our advocacy has centered on real-world issues that housing providers encounter every day from permitting and contractor delays to tenant access and property-wide compliance requirements. We have urged policymakers to incorporate meaningful safe harbors, reasonable cure periods, materiality standards, and unit-specific compliance protections so that responsible providers are not penalized for circumstances beyond their control or for minor violations unrelated to a particular resident’s home.
PAA supports the goal of ensuring that Philadelphia residents have safe, healthy housing. Our role throughout this process has been to bring the perspective and experience of housing providers to the table and help ensure that the final legislation achieves that goal in a practical, balanced, and sustainable way. We appreciate the continued dialogue with Council and remain committed to advocating for regulations that protect residents while allowing responsible housing providers to operate effectively and address issues promptly.”
What the Legislation Does
The Safe Healthy Homes Act consists of multiple interconnected reforms that affect rental operations. Among the most significant changes are expanded “anti-retaliation” measures that broaden the types of tenant activities covered by local law and increase available remedies for alleged violations. Industry stakeholders have expressed concern that the expanded standards could create additional litigation exposure and make it more difficult for housing providers to address legitimate operational and lease enforcement issues.
The legislation also expands Philadelphia's existing "good cause" requirements for lease terminations and non-renewals. Beginning November 1, 2026, housing providers will be limited to a defined set a reasons to terminate tenancy or non-renew a lease, extending requirements that previously applied more narrowly. Similar to industry-wide concerns about just cause eviction mandates, PAA and other stakeholders have warned that expanded good-cause requirements can reduce operational flexibility and complicate housing providers’ ability to manage rental communities effectively.
The legislation also expands rental licensing and inspections requirements, establishes a new “right to organize” for tenant unions and creates an unfunded anti-displacement fund for renters to access when their homes have been designated uninhabitable.
What It Means for the Industry
Philadelphia’s Safe Healthy Homes Act reflects growing concern about local policies that might be hurting the very populations they intend to help. A study conducted by economists from MetroSight – sponsored by the National Apartment Association (NAA) and the National Multifamily Housing Council (NMHC) – shows that some housing regulations, including good cause eviction mandates, increase the cost of rent, particularly for lower-income renters and those renting from small multifamily properties. This report importantly builds on findings released earlier in 2025, revealing that overregulation can increase operating costs. NAA is grateful for PAA’s advocacy efforts throughout the legislative process and appreciates its work to highlight the impacts of these policies on rental communities.
Legal Implications
The Safe Healthy Homes Act remains the subject of ongoing litigation that could influence how portions of the legislation are interpreted and enforced in the future. A lawsuit originally filed in Pennsylvania state court by two Philadelphia housing providers has since been removed to federal court. The plaintiffs initially alleged that City Council violated Pennsylvania's Sunshine Act and the City's Home Rule Charter during the legislative process. Those claims temporarily delayed the City Council's consideration of the legislation. However, the package was enacted, and the dispute now continues in federal court.
The plaintiffs have expanded their claims to include constitutional and property rights arguments connected to the new obligations under the legislation imposed on housing providers. The plaintiffs sought emergency relief, but the federal court declined to issue a temporary restraining order preventing the law from taking effect. Instead, it established a case management schedule extending into 2027. The parties are now in the discovery phase of litigation.
While these procedural developments do not indicate how the court will ultimately rule on the merits, they remain noteworthy for housing providers. The court's decision to allow the case to proceed suggests that the plaintiffs' claims do warrant further review. Therefore, the legality of the challenged provisions of the Safe Healthy Homes Act will likely remain unsettled after the ordinances take effect in November. NAA will continue to monitor the litigation and provide updates as the case progresses. In the meantime, housing providers should continue working with local counsel to ensure their operations and policies are prepared for the implementation date and remain compliant with applicable legal requirements.
Deeper Dive
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