Bill 200381

..Title Amending Chapter 9-800 of The Philadelphia Code, entitled "Landlord and Tenant," requiring landlords to give tenants notice of alternative ways to meet tenant obligations to make security deposits; and by providing for certain landlord and tenant responsibilities related to the payment of rent and security deposits; all under certain terms and conditions. ..Body THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS: SECTION 1. Chapter 9-800 of The Philadelphia Code is hereby amended to read as follows: CHAPTER 9-800 LANDLORD AND TENANT * * * � 9-804. Unfair Rental Practices. * * * (11) Notice Requirement * * * (c) Landlord Notice to Tenant of Alternatives to Paying the Full Amount of a Security Deposit. If a landlord requires a security deposit, the landlord shall offer, at the option of the tenant, one of the following rental security deposit alternatives: (i) rental security insurance; (ii) payment of the security deposit over a series of no less than 6 monthly installment payments, which installments shall be due on the same day as the monthly rent payment and which may be paid together with the monthly rent payment in a single transaction, absent separate agreement by the landlord and tenant; or (iii) payment of the full balance of the security deposit. (.1) Prior to entering into a rental agreement, a landlord shall provide the tenant written notice of the available security deposit alternatives. (A) A landlord and tenant may negotiate terms for rental agreements less than twelve months in length, including month-to-month rental agreements. (B) A tenant is in violation of his or her rental agreement: (1) if he or she does not make payment of required insurance premiums; (2) fails to renew the security deposit insurance; or (3) fails to pay the balance of any security deposit. (.2) If a tenant chooses to provide a security deposit, the landlord shall, at the time payment is received, provide the tenant with a signed receipt for the security deposit and all rental payments, except for payments made by personal check of the tenant. (.3) If a tenant chooses to provide rental security insurance in lieu of a security deposit, the rental security insurance must conform to the following criteria to qualify as a security deposit alternative for the purposes of this subsection: (A) The insurance provider must be an approved carrier licensed by, and in good standing with, the Pennsylvania Department of Insurance; (B) The insurance must permit the payment of premiums on a monthly basis, unless the tenant selects a different payment schedule; (C) The coverage must be effective upon the payment of the first premium and remain effective for the entire lease term; and (D) The coverage provided per claim must be no less than the amount the landlord requires for security deposits. (.6) A tenant who chooses to provide rental security insurance in lieu of a security deposit shall not be required to provide additional security or insurance coverage per claim in an amount greater than the amount required for security deposits. [(c)] (d) The provisions of this subsection (11) shall apply to any residential lease that is executed or renewed after the effective date of this subsection. * * * SECTION 2. This Ordinance shall be effective immediately. __________________________________ Explanation: [Brackets] indicate matter deleted. Italics indicate new matter added. ..End