Philadelphia Eviction Diversion and Good Cause: What Changed for Investors as of Nove

Philadelphia Eviction Diversion and Good Cause: What Changed for Investors as of Nove

Philadelphia, PA · Member since 2012 · 3 posts · 0 votes

By Gwen Perseghin, JG Real Estate

Ending a tenancy in Philadelphia already takes more steps than elsewhere in Pennsylvania. As of November 1, 2026, it is more demanding: a new ordinance extends “good cause” protections to leases of every length. For investors, that changes hold timelines, notice calendars, and how you underwrite vacancy and legal expense in the city.

Eviction Diversion Program (EDP): still required before filing

Under Philadelphia Code § 9-811, while the City runs its mandatory pre-filing diversion program, a landlord has no lawful basis to evict a residential tenant unless the landlord has:

  1. Sent the tenant a Notice of Diversion Rights in writing, by hand delivery or by mail with proof of mailing, using the City’s form

  2. Enrolled in the Eviction Diversion Program, and

  3. Participated in good faith for at least 30 days

The only exception is an imminent threat of harm (including physical harm or harassment). A 2024 amendment removed the program’s expiration date (Bill No. 240245). Skip these steps and the tenant can raise it as a defense; the court may dismiss the case on its own; and the tenant cannot waive the requirement.

In practice (per City EDP landlord materials cited in the source article, Jan. 2026): send the Notice, apply online at the EDP portal with proof of delivery, and once approved, the 30-day period runs (mediation, rental assistance, or direct negotiation). If unresolved and you participated in good faith, you may file on day 31. Municipal Court guidance adds that a landlord who receives Targeted Financial Assistance through EDP must wait 90 days after the last covered month before filing. Separately, accepting TFA also triggers the City’s contractual two-month “protection period” after the last covered month; follow the longer of the City TFA terms and Municipal Court filing rules.

Section 9-811 applies to evictions generally — not only nonpayment cases — subject to the imminent-threat exception.

Good cause before vs. as of November 1, 2026

Since 2019, § 9-804(12) has required good cause to end or decline to renew a lease of less than one year, including month-to-month. Listed grounds include habitual nonpayment or late payment, material lease breach, nuisance, substantial damage beyond normal wear and tear, refusing access after written notice, refusing to sign an extension on materially the same terms, owner/immediate family move-in, refusing a proposed rent increase or lease change (with specific notice steps), and certain vacant-unit renovations (with 60 days’ notice, deposit return, and a right to return at market rent).

Written notice stating the good cause must follow the same schedule as a rent-increase notice. Without it, the lease renews month-to-month. Tenants can challenge within 15 business days at the Fair Housing Commission or in court.

Bill No. 250330-AA (signed May 7, 2026; effective November 1, 2026) amends § 9-804 so that:

  • Good cause applies to any lease, not just under-one-year leases.

  • Good cause is required before “any action to terminate a tenancy,” including notice to vacate, non-renewal/termination, serving a Notice of Diversion Rights under § 9-811, and filing for possession (ejectment excepted).

  • New grounds include cause under 68 P.S. § 250.501(a)(2) or (3) (state Landlord and Tenant Act forfeiture/breach and nonpayment after demand), and a bona fide sale to a buyer who will live in the unit (signed sale agreement, buyer’s statement, at least 60 days’ notice).

  • Notice must state the basis “with reasonable specificity,” on the rent-increase timeline in § 9-804(11): at least 60 days for tenancies of one year or more and 30 days for shorter ones, by hand or first-class mail with proof of mailing.

  • An exception applies when a court finds the landlord has lived in the same unit as their primary residence since the tenancy began.

  • Stronger remedies: expanded retaliation protections; damages or $1,000 per violation; up to triple punitive damages for willful violations; attorney’s fees; even rental license suspension.

Other guardrails

  • Lockouts / self-help that violate § 9-1603 are also unfair rental practices under § 9-804(13).

  • As of November 1, 2026, when filing, give the tenant and the court a Certificate of Rental Suitability issued by L&I no more than 30 days prior to the date of enrollment (Bill 250329-AA § 9-3903(1)(c)—in practice, treat as ≤30 days before filing and confirm with current Municipal Court / L&I guidance), and attach license, CRS copies, and code violations. Pre-1978 properties also need lead certification (§ 6-809(4)).

  • Pennsylvania notice-to-quit periods in 68 P.S. § 250.501 still apply.

Investor takeaway

As of November 1, 2026, "we're just not renewing the one-year lease" is not a plan without good cause and proper written notice — otherwise the lease renews month-to-month. Build EDP time, good-cause notice periods, and CRS/lead filing attachments into your legal timeline and reserves. Nonpayment remains good cause (habitual nonpayment is listed; the amendment also adds nonpayment after demand under state law), but process still matters.

Gwen Perseghin is with JG Real Estate in Philadelphia. Original article (canonical): — JG Real Estate: — Office: 215-467-4100. This is general information about Philadelphia landlord rules, not legal advice. Confirm current City Code, Municipal Court practice, and EDP portal instructions before acting.

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  • Joseph ScoreseBusiness Member
    Banker · Philadelphia · Member since 2009 · 2k+ posts · 646 votes
    5d

    Jared, excellent information and an important wake-up call for Philadelphia real estate investors.

    From a private lending and investment perspective, this is exactly why understanding the local regulatory environment is just as important as understanding the numbers.

    Investors spend considerable time analyzing acquisition costs, rental income, cash flow, and potential appreciation. However, the ability to regain possession of a property, manage a nonperforming tenant, and control operating expenses can have just as much impact on the investment's success.

    Philadelphia's expanded Good Cause requirements add another layer of complexity, particularly for smaller landlords who may not have the financial reserves to absorb extended vacancies, missed rental payments, or legal expenses.

    My concern is the longer-term impact on investor confidence. When operating costs and regulatory risks increase, investors naturally reconsider acquisition prices, required returns, and where they deploy capital.

    The opportunity in Philadelphia hasn't disappeared, but the margin for error continues to narrow.

    Investors need to underwrite conservatively, maintain adequate reserves, understand their legal obligations, and surround themselves with experienced professionals.

    At the end of the day, successful investing isn't just about buying the property at the right price. It's about understanding what it takes to own, operate, and eventually exit that investment profitably.

    Joseph V. Scorese
    Nationwide Direct Private Lender

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