Gov. Josh Shapiro’s statewide Housing Action Plan is drawing both support and criticism from rental housing stakeholders, positioning Philadelphia operators for significant changes in permitting, leasing and budgeting.
The administration began developing the initiative in September 2024 and outlined it at a press event in North Philadelphia, with state and local cooperation required to enact core elements.
State Plan Overview and Market Context
The proposal seeks a $1B infrastructure fund dedicated to supporting new housing construction and calls for local governments to streamline processes that have slowed development.
Pennsylvania ranked No. 44 for new home construction between 2017 and 2023, and a 185,000-unit shortage is projected by 2035 if no action is taken.
In prior coverage, the Pennsylvania Housing Action Plan has been central to statewide housing policy discussion.
Zoning and Permitting Changes
The plan would make accessory dwelling units, duplexes and triplexes by right in single-family zones, a shift that could expand unit mixes and accelerate small-scale infill.
Property managers would need to prepare for varied building configurations and updated compliance checks as local permitting is adjusted.
Industry voices backed the zoning component, and Mo Rushdy praised Shapiro’s support for the Local Economic Revitalization Tax Assistance Act tied to a 20-year residential conversion abatement discussion in City Council.
Renter Protections and Fee Policies
Shapiro proposes additional eviction protections, a ban on denying tenants who use public assistance to pay rent, and caps on security deposits and rental application fees.
These changes would require revisions to leasing policies, screening protocols and accounting systems to align with new thresholds.
Steven Chintaman noted support for zoning reform but warned that added landlord costs could be passed to renters, reducing affordability.
Manufactured Housing Provisions
The plan targets manufactured home communities by capping annual rent increases and granting tenants a right of first refusal if a property is sold.
Operators would have to adapt budgets and reserve planning if rent adjustments lag operating costs, with potential implications for maintenance schedules.
The Pennsylvania Manufactured Housing Association cautioned that rent caps can lead to deferred maintenance, reduced services and weaker investment.
Alignment With Local and Federal Actions
The initiative shares goals with Mayor Cherelle Parker’s HOME Initiative to build or preserve 30,000 units by January 2028, supported by an $800M bond approved last month.
At the federal level, the House passed the Housing for the 21st Century Act 390-9 to streamline reviews and set zoning reform guidelines, with Senate action expected.
Together, these moves could compress timelines for new projects while expanding compliance obligations for managed properties.