Pennsylvania law on HOA rental restrictions and fees

Whether a Pennsylvania association can restrict short-term rentals, or charge owners who rent, starts with the recorded declaration. Here are the authorities we rely on, explained for owners rather than lawyers.

The cases

Commonwealth Court · 2024 Chan v. Association of Property Owners of The Hideout, Inc. 323 A.3d 92 (Pa. Cmwlth. 2024), appeal denied, No. 463 MAL 2024 (Pa. Feb. 12, 2025) Bylaw amendment capping short-term rentals and imposing enrollment and annual fees held void: the declaration did not authorize the regulation, and the declaration controls over bylaws. Commonwealth Court · 2024 Ruffed Grouse Ridge Owners’ Association v. Hura 317 A.3d 665 (Pa. Cmwlth. 2024) Renting a home to private parties, short- or long-term, did not violate a covenant limiting use to “private residential purposes only” where renters used it residentially. Carbon County Common Pleas · 2021 Lake Harmony Estates Property Owners Association v. M4 Holdings and Ledgestone Properties, LLC Nos. 16-0472 & 16-0473 (C.P. Carbon Cnty. July 1, 2021) (Serfass, J.) Trial court held a rental registration fee unenforceable against the owners in that case because its revenue paid for expenses benefiting all lots.

Courts do not always agree: Reilly v. Arrowhead Lake

On February 5, 2026, the Court of Common Pleas of Monroe County upheld Arrowhead Lake Community Association’s short-term rental policy. Reilly v. Arrowhead Lake Community Association, No. 8215-CV-2022 (C.P. Monroe Cnty. Feb. 5, 2026). The court distinguished Chan because Arrowhead’s covenants do more than describe the building: they state that lots are reserved and used for single-family residential purposes exclusively, require approval for membership before occupancy, and refer to association rules and charges for use of beaches and recreational areas. The court read that language as authorizing the association’s rental policy without amending the covenants. The decision is on appeal to the Commonwealth Court (No. 314 C.D. 2026).

We include Reilly because it proves the point this site is built on: the outcome depends on the words of the specific declaration. Some declarations give associations real authority over rentals. Many do not. You won’t know which kind you have until someone reads it.

The statute: Pennsylvania’s Uniform Planned Community Act

The declaration prevails over the bylaws. “If there is a conflict between the declaration and the bylaws, the declaration shall prevail except to the extent the declaration is inconsistent with this subpart.” 68 Pa.C.S. § 5203(c) (quoted in Chan, slip op. at 21 n.12).
Association powers are subject to the declaration. The association’s enumerated powers, including adopting bylaws and rules, are granted subject to the provisions of the declaration. 68 Pa.C.S. § 5302(a).
Changing the declaration takes an owner supermajority, not a board vote. 68 Pa.C.S. § 5219(a)(1) sets the number of votes needed to amend a declaration.
Common expenses are shared. General common expenses are assessed against all units by their allocated shares; only expenses benefiting fewer than all units may be assessed against just those units. 68 Pa.C.S. § 5314(b), (c)(2) (applied in Lake Harmony Estates).
Older communities. Many Poconos communities were created before the Act. Certain of its provisions apply to those communities too. 68 Pa.C.S. § 5102(b).

Pending litigation

A federal class action filed in August 2026 challenges the rental fee program at Emerald Lakes in Monroe County. Shelton v. Emerald Lakes Association, Inc., No. 3:26-cv-02320 (M.D. Pa.). The association has moved to dismiss. No court has ruled on the claims; allegations in a complaint are not findings.

Read our guide to HOA short-term rental fees →

Educational information, not legal advice. Cases and statutes are summarized; read the full sources and consult a lawyer about your situation.