Philadelphia Tenants and Large Philadelphia Landlord Reach Class Action Settlement Over Unsafe Housing Conditions and Illegal Rent Collection

Court gives initial approval to first certified class action to provide cash refunds to tenants for violation of Philadelphia’s property maintenance code

 

July 30, 2026 – Tenants at Bentley Manor apartments in West Oak Lane have reached a class action settlement with one of Philadelphia’s largest landlords over unsafe housing conditions and illegal rent collection.

A court has granted preliminary approval of the settlement between the tenants and Odin Properties LLC and affiliated companies, including Fernrock Apartments 2 LP, which is believed to provide the largest per-tenant recovery in a class action under Philadelphia’s rental license and certificate of rental suitability law.

The three named plaintiffs—a Philadelphia police officer, a SEPTA transit operator, and a grandmother with disabilities—are represented by the Public Interest Law Center and Hausfeld LLP.

“We all deserve a safe place to live, no matter who we are,” said Dawn Colbourne, a Bentley Manor tenant and named plaintiff. “This agreement is a step forward in making sure that happens, and I’m glad that we’re taking this step together.”

In November 2024, Bentley Manor was designated “unsafe” by the Philadelphia Department of Licenses and Inspections (L&I). In a notice to the landlord, L&I stated that the “unsafe structure” posed “immediate danger or hazard to health safety and welfare” due to dangerous conditions, including “loose and missing bricks” and a “leaning parapet.”

In certain circumstances, including when properties sit in unsafe status for extended periods of time, Philadelphia law prohibits the collection of rent. The lawsuit alleged that despite that law, landlord Odin failed to repair the building but continued to demand rent from tenants.

After the lawsuit was filed in March 2025, and prior to the settlement being reached, the defendants made the required repairs to Bentley Manor. Now, under the settlement the court preliminarily approved, the defendants will pay cash refunds for part of the rent they illegally collected from tenants and forgive any rent that was demanded but not paid for that same period.

“Every Philadelphia renter has the right to housing. This result helps make that right real: Bentley Manor is safe, and tenants will receive refunds and forgiveness for the months the property was in violation,” said Madison Gray, staff attorney at the Public Interest Law Center. “A settlement was possible because Odin took real steps – on its own – to comply with Philadelphia law. All landlords should follow suit.”

“We are proud of the settlement reached in this case and believe this will provide meaningful results for Philadelphians,” said Will Hanna, an associate at Hausfeld LLP. “We are also grateful to the Public Interest Law Center for their tireless work on behalf of the city.”

Under the preliminarily approved agreement, defendants will provide the class with $141,891.07 in relief, as follows:

  • Forgiving any and all unpaid rent and associated fees or interest – estimated to be $66,891 – for rent and fees charged during the period of time that Bentley Manor remained designated unsafe by the city; and
  • Providing $75,000 in cash refunds to Bentley Manor tenants – an average of more than $1,000 per tenant

All Pennsylvania class action settlements require two major court-approved steps: preliminary approval and final approval. As part of the preliminary approval process, members of the class will now be notified of the settlement and be allowed to provide feedback to the court. The court will hold a hearing on October 26, 2026 to make a final determination on approving the settlement. Read the full March 2025 complaint here.

Read the preliminary approval order here and the settlement here.