PHILADELPHIA—The Philadelphia Boy Scouts chapter moved a step closer Dec. 3 to being evicted from its city-owned home after ignoring a deadline to either reverse the organization’s ban on gay scouts or agree to pay $200,000 in rent.

The Cradle of Liberty Council currently pays $1 a year rent for its city-owned headquarters. But last year, the city said it could not continue to legally rent the property for such a nominal sum to a private group that discriminates.

In an Oct. 17 letter, Philadelphia City Solicitor Romulo Diaz Jr. gave the scouts a Dec. 3 deadline for announcing their decision. The city said the council would have to vacate the property by May 31 if it does not reverse the policy or agree to pay the rent.

Diaz said in a statement that the city would “respect the right of the Cradle of Liberty Council to respond to the city’s notice before the city considers appropriate next steps.”

“For nearly four years the city has tried to reach an agreement under which the council would renounce its discriminatory policy against openly gay youth and adults,” Diaz said in the statement. “Unfortunately, the council has stated repeatedly that it cannot change its policy.”