1 of 1 HOUSE DOCKET, NO. 132 FILED ON: 1/10/2023 HOUSE . . . . . . . . . . . . . . . No. 1319 The Commonwealth of Massachusetts _________________ PRESENTED BY: William C. Galvin _________________ To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General Court assembled: The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: An Act limiting rent increases and creating a rental arbitrator. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :DATE ADDED:William C. Galvin6th Norfolk1/10/2023Lindsay N. Sabadosa1st Hampshire1/13/2023Mike Connolly26th Middlesex2/6/2023Michelle M. DuBois10th Plymouth2/8/2023 1 of 4 HOUSE DOCKET, NO. 132 FILED ON: 1/10/2023 HOUSE . . . . . . . . . . . . . . . No. 1319 By Representative Galvin of Canton, a petition (accompanied by bill, House, No. 1319) of William C. Galvin and others for legislation to limit rent increases and create a rental arbitrator within the office of the Attorney General. Housing. [SIMILAR MATTER FILED IN PREVIOUS SESSION SEE HOUSE, NO. 4953 OF 2021-2022.] The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Third General Court (2023-2024) _______________ An Act limiting rent increases and creating a rental arbitrator. Whereas, The deferred operation of this act would tend to defeat its purpose, which is to establish forthwith a rental arbitrator and limit rent increases for residential tenants, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 SECTION 1. Chapter 12 of the General Laws, as appearing in the 2020 Official Edition, 2is hereby amended by adding the following section:- 3 Section 36. (a) For the purposes of this section the following terms shall, unless the 4context clearly requires otherwise, have the following meanings:- 5 “Chained Consumer Price Index for All Urban Consumers” or “C-CPI-U”, the consumer 6price index for all urban consumers, defined in 26 U.S.C. § 1(f)(6) and published by the Bureau 7of Labor Statistics of the Department of Labor. 2 of 4 8 “Dwelling unit”, any building or structure, or any unit therein or part thereof, and all the 9common areas inside and outside such building or structure, occupied or intended for occupancy 10as a residence by 1 or more individuals; including manufactured housing or a lot therefor. The 11term “dwelling unit” shall not include publicly subsidized housing units. 12 “Landlord”, the owner or managing agent of any dwelling unit. 13 “Lease”, an agreement, whether in writing or otherwise, between a landlord and tenant 14for the rent of a dwelling unit or any room therein. 15 “Rental arbitrator”, a position within the office of the attorney general that receives, 16reviews and assists in the resolution of complaints from landlords and tenants. 17 “Significant investment or improvement”, the replacement or substantial modification of 18any structural, electrical, plumbing or mechanical system, and other improvements beyond 19routine maintenance or cosmetic changes. 20 “Tenant”, a person occupying a dwelling unit. 21 (b)There shall be a rental arbitrator within the office of the attorney general, to be 22appointed by the attorney general. The rental arbitrator shall receive, review and assist in 23resolving complaints from tenants and landlords, including complaints regarding rent increase 24disputes for dwelling units. 25 (c) A landlord shall not increase a tenant’s rent or the total rent of a dwelling unit during 26any 12-month period, even if a new lease agreement is signed or other rental agreement is 27entered into, by an amount of more than 5 per cent plus the most recent Chained Consumer Price 28Index for All Urban Consumers, or 10 per cent, whichever is lower. The landlord may increase 3 of 4 29the existing tenant’s rent by an amount of more than 5 per cent plus the C-CPI-U, or 10 per cent, 30whichever is lower, if the landlord can show cause to the tenant for the greater increase, which 31the landlord shall explain in writing. Cause for a rent increase without restriction may include, 32but is not limited to: significant investment and improvement by the landlord to the dwelling unit 33during the preceding 12 calendar months; the introduction of additional tenants to the dwelling 34unit; or the introduction of pets or additional pets into the dwelling unit. A tenant may appeal a 35rent increase that violates this subsection to the rental arbitrator. 36 (d) A landlord signing a lease with a new tenant is not subject to the rent increase 37restrictions of subsection (c). However, a landlord shall not deny the renewal of an existing 38tenant’s lease to avoid the rent increase restrictions of said subsection (c). Tenants may submit 39complaints of lease nonrenewal in violation of this subsection to the rental arbitrator. 40 (e) Upon the receipt of a credible complaint of a violation of this section, the rental 41arbitrator shall notify all involved parties and permit them to submit statements and evidence for 42the arbitrator’s review. The rental arbitrator may conduct a hearing. For disputes involving rent 43increases, the tenant shall continue to pay their existing rent until the rental arbitrator issues a 44determination on whether the rent increase violates this section. The rental arbitrator shall reach 45a final determination within 90 calendar days of receipt of the initial complaint. 46 The rental arbitrator’s determination that the landlord violated subsection (c) shall serve 47as an affirmative defense for a tenant to an eviction action for nonpayment of rent. 48 (f) Landlords who violate this section shall return rent overpayments to tenants and may 49be punished for a first offense by a fine of not more than $1,000, for a second offense, by a fine 50of not less than $1,000. 4 of 4 51 (g) The rental arbitrator may conduct an annual review of the rental market and, if they 52find that market conditions require it, may permit landlords to increase rent by more than the 53restrictions provided for in subsection (c). 54 (h) Annually, not later than January 1, the rental arbitrator shall file a report on their 55activities with the clerks of the house of representatives and senate and the joint committee on 56housing. The report shall include, but not be limited to: (i) the number of complaints received by 57the rental arbitrator; (ii) the types of complaints received by the rental arbitrator; (iii) the types of 58outcomes reached for the complaints received; and (iv) any observations or recommendations of 59the rental arbitrator on the state of the residential rental market. 60 SECTION 2. Chapter 40P of the General Laws is hereby repealed.