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2 | 2 | | HOUSE DOCKET, NO. 132 FILED ON: 1/10/2023 |
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3 | 3 | | HOUSE . . . . . . . . . . . . . . . No. 1319 |
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4 | 4 | | The Commonwealth of Massachusetts |
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5 | 5 | | _________________ |
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6 | 6 | | PRESENTED BY: |
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7 | 7 | | William C. Galvin |
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8 | 8 | | _________________ |
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9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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10 | 10 | | Court assembled: |
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11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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12 | 12 | | An Act limiting rent increases and creating a rental arbitrator. |
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13 | 13 | | _______________ |
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14 | 14 | | PETITION OF: |
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15 | 15 | | 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 |
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16 | 16 | | HOUSE DOCKET, NO. 132 FILED ON: 1/10/2023 |
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17 | 17 | | HOUSE . . . . . . . . . . . . . . . No. 1319 |
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18 | 18 | | By Representative Galvin of Canton, a petition (accompanied by bill, House, No. 1319) of |
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19 | 19 | | William C. Galvin and others for legislation to limit rent increases and create a rental arbitrator |
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20 | 20 | | within the office of the Attorney General. Housing. |
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21 | 21 | | [SIMILAR MATTER FILED IN PREVIOUS SESSION |
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22 | 22 | | SEE HOUSE, NO. 4953 OF 2021-2022.] |
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23 | 23 | | The Commonwealth of Massachusetts |
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24 | 24 | | _______________ |
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25 | 25 | | In the One Hundred and Ninety-Third General Court |
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26 | 26 | | (2023-2024) |
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27 | 27 | | _______________ |
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28 | 28 | | An Act limiting rent increases and creating a rental arbitrator. |
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29 | 29 | | Whereas, The deferred operation of this act would tend to defeat its purpose, which is to |
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30 | 30 | | establish forthwith a rental arbitrator and limit rent increases for residential tenants, therefore it is |
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31 | 31 | | hereby declared to be an emergency law, necessary for the immediate preservation of the public |
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32 | 32 | | convenience. |
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33 | 33 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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34 | 34 | | of the same, as follows: |
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35 | 35 | | 1 SECTION 1. Chapter 12 of the General Laws, as appearing in the 2020 Official Edition, |
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36 | 36 | | 2is hereby amended by adding the following section:- |
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37 | 37 | | 3 Section 36. (a) For the purposes of this section the following terms shall, unless the |
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38 | 38 | | 4context clearly requires otherwise, have the following meanings:- |
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39 | 39 | | 5 “Chained Consumer Price Index for All Urban Consumers” or “C-CPI-U”, the consumer |
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40 | 40 | | 6price index for all urban consumers, defined in 26 U.S.C. § 1(f)(6) and published by the Bureau |
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41 | 41 | | 7of Labor Statistics of the Department of Labor. 2 of 4 |
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42 | 42 | | 8 “Dwelling unit”, any building or structure, or any unit therein or part thereof, and all the |
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43 | 43 | | 9common areas inside and outside such building or structure, occupied or intended for occupancy |
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44 | 44 | | 10as a residence by 1 or more individuals; including manufactured housing or a lot therefor. The |
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45 | 45 | | 11term “dwelling unit” shall not include publicly subsidized housing units. |
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46 | 46 | | 12 “Landlord”, the owner or managing agent of any dwelling unit. |
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47 | 47 | | 13 “Lease”, an agreement, whether in writing or otherwise, between a landlord and tenant |
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48 | 48 | | 14for the rent of a dwelling unit or any room therein. |
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49 | 49 | | 15 “Rental arbitrator”, a position within the office of the attorney general that receives, |
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50 | 50 | | 16reviews and assists in the resolution of complaints from landlords and tenants. |
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51 | 51 | | 17 “Significant investment or improvement”, the replacement or substantial modification of |
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52 | 52 | | 18any structural, electrical, plumbing or mechanical system, and other improvements beyond |
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53 | 53 | | 19routine maintenance or cosmetic changes. |
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54 | 54 | | 20 “Tenant”, a person occupying a dwelling unit. |
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55 | 55 | | 21 (b)There shall be a rental arbitrator within the office of the attorney general, to be |
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56 | 56 | | 22appointed by the attorney general. The rental arbitrator shall receive, review and assist in |
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57 | 57 | | 23resolving complaints from tenants and landlords, including complaints regarding rent increase |
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58 | 58 | | 24disputes for dwelling units. |
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59 | 59 | | 25 (c) A landlord shall not increase a tenant’s rent or the total rent of a dwelling unit during |
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60 | 60 | | 26any 12-month period, even if a new lease agreement is signed or other rental agreement is |
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61 | 61 | | 27entered into, by an amount of more than 5 per cent plus the most recent Chained Consumer Price |
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62 | 62 | | 28Index for All Urban Consumers, or 10 per cent, whichever is lower. The landlord may increase 3 of 4 |
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63 | 63 | | 29the existing tenant’s rent by an amount of more than 5 per cent plus the C-CPI-U, or 10 per cent, |
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64 | 64 | | 30whichever is lower, if the landlord can show cause to the tenant for the greater increase, which |
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65 | 65 | | 31the landlord shall explain in writing. Cause for a rent increase without restriction may include, |
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66 | 66 | | 32but is not limited to: significant investment and improvement by the landlord to the dwelling unit |
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67 | 67 | | 33during the preceding 12 calendar months; the introduction of additional tenants to the dwelling |
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68 | 68 | | 34unit; or the introduction of pets or additional pets into the dwelling unit. A tenant may appeal a |
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69 | 69 | | 35rent increase that violates this subsection to the rental arbitrator. |
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70 | 70 | | 36 (d) A landlord signing a lease with a new tenant is not subject to the rent increase |
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71 | 71 | | 37restrictions of subsection (c). However, a landlord shall not deny the renewal of an existing |
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72 | 72 | | 38tenant’s lease to avoid the rent increase restrictions of said subsection (c). Tenants may submit |
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73 | 73 | | 39complaints of lease nonrenewal in violation of this subsection to the rental arbitrator. |
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74 | 74 | | 40 (e) Upon the receipt of a credible complaint of a violation of this section, the rental |
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75 | 75 | | 41arbitrator shall notify all involved parties and permit them to submit statements and evidence for |
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76 | 76 | | 42the arbitrator’s review. The rental arbitrator may conduct a hearing. For disputes involving rent |
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77 | 77 | | 43increases, the tenant shall continue to pay their existing rent until the rental arbitrator issues a |
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78 | 78 | | 44determination on whether the rent increase violates this section. The rental arbitrator shall reach |
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79 | 79 | | 45a final determination within 90 calendar days of receipt of the initial complaint. |
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80 | 80 | | 46 The rental arbitrator’s determination that the landlord violated subsection (c) shall serve |
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81 | 81 | | 47as an affirmative defense for a tenant to an eviction action for nonpayment of rent. |
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82 | 82 | | 48 (f) Landlords who violate this section shall return rent overpayments to tenants and may |
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83 | 83 | | 49be punished for a first offense by a fine of not more than $1,000, for a second offense, by a fine |
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84 | 84 | | 50of not less than $1,000. 4 of 4 |
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85 | 85 | | 51 (g) The rental arbitrator may conduct an annual review of the rental market and, if they |
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86 | 86 | | 52find that market conditions require it, may permit landlords to increase rent by more than the |
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87 | 87 | | 53restrictions provided for in subsection (c). |
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88 | 88 | | 54 (h) Annually, not later than January 1, the rental arbitrator shall file a report on their |
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89 | 89 | | 55activities with the clerks of the house of representatives and senate and the joint committee on |
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90 | 90 | | 56housing. The report shall include, but not be limited to: (i) the number of complaints received by |
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91 | 91 | | 57the rental arbitrator; (ii) the types of complaints received by the rental arbitrator; (iii) the types of |
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92 | 92 | | 58outcomes reached for the complaints received; and (iv) any observations or recommendations of |
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93 | 93 | | 59the rental arbitrator on the state of the residential rental market. |
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94 | 94 | | 60 SECTION 2. Chapter 40P of the General Laws is hereby repealed. |
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