Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H4074 Compare Versions

Only one version of the bill is available at this time.

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2	2	HOUSE DOCKET, NO. 4534 FILED ON: 8/18/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 4074
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Erika Uyterhoeven
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act authorizing the city of Somerville to enact Right to Purchase Legislation.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Erika Uyterhoeven27th Middlesex8/18/2023 1 of 8
16	16	HOUSE DOCKET, NO. 4534 FILED ON: 8/18/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 4074
18	18	By Representative Uyterhoeven of Somerville, a petition (accompanied by bill, House, No.
19	19	4074) of Erika Uyterhoeven (with the approval of the mayor and city council) that the city of
20	20	Somerville be authorized to establish a program to provide certain tenants and entities the right
21	21	to purchase the residential property in which the tenants reside when that residential property is
22	22	being offered for sale. Housing. [Local Approval Received.]
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Third General Court
26	26	(2023-2024)
27	27	_______________
28	28	An Act authorizing the city of Somerville to enact Right to Purchase Legislation.
29	29	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
30	30	of the same, as follows:
31	31	1 PREAMBLE
32	32	2 The City of Somerville is herein authorized to enact a local ordinance for the purposes of
33	33	3preserving affordable housing, providing tenant stability, and maintaining the general welfare of
34	34	4Somerville residents. The ordinance will : (a) afford certain tenants and entities the right to
35	35	5purchase the residential property in which the tenant(s) reside(s), when that residential property
36	36	6is being offered for sale; and (b) set forth the manner in which that right to purchase shall be
37	37	7effectuated, as well as establish remedies for violations. The ordinance shall contain substantially
38	38	8the same language set forth in this Act, and may also contain additional language, terms and
39	39	9provisions consistent with effectuating the purposes of this Act.
40	40	10 SECTION I: DEFINITIONS 2 of 8
41	41	11 For purposes of this Act, the following words shall have the following meanings:
42	42	12 “Bona Fide offer”- an offer made with honest and serious intent in an arm’s length
43	43	13transaction for a fixed consideration.
44	44	14 “City” - the City of Somerville, Massachusetts.
45	45	15 “City Designee” - a nonprofit organization established pursuant to chapter 180 of the
46	46	16General Laws, a public land trust, or other entity that has been designated by the City to acquire
47	47	17residential properties and to maintain those properties as affordable housing pursuant to a deed
48	48	18restriction, with terms as prescribed by the City.
49	49	19 “Covered property” - residential property located in the City of Somerville that is not
50	50	20exempt from this Act pursuant to Section 4 of this Act.
51	51	21 “Owner” - a person, firm, partnership, corporation, trust, organization, limited liability
52	52	22company or other entity or its successors or assigns that holds title to Residential Property as
53	53	23defined herein.
54	54	24 “Purchase and Sale ” - a written agreement whereby an Owner agrees to sell property
55	55	25including, without limitation, a purchase and sale agreement, contract of sale, purchase option, or
56	56	26other similar instrument.
57	57	27 “Residential Property” - a building structure, or one or more units therein, designed and
58	58	28equipped for human habitation and located within the City of Somerville.
59	59	29 “Sale” - an act by which an Owner conveys, transfers or disposes of property by deed or
60	60	30otherwise, whether through a single transaction or a series of transactions; provided that a 3 of 8
61	61	31disposition of housing by an Owner to an affiliate of such Owner shall not constitute a sale and a
62	62	32transfer.
63	63	33 “Tenant” - a person or a household consisting of one or more persons that has entered
64	64	34into a written lease or rental agreement with the owner for possession of a dwelling unit, or a
65	65	35person or household consisting of persons that has paid rent to the owner of a lawful dwelling
66	66	36unit and whose rent payment has been accepted by said owner, and that is residing in said
67	67	37dwelling unit at the time of notification under Section 2(a) of this Act. If there is more than one
68	68	38tenant or tenant household included in such a lease, or separately paying rent to the owner of a
69	69	39dwelling unit, each such tenant or tenant household may exercise the rights granted under this
70	70	40Act.
71	71	41 “Tenant Association” - an unincorporated organization with a minimum participation of
72	72	4235% of all Tenants within a building or group of buildings being sold as a single parcel. The
73	73	43tenants of such building or buildings shall have signified their intent to participate in the Tenant
74	74	44Association by signing a form provided by the City.
75	75	45 “Tenant Association Designee” - a nonprofit organization established pursuant to chapter
76	76	46180 of the General Laws, a public land trust, or a Tenant Cooperative as defined herein which
77	77	47has been duly selected by the members of a Tenant Association, as defined herein, for the
78	78	48purpose of acquiring the residential property occupied by the tenants.
79	79	49 “Tenant Cooperative” - a duly formed cooperative limited equity cooperative housing
80	80	50corporation as defined in Section 4 of chapter 157B of the General Laws.
81	81	51 SECTION 2: TENANT OPPORTUNITY TO PURCHASE 4 of 8
82	82	52 (a)Notification of Tenants and the City: An owner of a covered property shall, within two
83	83	53(2) business days of accepting, subject to the provisions under this Act and any Ordinance
84	84	54promulgated hereunder, a bona fide offer to purchase that property, notify the municipality and
85	85	55each Tenant that resides in that property, in writing by hand delivery and U.S. mail, that said
86	86	56Owner (i) is selling the property, (ii) has received a bona fide offer for that property and (iii) is
87	87	57offering to sell the property to the Tenant, Tenant Association, Tenant Association Designee, the
88	88	58City, or City Designee for the price specified in the bona fide offer. Such notification shall
89	89	59include a copy of the City’s summary of this Act and any Ordinance promulgated hereunder and
90	90	60any associated forms. Any receipt and conditional acceptance by an owner of an offer of a
91	91	61reduced price of a previously received bona fide offer shall be considered a new bona fide offer
92	92	62and all provisions of this Act in any Ordinance promulgated hereunder shall apply to such new
93	93	63bona fide offer.
94	94	64 Nothing herein shall prohibit a Tenant, Tenant Association, the Tenant Association’s
95	95	65Designee, the City, or the City’s Designee from making the initial offer to purchase any property
96	96	66whether or not any previous offer on the property has been made. In the event that the City or the
97	97	67City’s Designee makes the initial offer to purchase the property, the Tenant or the Tenant
98	98	68Association or Tenant Association’s Designee shall have the same right to purchase provided
99	99	69under this Act and shall have priority for such purpose over the City or City Designee.
100	100	70 In the event that a unit is being converted to the condominium form of ownership such
101	101	71that the provisions of Ordinance No.2019-06, the Somerville Condominium/Cooperative
102	102	72Conversion Ordinance are triggered and provide the tenant with the right to purchase the unit
103	103	73they are living in, the provisions of Ordinance No. 2019-06, the Somerville 5 of 8
104	104	74Condominium/Cooperative Conversion Ordinance shall apply instead of the right to purchase
105	105	75provisions herein.
106	106	76 (b)Statement of Interest
107	107	77 (i) In the case of a covered property being sold as an individual condominium unit, the
108	108	78Tenant shall, within fifteen (15) business days of said notification, notify the Owner and the City
109	109	79using a Statement of Interest form approved by the City (“Statement of Interest”) as to whether
110	110	80or not that Tenant wishes to purchase the property at the price specified in the bona fide offer, or
111	111	81wishes to delegate its rights under this Ordinance to the City or City Designee.
112	112	82 (ii) In the case of a covered property consisting of more than one but less than seven
113	113	83dwelling units, a Tenant Association shall within fifteen (15) business days of said notification,
114	114	84notify the Owner and the City using a Statement of Interest form as to whether or not that Tenant
115	115	85Association wishes to purchase the property at the price specified in the bona fide offer, or
116	116	86wishes to delegate its rights under this Ordinance to a Tenant Association Designee.
117	117	87 (iii) In the case of a covered property consisting of seven (7) or more dwelling units, a
118	118	88Tenant Association shall within thirty (30) days of said notification, notify the Owner and the
119	119	89City using a Statement of Interest form as to whether or not that Tenant Association wishes to
120	120	90purchase the property at the price specified in the bona fide offer, or wishes to delegate its rights
121	121	91under this Ordinance to a Tenant Association Designee.
122	122	92 (iv) In regards to any covered property, the City or City Designee shall have the same
123	123	93amount of time as provided herein to a Tenant or Tenant Association or Tenant Association
124	124	94Designee to notify an owner of its interest in purchasing a covered property at the price specified
125	125	95in the bona fide offer, using the Statement of Interest form. 6 of 8
126	126	96 SECTION 3: PURCHASE AND CLOSING ON THE PROPERTY
127	127	97 (a)The Tenant or Tenant Association or Tenant Association Designee filing a Statement
128	128	98of Interest with respect to a covered property shall have ten (10) business days from the due date
129	129	99for filing its Statement of Interest to negotiate a purchase and sale agreement with that owner and
130	130	100to notify the City of the outcome of that negotiation. Both the Owner and the Tenant or Tenant
131	131	101Association or Tenant Association Designee shall be obligated to negotiate in good faith.
132	132	102 (b)The City or the City Designee shall have twenty (20) business days from the due date
133	133	103for filing its Statement of Interest to negotiate a purchase and sale agreement with that owner.
134	134	104This extended period allows the City or City Designee to negotiate a purchase and sale
135	135	105agreement at the point that the Tenant, Tenant Association, or Tenant Association Designee has
136	136	106declined or otherwise failed to do so. Both the Owner and the City or the City Designee shall be
137	137	107obligated to negotiate in good faith.
138	138	108 (c)A purchase and sale agreement negotiated pursuant to subparagraph (a) or (b) shall
139	139	109allow for contingencies including, at a minimum, that (i) the agreement is subject to inspection
140	140	110of the property, and (ii) the agreement is subject to the ability of the buyer to obtain financing.
141	141	111 (d)A purchase and sale agreement negotiated by the owner and a Tenant, Tenant
142	142	112Association, or Tenant Association Designee may be assignable to the City or City Designee
143	143	113with the consent of that Tenant, Tenant Association, or Tenant Association Designee and the
144	144	114City or City Designee. Likewise, a purchase and sale agreement negotiated by the owner and the
145	145	115City or City Designee may be assignable to a Tenant, Tenant Association, or Tenant Association
146	146	116Designee with the consent of that Tenant, Tenant Association, or Tenant Association Designee
147	147	117and the City or City Designee. 7 of 8
148	148	118 (e)The parties to a purchase and sale agreement shall have ninety (90) days to close on
149	149	119the sale of the property unless such period of time is extended by mutual agreement of the
150	150	120parties.
151	151	121 (f)If the Tenant or Tenant Association has entered into a purchase and sale agreement
152	152	122with the Owner but is unable to close on the sale of the property, the contract may be assigned to
153	153	123the City or City Designee, at the option of the City or City Designee. In such case, the Owner
154	154	124and the City or City Designee may, by mutual agreement, extend the deadline for closing.
155	155	125 SECTION 4: EXEMPTIONS
156	156	126 For the purposes of this Act, the term “covered property” shall not apply to the following:
157	157	127 (a)One, two or three unit residential properties which are owner occupied as the owner’s
158	158	128principle place of residence;
159	159	129 (b)Any sale of property by an Owner to a spouse, sibling, parent, child, or grandchild;
160	160	130 (c)Property that is the subject of a government taking by eminent domain or a negotiated
161	161	131purchase in lieu of eminent domain;
162	162	132 (d)Any sale of publicly assisted housing, as defined in section 1 of chapter 40T of the
163	163	133General Laws;
164	164	134 (e)Rental units in any hospital, skilled nursing facility or health facility;
165	165	135 (f)Rental units in a non-profit facility that has the primary purpose of providing short
166	166	136term treatment, assistance, or therapy for alcohol, drug or other substance abuse providing that 8 of 8
167	167	137such housing is incident to the recovery program, and where the client has been informed in
168	168	138writing of the temporary or transitional nature of the housing;
169	169	139 (g)Rental units in a nonprofit facility which provides a structured living environments
170	170	140that has the primary purpose of helping homeless persons obtain the skills necessary for
171	171	141independent living in permanent housing and where occupancy is restricted to a limited and
172	172	142specific period of time not more than twenty-four months and where the client has been informed
173	173	143in writing of the temporary or transitional nature of the housing at the inception;
174	174	144 (h)Public housing units managed by Somerville Housing Authority;
175	175	145 (i)Any units which are held in trust on behalf of a disabled individual who permanently
176	176	146occupies the unit, or a unit that is permanent occupied by a developmentally disabled parent,
177	177	147sibling, child or grandparent of the owner of the unit; and
178	178	148 (j)Any rental unit that is owned or managed by a college or university exclusively for the
179	179	149express purpose of housing students.
180	180	150 SECTION 5: TENANT STABILITY
181	181	151 An owner shall not evict a tenant or tenants or otherwise terminate a tenancy without just
182	182	152cause if such eviction is for the purpose of avoiding application of this law. Any rights provided
183	183	153under this act are not waivable except as provided in this Act and any provision of any lease or
184	184	154other written agreement to the contrary shall be null and void.
185	185	155 SECTION 6: EFFECTIVE DATE
186	186	156 This act shall take effect upon its passage.