1 of 1 SENATE DOCKET, NO. 2368 FILED ON: 1/20/2023 SENATE . . . . . . . . . . . . . . No. 872 The Commonwealth of Massachusetts _________________ PRESENTED BY: James B. Eldridge _________________ 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 enabling local options for tenant protections. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :James B. EldridgeMiddlesex and WorcesterDanillo A. Sena37th Middlesex1/27/2023Mike Connolly26th Middlesex1/27/2023Vanna Howard17th Middlesex1/31/2023Liz MirandaSecond Suffolk2/9/2023Adam GomezHampden2/22/2023 1 of 8 SENATE DOCKET, NO. 2368 FILED ON: 1/20/2023 SENATE . . . . . . . . . . . . . . No. 872 By Mr. Eldridge, a petition (accompanied by bill, Senate, No. 872) of James B. Eldridge, Danillo A. Sena, Mike Connolly, Vanna Howard and other members of the General Court for legislation to enable local options for tenant protections. Housing. The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Third General Court (2023-2024) _______________ An Act enabling local options for tenant protections. 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 40P of the General Laws is hereby amended by striking out its title 2and inserting in place thereof the following title:- 3 TENANT PROTECTION ACT. 4 SECTION 2. Said chapter 40P, as so appearing, is hereby further amended by striking out 5sections 1 to 5, inclusive, and inserting in place thereof the following 9 sections:– 6 Section 1. PURPOSE. 7 The purpose of this chapter is to provide municipalities with local options for rent 8stabilization, just cause eviction protections, condominium conversion ordinances, and other 9tenant protections along with provisions for fair return standards for property owners and 10exemptions for owner-occupant landlords and new and recently-constructed housing. 11 Section 2. GENERAL COURT FINDINGS. 2 of 8 12 The general court hereby finds and declares that homelessness, displacement, foreclosure, 13lack of affordable rental and ownership opportunities, and excessive rent burden are 14commonplace throughout the commonwealth. 15 Section 3. LOCAL ACCEPTANCE OF ANY SECTION. 16 A city or town may accept any of the sections of this chapter in the manner provided in 17section 4 of chapter 4 and a city or town that has accepted a section may, in like manner, revoke 18its acceptance. 19 Section 4. LOCAL OPTION RENT STABILIZATION. 20 (a) A city or town accepting this section may, by local charter provision, ordinance or by- 21law regulate the rent and eviction of tenants in multi-family housing and provide for reasonable 22exemptions from such regulation. 23 (b) Any city or town that adopts this section may provide for fair return standards for the 24regulation of rent. 25 (c) For the purposes of this section the term “multi-family housing” shall not include 3 or 26less dwelling units in an owner occupied dwelling, and shall not include undergraduate 27dormitories, non-profit hospitals, facilities for the residential care of the elderly, units whose rent 28is subject to regulation by a public housing authority, or dwelling units for which a residential 29certificate of occupancy was obtained for the first time fifteen years ago or less, on a rolling 30basis. 3 of 8 31 (d) Any city or town that adopts this section may ensure that certain dwelling units 32governed by such measures are eligible for those individuals or households who meet income- 33based eligibility requirements as provided for by the city or town. 34 (e) A city or town may establish or designate an administrator, board or committee to 35promulgate regulations and any registration and reporting requirements pursuant to this section 36and may partner with community-based organizations in developing public awareness campaigns 37and may also establish a Small Landlords and Homeowners Assistance Bureau to offer related 38technical assistance. 39 Section 5. JUST CAUSE EVICTION PROTECTION. 40 (a) The provisions of this section shall be applicable to all housing accommodations in 41any city or town of the commonwealth that adopts this section; provided however, that a city or 42town may provide for exemptions from the provisions of this section and any such exemption 43shall be included in an ordinance or by-law adopted by the municipality. A city or town that 44accepts this section, may by ordinance or by-law provide that a lessor shall not recover 45possession of a leased unit within multi-family housing or residential dwellings, as otherwise 46defined by the municipality, which shall not include 3 or less dwelling units in an owner 47occupied dwelling, unless the court finds that: 48 (1) the lessee has failed to pay the rent to which the lessor is entitled; 49 (2) the lessee has violated an obligation or covenant of his or her tenancy not inconsistent 50with chapter 93A, or this section, or the regulations issued pursuant thereto, other than the 51obligation to surrender possession upon proper notice; and the lessee has failed to cure such 52violation after having received written notice thereof from the lessor; 4 of 8 53 (3) the lessee is committing or permitting to exist a nuisance in or is causing substantial 54damage to the leased unit, or is creating a substantial interference with the comfort, safety or 55enjoyment of the lessor or other occupants of the same or any adjacent accommodations; 56 (4) the lessee has used or permitted a leased unit to be used for any illegal purposes; 57 (5) the lessee, who had a written lease agreement which terminated or is a tenant at will, 58has refused, after written request or demand by the lessor, to execute a written extension or 59renewal thereof or lease for a further term of like duration, at a rental rate that does not exceed a 60certain percentage, set by the municipality, of the consumer price index of the rental rate under 61the prior lease agreement or at will tenancy, and on such terms that are not inconsistent with or 62violative of any provision of said chapter 93A or of this section; provided, that for purposes of 63this clause, the term “consumer price index” refers to the annual 12-month average change in the 64Consumer Price Index for All Urban Consumers, New England Division (All Items), as 65published by the Bureau of Labor Statistics of the United States Department of Labor in 66September of the prior calendar year; 67 (6) the lessee has refused the lessor reasonable access to the unit for the purpose of 68making necessary repairs or improvements required by the laws of the commonwealth or any 69political subdivision thereof, or for the purpose of inspection as permitted or required by such 70lessee's lease agreement or by law, or for the purpose of showing the leased unit to any 71prospective purchaser or mortgagee; 72 (7) the person holding at the end of a lease term is a sublessee not approved by the lessor; 73 (8) the lessor seeks in good faith to recover possession of a leased unit for his or her own 74use and occupancy or for the use and occupancy by his or her spouse, children, grandchildren, 5 of 8 75great grandchildren, parents, grandparents, brother, sister, father-in-law, mother-in-law, son-in- 76law, or daughter-in-law, and has provided the tenant with 180 days written notice and an offer of 77a relocation assistance payment equal to at least 3 months’ rent, unless, for example, a 78municipality has further provided for a partial or complete exemption to the relocation assistance 79payment provision as it applies to low-income or moderate-income landlords; or 80 (9) the lessor seeks to recover possession for any other just cause, provided that his or her 81purpose is not in conflict with the provisions and purposes of said chapter 93A or this section. 82 (b) A lessor shall notify the clerk’s office of the city or town in which the leased unit is 83located prior to initiating judicial proceedings in compliance with this section. 84 (c) A lessor who recovers possession of a leased unit in violation of this section shall be 85punished by a fine not less than $5,000. Each such recovery in violation of this section shall 86constitute a separate offense. The housing court shall have jurisdiction over an action arising 87from a violation of this section and shall have jurisdiction in equity to restrain any such violation. 88It shall be a defense to a lessee in an action pursuant to this section that a lessor attempted to 89recover a leased unit in violation of this section. 90 Section 6. CONDOMINIUM CONVERSION ORDINANCES. 91 (a) A municipality, by majority vote of its legislative body, may enact an ordinance or 92by-law to regulate the conversion of housing accommodations in the municipality to the 93condominium or cooperative form of ownership and the regulation of rent and the eviction of 94tenants’ incident to the conversion or sale of condominiums. Said ordinance or by-law may 95include, but is not limited to: (i) provisions for investigations into and hearings on condominium 96conversions or proposed conversions; (ii) a permit process; (iii) tenant notification requirements; 6 of 8 97(iv) relocation costs for tenants and other measures to protect tenants; (v) control of evictions; 98(vi) penalties for violation of the ordinance or by-law; and (vii) exemptions from the provisions 99of this subsection. The ordinance or by-law may establish a condominium review board or vest 100administrative duties in an existing municipal board, commission or office. The review board 101may exercise such powers as it is given by ordinance or by-law. 102 (b) A municipality that adopted an ordinance or by-law for the regulation of the 103conversion of housing accommodations to the condominium or cooperative forms of ownership 104and evictions related thereto pursuant to the authority conferred upon the municipality by general 105law or special act prior to the effective date of this section may continue to exercise such 106authority. This section shall not be construed to restrict the authority of said municipality to 107amend or repeal any ordinance or by-law in accordance with the provisions of said general law 108or special act. 109 (c) A municipality may, by majority vote of its legislative body, accept this section in the 110manner provided in section 4 of chapter 4 and a municipality that has accepted this section may, 111in like manner, revoke its acceptance. 112 Section 7. PROTECTION FROM IMMEDIATE RENT INCREASES. 113 Unless otherwise provided for in this chapter, the maximum rent of a regulated rental unit 114shall be the rent charged the occupant for the month 12 months prior to the acceptance of this 115section by a municipality. If the rental unit was unoccupied at that time but was occupied at any 116time prior to acceptance of this section, the maximum rent shall be the rent charged therefor for 117the month closest to 12 months prior to the effective date of this section. If the maximum rent is 7 of 8 118not otherwise established, it shall be established by the city or town as provided for in this 119chapter. Any maximum rent may be subsequently adjusted under the provisions of this chapter. 120 Section 8. REGULATION OF TENANT DEPOSITS AND FEES, INCLUDING 121BROKERS FEES. 122 (a) A city or town that adopts this section may regulate by ordinance or by-law the 123payment of deposits and non-refundable move-in fees paid by a residential tenant or prospective 124tenant, notwithstanding any general or special law to the contrary; provided however, that no by- 125law or ordinance shall provide that a lessor may require a tenant or prospective tenant to pay any 126amount in excess of the amount provided for in section 15B of 186. 127 (b) Such regulation may include installment payment options for a tenant’s last month’s 128rent and security deposit pursuant to this section. 129 (c) A city or town ordinance or by-law may provide that a tenant may elect to pay a 130security deposit and last month's rent in installments as follows: 131 (1) for any rental agreement term that establishes a tenancy for 6 months or longer, the 132tenant may elect to pay the security deposit and last month's rent in 6 consecutive, equal monthly 133installments that begin at the inception of the tenancy or the tenant may propose an alternative 134installment schedule. If the landlord agrees to the tenant's alternative installment schedule the 135schedule shall be described in the rental agreement; 136 (2) for any other rental agreement term that establishes a tenancy, the tenant may elect to 137pay the security deposit and last month's rent in no more than 4 equal amounts that begin at the 138inception of the tenancy and are paid in installments of equal duration or the tenant may propose 8 of 8 139an alternative installment schedule. If the landlord agrees to the tenant's alternative installment 140schedule the schedule shall be described in the rental agreement. 141 (d) Landlords may not impose any fee, charge any interest, or otherwise impose a cost on 142a tenant because a tenant elects to pay the last month's rent in installments. 143 (e) A landlord who fails to comply with the requirements of any ordinance or by-law 144promulgated pursuant to this section shall be liable to the tenant for $1,000 plus reasonable 145attorney fees and costs in addition to any other remedy available at law. 146 (f) This section shall not apply to a tenant who rents a unit in an owner occupied dwelling 147with 3 or less dwelling units. 148 (g) In addition to the powers granted to a city or town in this section and notwithstanding 149section 87DDD½ of chapter 112, a city or town may by local charter provision, ordinance or by- 150law regulate, limit or prohibit the business of finding dwelling accommodations for a fee. 151 Section 9. MUNICIPAL ANTI-DISPLACEMENT ZONES. 152 (a) A city or town accepting any section in this chapter may, in addition to municipal- 153wide implementation of such section, provide for the implementation or exemption of such 154section’s provisions, in distinct anti-displacement zones, in which it has been determined that 155residential households of low, moderate or middle income have been displaced or are at risk of 156displacement, as defined by the municipality. 157 (b) A community organization, as defined by the municipality, may petition the 158municipality for the establishment of an anti-displacement zone.