Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S891 Compare Versions

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

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1	1	1 of 1
2	2	SENATE DOCKET, NO. 2302 FILED ON: 1/20/2023
3	3	SENATE . . . . . . . . . . . . . . No. 891
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Liz Miranda
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 to restore Boston's governmentally-involved housing protection.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Liz MirandaSecond SuffolkMichael F. RushNorfolk and Suffolk2/7/2023Vanna Howard17th Middlesex2/21/2023 1 of 11
16	16	SENATE DOCKET, NO. 2302 FILED ON: 1/20/2023
17	17	SENATE . . . . . . . . . . . . . . No. 891
18	18	By Ms. Miranda, a petition (accompanied by bill, Senate, No. 891) of Liz Miranda, Michael F.
19	19	Rush and Vanna Howard (with the approval of the mayor abd city council) for legislation to
20	20	restore Boston's governmentally-involved housing protection. Housing. [Local Approval
21	21	Received.]
22	22	The Commonwealth of Massachusetts
23	23	_______________
24	24	In the One Hundred and Ninety-Third General Court
25	25	(2023-2024)
26	26	_______________
27	27	An Act to restore Boston's governmentally-involved housing protection.
28	28	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
29	29	of the same, as follows:
30	30	1 WHEREAS, Boston continues to face a housing crisis, and it is incumbent that the City
31	31	2preserve its affordable housing market; and
32	32	3 WHEREAS, As of 2021, There are 30,435 privately-owned, subsidized apartments in
33	33	4Boston, and close to 2,000 have been converted to high market rents; and
34	34	5 WHEREAS, According to an April 2021 report by the Community Economic
35	35	6Development Assistance Corporation (CEDAC), 928 apartments in Boston are at risk of
36	36	7conversion to market rate by 2022, including the Forbes Building in Jamaica Plain and Babcock
37	37	8Towers in Brighton; and
38	38	9 WHEREAS, Last year, the owner of the Forbes Building announced a plan to convert
39	39	10147 apartments affordable to low-income senior and disabled tenants into market-rate housing,
40	40	11putting tenants and the community at risk; and 2 of 11
41	41	12 WHEREAS, According to Mayor Marty Walsh’s "Housing a Changing City" Report,
42	42	133,038 apartments are at elevated risk for conversion into market-rate housing within the next ten
43	43	14years; and
44	44	15 WHEREAS, A significant nụmber of these units are in some of the City's highest-priced
45	45	16neighborhoods where the financial incentives for developers to convert to market rate are high;
46	46	17and; NOW, THEREFORE BE IT
47	47	18 ORDERED: That a petition to the General Court, accompanied by a bill for special law
48	48	19relating to the City of Boston to be filed with an attested copy of this order be, and hereby is,
49	49	20approved under Clause 1 of Section 8 of Article II, as amended, of the Amendments to the
50	50	21Constitution of the Commonwealth of Massachusetts, to the end that legislation be adopted
51	51	22providing precisely as follows, except for clerical or editorial changes of form only:
52	52	23 PETITION FOR A SPECIAL LAW RE: AN ACT TO RESTORE BOSTON'S
53	53	24GOVERNMENTALLY-INVOLVED HOUSING PROTECTION
54	54	25 SECTION 1. Whereas, a serious public emergency exists with respect to the housing of
55	55	26citizens in Boston residing in governmentally-involved housing, inasmuch as there is a threat that
56	56	27many low income individuals and families residing in such housing, particularly those elderly
57	57	28and disabled, may be threatened with displacement as a result of prepayment of mortgage
58	58	29financing, loss of use restrictions, expiring subsidy contracts, and expected increases in rent, and
59	59	30there is a threat that affordable housing stock will be lost due to expiration of ușe restrictions and
60	60	31subsidy contracts and such prepayment, further exacerbating an extreme housing shortage within
61	61	32the city for low income families and voters, and whereas , in approving Chapter 40P of the
62	62	33General Laws, the voters did not exempt such housing from protection or regulation and whereas 3 of 11
63	63	34it is the city's policy to encourage owners of this governmentally-involved housing to accept
64	64	35incentives to keep such housing affordable and avert displacement, that such emergency should
65	65	36be met by the city of Boston immediately; therefore, this act is declared to be in the public
66	66	37interest.
67	67	38 SECTION 2. (A) Notwithstanding the provisions of any general or special law to the
68	68	39contrary, including, without limitation, the provisions of Chapter 40P of the General Laws and
69	69	40Chapter 282 of the Acts of 1994, for so long as the City Council of Boston shall determine that
70	70	41the circumstances described in Section 1 hereof continue to exist, the City of Boston shall by
71	71	42ordinance regulate the rent for the use or occupancy of governmentally--involved or formerly
72	72	43governmentally-involved housing to the extent such regulation is not preempted by federal law
73	73	44or by Section six of Chapter 708 of the Acts of 1966 as amended, once the basis for federal or
74	74	45state rent regulation or preemption no longer exists. For purposes of this act,"governmentally-
75	75	46involved housing" is defined as housing units which the United States, the Commonwealth or
76	76	47any authority created under the laws thereof (i) insures the mortgage thereon, or owns, operates,
77	77	48finances, or subsidizes such housing units, and (ii) regulates the individual rents thereof,
78	78	49including without limitation housing units constructed or rehabilitated pursuant to Section 202 of
79	79	50the Housing Act of 1959, as amended (12 U.S.C. $ 17019), Sections 221 (d) and 236 of the
80	80	51National Housing Act, as amended (12 U.S.C. $ $ 17151(d) or 17152-1), Section 811 of the
81	81	52Cranston-Gonzalez National Affordable Housing Act, as amended (42 U.S.C. $ 8013), or
82	82	53Section 13A of Chapter 708 of the Acts of 1966, added by Section 10 of Chapter 855 of the Acts
83	83	54of 1970, as amended (M.G.L. c. 23A App. 91-13A), or housing units financed or subsidized
84	84	55pursuant to project-based programs for low income persons under Section 8 of the United States
85	85	56Housing Act of 1937, as amended (42 U.S.C. $ 1437f), or the project-based Massachusetts 4 of 11
86	86	57Rental Voucher Program, so-called (see line item 7004-9004 of Section 2 of Chapter 159 of the
87	87	58Acts of two thousand, as well as 760 C.M.R. Part 49.00), or housing units with mortgage
88	88	59insurance under Sections 207 or 220 of the National Housing Act, as amended, and subject to a
89	89	60rent regulatory agreement or other controls pursuant to applicable law with the Boston Planning
90	90	61and Development Agency, but not including the following:
91	91	62 (1) housing units owned or acquired by the City of Boston through tax foreclosure;
92	92	63 (2) except for publicly owned dwelling units or units that are financed or subsidized with
93	93	64 project-based Section 8, housing units in a one-to-four family building or structure that
94	94	65are not part of larger housing development, whether on one or more sites;
95	95	66 (3) structures containing housing units subsidized with mobile tenant-based rental
96	96	67assistance that
97	97	68 would not otherwise come within the definition of governmentally-involved housing;
98	98	69 (4) public housing owned or operated by a local housing authority under Chapter 121B of
99	99	70General Laws, the United States Housing Act of 1937 (42 U.S.C. $ $ 1487a et seq.), or any
100	100	71successor act or public housing programs formerly assisted under the United States Housing Act
101	101	72of 1937;
102	102	73 (5) housing units that received mortgage insurance pursuant to Sections 207 or 220 of the
103	103	74 National Housing Act but not subject to a rent regulatory agreement or other controls
104	104	75with the Boston Planning and Development Agency, as well as housing units that received
105	105	76mortgage insurance pursuant to Section 608 of the National Housing Act, regardless of whether 5 of 11
106	106	77there was a rent regulatory agreement or other controls with the Boston Planning and
107	107	78Development Agency or not;
108	108	79 (6) housing units that received mortgage insurance pursuant to Section 221(d) of the
109	109	80National
110	110	81 Housing Act and which never received a federal or state subsidy or below-market interest
111	111	82rate mortgage subsidy; and
112	112	83 (7) housing units where the sole government involvement is the owner's participation in
113	113	84 federal, state, or municipal funded programs for home repairs, energy conservation, or
114	114	85lead paint abatement. For the purpose of this act, "formerly governmentally-involved housing" is
115	115	86defined as housing that was governmentally-involved housing as of July 1, 1994, or which
116	116	87becomes governmentally-involved housing after July 1, 1994, but which then no longer is
117	117	88owned, operated, financed, subsidized, mortgage-insured, or rent-regulated by the United States,
118	118	89the Commonwealth, or any authority created under the laws thereof, provided that "formerly
119	119	90governmentally-involved housing" shall include any housing receiving subsidy under Section
120	120	918(t) of the United States Housing Act of 1937 (42 U.S.C. § 1437f(t)).
121	121	92 For the purpose of this act, "low-income" is defined as annual household income, which
122	122	93is eighty percent or less of the median income for the area as determined by the United States
123	123	94Department Of Housing and Urban Development, with adjustments for smaller and larger
124	124	95families.
125	125	96 The City of Boston shall, by ordinance, create an official body designated by the Mayor
126	126	97to establish as the maximum rent for the governmentally-involved and formerly governmentally 6 of 11
127	127	98involved housing units the rent in effect therefore on July 1, 1994, or six months before the basis
128	128	99of federal or state rent regulation or preemption lapsed, whichever is later, adjusted to insure
129	129	100such rent provides a fair net operating income as of the date of the official body's decision,
130	130	101provided, however, said ordinance shall authorize the official body to make individual
131	131	102adjustments in such maximum rents as may be necessary to remove hardships or to correct other
132	132	103inequities, the official body shall observe the principle of maintaining maximum rents for such
133	133	104housing units at levels which will yield to owners a fair net operating income from such housing
134	134	105units. In determining whether the maximum rent for such housing units yields a fair net operating
135	135	106income, due consideration shall be given to, among other relevant factors;
136	136	107 (1) increases in property taxes;
137	137	108 (2) unavoidable increases in operating and maintenance expenses;
138	138	109 (3) major capital improvement of the housing units, distinguished from ordinary repair,
139	139	110replacement, and maintenance;
140	140	111 (4) increases or decreases in living space, services, furniture, furnishings, or equipment;
141	141	112and
142	142	113 (5) substantial deterioration of the housing units, other than ordinary wear and tear or
143	143	114failure to perform routine repair, replacement, or maintenance.
144	144	115 (B) Such ordinance shall provide that no person shall bring an action to recover
145	145	116possession of a governmentally-involved housing unit, or of a formerly governmentally-involved
146	146	117housing unit, to the extent that such regulation is not otherwise preempted by federal law or
147	147	118Section 6 of Chapter 708 of the acts of 1966 as amended, unless: 7 of 11
148	148	119 (1) The tenant has failed to pay the rent to which the owner is entitled;
149	149	120 (2) The tenant has violated an obligation or covenant of tenancy not inconsistent with
150	150	121Chapter 93A of the General Laws or this act other than the obligation to surrender possession
151	151	122upon proper notice and has failed to cure the violation after having received the written notice;
152	152	123 (3) The tenant is causing, committing, or permitting a nuisance in or substantial damage
153	153	124to the housing unit or is creating significant interference with the comfort, safety, or enjoyment
154	154	125of the owner or other occupants of the same or any adjacent unit;
155	155	126 (4) The tenant has used or permitted use of a housing unit for illegal purposes;
156	156	127 (5) The tenant, who had a written lease or rental agreement which has terminated, has
157	157	128refused, after written requests or demands by the owner, to execute a written extension or
158	158	129renewal thereof for a further term of like duration on terms not inconsistent with or violative of
159	159	130any provision of this act;
160	160	131 (6) The tenant has refused the owner reasonable access to the housing unit for the
161	161	132purpose of
162	162	133 making necessary repairs or improvements required by law, or for the purpose of
163	163	134inspection as permitted or required by the lease or law, or to show the housing unit to a
164	164	135prospective purchaser or mortgagee;
165	165	136 (7) The tenant holding at the end of a lease term is a subtenant not approved by the
166	166	137owner; or
167	167	138 (8) The owner seeks to recover possession for any other just cause not in conflict with the
168	168	139provisions and purposes of this act or Chapter 93 A of the General Laws. 8 of 11
169	169	140 The provisions of this Section shall be construed as additional restrictions on the right to
170	170	141recover possession of such housing units.
171	171	142 (C) Such ordinance shall also provide that no person shall remove any governmentally
172	172	143involved or formally governmentally-involved housing accommodation from low-income rental
173	173	144housing use (including but not limited to sale, lease, or other disposition of the property which
174	174	145may have such an effect), or convert such property to a condominium, without first obtaining a
175	175	146permit for that purpose from the official body, to the extent that such provision is not preempted
176	176	147by federal law or Section 6 of Chapter 708 of the acts of 1966 as amended. Such permit may be
177	177	148subject to terms and conditions not inconsistent with the purposes and provisions of this act,
178	178	149including, without limitation, (a) incentives to continue in effect the low-income restrictions
179	179	150previously in place for the property and (b) where the sale, lease, or disposition of the property
180	180	151may result in the loss of all or a portion of the property for low--income rental housing use, the
181	181	152right of an incorporated tenants association in such housing, the city of Boston, the Boston
182	182	153Housing Authority, non-profit community development corporations, or other equivalent bona
183	183	154fide non-profit organizations to negotiate for, acquire and operate such property on substantially
184	184	155equivalent terms and conditions as offered or available to a bona fide third-party purchaser.
185	185	156 (D) To the extent not preempted by federal law or Section 6 of Chapter 708 of the acts of
186	186	1571966 amended, such ordinance shall require that owners of governmentally-involved housing, or
187	187	158formerly governmentally-involved housing, affirmatively seek out and accept any prospective
188	188	159governmental housing resources, whether tenant-based or project-based, which maximize
189	189	160affordability of the housing units consistent with the income character of the property a the
190	190	161owner a right to obtain a fair net operating income for the housing units, provided that the City
191	191	162shall assist owners by identifying such governmental housing resources. 9 of 11
192	192	163 (E) To the extent not preempted by federal law or Section 6 of Chapter 708 of the acts of
193	193	1641966 as amended, and so long as such regulation is consistent with the owner's right to obtain a
194	194	165fair net operating income, such ordinance shall also provide that the City may establish local
195	195	166preferences, priorities, and income limits for admission to governmentally-involved housing or
196	196	167former governmentally-involved housing upon unit turnover, consistent, to the extent with the
197	197	168income profile of the property twelve months before the date of the loss or rent preemption or the
198	198	169decision not to renew an expiring subsidy contract. No ordinance or regulation shall require an
199	199	170owner to create a tenancy involving any person with a history of conduct that would, if repeated,
200	200	171be grounds for eviction from such housing. The official body may approve an alternative plan
201	201	172requested by the owner, consistent with the provisions of this Act.
202	202	173 (F) Such ordinance shall also provide that the official body may grant exemptions and
203	203	174exceptions to the general provisions of this act when such action would tend to maintain or
204	204	175increase the supply of affordable housing in Boston, including, without limitation, promoting the
205	205	176sale of properties to tenant organizations or non-profit community development corporations
206	206	177under terms and conditions which would tend to maintain the income character of the property.
207	207	178 (G) Such ordinance shall provide that the official body may promulgate such rules,
208	208	179regulations, and orders as it may deem necessary to effectuate the purposes of this act and the
209	209	180ordinance. The official body may hold hearings on any matters within its authority under this act
210	210	181and ordinance. Any hearings regarding matters related to regulation of rents or removal permits
211	211	182for governmentally-involved or formerly governmentally-involved housing or regarding
212	212	183compliance with other provisions of this act or the ordinance, orders, rules, or regulations
213	213	184adopted or promulgated hereunder shall be conducted by the official body in accordance with 10 of 11
214	214	185 the provisions of Section 11 of Chapter 30A of the General Laws except that
215	215	186requirements (7) and (8) of Section 11 shall not apply to such hearings.
216	216	187 (H) All decisions of the official body may be appealed to the housing court department of
217	217	188the trial court, City of Boston division, by any person aggrieved thereby, whether or not
218	218	189previously a party in the matter, within sixty calendar days after notice of such decision. Judicial
219	219	190review of adjudicatory decisions shall be conducted in accordance with Section 14 of Chapter
220	220	19130A to the General Laws. Judicial review of regulations shall be conducted in accordance with
221	221	192Section 7 of Chapter 30A of the General Laws. The housing court department of the trial court,
222	222	193city of Boston division, shall have jurisdiction to enforce the provisions hereof and any
223	223	194ordinance, rule or regulation adopted hereunder, and on application of the official body or any
224	224	195aggrieved person may restrain or enjoin violations of any such ordinance, rule, or regulation. In
225	225	196the interests of justice, the court may allow any necessary parties to be joined in or to intervene
226	226	197in any action brought hereunder and may, in its discretion, allow or require an action to proceed
227	227	198as a class action,
228	228	199 SECTION 3. It shall be unlawful for any person to do or omit to do any action in
229	229	200violation of this act or any order, ordinance, rule, or regulation adopted or promulgated
230	230	201hereunder; whoever willfully violates any provision of this act or any order, ordinance, rule or
231	231	202regulation adopted or promulgated hereunder or whoever makes a false statement in any
232	232	203testimony before the official body or its agents, or whoever knowingly supplies the official body
233	233	204with false information shall be punished by a fine of not more than five hundred dollars;
234	234	205provided, however, that in the case of a second or subsequent offense, or where the violation
235	235	206continues after notice thereof, such person shall be punished by a fine of not more than two
236	236	207thousand dollars. 11 of 11
237	237	208 SECTION 4. The provisions of this act are severable, and if any of its provisions shall be
238	238	209held unconstitutional or otherwise invalid by any court of competent jurisdiction, the decision of
239	239	210such court shall not affect or impair any of the remaining provisions.
240	240	211 SECTION 5. The provisions of M.G.L. c. 40P shall not apply to any ordinance adopted
241	241	212under this authority.
242	242	213 SECTION 6. This act shall take effect upon passage.