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