Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H1544 Compare Versions

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2	2	HOUSE DOCKET, NO. 1925 FILED ON: 1/15/2025
3	3	HOUSE . . . . . . . . . . . . . . . No. 1544
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Jay D. Livingstone and Rob Consalvo
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 guarantee a tenant’s first right of refusal.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Jay D. Livingstone8th Suffolk1/15/2025Rob Consalvo14th Suffolk1/15/2025Natalie M. Blais1st Franklin2/4/2025William F. MacGregor10th Suffolk2/4/2025Lindsay N. Sabadosa1st Hampshire2/4/2025Christopher Richard Flanagan1st Barnstable2/4/2025Steven Owens29th Middlesex2/4/2025Samantha Montaño15th Suffolk2/4/2025Christine P. Barber34th Middlesex2/4/2025Mike Connolly26th Middlesex2/4/2025James C. Arena-DeRosa8th Middlesex2/12/2025Manny Cruz7th Essex3/10/2025James B. EldridgeMiddlesex and Worcester2/7/2025Carmine Lawrence Gentile13th Middlesex2/4/2025Carlos González10th Hampden2/19/2025James K. Hawkins2nd Bristol2/7/2025David Henry Argosky LeBoeuf17th Worcester2/10/2025Jason M. LewisFifth Middlesex2/12/2025 2 of 2
16	16	Danillo A. Sena37th Middlesex2/4/2025Erika Uyterhoeven27th Middlesex2/6/2025Christopher J. Worrell5th Suffolk3/5/2025 1 of 22
17	17	HOUSE DOCKET, NO. 1925 FILED ON: 1/15/2025
18	18	HOUSE . . . . . . . . . . . . . . . No. 1544
19	19	By Representatives Livingstone of Boston and Consalvo of Boston, a petition (accompanied by
20	20	bill, House, No. 1544) of Jay D. Livingstone, Rob Consalvo and others relative to tenant’s first
21	21	right of refusal. Housing.
22	22	The Commonwealth of Massachusetts
23	23	_______________
24	24	In the One Hundred and Ninety-Fourth General Court
25	25	(2025-2026)
26	26	_______________
27	27	An Act to guarantee a tenant’s first right of refusal.
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 Section 1. Chapter 184 of the General Laws as appearing in the 2020 Official Edition is
31	31	2hereby amended by adding after section 21, the following new section:
32	32	3 Section 21A: Municipal Local Option for a Tenant’s Opportunity to Purchase
33	33	4 (a) For the purposes of this section, the following words shall, notwithstanding any
34	34	5general or special law to the contrary, or unless the context clearly requires otherwise, have the
35	35	6following meanings:
36	36	7 ''Affiliate'' an entity owned or controlled by an Owner or under common control with the
37	37	8Owner.
38	38	9 “Auction” or "Public Auction", the sale of a Housing Accommodation, under power of
39	39	10sale in a Mortgage Loan, by public bidding.
40	40	11 “Borrower", a mortgagor of a Mortgage Loan. 2 of 22
41	41	12 "Deed in Lieu," a deed for the collateral property, that the Mortgagee accepts from the
42	42	13Borrower in exchange for the release of the Borrower’s obligation under the Mortgage Loan.
43	43	14 “Executive Office”, Executive Office of Housing and Livable Communities, or its
44	44	15successor agency.
45	45	16 “Designee", a nonprofit or for-profit entity, a public housing authority, or a controlled
46	46	17nonprofit or for-profit Affiliate of such entity; provided that the parent organization has requisite
47	47	18experience in developing, owning and/or operating residential real estate and with the financial
48	48	19capacity to secure the financing of the purchase transaction; provided that any purchase by a
49	49	20Designee under this section shall be for the purpose of the use of the property as Long-Term
50	50	21Affordable Housing set out in a recorded restriction.
51	51	22 "Foreclosure," a proceeding to terminate a Borrower’s interest in property instituted by
52	52	23the Mortgagee.
53	53	24 “Housing Accommodation," a building or buildings, structure or structures, or part
54	54	25thereof, rented or offered for rent for living or dwelling purposes, including, without limitation,
55	55	26houses, apartments, condominium units, cooperative units and other multi-family residential
56	56	27dwellings; provided, however, that a Housing Accommodation shall not include a group
57	57	28residence, homeless shelter, lodging house, orphanage, temporary dwelling structure or
58	58	29transitional housing; and provided, further that a Housing Accommodation shall not include 1-4
59	59	30unit Borrower-occupied Housing Accommodation if the Borrower is domiciled in the Housing
60	60	31Accommodation at the initiation of the Short-sale, Deed in Lieu, or Foreclosure process. 3 of 22
61	61	32 “Immediate Family Member”, the parent, offspring, sibling, or spouse of the Owner, or a
62	62	33trust in which the beneficiaries immediately after the creation are the Owner and the parent,
63	63	34child, sibling and/or spouse of the Owner.
64	64	35 “Long-Term Affordable Housing”, for rental housing: housing where forty percent of the
65	65	36housing units are affordable to households with incomes at or below sixty percent of the Area
66	66	37Median Income as established by the U.S. Department of Housing and Urban Development
67	67	38(AMI), and where these restrictions shall be in effect for at least thirty years and recorded in a
68	68	39deed restriction; for homeownership housing: housing where all units are both (a) set at prices
69	69	40affordable to, and (b) limited to purchase by, buyers whose incomes are at or below 100 percent
70	70	41of the AMI, and at least fifty percent of the units are both (a) set at prices affordable to, and (b)
71	71	42limited to purchase by, buyers with incomes at or below eighty percent of the AMI, and where
72	72	43these restrictions shall be in effect for at least thirty years and recorded in a deed restriction.
73	73	44 "Member", a natural person who is a member of a Tenant Association.
74	74	45 "Minimum Tenant Participation”, the minimum percentage of Tenant-occupied housing
75	75	46units that must participate as Members of the Tenant Association, which shall be 51 per cent of
76	76	47the Tenant-occupied housing units. The Minimum Tenant Participation percentage shall be
77	77	48calculated (rounded up) based on the number of Tenant-occupied housing units in a property,
78	78	49rather than the number of individual Tenants. If there is more than 1 Tenant residing in a unit,
79	79	50any of the Tenants in the unit may participate as Members of the Tenant Association for the unit
80	80	51to be counted towards the participating percentage of units. The Minimum Tenant Participation
81	81	52will be presumed to have been achieved for a period of 1 year after it is initially established. 4 of 22
82	82	53 "Mortgage Loan," a loan secured wholly or partially by a mortgage on a Housing
83	83	54Accommodation.
84	84	55 "Mortgagee," an entity to whom property is mortgaged, the mortgage creditor or lender
85	85	56including, but not limited to, mortgage servicers, lenders in a mortgage agreement and any agent,
86	86	57servant or employee of the Mortgagee or any successor in interest or assignee of the Mortgagee's
87	87	58rights, interests or obligations under the mortgage agreement.
88	88	59 "Owner", a person, firm, partnership, corporation, trust, organization, limited liability
89	89	60company or other entity, or its successors or assigns, that holds title to real property.
90	90	61 "Purchaser", a party who has entered into a purchase contract with an Owner and who
91	91	62will, upon performance of the purchase contract, become the new Owner of the property.
92	92	63 "Purchase Contract", a binding written agreement whereby an Owner agrees to sell
93	93	64property including, without limitation, a purchase and sale agreement, contract of sale, purchase
94	94	65option or other similar instrument.
95	95	66 "Sale", an act by which an Owner conveys, transfers or disposes of property by deed or
96	96	67otherwise, whether through a single transaction or a series of transactions, within a 3 year period;
97	97	68provided, that a disposition of housing by an Owner to an Affiliate of such Owner shall not
98	98	69constitute a Sale.
99	99	70 "Short-Sale," a Sale approved by the Mortgagee to a bona fide Purchaser at a price that is
100	100	71less than the Borrower's existing debt on the Housing Accommodation.
101	101	72 "Successor”, the entity through which a Tenant Association may take title to the
102	102	73residential property, including any of the following: (i) a non-profit or for-profit entity 5 of 22
103	103	74controlled by the Tenant Association; or (ii) a limited equity cooperative organized under
104	104	75Chapter 157B or non-profit corporation organized under Chapter 180, in either case controlled
105	105	76by the Tenants of the property; or (iii) a joint venture between any of the entities in (i) or (ii) and
106	106	77another party (including non-profit and for-profit entities) with: (a) the requisite experience in
107	107	78acquiring, developing and owning residential property, and (b) the financial capacity to secure
108	108	79financing of the purchase transaction; any such joint venture shall be for the purpose of the use
109	109	80of the property as Long-Term Affordable Housing set out in a recorded restriction.
110	110	81 "Tenant", a person entitled to possession or occupancy of a rental unit within residential
111	111	82housing, including a subtenant, lessee and sublessee.
112	112	83 "Tenant Association", an organization with a membership limited to present Tenants of a
113	113	84property that: (i) is registered with, or if no registry exists has provided a letter stating its
114	114	85formation to, the municipality that has adopted an ordinance consistent with this section; or (ii) is
115	115	86a non-profit organization incorporated under chapter 180; provided that an organization shall not
116	116	87be a Tenant Association if there is evidence that it was organized by the Owner.
117	117	88 "Third-Party Offer", an offer to purchase the mortgaged property for valuable
118	118	89consideration by an arm's length Purchaser; provided, that a Third-Party Offer shall not include
119	119	90an offer by the Borrower or the Tenants.
120	120	91 "Third-party Purchaser", a Purchaser that is not the Tenant Association at the property, or
121	121	92its Designee, Successor, or an Affiliate.
122	122	93 (b) A city or town may adopt this section in the manner provided in section 4 of chapter
123	123	944. The acceptance of this local option by a municipality shall take effect no later than 180 days
124	124	95after such adoption. A city or town may at any time revoke the acceptance of this section in the 6 of 22
125	125	96manner provided in section 4 of chapter 4. The revocation shall not affect agreements relative to
126	126	97Tenants’ rights to purchase that have already been asserted, that is, when a Tenant Association,
127	127	98its Successor, Designee or Assignee, have submitted an offer to the Owner, or executed the
128	128	99proposed purchase contract or other agreement acceptable to both parties, prior to the revocation.
129	129	100 (c) A city or town’s ordinance or bylaw accepting this Section may contain provisions
130	130	101that establish:
131	131	102 (1) additional tenancy protections for Tenant households that do not participate in the
132	132	103Tenant Association;
133	133	104 (2) additional penalties, municipal enforcement authority, and enforcement mechanisms,
134	134	105in addition to recorded restrictions, for enforcing the ordinance and provisions of this section,
135	135	106and/or rules and regulations implementing this section;
136	136	107 (3) mandated use of a standard purchase contract, prepared or approved by the
137	137	108municipality and consistent with this Section, for Owners to provide to the Tenant Association,
138	138	109its Designee or Successor, under paragraph (d)(4);
139	139	110 (4) for housing transferred under this section, additional affordability restrictions on the
140	140	111total percentage of affordable units, the level of affordability, and/or the length of time such
141	141	112restrictions shall be in place; and/or
142	142	113 (5) creating confidentiality agreement forms for Owners to use to protect against the
143	143	114public disclosure of information provided pursuant to subsection (d)(5)(ii).
144	144	115 (d) In any city or town that adopts the provisions of this section: 7 of 22
145	145	116 (1) (i) an Owner of a residential building shall notify the municipality and each Tenant
146	146	117household, in writing by hand delivery and United States' mail, of the Owner's intention to sell
147	147	118the property, with copy of the municipality's prepared summary of the ordinance adopted
148	148	119hereunder, which shall include a reference to the lists in (ii).
149	149	120 (ii) The municipality shall maintain a list of qualified affordable housing developers and
150	150	121of qualified technical assistance providers for residents and provide these lists to the residents.
151	151	122 (2) A Tenant Association with the Minimum Tenant Participation may select a Successor
152	152	123entity or a Designee to act on its behalf as purchaser of the property and shall give the Owner
153	153	124and the municipality notice of its selection.
154	154	125 (3) (i) An Owner of a residential building, unless the Owner is exempt from this Section
155	155	126and it is the Owner’s burden to provide proof of qualification for an exemption, shall provide to
156	156	127the Tenant Association with Minimum Tenant Participation (if such association exists) or its
157	157	128Successor or Designee, an opportunity to purchase the property pursuant to the time periods
158	158	129contained in this Section, but no Owner shall be under any obligation under this subsection (d)(3)
159	159	130to enter into an agreement to sell such property to the Tenant Association, its Successor or
160	160	131Designee.
161	161	132 (ii) A Tenant Association with the Minimum Tenant Participation, or its Successor or
162	162	133Designee, may, within 30 days after receipt of the Owner's intention to sell, submit an offer to
163	163	134the Owner to purchase the property. Failure to submit an offer within thirty days shall constitute
164	164	135an irrevocable waiver of the Tenants' rights under this paragraph (3). An Owner also may accept
165	165	136an offer and execute a purchase contract with a third party during this thirty-day period, subject
166	166	137to paragraphs (4) to (7), inclusive. 8 of 22
167	167	138 (4) Upon execution of any purchase contract with a third party, within 7 days, the Owner
168	168	139shall, unless the Owner can prove they are exempt from this Section, submit: a copy of the
169	169	140executed contract and proof that the deposit toward the purchase has been paid by the third party
170	170	141along with a proposed purchase contract for execution by Tenant Association or its Successor, or
171	171	142Designee (collectively, “the Purchase Documents”), and if no Tenant Association or Successor
172	172	143or Designee exists, the Owner shall provide, within 7 days of execution of the third party
173	173	144contract, the Purchase Documents to the municipality and provide a summary of the Purchase
174	174	145Documents (including purchase price, amount and schedule of deposits, length of due diligence/
175	175	146deposit refundability period, and closing date) to each Tenant household, by hand delivery and
176	176	147United States' mail.
177	177	148 If (i) at least 30 days has passed from the Tenant households’ receipt of notice of the
178	178	149Owner’s intention to sell (provided for in (d)(1)) and their receipt of the summary of the
179	179	150Purchase Documents, and if a Tenant Association, with or without Minimum Tenant
180	180	151Participation, or its Successor or Designee does not exist, then the Owner may immediately
181	181	152proceed with the purchase contract with the third party;
182	182	153 if (ii) less than 30 days have passed and no Tenant Association with Minimum Tenant
183	183	154Participation has been formed, the Tenants shall have 45 days after the receipt of the summary of
184	184	155the Purchase Documents, to form a Tenant Association with Minimum Tenant Participation,
185	185	156select a Designee or Successor it they choose, and have the Tenant Association or its Successor
186	186	157or its Designee execute the proposed purchase contract or such other agreement as is acceptable
187	187	158to both parties; and 9 of 22
188	188	159 (iii) in all other cases, if the Tenant Association, or its Successor or, its Designee, elect to
189	189	160purchase the property, the Tenant Association, or its Successor, or its Designee, shall within 21
190	190	161days after the receipt of the third-party purchase contract and the proposed purchase contract,
191	191	162execute the proposed purchase contract or such other agreement as is acceptable to both parties.
192	192	163 The time periods set forth in this subsection may be extended by agreement between the
193	193	164Owner and the Tenant Association, its Successor or its Designee. Except as otherwise specified
194	194	165in subsection (5), the terms and conditions of the proposed purchase contract offered to the
195	195	166Tenant Association, Successor, or its Designee, shall be the same as those of the executed third-
196	196	167party purchase contract. The Tenant Association or its Successor or Designee must include
197	197	168reasonable evidence of Minimum Tenant Participation with its proposed purchase contract.
198	198	169 (5) Any purchase contract offered to, or proposed by, the Tenant Association, its
199	199	170Successor or its Designee shall provide at least the following terms:
200	200	171 (i) the earnest money deposit shall not exceed the lesser of:
201	201	172 (A) the deposit in the third-party purchase contract;
202	202	173 (B) 5 per cent of the Sale price; or
203	203	174 (C) $250,000; provided, however, that the Owner and the Tenant Association, or its
204	204	175Successor, or its Designee, may agree to modify the terms of the earnest money deposit;
205	205	176provided, further, that the earnest money deposit shall be held under commercially-reasonable
206	206	177terms by an escrow agent selected jointly by the Owner and the Tenant Association, its
207	207	178Successor or its Designee; 10 of 22
208	208	179 (ii) the Owner must provide the following information, documentation, and permissions,
209	209	180within 20 days of the date of the purchase contract of the Tenant Association, its Designee or
210	210	181Successor: the current rent roll by unit size without tenant names or other identifying
211	211	182information; the expiration date of every lease (if there is a lease); documentation of all operating
212	212	183expenses for the prior two years, including utilities, insurance premiums, bills for repairs, and
213	213	184capital improvements; permission to inspect all common and maintenance service areas of the
214	214	185property, including roof, boiler room, electrical and telecommunications rooms; permission to
215	215	186conduct inspections and tests for the presence of lead paint and asbestos; and permission to do
216	216	187tests for regulated environmental toxins on unbuilt areas of the property, if required by the lender
217	217	188of the Tenant Association, or its Designee or Successor;
218	218	189 (iii) the contract will contain all reasonable contingencies, including financing,
219	219	190marketability of title, and appraisal contingencies;
220	220	191 (iv) the earnest money deposit shall be refundable for not less than 60 days from the date
221	221	192of execution of the purchase contract or such greater period as provided for in the third-party
222	222	193purchase contract (due diligence period); provided, however, that if the Owner unreasonably
223	223	194delays the buyer's ability to conduct due diligence during the 60 day period, the earnest money
224	224	195deposit shall continue to be refundable for an additional period of one day for every day beyond
225	225	196the required 20 days that the Owner has not complied with the provisions of subsection (5) (ii)
226	226	197above. After the expiration of the specified time period, the earnest money deposit shall become
227	227	198non-refundable but shall continue to be a deposit toward the full purchase price.
228	228	199 (v) real estate broker commissions or fees that are associated with the third-party
229	229	200purchase transaction shall be payable upon the closing of the purchase. 11 of 22
230	230	201 (6) Closing date: The Tenant Association or its Successor, or Designee, shall have 60
231	231	202days for a property of 1 to 5 units, 75 days for a property of 6 to 20 units, and 120 days for a
232	232	203property of 21 or more units, from execution of the purchase contract to perform all due
233	233	204diligence, secure financing for and close on the purchase of the building; provided, however, that
234	234	205if the Owner unreasonably delays the buyer's ability to conduct due diligence, the closing date
235	235	206shall be extended for an additional period of one day for every day beyond the required 20 days
236	236	207that the Owner has not complied with the provisions of subsection (d) (5) (ii) above. Failure to
237	237	208exercise the purchase option by the closing date shall constitute a waiver of the purchase option
238	238	209by the Tenant Association, its Successor, or its Designee. The closing date may be extended by
239	239	210agreement of both parties.
240	240	211 (7) If the Tenant Association, its Designee or Successor, do not exercise their purchase
241	241	212option the Owner may proceed with the sale to the third-party. If the closing date in the third-
242	242	213party contract is extended, for each such extension, the Owner shall provide the municipality and
243	243	214the Tenant Association, Designee or Successor a notarized amendment to the purchase contract
244	244	215extending the date of the closing. Within 7 days of the termination of the third-party purchase
245	245	216contract the Owner shall notify the municipality and the Tenant Association, its Designee or its
246	246	217Successor of the termination. Said notice shall trigger the provisions of paragraphs (d)(1) through
247	247	218(d)(7) of this Section.
248	248	219 (8) In any instance where the Tenant Association, its Designee or Successor, is not a
249	249	220successful purchaser, an Owner shall provide evidence of compliance with this Section by filing
250	250	221a affidavit of compliance signed under the penalty of perjury with the municipality, the
251	251	222Executive Office, and the official records of the county where the property is located within
252	252	223seven days of the Sale. 12 of 22
253	253	224 (9) The Tenant Association, Successor, or its Designee shall ensure that their purchase of
254	254	225the property will not result in the displacement of any Tenant households existing at the time of
255	255	226purchase based solely on their choice not to participate in the purchase of the property.
256	256	227 (10) Any property acquired under this subsection, that is not subject to a Long-Term
257	257	228Affordable Housing requirement, shall be for the purpose of use of the property as: (i) Long-
258	258	229Term Affordable Housing set out in a recorded restriction; (ii) cooperative housing subject to a
259	259	230covenant, satisfactory to the municipality in form and substance and having a term of not less
260	260	231than twenty years, that a majority of residential units be occupied by Tenant-stockholders as their
261	261	232primary residence; or (iii) condominium units subject to a covenant, satisfactory to the
262	262	233municipality in form and substance and having a term of not less than twenty years, that a
263	263	234majority of units be occupied by unit Owners as their primary residence. For purposes of (ii) and
264	264	235(iii) of this requirement, Owner-occupied or Tenant-stockholder occupied includes (i) a person in
265	265	236military service on active duty who intends to occupy the residential unit when not on active
266	266	237duty, and (ii) a disabled occupant where the Owner/Tenant-stockholder is their parent or legal
267	267	238guardian.
268	268	239 (11) This subsection (d) shall not apply to the following:
269	269	240 (i) property that is the subject of a government taking by eminent domain or a negotiated
270	270	241purchase in lieu of eminent domain;
271	271	242 (ii) a proposed below-market Sale to an organization organized under Section 501(c)(3)
272	272	243of the Internal Revenue Code where the property shall be used or developed as Long-Term
273	273	244Affordable Housing;
274	274	245 (iii) any Sale of publicly-assisted housing, as defined in section 1 of chapter 40T; 13 of 22
275	275	246 (iv) rental units in any hospital, skilled nursing facility, or health facility;
276	276	247 (v) rental units in a nonprofit facility that has the primary purpose of providing short term
277	277	248treatment, assistance, or therapy for alcohol, drug, or other substance abuse; provided, that such
278	278	249housing is incident to the recovery program, and where the client has been informed in writing of
279	279	250the temporary or transitional nature of the housing;
280	280	251 (vi) rental units in a nonprofit facility that provides a structured living environment that
281	281	252has the primary purpose of helping homeless persons obtain the skills necessary for independent
282	282	253living in a permanent housing and where occupancy is restricted to a limited and specific period
283	283	254of time of not more than 24 months and where the client has been informed in writing of the
284	284	255temporary or transitional nature of the housing at its inception;
285	285	256 (vii) public housing units owned or managed by or with a ground lease from the local
286	286	257housing authority;
287	287	258 (viii) any residential property where: (a) the Owner can show that the Owner is a natural
288	288	259person(s) who, together and separately, own, either directly and/or as a member of a limited
289	289	260liability company (“LLC”) and/or a beneficiary of a trust, fewer than 10 residential rental units in
290	290	261the municipality; or (b) the Owner is an LLC or a trust and the Owner can show that each of the
291	291	262members of the LLC or beneficiaries of the trust are natural persons who, together and
292	292	263separately, own, directly and/or as members of an LLC and/or as beneficiaries of a trust, fewer
293	293	264than 10 residential rental units in the municipality.
294	294	265 (ix) any unit that is held in trust on behalf of a disabled individual who permanently
295	295	266occupies the unit, or a unit that is permanently occupied by a disabled parent, sibling, child, or
296	296	267grandparent of the Owner of that unit; 14 of 22
297	297	268 (x) any property that is owned by a college or university that is occupied exclusively by
298	298	269students;
299	299	270 (xi) any Sale to an Immediate Family Member of the Owner for a total purchase price at
300	300	271or below the current assessed value of the property;
301	301	272 (xii) a transfer by devise, descent, or operation of law upon the death of a natural person;
302	302	273 (xiii) a Sale of a newly constructed property for which the initial certificate of occupancy
303	303	274was issued no earlier than three years prior to the date of the purchase contract between a buyer
304	304	275and the party to which the certificate of occupancy was issued;
305	305	276 (xiv) a property of one to four units, where the owner actually maintains and occupies
306	306	277one of the units as his/her residence;
307	307	278 (xv) any residential property where the Owner directly or indirectly through an Affiliate
308	308	279owns only one unit in the property; or
309	309	280 (xvi) any property with more than 50 residential units, where the median rent of the
310	310	281property is at least 150% of the median rent of the municipality as determined by the most recent
311	311	282American Community Survey of the Census Bureau.
312	312	283 (12)The Executive Office shall provide municipalities with sample purchase contracts
313	313	284incorporating the requirements of this Section that an Owner can provide to a Tenant
314	314	285Association, its Designee or Successor.
315	315	286 (e) Short-Sales. In any city or town that adopts the provisions of this Section: 15 of 22
316	316	287 (1) An Owner, other than the Owner of a 1- 4 unit Owner-occupied property, shall give
317	317	288notice to each Tenant household of a Housing Accommodation of the intention to sell the
318	318	289Housing Accommodation by way of Short-Sale to avoid Foreclosure. Such notice shall be mailed
319	319	290by regular and certified mail, with a simultaneous copy to the attorney general, and the
320	320	291municipality adopting this section within 2 business days of the Owner's submission of a request
321	321	292or application to the Mortgagee for permission to sell the Housing Accommodation by way of
322	322	293Short-Sale or to accept a Deed in Lieu. This notice shall also include a notice of the rights
323	323	294provided by this section.
324	324	295 (2) No Mortgagee may accept any Third-Party Offers or deem the Owner's application
325	325	296for Short-Sale submitted for review unless and until: the Mortgagee receives documentation in a
326	326	297form approved by the attorney general demonstrating that the Tenants of the Housing
327	327	298Accommodation have been informed of the Owner's intent to seek a Short-Sale or Deed in Lieu
328	328	299and the Tenants have had the opportunity to express their interest in exercising a right of first
329	329	300refusal within 60 days or the opportunity to assigned their right of first refusal, or the Tenants
330	330	301have waived those rights. If Tenants have not affirmatively expressed their interest in exercising
331	331	302a right of first refusal or in assigning that right within 60 days, or have not affirmatively waived
332	332	303that right within 60 days, the Tenants' rights are deemed waived.
333	333	304 (3) Before a Housing Accommodation may be transferred by Short-Sale or Deed in Lieu,
334	334	305the Owner, other than the Owner of a 1-4 unit owner-occupied property shall notify each Tenant
335	335	306household, with a simultaneous copy to the attorney general and the municipality adopting this
336	336	307section, by regular and certified mail, of any bona fide offer that the Mortgagee intends to accept.
337	337	308Before any Short-Sale or transfer by Deed in Lieu, the Owner shall give each Tenant household
338	338	309such a notice of the offer only if households constituting at least 51 per cent of the households 16 of 22
339	339	310occupying the Housing Accommodation notify the Owner, in writing, that they collectively
340	340	311desire to receive information relating to the proposed Sale. Tenants may indicate this desire
341	341	312within the same notice described in paragraph (2). Any notice of the offer required to be given
342	342	313under this subsection shall include the price, calculated as a single lump sum amount and of any
343	343	314promissory notes offered in lieu of cash payment.
344	344	315 (4) A Tenant Association representing at least 51 per cent of the households occupying
345	345	316the Housing Accommodation that are entitled to notice under the preceding paragraph (3) shall
346	346	317have the collective right to purchase, in the case of a Third-Party Offer that the Mortgagee
347	347	318intends to accept, provided that it:
348	348	319 (i) submits to the Owner reasonable evidence that the Tenants of at least 51 per cent of
349	349	320the occupied units in the Housing Accommodation have approved the purchase of the Housing
350	350	321Accommodation,
351	351	322 (ii) submits to the Owner a proposed purchase and sale agreement on substantially
352	352	323equivalent terms and conditions within 60 days of receipt of notice of the offer made under the
353	353	324preceding paragraph (3),
354	354	325 (iii) obtains a binding commitment for any necessary financing or guarantees within an
355	355	326additional 90 days after execution of the purchase and sale agreement, and
356	356	327 (iv) closes on such purchase within an additional 90 days after the end of the 90-day
357	357	328period described in clause (iii).
358	358	329 No Owner shall unreasonably refuse to enter into, or unreasonably delay the execution or
359	359	330closing on a purchase and sale with Tenants who have made a bona fide offer to meet the price 17 of 22
360	360	331and substantially equivalent terms and conditions of an offer for which notice is required to be
361	361	332given pursuant to paragraph (3). Failure of the Tenants to submit such a purchase and sale
362	362	333agreement within the first 60-day period, to obtain a binding commitment for financing within
363	363	334the additional 90-day period or to close on the purchase within the second 90-day period, shall
364	364	335serve to terminate the rights of such Tenants to purchase. The time periods herein provided may
365	365	336be extended by agreement. Nothing herein shall be construed to require an Owner to provide
366	366	337financing to such Tenants. A Tenant Association that has the right to purchase hereunder, at its
367	367	338election, may assign its purchase right hereunder to the city or town in which the Housing
368	368	339Accommodation is located, or the housing authority of the city or town in which the Housing
369	369	340Accommodation is located, or an agency of the commonwealth, nonprofit, community
370	370	341development corporation, affordable housing developer, or land trust. A right to purchase
371	371	342hereunder shall be for the purpose of maintaining the use of the Housing Accommodation as
372	372	343permanently affordable rental housing.
373	373	344 (5) The right of first refusal created herein shall inure to the Tenants for the time periods
374	374	345hereinbefore provided, beginning on the date of notice to the Tenants under paragraph (1). The
375	375	346effective period for such right of first refusal shall begin anew for each different offer to
376	376	347purchase that the Mortgagee intends to accept. The right of first refusal shall not apply with
377	377	348respect to any offer received by the Owner for which a notice is not required pursuant to said
378	378	349paragraph (3).
379	379	350 (6) In any instance where the Tenants are not the successful purchaser of the Housing
380	380	351Accommodation, the Mortgagee shall provide evidence of compliance with this section by filing
381	381	352an affidavit of compliance signed under the penalty of perjury with the attorney general, and the 18 of 22
382	382	353registry of deeds for the county and district where the property is located within 7 days of the
383	383	354Sale.
384	384	355 (7) The attorney general shall enforce this subsection (e) and shall promulgate rules and
385	385	356regulations necessary for enforcement. The attorney general may seek injunctive, declaratory,
386	386	357and compensatory relief on behalf of Tenants and the Commonwealth in a court of competent
387	387	358jurisdiction. The attorney general shall post a sample intent to sell notice, sample proof of notice
388	388	359to Tenants, sample notice of offer, and other necessary documents.
389	389	360 (f) Foreclosures. In any city or town that adopts the provisions of this Section:
390	390	361 (1) When a Mortgagee seeks to foreclose, the Mortgagee shall provide copies of all
391	391	362Foreclosure notices required by Chapter 244, sections 14 and 35A, or any other applicable
392	392	363Foreclosure law, by regular and certified mail to the Tenants of the Housing Accommodation
393	393	364and to the municipality adopting this Section. The Mortgagee shall also provide Tenants and the
394	394	365municipality, by regular and certified mail, with a copy of any Complaint filed in Land Court and
395	395	366any Order of Notice issued by the Land Court, pursuant to the Service Members Civil Relief Act
396	396	367if applicable, within five (5) days of issuance.
397	397	368 (2) The Mortgagee shall provide each Tenant household and the municipality adopting
398	398	369this Section, by regular and certified mail, a copy of any and all Notices of Sale published
399	399	370pursuant to Section 14 of chapter 244.
400	400	371 (3) No later than 5 business days before the Foreclosure Auction of a Housing
401	401	372Accommodation, the Tenants shall inform the Mortgagee, in writing, if a Tenants Association
402	402	373representing at least fifty-one percent of the households occupying the Housing Accommodation 19 of 22
403	403	374or an entity to which they have assigned their right of first refusal intend to exercise their right of
404	404	375first refusal at Auction and desire to receive information relating to the proposed Auction.
405	405	376 (4) A Tenants Association representing at least fifty-one percent of the households
406	406	377occupying the Housing Accommodation or their assignee may exercise their collective right to
407	407	378purchase the Housing Accommodation, in the event of a Third-Party Offer at Auction that the
408	408	379Mortgagee receives, provided that the Tenants Association
409	409	380 (i) submits to the Mortgagee reasonable evidence that the Tenants of at least fifty-one
410	410	381percent of the occupied homes in the Housing Accommodation have approved the purchase of
411	411	382the Housing Accommodation,
412	412	383 (ii) submits to the Mortgagee a proposed purchase and sale agreement on substantially
413	413	384equivalent terms and conditions to that received by the Mortgagee in the Third-Party Offer
414	414	385within sixty days of receipt of notice of the bid made under paragraph (3) of this section,
415	415	386 (iii) obtains a binding commitment for any necessary financing or guarantees within an
416	416	387additional ninety days after execution of the purchase and sale agreement, and
417	417	388 (iv) closes on such purchase within an additional ninety days after the end of the ninety-
418	418	389day period under clause (iii).
419	419	390 No Mortgagee shall unreasonably refuse to enter into, or unreasonably delay the
420	420	391execution or closing on a purchase and sale with Tenants who have made a bona fide offer to
421	421	392meet the price and substantially equivalent terms and conditions of a bid received at Auction.
422	422	393Failure of the Tenants to submit such a purchase and sale agreement within the first sixty day
423	423	394period, to obtain a binding commitment for financing within the additional ninety day period or 20 of 22
424	424	395to close on the purchase within the second ninety-day period, shall serve to terminate the rights
425	425	396of such Tenants to purchase. The time periods herein provided may be extended by agreement.
426	426	397 Nothing herein shall be construed to require a Mortgagee to provide financing to such
427	427	398Tenants. A Tenant Association which has the right to purchase hereunder, at its election, may
428	428	399assign its purchase right hereunder to the city, town, housing authority, or agency of the
429	429	400commonwealth, nonprofit, community development corporation, affordable housing developer,
430	430	401or land trust; a right to purchase hereunder shall be for the purpose of maintaining the use of the
431	431	402Housing Accommodation as permanently affordable rental housing.
432	432	403 If there are no third-party bids at Auction for the Housing Accommodation, the Tenants
433	433	404shall have a right of first refusal whenever the Mortgagee seeks to sell the Housing
434	434	405Accommodation. The Tenants shall be notified of any offers the Mortgagee intends to accept and
435	435	406shall be given an opportunity to meet the price and substantially the terms of a Third-Party Offer
436	436	407based on the same time line described in paragraph (4).
437	437	408 (5) The right of first refusal created herein shall inure to the Tenants for the time periods
438	438	409herein before provided, beginning on the date of notice to the Tenants under paragraph (1).
439	439	410 (6) In any instance where the Tenants are not the successful purchaser, the seller of such
440	440	411unit shall provide evidence of compliance with this Section by filing an affidavit of compliance
441	441	412signed under the penalty of perjury with the attorney general, the Executive Office, and the
442	442	413official records of the county where the property is located within seven days of the Sale.
443	443	414 (7) The attorney general shall enforce this subsection (f) and shall promulgate rules and
444	444	415regulations necessary for enforcement. The attorney general may seek injunctive, declaratory,
445	445	416and compensatory relief on behalf of Tenants and the Commonwealth in a court of competent 21 of 22
446	446	417jurisdiction. The attorney general shall post a sample intent to sell notice, sample proof of notice
447	447	418to Tenants, sample notice of offer, and other necessary documents.
448	448	419 (g) Any notice required by this section, except notice provided by a Tenant Association
449	449	420to the municipality, shall be deemed to have been provided when delivered in person or mailed
450	450	421by certified or registered mail, return receipt requested, to the party to whom notice is required;
451	451	422except that with respect to providing notice to Tenants, notice shall be deemed to have been
452	452	423provided when either: (i) the notice is delivered in hand to the Tenant or an adult member of the
453	453	424Tenant's household; or (ii) the notice is sent by first class mail and a copy is left in or under the
454	454	425door of the Tenant's dwelling unit. A notice to the affected municipality shall be sent to the chief
455	455	426executive officer.
456	456	427 (h) It is illegal for an Owner or their agent to take any action to evict, threaten, coerce, or
457	457	428retaliate against a Tenant or Tenants in order to avoid application of this Section.
458	458	429 (i) A Tenant, Tenant Association, or Successor, Designee or assignee shall not solicit or
459	459	430accept payment or any other consideration for assigning or waiving any rights under this section.
460	460	431 (j) Aggrieved Tenants, Tenant Associations, Designees, Successors, assignees, and
461	461	432municipalities may seek damages under chapter 93A and may file a complaint with the attorney
462	462	433general, and may also file a court complaint for equitable and/or monetary relief, including but
463	463	434not limited to damages of a percentage of the sales price and/or injunctive relief in the form of
464	464	435specific performance. Nothing in this Section shall be construed to limit or constrain in any way
465	465	436the rights Tenants currently have under applicable laws, including but not limited to chapters 186
466	466	437and 186A. At all times, all parties must negotiate in good faith. 22 of 22
467	467	438 (k) The Executive Office shall promulgate rules and regulations to effectuate the
468	468	439purposes and implement this Section not later than 150 days after the effective date of this act.
469	469	440The attorney general shall promulgate rules and regulations necessary for enforcement and may
470	470	441seek injunctive, declaratory, and compensatory relief on behalf of tenants and the commonwealth
471	471	442in a court of competent jurisdiction.