By George P. Hassett

A proposal that caused hundreds of homeowners to pack City Hall in protest two years ago is coming back.

The condominium conversion ordinance proposed by Mayor Joseph A. Curtatone was sent packing to a working group headed by Ward Six Alderman Rebekah Gewirtz after it was roundly criticized by residents and the real estate community as “de-facto rent control.”

In its original form, the proposal would have increased the notification times — to up to four years — that landlords would be required to provide before converting their multifamily buildings into condos and selling off the units. Somerville’s current rules for conversion require landlords to give tenants one year’s notice of a conversion. The elderly, handicapped, and low income residents have two years.

Under current law, landlords pay $300 in relocation reimbursement to low-income tenants. The original proposal would have required paying $2,000 or one month’s rent to tenants, and $4,000 or two months rent to the elderly, handicapped, and those with low incomes.

Critics of the ordinance called those measures excessive. And at a crowded hearing on the initiative in June 2006, homeowners packed City Hall to complain loudly. 

Now, two years later it is back. But Richard DiGirolamo, a local property owners advocate and attorney who opposed the original ordinance, said the new version is a markedly different product.

“In my mind it is a lot better than what they came out with [two years ago],” he said. “I think the real estate community will be satisfied.”

Gewirtz said the group – which consisted of tenant advocates, the CEO of the Greater Boston Real Estate Board and city residents – met once a month for two years. She would not disclose specifics of the agreement reached by the group until she met with Curtatone.

Between July 2004 and June 2005, 578 condominium units were created in the city, a 70 percent increase over the prior fiscal year. Condo conversions have been a needed boost to Somerville’s economy, which relies mainly on residents to fund municipal services because of the lack of a significant commercial tax base. But critics say conversions force out long time residents, and have taken away from the city’s unique character.