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Below please find a response by the City of Somerville Housing Division provided to address the content of a flyer produced by the Somerville Property Owners Coalition about Somerville’s Condominium Conversion Ordinance (CCO).
Italicized statements are from the flyer, non-italicized text is clarifying information from the Housing Division prepared in response.
Flyer: “The new CCO takes away your fundamental right to control YOUR private property.”
City: There has been a condominium conversion ordinance in Somerville since 1985. Property owners always had to appear before the Condominium Review Board to convert existing property to condominium units.
Flyer: “Owners of 2 and 3 family homes can no longer convert, or sell to a developer to convert, their private property, without first offering units ‘as is’ to tenants, a ‘non-profit’, or the City and before offering to the open market.”
City: The tenant right to purchase already exists under both state law and Somerville’s current ordinance. The City/designee right to purchase is a new provision and runs concurrent with the tenant’s right – no additional time is added for the City/Designee. The right to purchase is structured so that the price, which is set by the owner, will reflect current market values.
Flyer: “Tenants now have up to 7 years to move out of your property!”
City: All tenants are entitled to one years’ notice. Seven years is the maximum, which only applies if a property owner willfully neglects to fulfill their obligation to assist in housing search for vulnerable tenants who are either low/mod income, elderly and/or disabled being displaced through conversion. Otherwise, vulnerable tenants who are either low/mod income, elderly and/or disabled are entitled to five years’ notice.
Flyer: “During this time: You are not allowed to raise rents without permission from the City. You cannot improve your units without permission from your tenants.”
City: City review of rent increases is done to verify that the rents do not exceed market rents. Necessary repairs required by State Sanitary and Building Code are permissible, and vacant units can be renovated during the waiting period. Cosmetic and other discretionary improvements that have in the past had the effect of disrupting tenant ‘quiet enjoyment’ rights to their units are limited.
Flyer: “You must pay up to $10,000 to relocate your tenants! You must find ‘comparable’ housing within the city of Somerville for your tenants!”
City: All households are entitled to a relocation payment of $6,000.The $10,000 payment provision is limited to especially vulnerable households including elderly, disabled or low/mod-income tenants. Owners must make a good faith effort (defined in CCO Rules) to assist vulnerable tenants who are either low/mod income, elderly and/or disabled in finding comparable housing.
Flyer: “The restrictions of the CCO have now devalued your property because it makes it harder to sell.”
City: City staff are unaware of any empirical data demonstrating that the ordinance has devalued property since its passage.
Flyer: “Your tenant, a nonprofit or the city can buy your property, without first offering it to the open market – develop the property themselves and FLIP it at a profit, and capitalize on your loss.”
City: The tenant right to purchase is recognized by state law. If the City/Designee were to purchase a property, it is required to be for the purposes of maintaining the unit as an affordable unit, in perpetuity. In other words, it cannot be sold at a profit.
Flyer: The city is setting the rules for how, when and to whom you sell your property.
City: This ordinance only applies to transactions involving Condominium Conversion. All other transactions are not impacted. Condominium Conversion remains allowable, so long as owners abide by the Ordinance.
For additional clarifying information or questions, please contact Condominium Review Board staff at 617-625-6600, ext. 2575 or hcarrillo@somervillema.gov.
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The city is totally in the right here. Not crying any tears for landlords making extortionate rents each month. Renters live here, renters vote, and this helps restore some balance in the housing market
I still don’t understand on the most fundamental level how this ordinance or any other so-called renter rights proposal is reasonable or even constitutional. A property owner owns the property. They enter into a legal agreement to rent it for X dollars per month for Y amount of time. At the end of the lease, the tenant should always expect to move out of the owner’s property unless a new agreement can be reached. That’s the whole point of renting… and the renter is not entitled to anything beyond the agreement! And on the flip side, an owner may do whatever reasonable or unreasonable thing he/she wishes… that is the core concept of ownership.
I read the entire bill. There was no notification to anyone that I know. Nothing in a water bill. Nothing with excise tax. Nothing with property tax bill.
There was a mention that there was supposed to be a second hearing. Never happened.
On rents – as operating costs increase they need to be passed along. If the people elect councilors who spend lots the property taxes will continue to increase.
Waiting years to sell one’s property is ridiculous. At a minimum the city should exempt that property from prop taxes during the years the owner waits. If someone has a job transfer, or wants to retire, or needs to go to a nursing home – they need the money asap.
Its good to hear that there is a home owners group in the city.
Why is Somerville concerned about stopping condo ownership? Seems like a really good way to get stability and help folks create equity. Also the low/moderate ownership definitely applies to student renters which is likely the basis for the aggressive rule change. I guess if you own a 2-3 family you’re pretty screwed whereas there aren’t many of any larger buildings selling and suddenly going condo.
The new condo conversion ordinance is much stricter than the old one and now extends to two- and three-unit properties — BIG CHANGE. A tenant “right to purchase” is seldom used, but tenants often demand payoffs to give up this right and speed up a sale. Almost all tenants will qualify as low or moderate income and get the $10,000 “relocation assistance,” an exorbitant amount to move. If they refuse to accept the housing an owner finds for them, they get to stay 7 years at a frozen rent. I have seen devaluation statistics already from the Somerville Property Owners Coalition for houses being sold after the ordinance went into effect. Sure, you can convert if you follow all the rules. But the rules make condo conversion so burdensome as to stop conversion altogether. And that was the intention of the drafters of the new ordinance. Skip Schloming, Executive Director, Small Property Owners Association, Cambridge MA
They put this in place so these units become the low income while the city makes money on the multi unit buildings like Assembly row that have studio apts for $3000 a month. Joe Shmo has to keep rents at approved level but developers can charge whatever they want
A number if us that own two family houses no longer rent out an apartment. I know first hand there are four I know first hand but I don’t know how many there really are. I am not rich but can get by as I don’t require much to live on and would rather not deal with a tenant who has more rights than me. I worked 7 days a week to own this and I don’t need the hassle.
This is why people will choose not to rent to others. i would consider leaving my apartment vacant before I ever have this communistic crap commandeered my property rights. The more you squeeze us the less units will be offered. You are only making it worse. People will sell and not bother converting to condos and let the new owner deal with this crap.
To all these landlords threatening to take their units off the market because it’s too much hassle to be a kind person: you are the problem.
Renters are people too. We need the roofs over our heads more than you need more money in your bank account. these changes literally only affect owners who are trying to displace at risk people to put more money in their pockets.
I’m glad your investment didn’t pay out when you thought you could make money by evicting seniors and low income folks. Sickening selfishness.
I rented out my last places before I bought this one over thirty years ago. I brought my parents in until they passed away. I have let one or two homeless people stay on occasion there temporarily since and took no money. I paid for heat, electric and food. So I am making a killing and lots of money. But no renters ever again.
Renter: Perhaps try to locate at both sides of the equation. example: I need to sell my house as I am getting older, am on a fixed income and can no longer maintain the house. I need to buy something smaller and less expensive, which means 1) I’ll need to go much further from the city than I would like and 2) I’ll need to buy something without spending all of the proceeds from my house which means I will likely end up near NH 3) Over 30 years I spent countless hours and dollars upgrading a 100+ year-old home. This was no easy feat and required a lot of sacrifices 4) I have never charged close to market rate.
I am tired of being vilified as a greedy ogre of a landlord because of this. You expect much of the ‘sickening selfishness’ you decry.
Landlord: forget it. These people want free stuff and they don’t care how much money and toil you’ve put into your house. Mommy and Daddy paid for everything, and now that the party has stopped, they need a new benefactor. (That’s you!). Somerville has become THE destination for spoiled rich kids trying to be adults.
to fix a problem one has to understand the problem. I cannot seem to find any politician who owns rentals and rents to middle or low income.
rents are tied to operating costs. the city has increased everything from property taxes to water to sewer. replacing a heating system or a roof is not cheap and everyone wants to be paid today *yet its not fully deductible due to depreciation rules which make it far more costly for the owner*. Few people want to live in a run down rental today and to fix them up the renovation costs are prohibitive so the units are being sold off as condos. Most of those condos are creating home ownership for people who desire to live In that area. Home ownership is the American dream.
The property owner who has provided shelter to fellow mankind has been on call for many years. its been a part time job where he / she has been there nights and weekends. Its not a 9-4 job.
The homeowner deserves to be able to sell immediately at top dollar when they retire, or have an immediate family change, or have a job transfer. Most of us have all of our retirements in these houses. We do not want to wait years. Moving to the next place requires money immediately.
Let’s see the city reduce the property taxes on the rental properties as that will trickle down. Big govt seems to result in higher living costs. If we collectively continue to vote for more spending its just going to push property taxes and water bills higher which will push rents up. That is basic math which should have been covered somewhere in school.
I have yet to hear of any city or govt agency working WITH the owners to reduce operating costs.
Thanks to the City of Somerville there will be one less rental on the market in 2020. We are selling our condo and pocketing 100% of the profit with no taxes as it was our primary residence. I would rather bank the profit than deal with all the silly rules they come up with protecting renters. The ultra progressives are trying to get rent control and who knows what else they will come up with next. Why would I take a chance? I would have rented out my apartment but the city made my decision easy.