A
controversial proposal that brought hundreds of landlords to City Hall
in protest is back and this time, according to the mayor, it is not
slanted in favor of tenants. But the proposal, which would revise the
regulations surrounding the condo conversion process, comes after the
local condo market reached its peak and conversions in the city have
slowed dramatically.

In fiscal year 2006, when the ordinance
was first proposed by Mayor Joseph A. Curtatone, there were 565
multi-family homes converted into condominiums. In fiscal year 2008,
there were 217, a 61 percent decrease.

Still, Curtatone said an
ordinance adding clarity and predictability to the process is needed.
"There have been clear abuses of the process in the past where tenants
were wrongfully evicted to make way for condos," he said. "The rate of
condo conversions have declined but even one case of abuse is enough
for the city to respond."

The original proposal would have
increased notification times – to up to four years – and reimbursement
payments – to up to $2,000 – that landlords would be required to
provide low-income, handicapped and elderly tenants before converting
their multifamily buildings into condos and selling off the units.

The
new proposal calls for relocation payments tied to rental rates and
shorter notification times for tenants in two- and three-family
buildings. "The new ordinance is predictable and clear for tenants and
property owners alike," Curtatone said.

As the real estate
market boomed in Somerville earlier in the decade, block after block of
two- and three-family homes were converted into condos. Between July
2004 and June 2005, 578 condominium units were created, a 70 percent
increase over the prior fiscal year, according to city records.

In
the new ordinance, city lawyers called the previous spike in
conversions "a serious public emergency" that cut down on Somerville's
stock of affordable rental units. Critics of condo conversions say they
force out many longtime residents, taking away from the city's
traditional character.

The 2006 proposal was branded as "de
facto rent control" by Skip Schloming of the Small Property Owners
Association and a mailing that group sent out brought an angry crowd to
City Hall for the public hearing. During the May 30, 2006 meeting,
angry landlords cheered Alderman-at-Large William A. White when he
challenged city lawyers on the legality of the ordinance and heckled
Curtatone when he spoke in favor of it. Ward 6 Alderman Rebekah Gewirtz
said it was the most contentious hearing during her tenure on the board.

Gewirtz
said she does not expect the same level of opposition to the new
proposal. The working group Gewirtz led to revise the ordinance after
the negative reaction included both tenants rights advocates and the
CEO of the Greater Boston Real Estate Board. The result, she said, is a
proposal that protects the interests of both tenants and landowners.

The
new condo conversion ordinance will be submitted to the Board of
Aldermen later this month and sent to the Legislative Matters Committee
for a public hearing and discussion.