By George P. Hassett

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 ‚Äúa serious public emergency‚Äù 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.