Controversy concerning condo conversions
By George P. Hassett

   Mayor Joseph A. Curtatone has submitted a proposal to the Board of Aldermen to enhance tenants‚Äô rights under the city‚Äôs condominium conversion ordinance. Supporters of the proposal say it will add greater predictability and clarity to the current condo conversion process, while opponents contend it will give tenants more rights than homeowners, while weakening the city‚Äôs tax base.
  Under Curtatone‚Äôs proposal, conversion permits would now be issued simultaneously for all units in one property. The ordinance would require owners to submit proof of tenant notification when applying for a conversion permit, and they would have to provide more notice and response time to elderly, handicapped and low-income tenants before converting rental properties into condominiums. Tenants would be granted more opportunities to purchase their converted condominium as well as increased relocation costs. The ordinance also proposes a permit fee increase to $750 ‚Äì a figure negotiated by attorneys who regularly practice before the Condo Review Board.
       Bart Foster, a Somerville real estate agent, said the ordinance could be unfair to Somerville homeowners.

    ‚ÄúThe tenants will have more rights and power over how the property is used than the homeowners,‚Äù he said. ‚ÄúThe tenants have very little stake in how the property is used compared to the person who actually owns it. It is the homeowner who has to replace roofs and maintain the property, not the tenants.‚Äù
     Curtatone said his ordinance is designed to balance the rights of home owners and tenants, and is about fairness not power.
     ‚ÄúThe working families who rent in Somerville and want to stay in Somerville should know if they are going to be displaced and they should have the opportunity to do something about it,‚Äù said Curtatone.
     With its surplus of multifamily homes, Somerville has become a breeding ground for condominium conversions. In the past two years, the number of condominiums on the market has increased dramatically. According to an April 3 issue of  Banker and Tradesman, a weekly real estate and banking publication, available condo units in the city have increased from 100 to 160 to 275 over the past three years.
     Many in Somerville feel condo conversions inflate market prices, hurt the middle class and squeeze out long-time residents, decreasing a city‚Äôs sense of community.
    ‚ÄúWithout certain protections, condo conversions can lead to displacement of life-long residents, unpredictability for all tenants and a detrimental effect on the great diversity we have here,‚Äù said Curtatone.      
      Foster said limiting home owners‚Äô rights to convert their property to condominiums hurts the city‚Äôs fiscal health.
     ‚ÄúCondo conversions help the bottom line of a city‚Äôs tax revenue,‚Äù he said. ‚ÄúIf a two family home is appraised for $400,000, then converted into a condominium and appraised as $600,000 that is more revenue for the city to improve the services it offers all of its residents.‚Äù
      He said condo conversions also stimulate economic growth by providing work for local contractors and laborers, who in turn, put that money back into the local economy.
     ‚ÄúIf anything, condo conversions really help a lot of the average Joe‚Äôs of the world,‚Äù he said.
     The ordinance has been sent to the Board of Aldermen‚Äôs Committee on Legislative Matters for further review and is slated for discussion at the committee‚Äôs May 2nd meeting.