Letter from the President: In Support of Somerville Housing Providers and Keeping Massachusetts Competitive

Let me begin by thanking people for supporting us. We’re noticing a significant uptick in engagement. We appreciate your increased participation. It is crucial.

A couple of things to note:

Somerville rental housing providers are under assault. 

Currently underway are a series of “listening sessions” from stakeholders on housing. There is a strong push for Rent Control in 02143.

It is important to note that we are all bound by the current constraints of the law – both municipalities and statewide. If you are a Somerville owner, please voice your objections in writing on Rent Control to the City Council and Mayor. SPOA is collecting responses and will be submitting them to state elected officials.

Good ideas should be applauded. 

Mayor Wu came forward with tax incentives for potential commercial real estate conversions from office towers to housing in Boston. Public - Private handholding is how the housing crisis should be addressed. 

However, this cannot happen immediately. Few buildings are suited for conversion. The soft costs are astronomical and interest rates aren’t helping these deals to pencil. Significant valuation reductions need time to work through the marketplace. There will be tax abatements. The process is just beginning in other US cities. 

We hope downtown Boston’s commercial real estate market can weather the storm. The voting public should not be cajoled into thinking there’s an overnight solution to this significant revenue problem.

The center for the Boston Celtics nailed it. $58M in Dallas is $54M in Boston. 

Some Massachusetts leaders chant “their fair share,” but in the final analysis, high earners will choose to play the game elsewhere. There have been several prominent articles recently touting the advantages of Massachusetts and rejecting the notion that high taxes are playing a role in outmigration. Denying the data will only work for so long.

If Massachusetts’ elected officials don’t support tax reform, it is going to be difficult to turn the ocean liner around. Thus far, $4.3 billion of tax revenue has left the state. Competitiveness matters.

Your donations are needed urgently.

Sincerely, 

Allison Drescher
President
Small Property Owners Association (SPOA)