Legislative Update from Preti Strategies for July 2024
by Jim Eisenberg
Good News on the Housing Bond Bill!
On June 27, 2024, the Massachusetts Senate unanimously passed a $5.4 billion bond bill designed to spur affordable housing production. With the House of Representatives having passed its own version of the bill earlier in the month, it will move to a conference committee, which will have to iron out a compromise bill that will need to be passed and sent to Governor Maura Healey's desk before July 31.
First and foremost — thanks to the work of SPOA members who reached out to their representatives and senators, neither bill contains a version of the transfer tax. Earlier in the session, legislative leaders had publicly indicated they were considering passing a version of the transfer tax, but thanks to your efforts, neither the House nor the Senate endorsed either a state-wide or local-option transfer tax.
Both bills also contain provisions allowing for by-right construction of Accessory Dwelling Units (ADUs), which was supported by SPOA and will benefit our members by allowing them to create more housing stock. Slight differences between the House and Senate versions will still need to be worked out in conference, but it appears this important provision will go forward and will create private sector housing for people who need it the most.
There are, however, some important differences between the chambers’ bills that SPOA is tracking. We are working to fight against the tenant’s right of first refusal (also known as TOPA) provisions that were inserted into the House bill.
We encourage SPOA members to continue contacting their state legislators to oppose TOPA. You can find the message sent by SPOA to oppose TOPA HERE. You can also read an article about the TOPA bill by SPOA Vice President, Amir Shahsavari, published in Banker & Tradesman below.
An alternative link to the article can be found HERE.
Additionally, the Senate inserted a record sealing provision. While SPOA does not support record sealing of any kind, this language does represent a compromise between advocates and the Greater Boston Real Estate Board — and it is language that is far less onerous than is present in some bills that are still active in the legislature. Finally, the Senate bill contains a provision relative to broker fees, which does not prevent an owner from using a broker to rent, but does direct that the fee be paid by the seller rather than the buyer.
Aside from the housing bills, we are also keeping our eye on several other bills, including a bill that would significantly limit your ability to perform credit checks on potential tenants. This bill has cleared all but the final procedural steps in the House, and we are again grateful to all the SPOA members who expressed their opposition to it as we work to keep it off the docket. We encourage you to contact your state legislators to oppose this proposal by using the link attached HERE.
With July 31 being the end of formal sessions, we are in the final leg of the 2023-2024 legislative calendar—and the clock is ticking!
by Jim Eisenberg
SPOA Releases Episode 7 of Housing Policy Series with "Innovative Approaches to Real Estate Ownership"
by Amir Shahsavari
The Small Property Owners Association (SPOA) has released Episode 7 of the SPOA Housing Policy Series, which is called "Innovative Approaches to Real Estate Ownership."
The conversation focuses on different ways to own, manage, and invest in real estate, especially when owners are ready to move on from the hands-on aspects of property management. Specific tools such as 1031 exchanges, Real Estate Investment Trusts (REITs), and Delaware Statutory Trusts (DSTs) are discussed along with their pros and cons. In addition, the threatening proposals on Beacon Hill highlight the need to further defend property rights, in order to preserve the options mentioned in this presentation.
SPOA Vice President, Amir Shahsavari, moderates the discussion with the panel, which includes Christina Dorobek (Head of Investor Relations, Groma), Brian Butler (Capital Markets & Aquisitions Team, Groma), and Demetrios Salpoglou (CEO, Boston Pads).
You can access the video using the link below. Also included are links to visual aids that will help in understanding the content of the presentation.
The content and discussions presented in this program is for broad informational purposes only and is not to be replaced, used or misconstrued as professional advice. Please consult your advisors for information pertaining to your personal, individual situation.
SPOA Housing Policy Series
Episode 7
Innovative Approaches to Real Estate Ownership
ADDITIONAL MATERIALS AND VISUAL SUPPORTS
by Amir Shahsavari
2024 South Boston Apartment Rental Market Report
by Demetrios Salpoglou
Although the apartment rental market in South Boston has historically been an outlier among most of Boston’s rental markets, the data obtained for 2024 thus far yields unusual results. For more information about rental supply and average rent prices, in addition to the rental forecast for the rest of the year, please click on the link below.
by Demetrios Salpoglou