State House News Service

MAY 17, 1999--After hearing only opposition to a rental housing emergency bill, the chairmen of the Legislature's Housing and Urban Development Committee did not seem inclined to rush ahead today with a plan that would put a crimp on trendy condominium conversions.

The Tenant Protection Act of 1999 filed by Sen. Stephen Lynch (D-South
Boston) enables communities to declare a rental housing emergency due to
concerns over condo conversions, the scarcity and affordability of rental
housing, and the overall conditions in the housing market.

Once an emergency is declared, officials could limit the number of rental
units that could be converted to condos to no more than 20 percent of the
overall number of rental units in a town.

Lynch, who did not testify at today's hearing, is concerned about a disappearing affordable rental market in his district, where rents are
rising and apartments are being converted into condos. The Lynch bill was
rapped by Massachusetts Association of Realtors general counsel Stephen Ryan.

For many, Ryan said, the only way out of the housing crunch is through
ownership.  For some, condominiums are an affordable option to buying
freestanding single family homes.  While Lynch hopes his bill will address
affordability concerns, Ryan opposes it for the same reason.

"Historically, the purchase of condominiums has been for many folks the
only way to own their own place if they want to stay in a city," Ryan said.
"We believe the senator's concerns about housing affordability are genuine, without question.  We differ on what approach in the long term is going to be better for . . . creating opportunities for home ownership."

"We have some serious concerns about this proposal," Ryan added.

After the hearing, committee chairmen Sen. Stephen Pangiotakos (D-Lowell)
and Rep. Robert Koczera (D-New Bedford) pointed out the lack of formal
support for the bill at today's hearing.

"We didn't hear anything," said Koczera.  "We'll look at it carefully."

Koczera feels the 1983 condo law works well.  "We have a rather good condo conversion law on the books," he said.  "It addresses aspects of conversion issues fairly well, fairly adequately."

Said Pangiotakos, "It's a new bill.  We're going to take a close look at it."

According to the Massachusetts Association of Realtors, condo sales
increased 38 percent during the first quarter of 1999.  The average condo
selling price was $139,104.  The association feels sales are up so much
this year because more renters are realizing they can buy a home or condo.

Reached by phone this afternoon, Lynch said his bill, if passed, would need
to be adopted in a particular city or town to take effect.  That local option provision makes it less controversial, he said.  "Towns that don't want it, cities that don't want it, don't adopt it," Lynch said.

Naming Boston and Cambridge, he predicted about five of the state's 351
municipalities would consider limiting condo conversions. "If you look at
what's happening in Cambridge and Boston, you see there's a need for this,"
said Lynch.  "From what I've seen, we need to do something.  The market is
not working. We're seeing massive gentrification.  Across this city,
neighborhoods are being destroyed and the common denominator across this is the ability to pay.  That's unfortunate.  The disappearance of affordable
housing is going to affect our city for a long time."

Condo conversions are "proceeding at an alarming rate" in South Boston, the
South End, East Boston, Charlestown, and parts of Dorchester, Lynch said
That means fewer rentals and more condos that are still unaffordable to
many renters. He added that delaying conversions for six or eight months is
not a severe burden.

Lynch said those in the city who talk about making it an affordable place
for working families "need to put action behind their words." He added, "That may sound odd in a day when everything is moved by the markets, but I
think there's a need for balance here."

Lynch also downplayed the fact that no one supported the bill at its public
hearing.  "Most of that stuff happens in caucus anyway," he said, referring
to the private meetings senators have to hash out agreements and air their
concerns about public policy questions.
 

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