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That the City Manager is requested to confer with the Law Department, Cambridge Development Department, and the City Manager’s Housing Liaison to discuss and advise on a condominium conversion ordinance
AN ORDINANCE PROVIDING PROTECTION FOR TENANTS FACING
DISPLACEMENT BY CONDOMINIUM COOPERATIVE CONVERSION PURSUANT
TO CITY'S AUTHORITYUNDER ST. 1983, C. 527
WHEREAS, in 1983, the State Legislature adopted Chapters 527 of the Acts of 1983, in
which the General Court found and declared that a serious emergency exists within the
Commonwealth with respect to the housing of a substantial number of the citizens of the
Commonwealth. This rental housing emergency created by prolonged increases in housing costs at
a rate substantially exceeding increases in personal income, by housing abandonment, and by
increased costs of new housing construction and finance has been greatly exacerbated by the effect
of conversion of rental housing into condominiums or cooperatives. Currently the combination of a
booming housing market with extraordinarily high rental prices and an extremely low vacancy rate
makes it extremely difficult for many tenants, including elders, low and moderate income tenants,
and tenants with disabilities, to relocate. In order to adequately protect these tenants facing
displacement as a result of condominium conversion, they must receive further protection from the
consequence of such conversion than the law now affords. The current housing crisis and the threat
of displacement as a result of condominium conversion poses a serious threat to the public health,
safety, and general welfare of the: citizens of the Commonwealth, particularly the elderly, the
handicapped, and persons and families of low and moderate income. It is therefore necessary-that
such emergency be dealt with immediately; and
WHEREAS, Section 2 of Chapter 527 of the Acts of l93 provides that any city or town may, by
ordinance or by-law, impose provisions or requirements to regulate for the protection of tenants
with respect to the conversion of housing accommodations, as defined therein, to the condominium
or cooperative forms of ownership and evictions related thereto which differ from those set forth in
Chapter 527, upon a two-thirds vote of the City Council with the approval of the Mayor, and
WHEREAS, Section 2 of Chapter 527 of the Acts of 1983 also provides that local legislative
action to impose provisions or requirements to regulate for the protection of tenants with respect to
the conversion of housing accommodations to the condominium or cooperative forms of ownership
and evictions related thereto which differ from those set forth in Chapter 527 must be accompanied
by a declaration, in the form of findings, that local conditions constitute an acute rental housing
emergency requiring local action, on account of the aggravating impact of the facts set forth in
Section 1 of Chapter 527; and
WHEREAS, prior and subsequent to Chapter 527 of the Acts of 1983, following declarations of
emergency by the City Council and the State legislature; the City of Cambridge adopted
ordinances for the protection of tenants with respect to the conversion of housing accommodations
to the condominium or cooperative forms of ownership and evictions related thereto pursuant to
the authority granted to it under its rent and eviction control enabling laws, including Chapter 36 of
the Acts of 1976, extending such protections to rent-controlled accommodations; and -
WHEREAS, during the 1970's over one thousand nine hundred units of rental housing in the City
of Cambridge were removed from the rental market due to conversion to the condominium or
cooperative form of ownership; and
WHEREAS, in August 1979 the City of Cambridge enacted Section 8.44 of the Cambridge
Municipal Code which regulated eviction due to condominium conversion; and
WHEREAS, as a result of the City's regulation of condominium or cooperative conversion, tenant
displacement by reason of condominium or cooperative conversation eviction substantially abated;
and
WHEREAS, Chapter 282 of the Acts of 1994 provided that rent and eviction
protections should continue in effect for certain low-income tenants in rent-controlled units until
December 31, 1996; and
WHEREAS, Section 3 of Chapter 282 of the Acts of 1994 provides that cities or towns in which
rent control authority ended retain their rights under Chapter 527 of the Acts of 1983, to enact local
ordinances to provide tenant protections regarding condominium or cooperative conversions and
evictions resulting therefrom which may be different from the protections found in Chapter 527 of
the Acts of 1983; and
WHEREAS; with the adoption of Chapter 282 of the Acts of 1994 and M.G.L. e. 40P eviction
protections ended under rent control enabling laws; and
WHEREAS, there continues to be a high rate of conversion of rental unite to the condominium
form of ownership and a sharp escalation in the cost of both rental housing and housing for
purchase in the City of Cambridge; and
WHEREAS, many of the state and federal housing programs that serve low and moderate income
tenants, and elderly and handicapped tenants, are reduced, leaving many households with fewer
affordable alternative if they are displaced; and
WHEREAS. the City of Cambridge wishes to adopt legislation which would protect tenants who
are in occupancy of units at the time that such units are first converted or individually sold as
condominium or cooperative units from displacement due to condominium or cooperative
conversion, and provide protections for those tenants while they pursue other
housing alternatives; and
WHEREAS, the City of Cambridge wishes to insure that future condominium or cooperative
conversions comply with all condominium and cooperative conversion laws, that tenants are not
constructively evicted from their units because of such conversion, and that where displacement
occurs tenants are given proper notice of their rights and options. including the right to purchase
their dwelling unit,
Now, therefore, the City Council declares, in accordance with Section 2, Paragraph: 4 of Chapter
527 of the Acts of 1983, that current conditions in the City of Cambridge constitute
an acute rental housing emergency requiring action by the City, on account of the aggravating
impact of those factors enumerated in Section l of Chapter 527 of the: Acts of 1983, and because of
prolonged increases in housing costs at a rate substantially exceeding increases in personal income,
by reductions in state and federal affordable housing programs, and by the effect of conversion of
rental housing into condominiums or cooperatives, thus reducing the remaining stock of rental
housing and resulting in threats of displacement to existing tenants, particularly those of low- and
moderate-income and those who are elderly or who are people with disabilities, and an inability of
those tenants to secure comparable replacement housing;
The City Council further declares that pursuant to its powers under Section 2 of Chapter 527 of the
Acts of 1983, the City of Cambridge hereby establishes certain additional protections for tenants
living in housing accommodations which are, or which may in the future be, converted to the
condominium or cooperatives form of ownership, so as to minimize involuntary displacement as a
result of condominium or cooperative conversion and evictions related thereto particularly for
those who are elderly, who are people with disabilities and/or who are of low and moderate
income, and the City of Cambridge hereby establishes a regulatory scheme to ensure that future
conversion of housing accommodations to the condominium or cooperative form of ownership is
carried out in compliance with this ordinance, in a manner that avoids constructive or direct tenant
displacement except as otherwise authorized by law, and in a manner that gives tenants and
designated housing agencies an opportunity to exercise rights to purchase units so as to minimize
displacement and to maximize the ability of tenants facing displacement to relocate into suitable
replacement housing, that Chapter 8.44 of the Cambridge Municipal Code shall be stricken, and
this ordinance shall be adopted in its stead.
When used in this ordinance, unless the context otherwise requires, the following terms shall have
the following meanings:
a. Chapter 527: The terms "Chapter 527" and "Chapter 527 of the Acts of 1983" shall refer
to Chapter 527 of the Acts of 1983, as amended from time to time.
b. Comparable housing: Housing of similar size, with similar amenities would not require a
change in school enrollment for minor school age children.
c. Convert. The submission of a housing accommodation to the condominium form of
ownership by executing and/or recording a master deed or assignment of lease pursuant to
chapter 183A of the General Laws; or the act of submitting a housing accommodation to
the cooperative form of ownership under articles of organization creating a housing
cooperative in pursuant to chapter l56B, 157, l57B or any other provisions of the General
Laws.
d. Condominium or Cooperative Conversion Eviction. An eviction of a tenant for the purpose
of removing such tenant from a housing accommodation in order to facilitate the initial
bona fide sale and transfer of legal title to that housing accommodation as a condominium
or cooperative unit to a prospective purchaser; or an eviction of a tenant by any other
person who has purchased a housing accommodation as a condominium or cooperative
unit where the tenant whose eviction is sought was a resident of the housing
accommodation at the time the notice of intent to convert is given or should have been
given as provided in Section 4 below. For purposes of this ordinance, the word "eviction"
shall include, without limitation, any action by an owner of a housing accommodation
which causes substantial deprivation of a tenant's beneficial use of such housing
accommodation, materially impairs such tenant's beneficial enjoyment of such housing
accommodation; or is intended to compel such tenant to vacate or to be constructively
evicted from such housing accommodation.
e. Condominium or Cooperative Unit: A unit in a housing condominium as that term is
defined in chapter 183A of the General laws; or a unit in a housing cooperative which has
been organized under the provisions of chapter l56B, 157, or 157B of the General Laws, or
any other provision of the General Laws.
f. Department: the Department of Community Development of the City of Cambridge.
g. Conversion Permit: A document issued by the Department, pursuant to this ordinance,
which authorizes conversion of housing accommodations to the condominium or
cooperative born of ownership.
h. Elderly Tenant: A tenant or tenant household in which at least one member is at least sixty
years of age as of the date of receipt of any Notice of Intent to Convert required by Section
4, or, if no such notice is delivered, the date the tenant exercises any right under this
ordinance.
i.
Tenant with Disabilities.! A tenant or tenant household in which at least one member is
physically handicapped as defined by Section 13A of Chapter 22 of the General Laws of
the Commonwealth of Massachusetts or physically, emotionally or mentally handicapped
as defined by 29 U.S.C. Section 706(7)(b), as of the date of receipt of any Notice of Intent
to Convert required by Section 4, or, if no such notice is delivered, the date the tenant
exercises any right under this ordinance.
j.
Housing Accommodation: Any building; structure or part thereof or land appurtenant
thereto of any other real or personal property rented or offered for rent for living or
dwelling purposes, within the City, including without limitation, houses, apartments,
condominium units, cooperative units, looming or boarding house units, and other
properties used for living or dwelling purposes, together with all services connected with
the use or occupancy of such property; but not including:
i.
Housing accommodations which the United States or the Commonwealth of
Massachusetts or any authority created under the laws thereof either owns or
operates;
ii.
Housing accommodations in any hospital, convent, monastery, asylum, public
institution, of college or school dormitory operated exclusively for charitable or
educational purposes, or in any nursing or rest home for the aged;
iii.
Buildings or structures containing fewer than three residential units, except that
housing accommodations which together consist of two or more adjacent,
adjoining or contiguous buildings under common legal or beneficial ownership
which are used in whole or in part for residential purposes, and which contain
three or more units shall constitute a single structure for the purposes of this
ordinance; or
iv.
Housing accommodations in hotels, motels, inns, tourist homes, and rooming and
boarding houses which are occupied by transient guests staying for a period of
fewer than fourteen consecutive calendar days.
Provided further, that the following housing accommodations shall remain within the meaning of
the term "housing accommodation", as defined by Chapter 527 of the Acts of 1983, shall be subject
to the provisions of Chapter 527, and shall not be subject to the additional provisions or
requirements of this ordinance:
i.
Housing accommodations constructed, or created by conversion from a non-
housing to a housing use, on or after November 30, 1983,
ii.
housing accommodations which were constructed oz substantially rehabilitated
pursuant to any federal mortgage insurance program, without any interest subsidy
or tenant subsidy attached thereto; and
iii.
housing accommodations financed through the Massachusetts Housing Finance
Agency, with an interest subsidy attached thereto, so long as such properties
remain subject to such financing.
k. Housing Services: Services and facilities provided by an owner or required by law or by
the terms of a rental housing agreement to be provided by an owner to a tenant in
connection with the use and occupancy of any housing accommodation, including without
limitation, services, furniture, furnishings, and equipment; repairs, decorating, and
maintenance; provisions of light, heat, hot water, cold water, telephone and elevator
service; kitchen, bath, and laundry facilities and privileges; use of halls, corridors, stairs,
common rooms, yards and other common areas; maid service, linen service, janitorial
service, removal of refuse, parking facilities, and any other benefit, privilege, or facility
connected with the use or occupancy of any housing accommodation. Housing services to
a housing accommodation shall include a proportionate share of the services provided to
common facilities of the building in which the housing accommodation is located.
l.
Intent to Convert: The intent to make the initial sale and transfer of title to a housing
accommodation as one or more condominium or cooperative units pursuant to an
individual unit deed or deeds, or, in the case of a cooperative, a proprietary lease. Factors
which shall be considered in determining whether an owner has the intent to convert shall
include, but not be limited to the following:
i.
the owner has applied for a conversion permit pursuant to Section 4;
ii.
a master deed or articles of organization has been prepared or recorded;
iii.
the owner has prepared, or is preparing a purchase and sale agreement for the sale
of any unit in a housing accommodation as a condominium or cooperative unit;
iv.
the owner has advertised for sale any unit in the housing accommodation as a
condominium or cooperative unit;
v.
the owner has shown to any prospective purchaser any unit in the housing
accommodation for sale as a condominium or cooperative unit;
vi.
the owner has made any communication, written or oral, to any person residing in
the housing accommodation, or to any other person, expressly indicating an intent
to sell any unit as a condominium or cooperative unit;
vii.
the owner has had any unit in the housing accommodation measured or inspected
to facilitate the sale of the unit as a condominium or cooperative unit;
viii.
the owner has had the land surveyed, an engineering study performed or
architectural plans prepared for the purpose of converting such housing
accommodation into one or mole condominium or cooperative units;
ix.
the owner has sought rent increases, or proposed rent increases, for the housing
accommodation, in excess of ten percent for the twelve month period prior to the
termination or the tenancy or the commencement of the eviction;
x.
an excessive number of evictions, terminations of tenancies, or other deprivations
of use by tenants in the twelve month period prior to the termination of the tenancy
or the eviction; and
xi.
the owner is holding units vacant in the housing accommodation with the intent of
facilitating the sale of said units as condominium or cooperative units; provided,
however, that vacancies due to tenant turn-over, or to permit repairs in the
ordinary course of business shall not by themselves be considered as a factor in
determining whether an owner has the intent to convert.
m. Owner: The individual who holds title to any housing accommodation in any manner,
including without limitation a partnership, limited partnership, corporation ox trust.For
purposes of this ordinance, the rights and duties of the owner hereunder shall also be the
obligation of anyone who manages, controls, or customarily accepts rent on behalf of the
owner.
n.
Low Income Tenant. A tenant or group of tenants, all of whom occupy the same dwelling
unit, whose total income for the twelve months immediately preceding the date of any
notice or the exercising of any rights, whichever may occur later; is not more than fifty
percent of the adjusted median income for the area as determined by regulations
promulgated by the United States Department of Housing and Urban Development
pursuant to Section 8 of the Housing Act of 1937, as amended, and calculated pursuant to
said regulations.
o. Moderate Income Tenant. A tenant or group of tenants, all of whom occupy the same
dwelling unit, whose total income for the twelve months immediately preceding the date
of any notice or the exercising of any rights, whichever may occur later, is not more titan
eighty percent of the adjusted median income for the area as determined by regulations
promulgated by the United States Department of Housing and Urban Development
pursuant to Section 8 of the Housing Act of 1937, as amended, and calculated pursuant to
said regulations.
p. Rent: The consideration, including without limitation, all bonuses, benefits, gratuities, or
charges contingent or otherwise, demanded or received for, or in connection with, the use
or occupancy of a housing accommodation, for housing services, or for the transfer of a
lease of a housing accommodation.
q. Rental Housing Agreement. An agreement. oral, written, or implied, between an owner
and a tenant for the use and occupancy of a housing accommodation and for housing
services.
r.
Review Board. The City of Cambridge Condominium Review Board described in this
ordinance hereunder.
r.
Tenant: A tenant, subtenant, lessee, sublessee, or other person lawfully occupying the
housing accommodation.
Section 3.- Conversion Permits.
a. Applicability. The provisions of this section shall be in effect until such time as the
Department determines that the vacancy rate for housing accommodations in the City of
Cambridge exceeds five percent per annum.
b. Conversion Permit Required. It shall be unlawful for any owner or other person to convert
any housing accommodation to the condominium or cooperative form of ownership, and
no such conversion shall be effective, unless the Department has granted a conversion
permit. In the event that a unit which the owner seeks to convert is not occupied at the time
the permit is sought, the permit process shall follow Section 5. (b) (“Vacant Units”) as
described in this ordinance. . The Department may promulgate such regulations as are
necessary to effectuate the purposes of this section and prescribe, consistent with this
section, the procedure for applications, notice, and the grant and review of conversion
permits. Issuance of a conversion permit does not relieve any person of compliance with
this ordinance or other laws.
c. Application for and Issuance of Conversion Permits. Upon submission of an application
that meets the criteria of this section, including a determination that the landlord did not
engage in condominium or cooperative conversion eviction in violation of this Ordinance,
the Department shall issue a conversion permit for each housing accommodation. The
application and a copy of the conversion permit shall be kept on file at the Department and
certified copies shall be available upon payment of a reasonable fee. Such copies shall be
made available without fee to low and moderate income individuals.
d. Criteria for Approval of inversion Permits. An application shall be approved if:
i.
The application contains a complete description of the housing accommodations
and the land on which the housing accommodations are located, including:
1. A description of each building, stating the address, the number of stories,
and the number of units;
2. The unit designation of each unit; and a statement of its location,
approximate area,number of rooms and immediate common area to which
it has access. and any other information necessary for its proper
identification;
3. A description of the common areas and facilities, and the proportionate
interest of each unit therein;
4. A set of floor plans of the building or buildings, showing the layout,
location, unit numbers and dimensions of the units;
5. A statement of the purposes for which the building and each of the units
are intended and the restrictions, if any, as .to their use; and
6. The name, address and telephone number of the owner or lessor, and the
came address and telephone number of any corporation, trust, association
or other entity which will manage the condominium or cooperative upon
conversion;
ii. The application contains a list of the names, addresses and telephone numbers of
the tenants in residence in the housing accommodation at the time of the
application;
iii. The owner has not, during the twelve month period prior to the date of the
application for a conversion permit, engaged in condominium or cooperative
conversion evictions; and
iv. The owner certifies that he has complied or will comply with the notice, eviction,
rent increase, relocation, right to purchase and other provisions of this Ordinance.
Such certification shall include copies of all notices required to be delivered to
tenants of housing accommodations pursuant to this ordinance.
e. Information from Tenants. The Department shall request additional information from the
tenants residing in the housing accommodation subject to an application sufficient to
determine that the owner has complied with the criteria for approval of a conversion
permit, as provided in this section.
f.
Notice of Application for a Conversion Permit: The owner shall notify each tenant of a
housing accommodation subject to an application that the owner has applied for a
conversion permit, and that the application may be viewed at the offices of the Department
during regular business hours.
g. Issuance of Conversion Permit; Notice to Tenants. Upon issuance of a conversion permit
to an owner by the Department, the owner s1ia11 deliver to each tenant of all housing
accommodations subject to the permit a notice of issuance of the permit, on a form
provided by the Department, The notice shall state in clear and conspicuous language:
i.
that a conversion permit has been granted;
ii.
that any tenant residing in the housing accommodation on the date the permit is
issued shall have a period of time which shall be stated in the Notice of Intent to
Seek Possession as provided in Section 5 before which the tenant can be evicted in
order to facilitate sale or occupancy of the unit;
iii.
that any tenant residing in the housing accommodation on the date the permit is
issued shall have a right to purchase the accommodation, as provided in Section 4
of this ordinance; and
iv.
a statement of the rights and obligations specified in Sections 5 and 6 of this
ordinance.
Section 4: Notice of Intent to Convert; Right to Purchase.
a. Notice of Intent to Convert. In addition to any other notice required by this ordinance: an
owner of a housing accommodation must provide a tenant with a Notice of Intent to
Convert prior to the offering of such a unit for sale as a condominium or cooperative unit.
Such written notice must be translated into the tenant’s primary language if a need for such
translation has been identified or is otherwise apparent to a reasonable person. Such notice
shall state in clear and conspicuous language:
i.
that the owner has converted or is seeking to convert the accommodation to a
condominium or cooperative form of ownership;
ii.
that any tenant residing in the housing accommodation shall have a right to
purchase the accommodation, as provided in this section; and
iii.
that the tenant shall have a right to purchase the housing accommodation on terms
and conditions described in the notice. Said terms and conditions shall be
substantially the same as or more favorable than those which the owner extends to
the public generally for the ninety days following the expiration of the tenant's
right to purchase. This notice may be served simultaneously with the notice of
permit issuance required in 3(g) above.
iv.
that there is a permit review process involving (1) a preliminary hearing after
service of this notice and (2) a final hearing for a Conversion Permit at the end of
the Notice Period or upon vacancy of the tenant, in addition to hearings as
necessary that may be initiated by the tenants, owner or the City. These hearings
shall be before the City and the tenant and owner shall be notified of the date and
time at least two weeks prior to the hearing date. The tenant and owner shall have
a right to attend any such hearings and to present evidence as to whether the owner
has or has not met the requirements of this Condominium Conversion Ordinance.
b. Vacant Units - If an owner has an intent to convert an unoccupied housing accommodation
to the condominium or cooperative form of ownership, the owner shall give one year
advance notice to the City on a prescribed form. This one year waiting period requirement
shall not apply under the following circumstances:
(i) Where the unit had been previously owner occupied for the 12 months
immediately preceding the unit becoming vacant; or
(ii) Where the City or Designee purchases the vacant unit for the purpose of deed-
restricting it for affordability; or
(iii) Where the owner is selling the unit to a family member
c. Right to Purchase.
i.
Initial right to purchase. An owner shall extend to a tenant who is entitled to
receive notice of intent to convert an exclusive right to purchase such tenant’s unit
from the owner prior to the expiration of 180 days after the date of receipt of the
Notice of Intent to Convert. The tenant's initial right to purchase shall expire at the
end of said 180 days. Once the owner sets these terms of sale, the owner may not
sell the unit under more favorable terms for 90 days from the expiration of the
tenant’s right to purchase. The tenant may exercise the right to purchase the
tenant’s unit by executing such purchase and sale agreement within the applicable
period, whereupon the owner shall promptly countersign the agreement.
ii.
Second right of purchase. For any housing accommodation where a tenant does
not exercise the initial right to purchase, the owner shall give written notice to the
tenant of a bona fide offer from a third party to purchase the accommodation
which the owner accepts or is willing to accept. Said notice shall include a
proposed purchase and sale agreement stating the terms and conditions of said
offer, and shall notify the tenant of the right to purchase the accommodation,
provided that any purchase by the tenant shall meet or exceed the terms and
conditions of the third party offer. Failure of the tenant to execute the purchase and
sale agreement with the owner within fourteen days of receipt of said notice shall
terminate all rights of purchase by the tenant. At the request of the owner, the
Department, or on the tenant’s own initiative, the tenant may voluntarily waive in
writing the second right of purchase provided herein, at any time prior to the
expiration of the fourteen days. The owner need not comply with the terms of this
Section if the price accepted by the owner exceeds the price offered to the tenant
under the initial right to purchase.
d. Notice to the Condominium Review Board. The owner of the housing accommodation
shall provide a copy of all notices required by this section to the Department at the time
said notices are delivered to the tenant of the housing accommodation. In the event that the
tenant does not exercise the initial right to purchase the accommodation, the Department,
the Cambridge Housing Authority ("Authority") and any not-for-profit designee of the
Department or the Authority, shall have an additional thirty days to purchase the
accommodation on the same terms and conditions stated in the Notice of Intent to Convert.
In the event that the tenant waives the second right to purchase, as provided herein. The
Department may exercise the tenant’s second right to purchase and shall have the right to
purchase the accommodation on terms and conditions that meet or exceed the third party
offer. The provisions in this Section are designed to better enable tenants in residency of a
housing accommodation at the time the owner serves or should have served the tenants
with a notice of intent to convert to remain in their units through the encouragement of
non-profit ownership.
e. Notice to Subsequent Tenants. If a tenant who is entitled to receive a Notice of Intent to
Convert pursuant to this section vacates the housing accommodation before the initial offer
of such accommodation for sale, then the owner shall give each prospective tenant of the
accommodation written notice, prior to the inception of the tenancy, which informs the
prospective tenant. that the accommodation is a condominium or cooperative unit, and, if
applicable, that the unit is currently being offered for sale or will be offered for sale within
ninety days of the inception of the tenancy.
f.
The owner shall not commence any condominium or cooperative conversion eviction prior
to the expiration of the tenant’s initial right to purchase.
g. Renting Units During Conversion
(i) If an owner intends to sell or offer for sale fewer than all of the units in a housing
accommodation, within the applicable notice period or a reasonable time thereafter, the
owner shall give to each tenant in a unit not for sale a notice which (a) informs such tenant
of the date when the owner reasonably expects to offer the tenant’s unit for sale and (b)
states that, on or about such date, the owner will give to the tenant the notice required by
this ordinance hereunder; and thereafter, at such time as the owner is ready to offer the unit
for sale, the owner shall give the tenant then occupying such unit the notice required by
this ordinance hereunder. The notice required herein must be translated into the tenant’s
primary language if a need for such translation has been identified or is otherwise apparent
to a reasonable person.
(ii) If a tenant who is entitled to receive the notice of intent to convert vacates such
tenant’s unit either before the initial sale and transfer of title to the residential unit as a
condominium unit has occurred, and/or after the owner has otherwise already obtained a
conversion permit for a unit which has not expired pursuant to this ordinance, then the
owner shall give each prospective tenant of the unit written notice, prior to the inception of
the tenancy, which informs such prospective tenant that the unit is being or will be offered
for sale as a condominium or proprietary lease as a cooperative, but such prospective
tenants shall not be entitled to the protections of this ordinance, except that they shall be
entitled to the benefits of any remaining notice period for which the original tenant was
entitled to, not to exceed one year. If such notice is not provided to the prospective tenant
prior to the inception of the tenancy, the prospective tenant will then be afforded full
tenant rights pursuant to this ordinance and the applicable notice period will restart in
accordance with the status of the new tenant.
SECTION 5 - Condominium Conversion Review Board.
a. There is hereby established a Condominium Conversion Review Board to consist of five
members, all of whom shall be City of Cambridge residents. The failure of a Review
Board member to reside in Cambridge shall result in automatic termination of
membership. Review Board members shall serve staggered terms of three years each. The
Review Board shall include two homeowners, two tenants, and one elderly, disabled, or
low or moderate income person, who may be either a homeowner or a tenant.
b. Review Board members shall be appointed by the City Manager, subject to confirmation
by the City Council. For good cause shown, a Review Board member may be removed by
majority vote of the City Council prior to the expiration of such member’s term of office.
Members of the Review Board shall receive such annual compensation as the City
Manager shall propose and the City Council shall approve, to be not less than the
equivalent hourly wage per hour served mandated by the Cambridge Living Wage
Ordinance.
c. The Review Board shall have the power to enforce the provisions of this ordinance and
shall be responsible for promulgating such rules, policies and procedures, as it may deem
advisable in furtherance of its purposes. In consultation with City staff, the Review Board
may adopt such rules, policies and procedures by majority vote. Without limiting the
generality of the foregoing, the Review Board, in conjunction with City staff, shall be
responsible for developing administrative forms, conducting hearings, and granting or
denying Conversion Permits
Section 5 - Notice of Termination of Tenancy for the Purpose of sale as a Condominium or
Cooperative unit; Terms and Tenants of occupancy; Relocation.
a. Notice of Termination of Tenancy. Prior to the commencement of a condominium or
cooperative conversion eviction, the owner shall provide the tenant with a Notice of
Termination of Tenancy for sale as a condominium or cooperative unit pursuant to
Cambridge Municipal Code (this Ordinance as codified). This notice must inform the
tenant of his or her rights under this Section and shall be served simultaneously with pr
after the service of any Notice of Intent to Convert required by Section 4 above.
b. Period of Notice. The period of this notice shall not be less than the expiration of any
written agreement between the owner and the tenant, or two years, whichever is greater;
provided however, that for any housing accommodation occupied by a tenant with
disabilities, an elderly tenant, or a low or moderate income tenant, the period of notice
shall not be less than five years.
c. Term of tenancy. During the period of notice required by this section, the existing terms of
the tenancy between the owner and the tenant shall remain in effect and shall not be
modified except by voluntary written agreement of the parties; provided, that during the
period of notice an owner may seek a rental increase in an amount that shall not exceed ten
percent per year; provided further that nothing in this section shall limit the right of an
owner to any amounts which may be due under a valid tax escalation clause.
d. Relocation payment. Any tenant who is entitled to reserve notice pursuant to this section,
who does not purchase the housing accommodation in which the tenant lives shall, within
ten days of vacating said unit, so long as it is within the period of notice specified in this
section, be paid by the owner a relocation expense allowance of $10,000; provided,
however if the tenant is a tenant with disabilities, an elderly tenant or a low or moderate
income tenant such relocation expense allowance shall be $15,000.
e. Housing search assistance. Where an elderly tenant, a tenant with disabilities, or a low or
moderate income tenant is entitled to receive notice pursuant to this section, the owner
shall assist the tenant to locate comparable rental housing within the City of Cambridge for
a rent which is equal to or less than the rent which such tenant had been paying for the
housing accommodation at the time of receipt of the notice, and with a term of occupancy
that is no less than the period of notice. remaining at the time the tenant receives the offer
to rent the comparable rental housing. The refusal of the tenant to accept a reasonable,
bona fide offer to rent comparable rental housing shall terminate the owner’s obligation to
provide housing search assistance under this Section.
Section 6: Condominium and Cooperative Conversion Evictions.
a. General Provisions. No person shall seek or conduct a condominium or cooperative
conversion eviction until the expiration of the periods of time for notice required by
section 5(b) of this ordinance.
b. Termination of Tenancy and Eviction for Cause During the two to four year notice period.
Notwithstanding the provisions of subsection (a) above, any owner, landlord or other party
in interest may terminate the tenancy of a tenant and may otherwise seek to evict a tenant
of any dwelling subject to the provisions of this ordinance during tire time period set forth
in Sections 5(b) and 6(a) above for:
i.
non-payment of such rent as may be lawfully imposed pursuant to section 5;
ii.
serious or repeated violations of material terms and conditions of any rental
agreement between the owner and the tenant; and
iii.
substantial violation of any law that imposes obligations on the tenant in
connection with the occupancy.
c. Notice of Termination of Tenancy for Cause. No tenancy may be terminated under the
provisions of Section 6(b) above except by such written notice as is otherwise required by
law, or by the terms of a written rental housing agreement between the owner and the
tenant. The notice shall state the grounds for termination of the tenancy with sufficient
specificity to enable the tenant to prepare a defense. Any notice of termination shall be
delivered to the Department at the time it is delivered to the tenant.
i.
Failure to give any notice required by this ordinance, and any other substantial
violation of this Ordinance shall be a defense to an action for summary process.
ii.
Any action to recover possession of a housing accommodation of a tenant in
occupancy at the time of conversion of the properly to the condominium or
cooperative form of ownership, or at the time of initial bona fide sale of the unit as
an individual condominium or cooperative unit, shall be presumed to be a
condominium or cooperative eviction where one or more or the following has
occurred:
a. Any dwelling unit in any building or structure in which the housing
accommodation is located has been sold as a condominium or cooperative
unit;
b. A master deed or articles of organization for the building or structure in
which the housing accommodation is located has been duly recorded
pursuant to the provisions of Chapters 156B, 157, 157B, or 183A of the
General Laws;
c. A master deed or articles of organization for the building or structure in
which the housing accommodation is located has been duly recorded
pursuant to the provisions of Chapters 156B, 157, l57B, or 183A of the
General Laws, or the landlord gives notice or conversion or planned
conversion pursuant to this Ordinance within twelve months after an
action is brought to recover possession or action is taken to increase the
tenant’s sent; or
d. In any unit converted to a condominium or cooperative, the landlord has
increased or is seeking to increase the tenant’s rent beyond the increases
authorized by this section unless the landlord establishes his intent is not
to facilitate the sale or transfer of the housing accommodation to a
prospective buyer.
iii. Additionally, an eviction shall be presumed to be a condominium or cooperative
conversion eviction if the owner has the intent to convert as defined herein.
iv. Where a presumption of a condominium or cooperative conversion eviction exists,
such presumption may be rebutted by the owner only through clear and convincing
evidence that the eviction was not a condominium or cooperative conversion
eviction and that the owner had sufficient independent justification for seeking
possession or taking other action and would have in fact taken such action, in the
same manner and at the same time whether or not the owner intended to sell the
unit as a condominium or cooperative. Where the owner is unable to rebut the
presumption provided for in this Section, the owner cannot regain possession of
the housing accommodation.
d. Tenant’s Petition for a Determination. Any tenant of a housing accommodation may seek
a written determination from the Department that an owner has the intent to convert and
seeks to dispossess the tenant in order to facilitate the sale of the unit as a condominium or
cooperative. Upon issuance of a determination favorable to the tenant, the owner shall
comply with the provisions of this Ordinance. In addition, any rent increases in excess of
ten percent paid by the tenant during the six month period prior to the tenant's request for a
determination shall be returned to the tenant by the owner.
f.
Intervention by the Condominium Review Board At the request of a tenant of a housing
accommodation, or on its own, the Department may intervene in a summary process action
brought by the owner to recover possession of a housing accommodation. Reasons for
such intervention could include, but not be limited to, a request for dismissal of the
landlord’s claim for possession based on findings made by the Department, or a request to
stay the summary process proceedings to allow the Department to initiate or conclude
administrative procedures which would establish the relative rights and responsibilities of
the parties under this Ordinance.
Section 7. Data Collection
a. The Community Development Department shall gather data related to the Condominium
Conversion Ordinance to be presented annually in a report to the City Council. This report
shall also be made available to the public online. Such data will include at minimum:
i.
The number of condominium conversion applications received, denied, and
granted.
ii.
The breakdown in the number of applications by zip code or neighborhood.
iii.
The number of times that tenants or other entities exercised their right to purchase
under the ordinance.
iv.
The average offer per unit type made under the right to purchase requirements as
described by this ordinance.
Section 8. Enforcement.
a. The Department shall have the authority to promulgate regulations as needed to effectuate
this Ordinance.
b. Any owner who willfully violates any provision of this ordinance shall be punished to the
maximum extent allowable under St. 1983, c. 527, §5. Each violation of this ordinance
shall constitute a separate offense.
c. Any violation of this ordinance by an owner shall not affect the validity of a conveyance of
a condominium unit or interest in a cooperative to a purchaser for value who has no
knowledge of such violation.
d. the District and Superior Court shall have concurrent jurisdiction over an action arising
from any violation of this ordinance, and shall have jurisdiction in equity to restrain any
such violation.
Section 9. Effective Date; Applicability.
a. Except as provided herein, this ordinance stiall.be effective upon enactment.
b. Any condominium conversion notices properly issued in accordance with the requirements
of St. 1983, c. 527, Section 4 after the expiration of Chapter 3G of the Acts of 1976 and
prior to the enactment of this Ordinance shall remain in effect and shall not be subject to
the provisions of this Ordinance.
c. Where a housing accommodation was first converted to the condominium or cooperative
form of ownership prior to the lapse of rent control enabling authority, and as of the
effective date of this Ordinance there are elderly, handicapped or low or moderate income
tenants remaining occupancy who resided there at the time of conversion or initial bona
fide sale of the housing accommodation as an individual condominium or cooperative unit,
such tenants shall be entitled to the benefits of this Ordinance except those set forth in
Section 3.
d. The requirements of section 3 shall not be applicable to any housing accommodation
converted to the condominium or cooperative forms of ownership on or before the
enactment of this ordinance.
Section 10. Severability.
If any provision of this ordinance or the application of such provision to any person or
circumstance is held invalid, the validity of the remainder of this ordinance, and the applicability of
such provision to other persons or circumstances shall not be affected thereby.