Greg Vasil
The statewide rent control ballot initiative loomed large over the Massachusetts economic and housing conversation over the past year. Propelled by tenant advocacy groups, the campaign threatened to resurrect a failed policy that has historically stifled housing development and deteriorated the quality of existing properties.
As found in the report, Untold Threat: Rent Control Ballot Question Will Imperil Municipal Budgets by the Center for State Policy Analysis at Tufts University, no corner of the state or resident would be unaffected by the negative outcomes of rent control.
When the Massachusetts Supreme Judicial Court unanimously decided to strike the initiative from the November ballot, our industry was relieved. It was the right decision on the law and for the future of our housing market. But we also know that rent control is a conversation that did not die with the striking down of the ballot initiative.
One thing both housing advocates like the Greater Boston Real Estate Board and tenant advocates agree on is that Massachusetts is in a housing crisis and people desperately need housing options that allow them to live and prosper in the commonwealth.
Together, we must decisively pivot away from the rent control ballot question and redirect our energy towards the progress made and work happening on Beacon Hill, where the Legislature is creating the true future of housing policy.
More Housing Will Solve Cost Crisis
Massachusetts remains one of the most expensive and housing inventory-starved states in the nation. Our solution, however, must be rooted in economic reality that does not only benefit a few while negatively affecting the majority.
As Gov. Maura Healey, legislative leaders and housing experts have repeatedly stressed, the only permanent solution to lower costs and stabilize our market is through production. More housing leads to more competition, and competition has historically always benefited the consumer.
We must aggressively support pro-housing policies on Beacon Hill, like implementing systemic zoning reforms, allowing duplexes by right statewide, providing robust state funding for infrastructure and advancing creative mechanisms that empower developers to build diverse housing types. The Legislature is considering these policies through an economic development bill (S.3228/H.5576) currently in conference committee.
Lawmakers must work to tear down red tape and excessive municipal regulations that currently stall construction and repel developers. When a project is finished, the additional costs incurred by red tape are inevitably passed down to the renter and the buyer.
Governor’s Steps So Far
The Healey-Driscoll administration has already taken significant and creative steps to advance housing projects.
This session, the administration announced environmental review reforms implemented through the Massachusetts Environmental Policy Act Office. Under these new regulations, qualifying housing projects can completely bypass the long, multi-layered Environmental Impact Report process, cutting review timelines from more than a year down to just 30 days.
The legalization of accessory dwelling units (ADUs) statewide has already seen significant success with over 2,000 ADUs approved across the commonwealth. The state ensured ADU success by providing free, pre-approved blueprints and a list of affordable and free feasibility survey providers.
TOPA Would Set Mass. Back
This is exactly the type of momentum the state needs to chip away at our housing crisis. The Legislature needs to apply this same strategy when deciding on restrictive policies like the Tenant Opportunity to Purchase Act (TOPA), or the “right of first refusal” legislation.
While proponents frame TOPA as a tenant stabilization tool, its practical application would be extremely damaging to housing production. TOPA legislation currently sits in conference committee as part of the Economic Development bill. The House voted on a far-reaching TOPA initiative, while the Senate’s scope would only allow a TOPA pilot program for up to five towns.
By mandating a lengthy timeframe during which tenant associations would have the right to match any third-party offer on a multifamily building, TOPA regulations would significantly delay what should be routine sales and financing. If a property owner cannot sell their investment in a reasonable timeframe, why would investors choose Massachusetts-based projects? Restricting an owner’s ability to sell their asset will continue pushing housing developers to other states.
The Greater Boston Real Estate Board and its members continue to advocate for housing production across Massachusetts, as well as an ecosystem that partners with builders. It is time to shift our focus from rent control and channel it into strategic, pro-development advocacy on Beacon Hill.
By prioritizing housing production, rejecting counterproductive mandates like TOPA and slicing through local red tape, we can work towards an affordable and sustainable housing market for every resident of the commonwealth.
Greg Vasil is CEO of the Greater Boston Real Estate Board.
