Realtors in Massachusetts kicked off the new millennium with a bang in 2000, turning in a year in which the residential real estate market was as hot as the turmoil within the state’s Realtor organization itself, as the group saw a controversial changing of the guard at the top of the executive ladder.

Also noteworthy in 2000 was the continuing trend of real estate companies merging with or being acquired by some of the region’s larger players. The state’s affordable housing crisis also continued to receive attention, as elected officials sought to address the problem head-on. And on Beacon Hill, real estate lobbyists were able to claim some victories, most notably the passage of the version of the Community Preservation Act that did not include a property transfer tax component.

One of the most significant events of the year in the Realtor community occurred on June 21, when the Massachusetts Association of Realtors Board of Directors, in a close 61-57 tally, voted to remove longtime Executive Vice President Robert L. Nash from office.

The move came after months of growing concern about Nash’s leadership. Among those concerns were feelings that he focused too much on MAR’s legislative affairs instead of other areas such as membership and education. Also, local association executives were reportedly upset over plans launched by the state association to sell real estate forms, which some feared would siphon away non-dues revenue from form sales at the local level.

After a search that lasted more than five months and spanned from coast to coast, at year’s end a seven-member committee recommended the appointment of California Association of Realtors Staff Vice President John Fridlington as Nash’s replacement. The recommendation was unanimously approved in December.

“It was an eventful year,” said Fred Meyer, 2000 president of the association. “We accomplished a lot this year, and in coming years I’m sure everyone will be delighted with John Fridlington. We have a most outstanding chief officer.”

Meyer added that while changes in executives at MAR may have grabbed the most attention, 2000 was also significant for the association because several changes were crafted for association bylaws that will most likely be implemented in 2001. “It’s part of the foundation of the organization,” he said. “It’s all technical, but the technical stuff is very important.”

‘Environmental Allies’
At the State House, there was no question among real estate experts as to what was the highlight of 2000.

“When you talk about noteworthy, there’s no getting around it. You have to talk about the Community Preservation Act,” said Edwin J. Shanahan, CEO of the Greater Boston Real Estate Board. “The passage of the CPA caps a 15-year effort on our part and addresses the environmental needs of the state, while at the same time making it equitable to all.”

The act allows for cities and towns throughout the commonwealth to set up a fund to be used for preserving open space, renovating historic properties or constructing affordable housing. Funds would be raised by an across-the-board surcharge for all property owners in the community if it voted to adopt the CPA. Matching state funds would come from money raised by increased filing fees at the registries of deeds. Another version of the bill would have taxed only those who bought or sold property in a given community, a provision which the real estate community vehemently opposed.

“The CPA without the sales tax on real estate is a tremendous victory,” Meyer said. “I’m pleased we pulled together with our environmental allies to get this passed with the broad-based tax.”

Also becoming law this year was home inspector licensing, which addressed concerns that unqualified home inspectors were being used by unsuspecting homebuyers in their real estate transactions. The legislation calls for inspectors to be licensed, and prohibits real estate agents from recommending a specific inspector.

The perennial rent escrowing bill, which would call for tenants to place their rent in an escrow account rather than not pay it at all if a dispute arises with the landlord, did not pass this year. But movement on the bill at the State House gave hope for proponents of the measure.

“There’s been an acknowledgement on rent escrowing that there is a problem that must be remedied,” Shanahan said. “This year the [Housing and Urban Development] Committee voted out [of committee] the rent escrow bill. It didn’t go anywhere, but we now see that there has been an acknowledgement that something is terribly wrong with the fact that tenants can just withhold rent.

“The committee believes something is broken here and has to be fixed, which bodes well for the owners of small properties out there, that they’ll see significant movement on this issue in the future.”

In the realm of affordable housing, Gov. Paul Cellucci evoked praise from housing advocates across Massachusetts when he declared that housing was one of his top priorities for the year. He also issued an executive order that gave discretionary funding preference to cities and towns that had updated master plans that included affordable housing components.

In September, Cardinal Bernard Law and the Archdiocese of Boston teamed up with Northeastern University to release a report quantifying the housing crisis and proposing a detailed plan of action. Over the next five years, the report said, the Boston area would have to produce 36,000 more housing units than what was already projected, and would need about $1.5 billion in funding to do so.

As was the case in 1999, 2000 continued to be an active year in terms of smaller real estate companies being acquired by their larger counterparts, with companies like Coldwell Banker Hunneman, The DeWolfe Cos., and GMAC Real Estate all adding formerly independent companies to their rosters.

Some of Hunneman’s acquisitions included A. W. Clifford Realtors of Bedford, Pleasant Realty of Jamaica Plain, Cambridge-based Agatha Marple Realty, and Itzkan & Marchiel Real Estate in Boston. DeWolfe, meanwhile, continued to branch out in New England by acquiring companies like The Strong Agency of Old Lyme, Conn., and a number of other smaller offices.

One of GMAC’s most notable mergers this year was with the Boston-area high-end office Hammond Residential Real Estate. On Cape Cod, Kinlin-Grover GMAC continued amassing market share my acquiring Compass Real Estate of Orleans, Walsh Realty of Hyannis and Marchildon Associates Realtors of West Yarmouth.

“At Kinlin Grover, 1999 was the year we were acquired by GMAC, and 2000 is the first year we were given the directive to take the next step and acquire offices,” said Paul Grover of Kinlin Grover GMAC. “The caliber of the companies they selected, which are three really top-rate firms, says a lot of the direction they want to take the company on the Cape.”

In terms the market itself, real estate sales and prices in Massachusetts remained strong. “I think ‘exceptional’ describes it accurately,” Shanahan said. “The market is still very strong, not withstanding what we’ve heard from President [-elect] Bush on down, that it’s not going to last… The solidity of the market reached all sectors.”

“My general impression was that there were some months when sales declined, but most Realtors didn’t feel it at all because sale prices were up,” Meyer said, adding that many sales this year tended to be higher-end homes.

“From my perspective, 2000 was a very solid business year for real estate, not only in Massachusetts but in the other [New England] states as well,” said Richard J. Louglin, president of the The DeWolfe Co. in Lexington, adding that improving technology was a strong focus at his company this year that should help the company grow further.

“2000 was our best year,” Grover said. “A lot of buyers were cash buyers who felt it made sense to put some of their money into real estate.”