Three triple-deckers are seen in Somerville’s Union Square neighborhood. Photo by Brady Wahl | CC BY 2.0
Somerville Mayor Katjana Ballantyne is seeking to limit rent hikes in the city with the submission of legislation capping increases on an annual basis.
The draft legislation, submitted to the Somerville City Council this week, would cap rent increases at the rate of inflation plus 2 percent, with an annual maximum of 5 percent.
“Rent stabilization works, so we are pursuing it thoughtfully with our whole community in mind,” Ballantyne said in a statement. “This careful proposal not only provides needed action to support renters and housing affordability overall but also meaningful considerations for vulnerable property owners such as owner-occupant seniors.”
The proposal exempts owner-occupied properties with three or fewer units. New construction that is completed after 12 months from the ordinance’s passage would be exempt for 15 years.
The proposal was drawn up by Somerville’s Anti-Displacement Task Force, a panel of residents, elected officials and city hall staff that is reviewing strategies to stabilize both residential and commercial tenants’ future in the city.
Average monthly rents for a one-bedroom apartment in Somerville declined 0.1 percent in October from the previous month to $1,885, according to ApartmentList.
Deliveries of new apartments in Greater Boston were the third-lowest of 20 major U.S. metros, according to a CBRE report this week. Real estate analysts predict that the recent slowdown in multifamily development will push housing costs even higher in coming years.
Rent control opponents say the measure will further depress housing production in an environment in which developers are finding it increasingly difficult to make projects profitable and obtain financing.
Like Boston Mayor Michelle Wu’s rent control proposal, the Somerville version hinges upon repeal of the 30-year-old statewide ban on rent control. In September, Attorney General Andrea Campbell ruled that a statewide referendum authorizing local communities to enact rent control can appear on the 2024 ballot.
