GREG SPIER
Leave 40B alone

Action was taken on some housing-related measures during the last legislative session, but efforts to reform the state’s controversial Chapter 40B law and pass a law that would enable landlords to charge tenants for water use were once again stalled.

Realtors, homebuilders and housing advocates say they will continue fighting any efforts to weaken Chapter 40B, the so-called anti-snob zoning law. Meanwhile, leaders in the real estate industry are optimistic that the Legislature will pass a water-metering bill during the upcoming informal session that would permit the billing of renters for water usage.

In one win for affordable housing supporters, the Legislature extended the low-income housing tax credit, a program that provides tax incentives to developers to build affordable rental housing developments, for another five years. The tax credit program, which was established in 1999 and which some housing advocates say has helped create 1,800 new homes, was going to expire next year. In addition to extending the $100 million tax credit program, lawmakers also approved a $200 million housing bond bill.

The bond bill includes $25 million for a home modifications loan program that helps people renovate homes to make them more accessible for disabled family members, and $25 million to produce housing for disabled people.

However, no action was taken on a bill that would allow landlords to install water meters in apartments in order to charge occupants for water usage. Under the measure, landlords would be allowed to install the new meters only in apartments with water-saving devices and fixtures, such as low-flow toilets, and property owners would only be able to charge new tenants for water use, not existing ones.

MAR President Judy Moore said the bill, which was approved by the House and is now in the Senate, is likely to be passed during the informal legislative session.

“It’s something that’s desperately needed. We need an incentive for tenants to conserve water,” said Moore.

Supporters say Massachusetts is the only state in the country that doesn’t allow some form of tenant water billing. But tenant advocates, who argue that renters are already struggling with high rents, as well as small property owners, oppose the bill.

The Small Property Owners Association left voice mail messages to landlords on July 31 urging them to contact House Speaker Thomas Finneran and Senate President Robert E. Travaglini to drop the bill.

SPOA Executive Director Skip Schloming said the group is in support of tenant water billing in general, but believes the proposed bill would be too prohibitive for smaller-property owners – particularly owners of older buildings – because it would require them to do extensive plumbing work in order to install meters, as well as modernize water-use fixtures.

“It’s really a very costly way to do it,” he said. Those higher costs would ultimately be passed on to tenants in the form of higher rents, he said.

Instead, Schloming suggested landlords be able to use a ratio utility billing system, as is used in other parts of the country, that would permit landlords to split the water bill among tenants based on apartment size and occupancy.

Important ‘Tool’

Legislators also took no action on proposals to change Chapter 40B, the state’s so-called anti-snob zoning law. Critics have complained that developers are abusing the law, which enables them to go through a speedier permitting process in exchange for including some lower-cost housing units in their development projects.

Dozens of bills pertaining to the law were filed last year, and a series of hearings were held. The House ultimately approved an overhaul of the law in May that would have given some relief to cities and towns, including enabling communities that increased their housing stock by 2 percent annually to get a one-year break from Chapter 40B projects.

However, some in the housing industry, including the Home Builders Association of Massachusetts and the Massachusetts Association of Realtors, feel that the law should be left alone.

“Any change to 40B, we feel, will affect the supply of housing,” said Gregory Spier, a Foxboro builder who is president of the Home Builders Association.

Spier said a key reason for the increase in multifamily housing construction in recent years is Chapter 40B. Multifamily housing starts have doubled in the past two years, Gov. Mitt Romney reported last week.

“Without that tool, a lot of those multifamilies wouldn’t be being built,” said Spier, who added that single-family home permitting has declined even as multifamily construction has increased.

Homebuilders argue that the regulatory changes to Chapter 40B which were recently implemented sufficiently addressed most of the concerns of local communities.

“We don’t know which way the Legislature is going to go,” said Spier. “Some of the regulatory changes have filtered through and maybe there isn’t such an impetus to make changes. If there isn’t that much dissent from local officials, maybe [legislators will] leave [Chapter 40B] alone.”

MAR was also “very pleased that no action was taken” to modify Chapter 40B, Moore noted. In addition, MAR leaders were satisfied that a home rule petition filed by Winchester to enable the town to charge a 2 percent tax on all property sales did not progress further. The bill is stuck in committee.

“This has been a major accomplishment for property rights,” said Moore, who added that MAR will continue to fight any real estate transfer tax proposal. “There are a lot of legislators who realize that this is not a good tax idea.”

Leaders in the real estate industry also closely monitored two other bills that are stuck in committee. One measure would prohibit the use of credit scoring by insurance companies to deny coverage or set rates, and another would require tenants to put withheld rent in an escrow account during disputes with landlords over health code violations.

Realtor and landlord groups have been fighting for a rent escrow bill for several years, while tenant advocates have staunchly opposed it.

Meanwhile, MAR celebrated a big victory this year with the passage of a law that is designed to clarify the relationships that real estate agents have with consumers. During the next legislative session, MAR leaders say they plan to focus on eliminating barriers to housing construction, including zoning restrictions.

“Overall, we feel it’s been a very productive session,” said Moore. “Next year, our focus will be on … encouraging more housing development, especially affordable housing.”