Massachusetts Condo conversion protections

Condo conversion protections in Massachusetts

St. 1983, c. 527, as amended by St. 1989, c. 709, and further amended by Acts 2024, c. 150, § 57, is a statewide condominium and cooperative conversion law that applies to housing accommodations in every city or town unless a local exception in the act applies. A city or town may, by a two-thirds vote of the city council with the approval of the mayor, or a two-thirds vote of a town meeting or town council, adopt an ordinance or by-law with tenant protections that differ from those in the act. An ordinance or by-law that imposes additional provisions or requirements is not applicable to housing accommodations constructed or converted from a non-housing to a housing use after the effective date of the act, to housing accommodations constructed or substantially rehabilitated under a federal mortgage insurance program without an interest subsidy or tenant subsidy, or to housing accommodations financed through the Massachusetts Housing Finance Agency with an interest subsidy. A city or town that has already adopted a conversion ordinance or by-law under a special act is exempt from this act, and the act does not restrict that city or town from amending or repealing its ordinance or by-law under the special act. The definition of housing accommodation excludes housing owned or operated by the United States, the commonwealth, or an authority created under their laws; housing in certain hospitals, convents, monasteries, asylums, public institutions, charitable or educational college or school dormitories, and nursing or rest homes for the aged; and housing in hotels, motels, inns, tourist homes, and rooming and boarding houses occupied by transient guests staying fewer than 14 consecutive calendar days. As amended in 1989, the definition also excluded buildings containing fewer than four residential units, except buildings that are part of a housing development. Acts 2024, c. 150, § 57 changed the first use of the word "buildings" in that 1989 clause to "owner-occupied buildings," so the exclusion is now owner-occupied buildings containing fewer than four residential units, except buildings that are part of a housing development. A housing development is two or more adjacent, adjoining, or contiguous buildings under common legal or beneficial ownership that are used in whole or in part for residential purposes and that contain four or more units. If a building submitted to G.L. c. 183A or c. 157 has been used in whole or in part for residential purposes within one year before the recording of a master deed or the filing of articles of organization creating a housing cooperative, the owner must give each tenant of the housing accommodations a written notice of intent to convert. Notices under section 4 are given when delivered in person or mailed by certified or registered mail, return receipt requested, and, after the 1989 amendment, are given to tenants at the time the owner converts any part of the building or housing development, except as section 4 otherwise provides for certain housing developments. The period of notice may not be less than the remaining term of any written occupancy agreement or one year from the date the tenant is given the notice of intent, whichever is greater. If the housing accommodation is occupied in whole or in part by a handicapped tenant, or is occupied by an elderly tenant (a resident who has reached age 62 as of receipt of the notice) or a low or moderate income tenant (a household whose total income for the 12 months immediately before the notice date is less than 80 percent of the HUD area median income), the period of notice may not be less than two years from the date the tenant receives the notice. The tenant has the burden of proving qualifications as to age, handicap, and income. No person may seek or conduct a condominium or cooperative conversion eviction until those notice periods expire. A conversion eviction does not include an eviction for nonpayment of rent or other violation of a rental agreement. The 1989 amendment adds that, for this definition, eviction includes an action by an owner that causes substantial deprivation of a tenant's beneficial use, materially impairs beneficial enjoyment, or is intended to compel the tenant to vacate or be constructively evicted, and that an eviction is presumed to be a conversion eviction if the owner has the intent to convert. A tenant entitled to the notice of intent has a right to purchase the occupied unit on terms and conditions substantially the same as or more favorable than those the owner extends to the public generally for the 90 days following expiration of the tenant's right to purchase. The tenant may exercise that right by executing a purchase and sale agreement before the expiration of 90 days after receiving a copy of the purchase and sale agreement properly executed by the person offering the unit for sale. If the tenant does not purchase that housing accommodation or another housing accommodation in the same building or buildings, the owner must pay relocation benefits for the actual, documented costs of moving, not to exceed 750 dollars per housing accommodation, or 1,000 dollars if the housing accommodation is occupied in whole or in part by a handicapped tenant or is occupied by an elderly or low or moderate income tenant. Those benefits are payable within 10 days after the tenant vacates, but only if all rent due and payable under the rental agreement or any extension has been paid before the unit is vacated and the tenant voluntarily vacates on or before the expiration of the notice period. During the notice period, the owner of a converted unit must assist elderly, handicapped, and low or moderate income tenants who qualified as of receipt of the notice in locating, within the notice period, comparable rental housing in the same city or town, at a rent equal to or less than the tenant had been paying, for at least the remainder of the notice period. Failure to find that substitute housing extends the notice period until the owner locates such housing, or for two additional years, whichever occurs first. The owner must give a tenant entitled to the notice an extension of the rental agreement until the expiration of the notice period or the 90-day right to purchase period, whichever is later. The provisions of that rental agreement may not otherwise be modified except as to the amount of annual rent. The total rent increase for any one year during the period of notice may not exceed the percentage increase in the consumer price index for all urban consumers, as published by the United States Department of Labor, Bureau of Labor Statistics, for the calendar year immediately preceding the date of receipt of the notice of intent to convert, or 10 percent, whichever is less; this does not limit amounts that may be due under a valid tax escalation clause. The rights in section 4(a) through (e) vest with tenants in a building or housing development when the owner converts any unit in that property, except as paragraph (a) otherwise provides for certain housing developments. If a tenant who is entitled to the notice of intent vacates before the initial sale and transfer of title to the unit as a condominium unit, the owner must give each prospective tenant written notice, before the tenancy begins, that the unit is a condominium unit and, if applicable, that the unit is currently being offered for sale or will be offered for sale within 90 days of the inception of the tenancy. The district and superior courts, and the housing courts, have jurisdiction over an action arising from a violation of the act or of an ordinance or by-law adopted under it, including jurisdiction in equity to restrain a violation. This summary is limited to St. 1983, c. 527, as amended by the official St. 1989, c. 709 text and by Acts 2024, c. 150, § 57 as published on the General Court website. A later session law, a special act, or a local ordinance or by-law adopted under the act may also apply.

Verified Source: St. 1983, c. 527, as amended by St. 1989, c. 709, and Acts 2024, c. 150, § 57 · last checked 2026-11-12