New Bedford Code of Ordinances ch. 13 (Housing) § 13-5

Sec. 13-5. - Condominium conversion; removal of rental units from the market; definitions; notice; eviction; purchase; benefits; assistance and punishment; condominium review board.

(a)

Preamble.

Whereas, a serious public emergency exists with respect to the housing of a substantial
number of citizens of New Bedford; and

Whereas, the deterioration and demolition of existing housing and an insufficient
supply of new rental housing have resulted in a substantial and critical shortage
of safe, decent, and reasonable priced rental housing accommodations; and

Whereas, the prolonged increases in housing costs at a rate substantially exceeding
increases in personal income, the increased costs of new housing construction and
the conversion of multiple unit rental housing accommodations occupied by tenants
to condominium units and cooperatives has resulted in a substantial and critical shortage
of safe, decent, and reasonably priced housing accommodations; and

Whereas, home ownership creates an interest in real estate which tends to contribute
to the maintenance and preservation of housing and to an increase in real estate taxes
which has a salutary effect on the city and its people, and the city council should,
therefore, encourage an increase in such ownership or at least should avoid discouraging
it; and

Whereas, at present in the city there is a great interest in and a significant amount
of conversions of multiple unit rental housing occupied by tenants to condominium
units or cooperatives occupied by individual owners thereof; and

Whereas, notwithstanding the general good accomplished by such increase in home ownership,
many people of limited means, particularly the elderly, the handicapped, and persons
and families of low and moderate income, are suffering thereby in that they have difficulty
in obtaining alternative rental housing at prices which they can afford when evicted
for condominium conversion; and

Whereas, the untoward effects of condominium conversion evictions on tenants can be
adequately dealt with by providing potentially displaced tenants with sufficient time
to examine the housing market, evaluate available housing alternatives, formulate
future housing plans, secure any necessary financing and decide whether to purchase
the condominium unit or relocate; and

Whereas, this emergency cannot be dealt with solely by the operation of the private
rental housing market, and unless evictions for condominium conversions and cooperatives
are regulated and controlled, such emergency and the inflationary pressures and displacement
resulting therefrom will produce serious threats to the public health, safety, and
general welfare of the citizens of New Bedford;

Now, therefore, pursuant to the authority vested in it by law, including without limitation,
Chapter 527 of the Acts of 1983, as amended by Chapter 170 of the Acts of 1984, be
it ordained by the City Council of the City of New Bedford as follows:

(b)

Definitions. As used in this section, the following words shall, unless the context clearly requires
otherwise, have the following meanings:

Condominium unit. A unit in a housing condominium as that term is defined in M.G.L.A. c. 183A.

Condominium or cooperative conversion eviction. An eviction of a tenant for the purpose of removing such tenant from a housing accommodation
in order to facilitate the initial sale and transfer of legal title to that housing
accommodation as a condominium or cooperative unit to a prospective purchaser or an
eviction of a tenant by any other person who has purchased a housing accommodation
as a condominium or cooperative unit when the tenant whose eviction is sought was
a resident of the housing accommodation at the time the notice of intent to convert
is given to convert the building or buildings to the condominium or cooperative form
of ownership pursuant to this section provided, however, that the eviction of a tenant
for nonpayment of rent or other violation of a rental agreement shall in no event
be deemed a condominium or cooperation conversion eviction.

Elderly tenant. A tenant who is a person or group of persons residing in the same housing accommodation
any of whom has reached the age of fifty-nine (59) years or over as of the date of
receipt of the notice provided for hereunder.

Handicapped tenant. A person who is physically handicapped as defined in M.G.L.A. c. 239, § 9, as of
the date of receipt of the notice provided for hereunder.

Housing accommodation. Any building, structure, or part thereof or land appurtenant thereto, or any other
real or personal property rented or offered for rent for living or dwelling purposes,
together with all services connected with the use or occupancy of such property, but
not including the following:

(1)

Housing accommodations which the United States or the commonwealth or any authority
created under the laws thereof either owns or operates;

(2)

Housing accommodations in any hospital, convent, monastery, asylum, public institution
or college or school dormitory operated exclusively for charitable or educational
purposes or in any nursing or rest home for the aged;

(3)

Buildings containing fewer than three (3) housing accommodations;

(4)

Housing accommodation in hotels, motels, inns, tourist homes, and rooming and boarding
houses which are occupied by transient guests staying for a period of fewer than fourteen
(14) consecutive calendar days.

Interest subsidy. Any payment made by the federal or state government to reduce the effective interest
rate payable by the mortgagor.

Low or moderate income tenant. A tenant who is a person or group of persons residing in the same housing accommodation
so long as the total income for all such tenants for the twelve (12) months immediately
preceding the date of notice provided for hereunder is less than the income eligibility
levels as set forth in regulations promulgated from time to time by the department
of housing and urban development regulating the Section 8 Rental Subsidy Program,
and calculated pursuant to said regulations.

Tenant. A person or group of persons collectively entitled to occupy a housing accommodation
pursuant to a rental agreement written or implied.

Tenant subsidy. Any payment made by the federal or state government for or on behalf of any tenant
to be applied toward the reduction of the tenant's rental payment.

(c)

Conversion, notice, eviction, purchase, benefits and assistance.

(1)

If a building submitted to the provisions of M.G.L.A. c. 183A, c. 156B, c. 157, c.
157B or any provisions of the Massachusetts General laws governing the cooperative
form of ownership has been used in whole or in part for residential purposes within
one year prior to the recording of a master deed creating a condominium or the filing
of the articles of organization creating a housing cooperative, the owner thereof
shall give each tenant of all housing accommodations in such building or buildings
notice of intent to convert the building or buildings to the condominium or cooperative
form of ownership. Such notice shall state in clear and conspicuous language the following
in English, Spanish, and Portuguese:

a.

That the owner has filed or intends to file a master deed at the registry of deeds
whose location is stated in the notice or has filed or intends to file articles of
organization with the secretary of the commonwealth;

b.

That any tenant residing on the date the notice of intent is given in the building
or buildings converted or to be converted to the condominium or cooperative forms
of ownership shall have a period of time which shall be stated in the notice, from
the date of receipt of such notice, as authorized by this act, before the tenant shall
be required to vacate the housing accommodation occupied on the date the notice is
received;

c.

That any tenant residing on the date the notice of intent was given in the building
or buildings to be converted shall have a period of time, which shall be stated in
the notice, from the date of receipt of such notice, as authorized by this section,
to purchase the unit occupied by the tenant on the date the notice is received on
terms and conditions which are substantially the same as or more favorable than those
which the owner extends to the public generally for the ninety (90) days following
the expiration of said tenants right to purchase as may be required by paragraph (2).

All notices required under this section shall be deemed to have been given when a
written notice is delivered in person or mailed by certified or registered mail, return
receipt requested, to the party to whom the notice is being given.

Whenever an owner is required to give notice of intent provided for in this section
the period of notice shall not be less than the expiration of any written agreement
between the owner and the tenant of the housing accommodation which governs the use
and occupancy of said housing accommodation or one year from the date the tenant of
such housing accommodation is given said notice of intent, whichever is greater; provided,
however, that in the case of a housing accommodation occupied in whole or in part
by a handicapped tenant or occupied by an elderly or low or moderate income tenant
the period of notice shall not be less than two (2) years from the date the tenant
of such housing accommodation received said notice of intent.

No person shall bring any action seeking a condominium or cooperative eviction until
the expiration of the periods of time for notice to tenants specified in this section.

The burden of proving qualifications with respect to age, handicap, and income shall
rest with the tenant.

(2)

Any owner of residential property who converts such property to the condominium or
cooperative form of ownership shall give to any tenant who is entitled to receive
notice pursuant to this section the right to purchase the housing accommodation occupied
by such tenant at the time such notice is delivered on terms and conditions which
are substantially the same as or more favorable than those which the owner extends
to the public generally for the ninety (90) days following the expiration of said
tenant's right to purchase. Such tenant may exercise a right to purchase such housing
accommodations by executing a purchase and sale agreement prior to the expiration
of ninety (90) days after the date of receiving a copy of the purchase and sale agreement
properly executed by the person offering the housing accommodation for sale.

(3)

The owner of residential property converted to the condominium or cooperative form
of ownership shall pay to any tenant who is entitled to receive a notice pursuant
to this section and who does not purchase the housing accommodation which he occupies
or another housing accommodation in the same building or buildings relocation benefits
for the actual, documented costs of moving, not to exceed seven hundred fifty dollars
($750.00) per housing accommodation; provided, that if such 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 the maximum relocation benefit shall not exceed one
thousand dollars ($1,000.00) per housing accommodation. Such relocation benefits shall
be payable within ten (10) days after the date on which the tenant vacates the housing
accommodation occupied by him; provided, however, that no tenant shall be eligible
for such relocation benefits unless all rent due and payable for said unit under the
rental agreement or extension of such agreement, if any, has been paid by the tenant
prior to the date on which the housing accommodation is vacated and only as long as
the tenant voluntarily vacates the housing accommodation for which recovery of possession
is sought on or before the expiration of the notice period.

(4)

Any owner of residential property converted to the condominium or cooperative form
of ownership shall assist elderly, handicapped and low or moderate income tenants
who qualified as such as of the date of receipt of the notice authorized pursuant
to this section locating, within the period of the notice to such tenants, comparable
rental housing within the same city or town in which such tenant resides which rents
for a sum which is equal to or less than the sum which such tenant had been paying
for the housing accommodation occupied at the time of receipt of the notice authorized
by this section. The failure of the owner of such residential property to find such
substitute housing accommodation shall extend the period of notice for up to an additional
two (2) years.

(5)

Any owner of residential property converted to the condominium or cooperative form
of ownership shall give to any tenant who is entitled to receive a notice pursuant
to this section an extension of the rental agreement at the expiration thereof. Such
extension, where required, shall be for such period or periods of one year or such
fraction thereof as shall equal the period of notice to which such tenant is entitled
pursuant to the provisions of this section. The provisions of such rental agreement
may not otherwise be modified by the property owner except with respect to the amount
of annual rent, any increase in which shall not exceed an amount equal to the sum
which would result by multiplying said rent by 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, during the calendar year immediately preceding
the date upon which such rental agreement is commenced, or ten (10) percent, whichever
is less; provided, however, nothing herein shall limit the right of a property owner
to any amounts which may be due under a valid tax escalation clause.

(d)

Punishment, enforcement. In accordance with the Acts of 1983, Chapter 527, Section 5, any owner who converts
residential property in violation of any provisions of the ordinance, adopted pursuant
to the Acts of 1983, Chapter 527, shall be punished by a fine of not less than one
thousand dollars ($1,000.00), or by imprisonment of not less than sixty (60) days.
Each unit covered in violation of this section constitutes a separate offense.

Any violation of this section adopted pursuant to the Acts of 1983, Chapter 527, by
an owner of residential property shall not affect the validity of a conveyance of
a condominium unit or an interest in a housing cooperative to a purchaser for value
who has no knowledge of the violation.

The district and superior courts, in the City of New Bedford and Bristol County, shall
have jurisdiction over any action arising from any violation of this section adopted
pursuant to the Acts of 1983, Chapter 527, and shall have jurisdiction in equity to
restrain any such violation.

(e)

Condominium review board.

(1)

There is hereby established a condominium review board, hereinafter called the "board,"
which shall consist of five (5) members, each of whom shall be residents of the City
of New Bedford as a condition of their appointment and continued service as a member
of the board. Board members shall serve without compensation and shall be appointed
by the mayor and confirmed by the city council, except that one member shall be a
member of the city council appointed annually in January by the president of the city
council, and one member shall be familiar with the housing needs and issues of the
City of New Bedford. Of the four (4) members originally appointed by the mayor one
shall be appointed for a term of one year, one shall be appointed for a term of two
(2) years and two (2) shall be appointed for a term of three (3) years. Thereafter,
as the terms of the original members expire, their successors shall be appointed for
a term of three (3) years. In the event of a vacancy on the board, a successor may
be appointed to serve the unexpired term of the member.

(2)

The members of the board shall meet, organize, elect such officers as it may deem
necessary and adopt, alter or amend such rules and regulations of organization or
procedure consistent with the city ordinances and the Massachusetts General Laws.
The board shall keep written records of its proceedings, which shall be open to public
inspection. All meetings of the board shall be held in the Municipal Building at 133
Williams Street, New Bedford. The board shall also make an annual report to the mayor
and city council and such other reports as the mayor and city council may, from time
to time, request.

(3)

The powers and duties of the board shall be as follows:

(i)

It shall monitor all condominium conversion with the City of New Bedford to insure
that all applicable regulations, ordinances and laws are enforced;

(ii)

It shall verify low-income, handicap or elderly status of tenants affected by condominium
conversion;

(iii)

It shall issue condominium conversion permits to owners who comply with the provisions
of this section;

(iv)

It shall hear complaints alleging violations of this section on behalf of tenants
or owners;

(v)

It shall assist in public awareness programs through participation in public and media
events;

(vi)

It shall, from time to time, establish fees, with the approval of the mayor and city
council, for the issuing of permits;

(vii)

It shall acquire, analyze, use and maintain related statistics and data for planning,
evaluation and to assist it in enforcing this section;

(viii)

The municipal departments and other agencies and the board shall cooperate to further
the objectives and purposes of this section;

(ix)

It shall exercise such other powers and duties as, from time to time, may be granted
by the mayor and city council;

(x)

It shall not issue a permit to any owner who has taken any action within twelve (12)
months prior to the application for the permit to circumvent the provisions of M.G.L.A.
c. 527 or of this section, including: Unreasonable rent increases, reduction or elimination
of services, termination of any tenancy without cause, or the imposition of new conditions
of the tenancy.

(f)

Severability. The provisions of the section are severable, and if any of its provisions shall be
held unconstitutional or otherwise invalid by any court of competent jurisdiction,
the decision of such court shall not affect or impair any of the remaining provisions.

(Ord. of 1-14-88, § 1)