A Step Back To Rent Control Or Solution To The Affordable Housing Crisis?

Citing skyrocketing rents and lack of affordable housing — and over the vociferous objections of property owners — Boston Mayor Marty Walsh has sided with pro-tenant groups and has formally submitted a home-rule petition to the Boston City Council to create wide-ranging “just cause” eviction protections for all Boston tenants. Harking back to the days of rent control, the petition, named the Jim Brooks Community Stabilization Act after a recently deceased Roxbury housing advocate, prohibits virtually all no-fault evictions in favor of evictions only for certain enumerated “just cause” grounds. The law also requires landlords to file a notice of termination with the newly formed Office of Housing Stability prior to starting an eviction. In a state which is already extremely pro-tenant, this new law will make evicting tenants even more difficult and cost prohibitive, and may also affect owners’ rights to raise rents and sell rental property in the City of Boston.

“Just Cause” Grounds for Eviction

The petition (embedded below) provides that landlords may only evict tenants for nine (9) specified reasons:

  • Non-payment of rent.
  • Violations of lease provisions
  • Nuisance/damage to unit
  • Illegal activity such as drug use
  • Refusal to agree to lease extension or renewal
  • Failure to provide access.
  • Subtenant not approved by landlord
  • Landlord requires premises for housing for family member
  • Post-foreclosure and occupant refuses to pay fair market rent

Middle Ground?

It’s not all bad news for property owners, however. The Walsh bill is a compromise from what tenant groups had pressed for. They wanted to require landlords to submit to mediation for rent hikes of more than 5%, but were not able to get support for it among city council members. Tenant groups also pushed for prohibitions on evicting elderly or disabled tenants and long term renters with children in the school system. The Mayor rejected those ideas as well.

Additionally, not all landlords are covered by the new law. Exempt are owners of 6 or fewer residential rental units, owner-occupants of multi-family dwellings, and Section 8/federally subsidized housing.

Landlord groups, meanwhile, remain skeptical of Walsh’s proposal. State law already has strong tenant protections, Greg Vasil, chief executive of the Greater Boston Real Estate Board told the Boston Globe. Adding more will only subject building owners to even-more-drawn-out legal fights with tenants, he said. And, Vasil added, Walsh’s restrictions may deter developers from building more apartments in Boston, which has been a top priority for the mayor, who has pledged to add 53,000 units by 2030 and combat high housing costs. “This would make it more difficult to develop housing for the middle of the market,” Vasil said. “We’ve been making good progress and I’d hate to see anything happen to that.”

Because the bill is a Home Rule Petition, it must be approved by the City Council then the entire State Legislature. The bill may also face court challenges because it fundamentally alters existing private contracts and the very nature of a tenancy at will relationship. If the petition becomes law, evictions in Boston will become even harder and more expensive.

Readers, what are your thoughts on this important development? Post below in the comments.

Boston Just Cause Eviction Home Rule Petition by Richard Vetstein on Scribd

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2669371_origI rarely get into politics on this Blog, but I have to make an exception for my colleague Attorney Robert Jubinville who is running for reelection for Governor’s Council in District 2 which covers Milton, Sharon and a good part of Metro South. The Governor’s Council is a little known political body, but it has a very important job — confirmation of all judicial nominations.

Bob Jubinville is one of the preeminent criminal defense lawyers in the state, with over 30 years of experience in the courtroom. A former State Police trooper, he is also the father of two adult daughters — one is a lawyer, the other a probation officer. He lives and works in his home office in East Milton Square on Adams Street next to the post office.

With all that real life experience, Bob has a keen eye as to which candidate would make a good judge.

Perhaps most impressive is Bob’s long standing advocacy on behalf of those suffering from addiction, particularly the heroin crisis ripping our communities apart. Bob has already ensured that our future judges have a working knowledge of addiction science and treatment and will allow people suffering from addiction to have access to treatment as opposed to incarceration.

For more info on Bob, here is a Boston.com article.

If your ballot shows Robert Jubinville for Governor’s Council, please consider voting for him.

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347New Smoke Detector Rules Go Into Effect On December 1, 2016

Catching many people by surprise, including me, a new change in Massachusetts smoke detector regulations will take effect Dec. 1. The new rules provide that when homes built before 1975 are sold, the house must be equipped with smoke detectors with a 10-year life span. These detectors are sold as 10 year sealed lithium battery power smoke alarms. They can be found at your local Home Depot or hardware store.

Also remember that current rules require photoelectric detectors covering the area within 20 feet of a kitchen or bathroom containing a bathtub or shower. The 10 year sealed detectors are sold with both photoelectric and the older ionization technologies. I found this Kidde 10 Year Kitchen Model at Home Depot selling for $49.97.

As part of this year’s Fire Prevention Week in October, State Fire Marshal Peter J. Ostroskey told the Boston Globe that “what we’ve seen in the past eight to 10 months across the state is that our fatal fires involve homes that have smoke alarms in them, but they are inoperative.” Ostroskey said that as investigators search charred wreckage of fatal fires, they have discovered that batteries have been removed or that the smoke alarms themselves have not been replaced even though they are no longer functioning properly because they are 10 years old or older.

Ostroskey said the 1975 cutoff date was chosen because homes built after that year were already required by the state building code to have hard-wired power supplies for smoke detectors. But even those hard-wired detectors need to have backup batteries replaced and the detectors should be replaced every 10 years, too, he noted.

A Fact Sheet from the State Fire Marshal is available here.

Thank you to Realtor Rona Fischman at 4 Buyers Real Estate for advising me of the new rules.

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Mortgage Lender Wins Stunning Ruling Challenging $103 Million Fine

Characterizing Director Richard Cordray of the Consumer Financial Protection Bureau as the “single most powerful official in the entire U.S. Government, other than the President,” a federal appeals court ruled yesterday in the case of PHH Corporation v. CFPB, that the CFPB’s organizational structure and authority to impose fines violates the due process provisions of the U.S. Constitution. The surprising 101-page ruling called into question the Director’s authority to impose certain fines and the agency’s authority to enact rules and regulations, although future appeals are likely. The agency, the pet project of Sen. Elizabeth Warren, has long been criticized by the banking industry and congressional Republicans as wielding too much power.

PHH, a mortgage lender, made national headlines when it challenged Director Cordray’s decision to tack on a $103 million increase to a $6 million fine initially levied against PHH for allegedly illegally referring consumers to mortgage insurers in exchange for kickbacks in violation of the Real Estate Settlement Procedures Act. The case was one of the first times that a company fought back against the CFPB, the governmental agency championed by Elizabeth Warren and congressional liberals after the Bush era financial crisis and the Dodd-Frank Act.

In a unanimous decision, a three judge panel of the federal appeals court governing Washington D.C. ruled that the CFPB’s current structure allows the director to wield far too much power, more than any other agency in the entire U.S government. “Because the Director alone heads the agency without Presidential supervision, and in light of the CFPB’s broad authority over the U.S. economy, the Director enjoys significantly more unilateral power than any single member of any other independent agency,” the judges reasoned.

The fallout remains unclear, but certainly this ruling gives opponents of the CFPB heavy ammunition to challenge the agency on its decisions and rule-making authority. The Mortgage Bankers Association welcomed the decision and the clarification the decision presents for RESPA. “MBA is gratified that the court has issued an extremely thoughtful opinion.  It addresses all of the key issues raised by the PHH case, including the proper interpretation of the Real Estate Settlement Procedures Act, the need for due process including reasonable statutes of limitations and the very constitutionality of the CFPB itself,” MBA President and CEO David Stevens said.

The National Association of Realtors also welcomed the decision’s clarity surrounding marketing service agreements, which are clearly a target of the CFPB. “Today’s decision offers much-needed clarity on the legality of marketing service agreements, and makes clear that MSAs are compliant with RESPA provided that payment for goods and services actually furnished or performed are made at fair market,” said NAR President Tom Salomone. “We’re hopeful this will address any uncertainty moving forward and offer a clear road ahead for any of our members who have entered into MSAs with settlement service providers,” Salomone continued. “We will continue to monitor this case and the further appeals that are likely, and continue to communicate to Realtors on what this means for them and their business.”

I have been a vocal critic of the CFPB’s massive revision to the closing and settlement disclosure statements which went into effect last year. While there is no indication that the new Closing Disclosure and Loan Estimate will go away, this ruling will hopefully make the agency think twice about going over the top with future rules and regulations.

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sub-buzz-16144-1472602162-11970’s Groovy, Retro Framingham Home Proves to be Tough Sell

File this post under “Just For Fun.” Most Realtors have stories about trying to sell that outdated, 1970’s style home. Well, last night, I ran into Framingham Realtor Matt Cuddy who told me the amazing story of his now famous listing at 3 Hickey Drive, Framingham, MA.

This home is a preserved time capsule of the 1970’s, complete with shag rugs, a lime green kitchen, vintage, 1970s built-in Thermador can opener, a built-in, stainless steel toaster that magically pops out from the wall, and an authentic, 1970s 8-track that’s built into the wall. All this home needs is John Travolta to walk through the door doing The Hustle!

To say that marketing this home is a challenge would be a huge understatement. But Matt has done a job which would make Mike and Carol Brady proud. Matt has gotten free press coverage in the Boston Magazine, Good Morning America, the Boston Globe, and even millennial favorite Buzzfeed. Despite receiving countless inquiries and over 4 million clicks on the various articles, a buyer has remained elusive for this groovy property.

Matt has even been exploring creative ideas such as selling or leasing the home to movie production companies for shoots. My own personal idea was to convert the home into a music studio!

This home is a great example of how Realtors are often faced with challenging homes to market and must come up with innovative solutions to find buyers.

If you have any good stories of your own, feel free to post them in the comment section below! And check out these groovy shindigs!

sub-buzz-19914-1472602157-1

sub-buzz-23363-1472602161-4

 

sub-buzz-22993-1472602152-1

sub-buzz-14038-1472602300-2

All photographs courtesy of Matt Cuddy – Century 21

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notary-public

SJC Decision Provides Clarity to Title Attorneys

Now that the summer is over, it’s time to get back to blogging! During the quiet summer months, the Supreme Judicial Court issued an important decision for real estate attorneys and the title community in Bank of America v. Casey (June 16, 2016) (link to case). The SJC confirmed that a statutory curative attorney’s affidavit may be recorded with the registry of deeds correcting a defective notary acknowledgment on a mortgage which otherwise could have invalidated the instrument. This is a very helpful decision, and should result in more titles (and properties) being cleared and sold.

Defective Notary Acknowledgment

In 2005, Alvaro and Lisa Pereira refinanced their New Bedford property with Bank of America, N.A. The Pereiras individually initialed the bottom of each page of the mortgage agreement except the signature page, on which the full signature of each appears. Attorney Raymond J. Quintin, the closing attorney, also signed this page, as the notary to the Pereiras’ execution of the mortgage. The mortgage agreement contains a certificate of acknowledgment (acknowledgment) on a separate page. The Pereiras individually initialed the acknowledgment page at the bottom, but the acknowledgment itself is blank in the space designated for the names of the persons appearing before the notary public, and the Pereiras’ names do not appear elsewhere on the page. Quintin notarized the acknowledgment, affixing his signature and his notary public seal. 

Seven years later (which is unexplained in the ruling), Attorney Quintin signed and recorded an “Attorney’s Affidavit, M.G.L. Ch. 183, Sec. 5B” stating that he properly witnessed the Pereiras signing the mortgage and that “through inadvertence, the names of the parties executing this mortgage, Lisa M. Pereira and Alvaro M. Pereira, were omitted from the notary clause.” Parenthetically, these curative affidavits are quite common in the industry.

Approximately six months later, Mr. Pereira filed for bankruptcy and sought to be released from responsibility under the mortgage on the ground that the mortgage contained a material defect — the omission of the mortgagors’ names from the acknowledgment.

SJC–Attorney Affidavits Pursuant to G.L. c. 183, sec. 5B May Cure Defective Notary Acknowledgment

The Court first went over the general rule that a defective notary acknowledgment is usually grounds to void any recordable instrument altogether. Mass. General Laws chapter 183 section 5B provides a cure to this problem by providing that “an affidavit made by a person claiming to have personal knowledge of the facts therein stated and containing a certificate by an attorney at law that the facts stated in the affidavit are relevant to the title to certain land and will be of benefit and assistance in clarifying the chain of title may be filed for record and shall be recorded in the registry of deeds where the land or any part thereof lies.”

The Court then ruled that the curative affidavit recorded by the closing attorney cured the defect and validated the mortgage. The Court said the attorney’s affidavit must comply with the formal requirements of § 5B, attests to facts that clarify the chain of title by supplying information omitted from the originally recorded acknowledgement, and references the previously recorded mortgage. As long as it does that, the problem is solved.

This isn’t a “sexy” opinion, but it is nevertheless important to the real estate bar and community.

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IMG_0105

Rule Prohibits No More Than 4 Undergraduate Students Per Rental Unit

With thousands of college students set to invade Boston in the next week, the Chief of Boston’s Inspectional Services Department is letting local landlords know that he intends to enforce an eight year old ordinance barring no more than four undergraduate students from living together in off-campus apartments and houses.

Feeling pressure from local residents and in reaction to the tragic death of 22-year-old Boston University senior Binland Lee, who got trapped in an overcrowded Allston apartment house, ISD Chief William Christopher has had enough, saying “we’ve found a way to make this punitive, and we think this will take it to another level.” City officials want landlords to report the number of undergraduates living in each unit. Landlords would report that information when they register each unit annually, which is a requirement the city established in 2013.

Mr. Christopher and I discussed the “No More Than 4” rule on the WHGH-PBS Greater Boston show this week. The video of the show can be seen below. I have always had major problems with this rule, both its legality and on a public policy level. The state sanitary and building codes provide maximum occupancy levels based on the square footage of the unit, as the Supreme Judicial Court held a few years ago striking down a similar action by Worcester Housing officials. The city should enforce the rules already on the books rather than painting all undergraduate students as potential troublemakers or artificially creating more demand which increases rents. If ISD starts fining landlords, look for the no more than 4 rule to face a legal challenge which could be successful.

 

 

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Energy Audit

Energy Savings Law Would Have Required Energy Score On Homes for Sale

The 22,000-member Massachusetts Association of Realtors® (MAR) has successfully lobbied against a controversial provision within proposed energy saving legislation which would impose a new government energy inspection and labeling system on every home listed for sale. The Realtor group argued that one of the unintended consequences of the proposed labeling law is the negative impacts on Massachusetts’ old housing stock. Realtors assert that this especially would hurt low- and moderate-income communities where the homeowners cannot afford to make upgrades. The ratings could cause depressed values of those older homes as well, agents argued.

As reported on their Facebook page, MAR said that on July 31, legislators removed this language before releasing an updated version of the bill.

“Realtors® support energy efficiency and voluntary home improvement programs like Mass Save, which we already pay for through our utility bills. But if these mandatory energy inspections become law, the bill causes more harm than good,” said 2016 MAR President Annie Blatz, branch executive at Kinlin Grover Real Estate on Cape Cod. “This comes down to the unintended consequences of trying to mandate a one-size-fits-all approach. It will hurt the housing market for all homeowners, especially those low-income homeowners with older homes who can’t afford to improve their score prior to selling their home.”

“The idea that requiring a government energy label on your home is the same as a miles-per-gallon (MPG) rating on a new car that comes off an assembly line by the millions is a poor comparison,” said Blatz. “Every home is different and our Massachusetts housing stock generally is older, which makes that argument even weaker. Especially hard-hit will be homeowners who can’t afford to make upgrades, especially during such a complicated process as a home sale. Entire older communities could be stigmatized and lose value.”

From a market perspective, the bill as drafted would have further complicated an already complex process of buying and selling a home. Requiring an energy audit prior to listing a home will lead to home buying delays. Currently, the Massachusetts housing market is starved for homes for sale and Realtors feel that this bill would put one more roadblock in the way of needed inventory reaching the market. In addition, a home inspection is customarily not performed until the buyer is under contract to purchase a home.

 

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AR-160427630Eisai, Inc. v. Housing Appeals Committee: Master Plan Conflict Does Not Trump Need For Affordable Housing

Chapter 40B — the state’s so-called “anti-snob” affordable housing law — has pitted developers vs. towns and neighbors in contentious fights over affordable housing projects. It’s one of the most controversial laws in the state, with opponents seeking to reform or repeal the law in recent years. In my home town of Sudbury, for example, there are “Oppose Sudbury Station” signs all over town, in opposition to a planned 200+ unit development in the middle of the historic town center.

While battles rage on the local level, Massachusetts courts have been rather tough on 40B opponents and boards who oppose projects. Last month, in another setback to Chapter 40B opponents, the Massachusetts Appeals Court in Eisai, Inc. v. Housing Appeals Committee (June 20, 2016), allowed a controversial Andover 40B project to proceed over the local ZBA’s denial of the permit on grounds that the town master plan is a local concern that trumps the need for affordable housing.

In the Eisai case, an Andover developer filed a 40B Comprehensive Permit application to build a 248-rental-unit project within an existing office and industrial park. The local zoning board of appeals denied the application on the ground that the “proposed project is inconsistent with decades of municipal planning, economic development strategies, and planning with owners and tenants of the abutting industrial properties[,] . . . most notably, the rezoning of the locus and abutting properties to accommodate and develop a modern, competitive, and viable industrial park and industrial center.” On appeal by the developer, the state Housing Appeals Committee, a state agency which hears appeals of 40B permits, reversed and ordered the local board to issue the Comprehensive Permit. The case was further appealed to the Superior Court, which upheld the permit, then to the state Appeals Court.

The important aspect of the appellate ruling was the Court’s endorsement of a new reformulated four factor test announced by the HAC under which the ZBA must offer more evidence of local concerns to outweigh the regional need for affordable housing. On its face, the reformulated test requires boards to provide a greater amount of more specific, higher quality information in order to tip the scale in favor of upholding the master plan and denying a 40B project.

Project opponents must now demonstrate the following:

  1. The extent to which the proposed housing is in conflict with or undermines the specific planning interest.
  2. The importance of the specific planning interest, under the facts presented, measured, to the extent possible, in quantitative terms . . . .
  3. The quality . . . of the overall master plan (or other planning documents or efforts) and the extent to which it has been implemented. A very significant component of the master plan is the housing element of that plan (or any separate affordable housing plan). The housing element must not only promote affordable housing, but to be given significant weight, the Board must also show to what extent it is an effective planning tool. . . .
  4. The amount [and type] of affordable housing that has resulted from affordable housing planning.

Faced with the new, reformulated test, my prediction is that local boards and 40B opponents are going to have a much tougher time opposing 40B projects.

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This past week, I was honored to give a panel discussion on life after TRID (Truth in Lending Integrated Disclosure Rules) at the Massachusetts Mid-Year Mortgage Conference sponsored by the Warren Group. After my panel, Jim Morrison of Banker and Tradesman interviewed me and here’s the video they produced highlighting my talk.

Full-Term Delivery from The Warren Group on Vimeo.

As I said, life after TRID hasn’t been as bad as we all thought. It’s a good thing that the borrower gets their closing cost disclosures well ahead of the closing. The new Closing Disclosure form, however, is quite convoluted and hard to follow, leaving much to be desired. We’ve gone from a 3 page HUD-1 to a total of 11 pages of closing cost disclosures with the new buyer CD, the seller CD and the ALTA form. Not quite the simplification that CFPB was looking for…

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midyearmortgagelogo1-300x92On June 23, the Warren Group will host its widely attended Midyear Mortgage Update & Conference at the Verve Hotel in Natick, MA. The Midyear Update, for the mortgage and real estate industry, recaps the first 6 months of 2016, in addition to forecasting the remainder of the year.

Featured speakers include Middlesex North Registrar of Deeds Richard (Dick) Howe, Paul T. Pouliot, First Vice President, Mortgage Manager, Federal Home Loan Bank of Boston, Robert Triest, Vice President and Economist, Federal Reserve Bank of Boston, Annie Blatz, President, Massachusetts Association of REALTORS®, and Timothy Warren, Jr., CEO, The Warren Group.

I am honored to be speaking on a panel with Kimberly Allard, former President of the MAR. As a panel speaker, I am able to offer my readers and guests 50% of the admission for an all event pass costing $37.50. You can register by clicking this LINK. Your discount code is: SPEAKERGUESTMA

When:
June 23, 2016
8:00 a.m. – 12:00 p.m.

Where:
The VERVE Crowne Plaza – Natick
1360 Worcester Street
Natick, MA 01760

The full schedule is below:

8:30 AM General Session Speakers

Paul Pouliot from webPaul T. Pouliot, First Vice President, Mortgage Manager, Federal Home Loan Bank of Boston
FHLB System Your One stop Shopping Partner for the Secondary Market
Come and listen to what the Federal Home Loan Bank of Boston is doing about providing liquidity for the Housing Finance Industry, new initiatives that will promote job growth and new or enhancements to the Mortgage Partnership Finance program.

Bio: Paul Pouliot joined the Federal Home Loan Bank of Boston in May 2000 as Vice President/Mortgage Manager. In December 2001 he was promoted to First Vice President. Paul has responsibility for the marketing and overall approval process of prospective Participating Financial Institutions (PFIs). He currently serves on the MPF Partnership Committee for the FHLB System. He has dedicated more than 40 years to the mortgage banking industry and holds a Master Certified Mortgage Banker designation from the Mortgage Bankers Association of America. He co-founded Colonial Mortgage, Inc and helped direct its operations until CFX Mortgage (which was subsequently acquired by Peoples Heritage Savings Bank) acquired the company.

Annie_Blatz_11-15Annie Blatz, President, Massachusetts Association of REALTORS®
The Massachusetts Association of REALTORS® is a professional trade association for licensed real estate practitioners and serves in a federated relationship with the state’s 13 local REALTOR® associations. Membership in the organization is voluntary and consists of both residential and commercial agents and brokers as well as industry affiliates. MAR’s membership currently consists of approximately 20,500 real estate licensees, and only MAR members are authorized to use the trademark term, REALTOR®. The state association’s headquarters is located in Waltham, MA

 

Tim Warren_Headshot for webTimothy Warren, Jr., CEO, The Warren Group
As one of New England’s foremost real estate thought leaders, Tim Warren will take you through The Warren Group’s extensive sales and property data. By combining the most up-to-date real estate statistics, framed with an in-depth historical perspective, you will start to see a one-of-a-kind illustration of the current marketplace. Mr. Warren’s session will address pressing questions, including when the significant effects of the foreclosure crisis will subside and how inventory levels will replenish themselves in the coming years.

Bio: Timothy M. Warren Jr., CEO of The Warren Group, is the fourth generation of family ownership and management. A graduate of Bowdoin College, Tim joined the family business in 1973, rose to president in 1988, and CEO in 2004. He has played a vital role in extending the company’s comprehensive real estate database, growing its publishing and events business and expanding public relations efforts.

Mr. Warren is a regularly shares his analysis of real estate issues to major news outlets, including The Boston Globe and Boston Herald; radio stations WBUR and WBZ; and television, including appearances on Fox 25 News, NECN Business, The Chronicle (WCVB) and the Emily Rooney Show (WGBH). Tim serves on the advisory board of the Rappaport Institute for Greater Boston and the Family Business Association Advisory Council.

10:00 AM – 11:00 AM Concurrent Sessions – choose from one of two

Panel 1
Panelists will touch upon cutting edge technology and media, provide legal perspective, discuss life after TRID and pitfalls in your communications. More details coming soon.

2014_MAR_Past President_Kimberly_Allard-Moccia

Kimberly Allard, Past President of MAR, Century 21
With over 17 Years of Real Estate Experience, Kimberly Allard’s dynamic approach to sharing and presenting information will help refresh your professional development offerings.  Kimberly is a very active Selling Broker/Owner and that’s not likely to change. She is excited about taking her 15 years of hospitality management experience, 30 years of training experience and real estate experience and combining it ( with her usual humor) to get your programs on the fast track for success!

 

 

vetstein headshotRichard Vestein, President, Vestein Law Group, P.C.
Richard D. Vetstein, Esq. is a nationally recognized real estate attorney, helping people buy, sell, and finance real estate. Mr. Vetstein is the past Chair of the Boston Bar Association’s Title & Conveyancing Committee and was also named as one of Inman News’ Most Influential People in Real Estate. Mr. Vetstein has testified before the state legislature on landlord’s rights and title clearance legislation. Mr. Vetstein’s popular Massachusetts Real Estate Law Blog has won several awards including the American Bar Association’s Top Legal “Blawg” award. Mr. Vetstein also gives legal seminars to Realtor and property owner groups across the state. When he is not practicing law, Rich enjoys boxing workouts, arguing politics on Facebook and hanging out with his two kids.

William Pastuszek_from webWilliam Pastuszek, Principal, Shepherd Associates, LLC – Real Property Valuation and Consulting
The principal of Shepherd Associates is William J. Pastuszek, Jr., MAI, SRA, MRA. He has been involved in real estate appraising for more than 25 years and is licensed in several New England states.  His license number as a Massachusetts General Certified Real Estate Appraiser is #10. Bill has a background in banking and property management/development. His appraisal experience includes residential and commercial practice areas His clientele includes financial institutions, attorneys, accountants, governmental entities, corporations and private individual. He has qualified as an expert witness in many jurisdictions.

Panel 2
Panelists will discuss best practices, how to achieve and sustain grown and provide lenders perspective.
More details coming soon.
ASHeadshots March 2015-0006Amy Slotnick, Branch Manager, Fairway Independent Mortgage
Amy Slotnick utilizes over 33 years of industry experience in her daily function as Branch Manager and Loan Originator at Fairway Independent Mortgage Corporation. She joined the company in 2007 and quickly became the company’s number one producing loan originator, a title she held for six years. In 2014 Amy became a Branch Manager and over the past two years has grown the office three-fold and added a satellite office in Hingham, MA to her existing branches in Newton and Holden, MA.

 

 

Sousa, BrianBrian Sousa, Chief Lending Officer, Jeanne D’Arc Credit Union
Brian Sousa is Senior Vice President and Chief Lending Officer at Jeanne D’Arc Credit Union, a 1.1 billion dollar organization with over 75,000 members, located in Lowell, MA.  Mr. Sousa’s twenty-five years of experience in the lending and real-estate industry crosses retail and wholesale mortgage sales, residential and commercial mortgage appraising, and residential and commercial real-estate sales and leasing. Mr. Sousa was the founder of First Team Mortgage Corporation a Chelmsford, MA organization that he built from the ground up and ran for twelve years. As a well-established mortgage professional, he was hired by the credit union in 2012 as Vice President/Residential Lending to create opportunities and expand its product base.  His strong leadership and management skills have led to a 63% increase in the residential loan portfolio and a 25% increase in the total loan portfolio since being named Chief Lending Officer in April of 2015. Brian has always shared the credit union philosophy of people helping people through his community involvement and support of many local charities.  He currently serves on the Board of Directors for the Boys and Girls Club of Greater Lowell, the Senior Advisory Board for the Lowell Community Health Center, and is an Advisory Board Member of Catie’s Closet, Inc.

Chip Poli_webChip Poli, Owner, Poli Mortgage
Chip has 20 years of experience in the real estate industry and has been consistently ranked in the top 1% of mortgage originators in the country. His expertise is broad-based, with a strong foundation in real estate sales, extensive experience in recruitment and management of highly successful brokers and sales teams, and exemplary leadership abilities which have enabled him to quickly achieve phenomenal success at Poli Mortgage Group, Inc.

 

11:15 AM General Session Speakers

cooper-geoffGeoffrey F. Cooper, Vice President Product Development, Mortgage Guaranty Insurance Corporation (MGIC)

Mortgage Credit Trends in the Post-Crisis Era
It’s been almost 7 years since the end of the Great Recession and the US single-family residential mortgage market’s recovery from the historic foreclosure crisis is almost complete. In this post-crisis era, the US has experienced a slow, rolling economic recovery and a bounce-back in home price growth. What has happened to the state of mortgage credit in this time? MGIC addresses this question, highlighting industry efforts to prudently expand the credit box, and identifying product trends in the market place. MGIC will also explore the fundamentals of mortgage credit risk, revisiting critical risk factors and their interrelation in layer-risk scenarios both pre- and post-crisis.

Bio: Geoffrey F. Cooper is Vice President Product Development at Mortgage Guaranty Insurance Corporation (MGIC). He recently returned to MGIC after serving for six years as Director – Single Family at the Wisconsin Housing and Economic Development Authority (WHEDA), a state HFA. Prior to leaving MGIC to join WHEDA in June 2008, Cooper held several positions over 14 years, most recently servicing as Director – Emerging Markets where he oversaw MGIC’s HFA business initiatives.

Richard-Howe-photoRichard P. Howe, Jr., Registry of Deeds – Middlesex North 

Electronic Recording in Massachusetts
After a decade of experience with electronic recording which now accounts for 50% of all documents and 65% of all mortgages recorded at the Middlesex North Registry of Deeds, Register of Deeds Richard Howe will review the successes and challenges of electronic recording in Massachusetts and will share plans for the future including electronic recording of registered land, ways in which state and local government might increase efficiency through electronic recording; and the recording of purely electronic documents that never exist on paper.

Bio: Richard P. Howe Jr. is the Register of Deeds of the Middlesex North District where he has been a leader in the implementation of new technology and improved customer service. Middlesex North was the first registry of deeds in Massachusetts to fully implement electronic recording which now accounts for nearly 50% of all filings. It was also the first registry to become entirely paperless, with all land records from 1629 to the present available in digital form, both at the registry and online.

Prior to becoming Register of Deeds, Mr. Howe practiced law in Lowell, concentrating in real estate and criminal defense. In the early 1980s, he served as a U.S. Army intelligence officer in West Germany. He holds a BA from Providence College, an MA in History from Salem State, and a JD from Suffolk University Law School.

Richard Howe is the author of Lowell: Images of Modern America and the co-author of Legendary Locals of Lowell. He is the founder and primary author of www.richardhowe.com, a hyper-local blog about the history and politics of Lowell. He lectures frequently on real estate law, Lowell history, and many other topics.

Robert Triest, Vice President and Economist, Federal Reserve Bank of Boston

Regional Economic Update
Dr. Triest will present regional economic trends and discuss recent monetary policy actions.
Bio: Robert K. Triest is a vice president and economist in the research department at the Federal Reserve Bank of Boston, where he leads the macroeconomic applications and policy studies section. Prior to joining the Boston Fed in 1995, Triest was a member of the economics faculties at the University of California, Davis and at The Johns Hopkins University. He has also been a visiting scholar at the Center for Retirement Research at Boston College and has taught in the economics department at M.I.T. and Northeastern University and at the Kennedy School of Government at Harvard University. He currently serves on the Universal Pre-Kindergarten Advisory Committee convened by Mayor Walsh to make recommendations for a strategic framework and action plan to expand pre-kindergarten programs in Boston. Triest’s research has been mainly on topics in labor economics and public sector economics, with recent work focusing on the interaction of economic circumstances and educational outcomes. He earned a B.A. degree in economics from Vassar College and an M.S. and a Ph.D. in economics from the University of Wisconsin at Madison.

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Text Messages Enforceable As Written Contract, Court Rules

With the proliferation of email and texts as the primary method of communications in real estate negotiations, it was just a matter of time before Massachusetts courts were faced with the question of whether and to what extent e-mails and texts can constitute a binding and enforceable agreement to purchase and sell real estate. In a ground-breaking case, Land Court Justice Robert Foster ruled in a case of first impression that text messages may form a binding contract in real estate negotiations–even where a formal offer has not been signed by the seller. This is huge wake up call for the remaining industry people who still believe that electronic communications are not legally binding.

St. John’s Holdings LLC v. Two Electronics, LLC

The case (embedded below) involves a commercial real estate deal between two businesses both represented by commercial real estate brokers for the purchase and sale of an industrial park property in Danvers. Two Electronics, as seller, and St. John’s Holdings, as buyer, negotiated for several weeks exchanging two “Binding Letters of Intent” spelling out all material terms of the proposed purchase of $3.2 Million. Towards the culmination of the negotiations, the real estate brokers exchanged several emails and texts, with the seller’s agent sending an email that his client was “ready to do this,” then a text that —

“[the seller] wants you to sign first, with a check, and then he will sign. Normally, the seller signs last or second. Not trying to be stupid or to the contrary, but that’s the way it normally works. Can Rick sign today and get it to me today? Tim”

The buyer signed four copies of the final Letter of Intent and tendered the deposit check with the buyer broker, after which the buyer’s broker sent the seller’s agent another text — “Tim I have the signed LOI and check. It’s 424 [PM]. Where can I meet you?” Shortly thereafter, the two agents met, and the buyer’s broker tendered the buyer signed Letter of Intent along with the deposit check.

Unbeknownst to the buyer, that same day, the seller had received another offer on the property, and proceeded to sign that offer. The seller then refused to sign the Letter of Intent with St. John’s. St. John’s sued, claiming that the series of letters of intent, emails and text messages constituted a binding and enforceable contract.

Intersection of 17th Century Statute of Frauds with 21st Century Text Messages

In Massachusetts, the Statute of Frauds requires that contracts for the sale of real state must be in writing signed by the party (or agent) to be charged. In the old days of pen and paper, application of the Statute was quite simple. If there wasn’t a written agreement signed in wet, ink signatures, there was no binding contract. With the proliferation of e-mail and text communication, application of the Statute of Frauds has become much more nuanced.

In the case discussed here, Judge Robert Foster noted several recent judicial decisions holding that emails may be binding as well as the Uniform Electronic Transactions Act, under which parties may impliedly consent through their actions to make email and text transmissions binding and enforceable. Emphasizing the fact that the seller’s agent signed his name “Tim” at the end of the critical text message, the judge found that the text message was sufficiently “signed” under the Statute of Frauds to constitute a binding agreement at the culmination of the previous communications and unsigned letters of intent. The judge also found persuasive that the seller’s agent told the buyer’s agent to have the buyer sign the letter of intent first, and that’s exactly what the buyer did. Finding in favor of the buyer, the judge denied the seller’s motion to dismiss and issued a restraining order against the seller’s conveyance of the subject property.

Take Away: IMO, Watch What You Say!

This area of the law is really becoming a dangerous minefield. After the e-mail ruling came out a few years ago, I advised my clients to use the following disclaimer: “Emails sent or received shall neither constitute acceptance of conducting transactions via electronic means nor shall create a binding contract in the absence of a fully signed written agreement.”

The problem, however, with text messages is that they are so short and informal. It’s not practical to use a legal disclaimer on texts, and there’s no technology that I’m aware of that would insert one into every text. You could always start off a negotiation with the caveat that electronic communications will not create a binding contract until a formal offer is executed. Also, it’s always a good idea to end every email/text with “subject to seller/buyer review and approval” when negotiating an offer. But, such boilerplate language can always be waived by subsequent conduct or actions.

This case reminds me of Lomasney’s First Rule of Politics:  “Never write if you can speak; never speak if you can nod; never nod if you can wink.” — and by winking that does not mean an emoji. 😜

And always take screenshots of important texts…just in case.

This post is sponsored by Brian Cavanaugh, Senior Mortgage Banker, Mortgage Network

Cav Zillow

St. John’s Holdings LLC v. Two Electronics, LLC by Richard Vetstein

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criminal-background-checkWidespread Racial Disparities In Criminal Justice System Justifies New Policy

Last week the Obama administration released new controversial Fair Housing guidelines telling the nation’s landlords that it may be discriminatory for them to refuse to rent to those with criminal records. The U.S. Department of Housing and Urban Development (HUD) says refusing to rent based on a criminal record is a form of racial discrimination, due to racial imbalances in the U.S. justice system, despite the fact that criminal history is not a protected class under the federal Fair Housing Act.

“The Fair Housing Act prohibits both intentional housing discrimination and housing practices that have an unjustified discriminatory effect because of race, national origin, or other protected characteristics,” say HUD’s newly-released guidelines. “Because of widespread racial and ethnic disparities in the U.S. criminal justice system, criminal history-based restrictions on access to housing are likely disproportionately to burden African-Americans and Hispanics. While the Act does not prohibit housing providers from appropriately considering criminal history information when making housing decisions, arbitrary and overbroad criminal history-related bans are likely to lack a legally sufficient justification.” About 25 percent of Americans have some kind of criminal record, which can range from felony convictions to arrests that never led to charges.

HUD says that landlords may be allowed to bar those with criminal records, but they will have to prove that such a policy is necessary for protecting the safety of other tenants, and designed to avoid illegal discrimination. The new guidance recommends that landlords consider factors such as the severity of the criminal history and how long ago it occurred.

Practice Pointer: Blanket prohibitions denying applicants with criminal histories will get landlords into major trouble under the new HUD policy.

 HUD’s revised guidance discusses the three steps used to analyze claims that a housing provider’s use of criminal history to deny housing opportunities results in a discriminatory effect in violation of the Act.
  • Evaluating whether the criminal history policy or practice has a discriminatory effect
  • Evaluating whether the challenged policy or practice is necessary to achieve a substantial, legitimate, nondiscriminatory interest
  • Evaluating whether there is a less discriminatory alternative

Policy Places Burden On Small Landlords

I’m all for giving people a second chance at life, but the major problem with this policy is that it puts the onus and burden on the small landlord to do the criminal history check and then figure out how severe the offense is and what the underlying circumstances are. Also the policy does not advise a landlord exactly how old a crime is to be considered “too old.”

In Massachusetts, a CORI (Criminal Offender Record Information) report contains only the basic of information of the offense such as the date of arrest/conviction, disposition, court and sentence, if any. There is nothing in the CORI report showing the underlying facts of the crime and it does not include police reports. Thus, for a charge of open and lewd conduct, a landlord does not know whether this is a serious offense or just a college kid urinating in an alley. Under the new HUD policy, landlords now have the burden of playing criminal investigator and assessing whether a crime is not truly serious.

Also, please remember that under the so-called Mrs. Murphy exemption, the federal Fair Housing Act does not apply to owner-occupied rental properties of up to 4 units.

What Now?

So how are landlords going to navigate this new policy? Well, first I would expect that risk-adverse landlords will cut down or stop requesting criminal history information all together. Of course, this puts landlords in a dilemma because they retain a legal duty to keep residents safe, and if they rent out to a known sexual offender, for example, who attacks another resident, they can be sued for millions.

For those who still ask for criminal record information, they will have to offer an applicant the opportunity to explain the circumstances of their arrest/conviction before making a final decision. As with all rental application decisions, it’s best to make the decision rest on financial considerations such as credit, income, and employment.

If you need guidance navigating this new policy, feel free to contact me at rvetstein@vetsteinlawgroup.com.

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Landlords Cry Foul Over Ruling

In a ruling which reaffirms Massachusetts’ place as one of the most landlord-unfriendly jurisdictions in the country, the Supreme Judicial Court ruled yesterday that a landlord’s minor security deposit law violation over failing to pay $3.26 in interest can be a complete defense to an eviction case even where the tenant owed thousands in rent. After this ruling, tenants will have another powerful tool to avoid eviction in both no-fault and non-payment cases. A change in this ruling would only come about through legislative action — which is usually a non-starter on Beacon Hill.

Rich’s Legal Advice: I have long advocated to my landlord clients that they NOT take security deposits. This ruling should be the nail in the coffin on that issue.

Garth Meikle v. Patricia Nurse

The Massachusetts Security Deposit Law provides a three month penalty, including payment of the tenant’s legal fees, against landlords who don’t follow its strict requirements. One of the requirements of the Security Deposit Law is that annually the landlord must pay the tenant any accrued interest on the deposit. That’s what got landlord Garth Meikle in trouble with his tenant who was three months behind in rent. Meikle brought a no-fault eviction case in the Housing Court, but the tenant raised the counterclaim and defense that she did not receive interest on the security deposit. Ruling that the landlord’s minor violation of the security deposit was not a complete defense to the eviction, the Housing Court Judge Marylou Muirhead allowed the eviction to proceed, ordering the tenant to pay the past due rent, but deducting the security deposit plus the $3.26 in unpaid interest. However, the tenant, represented by Harvard Legal Aid Bureau, appealed her case all the way up to the Supreme Judicial Court.

Statutory Interpretation

The issue on appeal was the distinction between a counterclaim and a defense for a security deposit violation. Everyone agrees that the tenant can raise a security deposit violation as a counterclaim (entitling the tenant to up to triple damages), but the question was whether such a violation could be a complete defense to an eviction, preventing the landlord from regaining possession of the rental unit. Landlords and yours truly argued that a security deposit is a separate financial matter between the landlord and tenant which has nothing to do about whether the tenant owes rent or the condition of the property.

Justice Geraldine Hines, writing for SJC, disagreed and found that a security deposit violation was within the list of defenses to an eviction. Despite quite unclear and murky statutory language, the justice was persuaded that the Legislature’s historical tightening of penalties and sanctions against landlords was indicative of the legislative intent to include a deposit violation among the list of available defenses to eviction.

So we’ll have to thank the SJC and the Legislature for sticking it to Massachusetts landlords once again. With tenant activist groups pushing “Just Cause Eviction” i.e, rent control and the Legislature’s continual failure to enact any sensible landlord-tenant reform, no wonder Massachusetts has a well-deserved reputation as one of the most tenant-friendly states in the union.

I’ve embedded the opinion below.

Garth Meikle v. Patricia Nurse by Richard Vetstein

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Judge-Timothy-SullivanGov. Baker Earmarks $1M for Expansion

The Housing Court expansion plan to have statewide coverage has been gaining political momentum, but whether the plan will receive the long-term funding it needs to make it a reality remains a question mark. The Governor’s fiscal 2017 budget proposal earmarks $1 million for the court’s expansion, which calls for its jurisdiction to be widened with the addition of a sixth division and its bench increased from 10 to 15 judges.

While supporters are pleased with the language in Gov. Charlie Baker’s budget, which authorizes the Housing Court’s structural changes through a so-called outside section, Trial Court officials estimate that the annual cost of the proposal would be more than double the earmarked sum, reaching up to $2.4 million. “The $1 million will allow us to ramp up over a period of time,” Housing Court Chief Justice Timothy F. Sullivan (shown right) told Mass. Lawyers Weekly last week. “We don’t expect it will happen overnight. We’ll have to grow into our new roles.” Meanwhile, House and Senate bills are pending that seek a larger statewide court as well, providing access to those who currently do not fall within the court’s jurisdiction — about one-third of the state’s population.

The budget and legislative proposals call for adding a Metro South Division that would encompass all of Norfolk County (Dedham) — except Brookline — plus Abington, Bridgewater, Brockton, East Bridgewater, West Bridgewater and Whitman. Four of the five existing divisions would absorb additional communities, which includes the highly populated MetroWest area including Framingham, Newton, Cambridge and the rest of Middlesex County.

Of the five new judges that would be added, two would be assigned to the Metro South Division; the circuit judge pool would grow from one to three; and the Northeastern Division would take on an additional judge.

Guarded Support

As I told Mass. Lawyers Weekly, I am a “guarded supporter” of the expansion. Most landlord groups do not consider the Housing Court a level playing field and prefer to have their cases heard in District Court. While the Housing Court’s housing specialists and mediators can help matters move quickly, the volume of cases at some courts can be a bottleneck. “You have to look at the number of cases versus the number of judges available to handle the cases. That’s going to be an important consideration,” I told MLW.

We also need to look at the pro bono legal support available to both sides of the dispute. In Boston Housing Court, for example, there is a small army of Harvard law students ready to assist tenants free of charge. There is no comparable service for small unrepresented landlords, and that’s not fair.

Doug Quattrochi, executive director of the MassLandlords.net trade group, agreed. Though the Housing Court has a process — not available in District Court — that allows landlords and tenants to mediate first and then move directly to trial if an agreement cannot be reached, his trade group would like to see some of the “lopsided, tenant-centric” laws corrected if the Housing Court is expanded, he said. “The laws build in procedural delays that tenants become more aware of in Housing Court. Let’s look at changing these laws,” Quattrochi suggested.

I would fully support the Housing Court expansion if the legislation were linked to the passing of the rent escrow bill and other reforms to make landlord-tenant laws fairer to landlords.

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massachusetts condominium super lienDrummer Boy Homes Association, Inc. v. Britton

In a long awaited ruling pitting condominium associations against mortgage lenders backed by the Federal Housing Finance Authority, the Supreme Judicial Court has upheld the so-called “rolling” super-priority lien for unpaid condominium fees. What this means for condominium associations in Massachusetts is that they are able to seek super-priority liens for successive 6 month periods of unpaid condominium fees, rather than be limited to one six month period. The super-priority lien takes priority over the first mortgage on the delinquent unit, thereby giving the condominium association a powerful tool to collect unpaid condo fees.

Thomas Moriarty, Esq. of Marcus, Errico, Emmer and Brooks, who represented the condominium association told me that “we are pleased with the results and we believe that this leaves condominium associations with the power to ensure payment of condominium fees as was intended by the Massachusetts legislature when it enacted the priority lien provisions of the statute 23 years ago to deal with the emergency created by unit owners not paying condominium fees to pay for essential services.”

The SJC recognized that the non-payment of condominium fees can have disastrous consequences upon a condominium association, especially smaller projects. The super-priority lien was established by the Legislature in reaction to the real estate recession in the early 1990’s where many condominium associations were financially devastated by non-payment of condo fees. Among other protections, the super-priority lien enables an association to leverage the mortgage lender to pay up to 6 month’s worth of outstanding condominium fees on behalf of the delinquent owner. The “rolling” lien practice developed by condominium attorneys where the outstanding balance exceeded 6 months worth of fees. Two years ago, the Appeals Court ruled that the rolling lien procedure was not permissible, leaving condominium associations in limbo regarding their ability to collect unpaid fees.

Led by Tom Moriarty and Alan Lipkind of Burns & Levinson, condominium associations successfully persuaded the SJC that the Legislature intended for associations to have the protections of the “rolling” lien. The justices reasoned that “our interpretation of the statute is consistent with the Legislature’s long-standing interest in improving the governance of condominiums and strengthening the ability of organization of unit owners to collect common expenses, thereby avoiding a reemergence of the serious public emergency that developed in the early 1990”s.”

This is a major victory for condominium associations who should all be having collective sigh of relief. If you have any questions about this ruling or need assistance collecting unpaid condo fees, please contact me at rvetstein@vetsteinlawgroup.com or 508-620-5352.

Drummer Boy Homes Association v. Britton

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meter-reader-660x370Massachusetts Water/Sewer Sub-Metering Law 

Many Massachusetts landlords are unaware that before charging tenants for hot water and sewer service, they must comply with the numerous and onerous requirements of the Massachusetts Water Sewer Sub-Metering Law, General Laws chapter 186, chapter 22. These requirements include having separate water meters for each unit, installation of low flow faucets and toilets by a licensed plumber, and certification with the local health board, among other requirements outlined below. Non-compliance with this law may result in a three month rent penalty to the landlord plus payment of the tenant’s attorneys fees.

A landlord can only charge a tenant for water/sewer service under the following conditions:

1. The tenant’s unit must be separately submetered by a separate water meter installed by a licensed plumber. A separate water meter measures the amount of water supplied to a particular unit, and enables the landlord to charge the tenant for the tenant’s own water usage. So, for example, if a building contains 4 dwelling units and a basement where water is utilized for the entire building, a landlord would need to have 5 submeters installed in addition to the primary meter that measures the building’s water use in its entirety. If the building does not have separate meters for each unit, the tenant may not be charged for water service.

2. The tenant’s obligation to pay for water usage must be contained in a signed lease, in an obvious place, and not in the fine print. Each bill for submetered water usage must clearly set forth all charges and all other relevant information, including the current and immediately preceding submeter readings and the date of each such reading, the amount of water consumed since the last reading, the charge per unit of water, the total charge and the payment due date. If the landlord bills the tenant on a monthly basis, payment of the bill by the tenant must be due 15 days after the date the bill is mailed to the tenant, but if the landlord bills the tenant at intervals greater than 1 month, payment of the bill by the tenant is due 30 days after the date the bill is mailed to the tenant.

3. A landlord may not charge the tenant for water supplied through a submeter unless the a licensed plumber has installed fully functional water conservation devices for all faucets, showerheads and water closets/bathrooms in the unit (low-flow shower heads and faucets and low-flush toilets)

4. The landlord must provide a certification under the penalties of perjury, with the board of health or health department, that the appropriate submeters and water conservation devices were installed by a licensed plumber.

5. A landlord cannot charge a tenant for water/sewer service mid-way through a tenancy or lease. A landlord can only charge a tenant for water/sewer upon the start of a new tenancy in the unit; and only if the unit is being occupied for the first time, or if the previous tenant left voluntarily, or was evicted for non-payment of rent or other breach of the lease.

6.  A landlord who engages in self-help by willfully failing to furnish water or directly or indirectly interfering with the furnishing by another of water, or transferring responsibility for payment for water to the tenant without their knowledge or consent, is punishable by a fine of not less than $25.00 nor more than $300.00 , or by imprisonment for not more than 6 months and is liable for actual and consequential damages or 3 month’s rent, whichever is greater, and the costs of the action, including a reasonable attorney’s fee.

Given these onerous requirements, my advice to landlords is to never charge the tenant for water/sewer! Just pay the bill and make it “hot water included” in the rent.

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Owens_Pinto-780x439Hundreds Cram Into City Council To Debate Controversial Petition

Hundreds of tenant activists, small property owners and landlords packed City Hall and poured over into overflow rooms last night as the Boston City Council held its first public hearing on the need for “just cause” eviction legislation, to stem the city’s skyrocketing rents. Harking back to the days of rent control, the proposal would prohibit a landlord from evicting any tenant except for certain “just cause” grounds. These grounds and their related procedural impediments to eviction, would in my opinion, make it nearly impossible (or cost prohibitive) to evict tenants, raise rents and sell occupied rental property in the City of Boston. For more specifics of the proposal, please see my prior post, Boston Tenant Activists Pushing Just Cause Eviction Proposal.

The City Council, led by Councilor Josh Zakim, heard four hours of impassioned testimony from both sides of the issue. Renters say it would create safeguards against eviction; landlords say it would slap them with thinly disguised rent controls.

“Any way you look at it, this is rent control,” Skip Schloming, of the Small Properties Owners Association, said in an interview just before the hearing started.

Lisa Owens Pinto, executive director of City Life/Vida Urbana, for the tenant side told news outlets that “this proposal would just require property owners to provide a good reason to evict someone.” Ms. Owens Pinto said her organization’s measure has three central provisions – landlords must provide a reason for an eviction; if a rent increase is sought, a landlord must first notify the city; once notified, the city must use its resources to contact and advise the affected tenant.

Gilbert Winn, chief executive of Boston-based developer Winn Companies, told the council that a new set of regulations isn’t needed and warned that any changes may have an adverse effect on housing. “You can’t attack the very thing you are trying to protect, which is the rental economy,” Winn said. His company is a major developer of affordable housing projects. Winn, the son of Winn founder Arthur Winn, also claimed the proposal would provide tenants with a potential avenue to avoid living up to their rental agreements. “If a contract between a willing renter and a willing owner cannot be adhered to, and only one party has to adhere to it, then the whole system falls apart,” Winn said.

The proposal has been a moving target. A revised draft of the group’s proposal, originally submitted as a home-rule petition, wasn’t available at the hearing, leaving several councilors perplexed as to why it hadn’t been officially filed. “We’re talking about a specific proposal and I’m finding it hard to follow because we don’t have the draft in front of us,” City Councilor Josh Zakim said about halfway through the four-hour hearing.

Prior to the hearing, tenant advocates agreed to drop one of their most controversial requests: a mandate that rent increases of 5 percent or more be subject to nonbinding mediation. Instead, they are pushing for a rule that would require landlords to notify the city of rent hikes that result in eviction, known as a no-fault notice to quit.

Mayor Marty Walsh had initially signaled support for the measure, but wanted to see how the details would be fleshed out. As they say, the devil is in the details and it’s quite possible this proposal will get significantly watered down during the legislative process, if it survives at all.

The hearing was videotaped and can be viewed on the City’s website here.

Photo credit: New Boston Post photo by Evan Lips

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Spring-Home-GreenOr Will Low Inventory Bring Rain Showers? | The Spring Market 2016 Expert Panel Report

Wow, what a difference a year makes! Last year we had one of the snowiest winters on record and a foot of snow on the ground. This year, we have 70 degree record temps with the Charles Esplanade filled with runners. The winter weather always affects the spring real estate market, and last year the market got started unusually late. So will this year’s warm winter usher in a hot real estate market? Or will the pesky low inventory rain on our parade?

To answer these questions, I’ve brought in a panel of top Realtors who will give you the report from the trenches, from the City to the ‘burbs. So without further ado, let’s hear from the experts.

danielsteamsidebar2The Sudbury & Wayland Real Estate markets are easing into the always anticipated “Spring market.” Like a slow motion game of Dominos, many soon-to-be sellers are waiting for a house they would potentially buy to come on the market before they commit to putting their own homes on. With that, inventory has been low, but is increasing at a steady pace now that it is March and Mother Nature doesn’t seem as eager to make a point as she did last winter. Buyers are actively looking and although not every Open House attendee is a serious buyer, the high numbers of attendees are typically a good indicator of an active market. 2016 is starting to form as a healthy Real Estate market. — Gabrielle Daniels Henken and Carole Daniels — Coldwell Banker, Sudbury. www.LiveInSudburyMA.com

Inman_Sep14_600x-144054In Cambridge and Somerville, we’re still dealing with the inventory shortage — I don’t think it would be hyperbole to call it a crisis — that we’ve had for the last several years. And although the mild weather has brought buyers out in full force already this year, the listings are just beginning to trickle on, so we’re seeing 9, 10, 20 parties competing for the same home. Hopefully it will be a bit less brutal as we get further into March, but for the foreseeable future, demand will continue to outpace supply here.  Lara Gordon–Gibson Sotheby’s Cambridge. www.cambridgeville.com

heidi-zizzaDear Sellers, please don’t wait until spring to list your house at the SAME time as everyone else! Inventory is historically low so list now while you can be a real stand out in the market. Chances are you will bear a higher price as well! The Metrowest market is a popular market that’s constantly strong and growing. Due to the fact that we have 3 major highways that touch Metrowest, it is a popular spot for commuters to Boston and Worcester alike. Metrowest real estate is also a great investment! Heidi Zizza, Broker/Owner, mdm Realty, Framingham, MA

High demand, low inventory and continued low rates create a healthy and fiesty market in MetroWesali-cortont! Investors still have great opportunities with multi-family properties and first time buyers who didn’t take a break this winter were able to achieve their housing goals without busting their budgets. Glad to report that TRID was just a small bump in the road and had far less direct impact on the financing process than expected. Ali Corton, Real Estate Executives Boston West www.liveinframinghamma.com

11426494_10205439742007723_5117613197280979861_nAt the risk of sounding like a broken record, in Winchester, Arlington, Stoneham, Melrose, and the surrounding towns, quality inventory is scarce, and when it hits the market it’s scooped up within days. Buyers must be crystal clear about what they want, and then develop the stamina of a marathoner. They must be willing to brave packed open houses, make rapid decisions about writing offers, endure having 1,2,3,4 great offers rejected before securing a property. Sellers with quality listings are being presented with 10,12,20 offers, all over asking, all waiving contingencies, all with heartfelt letters and photos from buyers who are pulling out all the stops to get a house. As agents in today’s market one of our most important roles is to support our clients, both buyers and sellers, to remain calm and focused during the frenzy of the market. Katherine Waters-Clark, Re/Max-Winchester-Arlington

I work primarily with buyers and in towns from Bolton, Westford to Shrewsbury and even as far as Gardner and Ashburnham, when a house comes on the market and is in good condition it is snapped up quickly with multiple offers. I have had clients submit written letters with their offers to try and help sway a seller to choose them. The rates are still low and the lack of inventory on the market is making a rather difficult market to guide buyers. 284083_1902949570525_2002933_nFirst time home buyers are overwhelemed with the speed things have to be done to get their offer picked. Sellers are in a good place when it comes to selling a home in this Spring Market. I just did an Open House in Metheun yesterday, I had 16 families come through and today our seller has 3 offers to choose from, this is going to be a great Spring Market.  Sherry Stone-Graham,www.baystate-homes.com

images.aspxThe condo market in Metrowest is starving for inventory. I received 8 offers on one unit on Spyglass Hill in Ashland and a couple on a garden style unit. My open houses on Spyglass Hill have had over 25 guests. We desperately need inventory. So many buyers with so few properties is allowing sellers to possibly get more money. It’s a fantastic time to sell. Annie Silverman, Realty Executives Boston West.

10014301_10152691646478077_8626708505441128924_oI service Franklin and the surrounding area and am also licensed in RI. Right now the inventory is still low so sellers are really getting the activity they desire when priced correctly. My most recent listing had 23 sets of people through and we received 5 offers and most were over asking. Buyers are also fortunate as there was also just a dip in the financing rates. Franklin and most surrounding towns are also eligible for 0% down financing so the time is now to make the most of the Spring Market! Amber Cadaorette, Keller Williams Realty Franklin / Wrentham.ambersoldmyhouse.com

Feel free to offer your comments here or on Facebook! And good luck with your listings or buyers!

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DSC_0418Gov. Baker Selects Newton Lawyer For Housing Court |  Now First Trial Court With Female Majority

Maria Theophilis (pictured right in red), a 46 year old partner in the Newton law firm of Broderick Bancroft, has been selected by Gov. Baker to sit as a new judge of the Housing Court. Theophilis replaces Chief Justice Steven D. Pierce, who retired Sept. 30, 2015.

Theophilis was nominated by Governor Charlie Baker who stated to the Metrowest Daily News that “throughout her career, Maria has provided support to those seeking an outspoken advocate on their behalf. Combined with her lengthy record of proceedings before the Housing Court on behalf of both tenants and landlords, I know she carries all the requisite experience to provide sound decisions from the bench.”

Some landlords and small property owners, however, may be a bit concerned about Theophilis’ legal background. She was a staff attorney for several years with Greater Boston Legal Services, which represents tenants and advances a very liberal social agenda. She was also worked for the Lawyers Committee for Civil Rights and the Committee for Public Counsel Services — also two very left leaning public interest groups. More recently, however, she represented property owners as a partner in private practice.

That said, Theophilis has deep experience on both sides of the landlord-tenant relationship which is very important. By all accounts, she has an excellent reputation and was voted in unanimously by the often fickle Governor’s Council which says a lot these days. Plus, she was picked by Republican Governor Baker, who is has been doing a good job with judicial appointments, in my opinion. As with any new justice, she deserves the benefit of the doubt as she steps on the bench for the first time. It’s a tough job.

Theophilis is the sixth woman selected for the Housing Court, which now has a majority of female justices. I believe that no other trial court department can claim that accomplishment.

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