Massachusetts SD 1869: An Act to guarantee a tenant’s first right of refusal

Bill Text

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SENATE DOCKET, NO. 1869        FILED ON: 1/18/2019 
SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 786 
 
The Commonwealth of Massachusetts 
_________________ 
PRESENTED BY: 
Brendan P. Crighton 
_________________ 
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General 
 Court assembled: 
 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: 
An Act to guarantee a tenant’s first right of refusal. 
_______________ 
PETITION OF: 
 
NAME: DISTRICT/ADDRESS:  
Brendan P. Crighton Third Essex  
José F. Tosado 9th Hampden 1/30/2019 
James B. Eldridge Middlesex and Worcester 1/30/2019 
Daniel J. Hunt 13th Suffolk 1/30/2019 
Joseph A. Boncore First Suffolk and Middlesex 2/1/2019 
Edward J. Kennedy First Middlesex 2/25/2019 
Nick Collins First Suffolk 2/27/2019 

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SENATE DOCKET, NO. 1869        FILED ON: 1/18/2019 
SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 786 
By Mr. Crighton, a petition (accompanied by bill, Senate, No. 786) of Brendan P. Crighton, José 
F. Tosado, James B. Eldridge, Daniel J. Hunt and other members of the General Court for 
legislation to guarantee a tenant’s first right of refusal.  Housing. 
 
The Commonwealth of Massachusetts 
 
_______________
 
In the One Hundred and Ninety-First General Court 
(2019-2020) 
_______________
 
 
An Act to guarantee a tenant’s first right of refusal. 
 
 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority 
of the same, as follows: 
 
1 SECTION 1. Chapter 184 of the General Laws as appearing in the 2016 Official Edition 
2is hereby amended by the adding after section 21, the following new section:- 
3 Section 21A: Municipal Local Option for a Tenants’ Opportunity to Purchase 
4 (a) For the purposes of this section the following words shall have the following 
5meanings:- 
6 ''Affiliate'', an entity owned or controlled by an owner or under common control with the 
7owner. 
8 “Auction” or “Public auction,” the sale of a housing accommodation, under power of sale 
9in a mortgage loan, by public bidding. 
10 “Borrower,” a mortgagor of a Mortgage Loan. 

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11 “Deed in lieu,” a deed for the collateral property, the housing accommodation, that the 
12mortgagee accepts from the borrower in exchange for the release of the borrower’s obligation 
13under the mortgage loan. 
14 “Department”, Department of Housing and Community Development, or its successor 
15agency. 
16 “Designee” a nonprofit organization, established pursuant to chapter 180 of the General 
17Laws which is duly selected by members of a Tenant Association, as defined in this section. 
18 “Elderly Tenant Household,” A tenant household in which one or more of the heads of 
19household are age 65 or older. 
20 “Foreclosure,” a legal proceeding to terminate a borrower’s interest in property, instituted 
21the mortgagee, and regulated under chapter 244. 
22 “Housing accommodation,” a building or buildings, structure or structures, or part 
23thereof, rented or offered for rent for living or dwelling purposes, including, without limitation, 
24houses, apartments, condominium units, cooperative units and other multi-family residential 
25dwellings, but excluding a group residence, homeless shelter, lodging house, orphanage, 
26temporary dwelling structure, and transitional housing. The provisions of this section shall not 
27apply to a borrower-occupied housing accommodation so long as the borrower is domiciled in 
28the housing accommodation at the initiation of the short-sale, deed in lieu, or foreclosure 
29process. 
30 “Member”, a natural person who is a certified member of a Tenant Association 

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31 “Minimum Tenant Participation Percentage” the minimum percentage of tenants, as 
32defined below, that must participate as members of the Tenant Association, which shall be stated 
33in the municipal ordinance and shall be not less than 51 percent of the tenant-occupied housing 
34units. The percentage shall be calculated based on the number of tenant-occupied housing units 
35in a property rather than the number of individuals listed on leases as Tenants. If more than one 
36person is listed on the lease for a unit, all of the tenants on the lease for that unit must participate 
37as members of the tenant association in order for the unit to be counted towards the participating 
38percentage of units. 
39 “Mortgage loan,” a loan secured wholly or partially by a mortgage on a housing 
40accommodation. 
41 “Mortgagee,” an entity to whom property is mortgaged, the mortgage creditor or lender 
42including, but not limited to, mortgage servicers, lenders in a mortgage agreement and any agent, 
43servant or employee of the mortgagee or any successor in interest or assignee of the mortgagee's 
44rights, interests or obligations under the mortgage agreement. 
45 “Owner”, a person, firm, partnership, corporation, trust,