During the last legislative session lawmakers considered a whole host of issues impacting the real estate industry. GBREB’s advocacy efforts were successful not only on a legislative and regulatory front but also expanded to include legal appellate advocacy for its membership as well. GBREB was active on many fronts both at the state and local level; a few of the key highlights included:

Taxation & Fees:
Transfer Tax - Several efforts to institute a transfer tax were stopped both at the state and local level.  A real estate transfer tax is assessed on real property when ownership of the property is transferred from one party to another.  Real estate transfer taxes are a major burden to buyers and sellers, particularly at the time of closing.  These taxes have a negative impact on housing costs and economic development.

Fair Assessment - Stopped two local communities from going forward with legislation to tax apartment complexes at a higher rate.  Both proposals would have significantly changed the taxation of multi-family housing and created substantial inequities in the taxation of residential properties.

Historic Tax Credit - Supported the passage of legislation to increase the tax credit to $50 million.  Under the program, a certified rehabilitation project on an income-producing property is eligible to receive up to 20% of the cost of rehabilitation expenditures in state tax credits, 25% of funds are allocated for affordable housing. more info

Deeds Excise Tax - Stopped efforts to expand the tax on deed stamps on the sale transfer or merger of more than 50% of a company. The tax was to be levied on any real estate transferred including that held as an Individual, Trust, Corporation, LLC, Limited Partnership, or other entity.   This would have adversely impacted low income housing tax credit developments, making them potentially financially infeasible. It also would have negatively impacted commercial development projects, seeking to add investors, or recapitalize projects at a time when the commercial market is trying to rebound.

Real Estate Development & Ensuring Economic Vitality
40A - Defeated the so called “Massachusetts Land Use Reform Act” and subsequent “Community Planning Act” allowing cities and towns new tools to restrict development. Under the bill, municipalities would be given broad authority to impose building permit caps, mandate “inclusionary housing” requirements, imposing a broad array of development impact fees, eliminating the “approval not required (ANR)” process and freeze provisions.

40B - Efforts to amend the state’s comprehensive permit law also known as Chapter 40B were stopped.  Over 55 separate bills were filed, many of which would have broadened the definition of affordable housing and do little to actually increase supply.  Avalon at St. Clare v Standerwick GBREB joined the plaintiffs in seeking that the Massachusetts Supreme Judicial Court reverse an Appeals Court ruling that had been applied to the production of affordable housing under Chapter 40B.  The SJC reversed that decision and the case is now recognized as a very important case in the history of affordable housing production law. more info

40R - Continuting to support the funding and implementation of 40R law which provides financial incentives to municipalities to encourage the adoption of smart growth zoning districts. more info

40S - Securing the passage of the New Chapter 40S School Funding Law which provides state money to educate children from new denser development projects. more info

43D - One of the key issues to increasing housing and increasing commercial economic development is to accelerate appeals decisions and encourage permitting.  GBREB supported the passage of legislation aimed at streamlining permitting, securing an amendment to Chapter 40A allowing a developer who obtains a special permit to proceed with construction at their own risk and establishing a special permit section of the Land Court focused entirely on land use and environmental appeals. more info

Housing Policy
Rental Housing - From revoking a landlords permit to rent, to requiring landlords to test and disclose lead in the drinking water, GBREB was active on many issues relative to rental housing.  Hundreds of bills affecting rental housing were filed at the State House with a handful of issues also originating at the local level

Rent Control - GBREB worked aggressively to stop any new form of rent control from passing, including; rent control on governmentally involved housing (expiring use), a condominium rent control measure in Somerville and the recently introduced “collective bargaining” rent control currently before the Boston City Council.   Although rent control was repealed by the voters in 1994 and rejected by the Boston City Council several times, the proponents of rent control have developed a new set of strategies to control free market rents and give new authority to advocate for tenants causes.  The proposed legislation creates legal standing for tenant organizations exceeding the current law and establishes an overlay regulatory scheme for rental housing in Boston, in addition to current Massachusetts law.   Harsh penalties that would deny a landlord the ability to do business of any kind in the City of Boston-even if that business is completely unrelated to the violation are part of the new proposal.  The legislative session ended before a public hearing could be held, however this measure will likely be re-introduced at the start of a new legislative session in January. more info

Government Regulations
Carbon Monoxide Detectors - Worked with regulators to implement the new law requiring the installation of carbon monoxide detectors to ensure they were not unduly burdensome for homeowners and landlords.  The regulations allow for all residential dwellings, including rentals, to contain battery operated or plug-in CO detectors rather than hard-wired units, a provision which GBREB successfully advocated for.

Wetlands Disclosure - Required all real estate agents, to disclose to prospective buyers when property is classified in whole or in part as wetlands was defeated.   This cumbersome proposal would have required agents to notify prospective buyers of any restrictions associated with the property and of the need of owners to file a “Notice of Intent” prior to any work being performed within 100 feet of a wetland area.  This would have posed a number of practical problems in both the residential and commercial real estate market.

Mold - Would have established a commission to examine ways to enhance the laws and regulations governing the presence of mold in all dwelling units and buildings, heating system or ventilating and air-conditioning system that affects the indoor air quality of a dwelling unit or building. Government mandated action when science and technology are insufficient regarding the potential causes of unhealthy indoor air quality must be carefully weighed against costly mandates.

Forced Access - An onerous measure that sought to mandate forced access by telecommunications providers was sent to study after drawing strong criticism from the Greater Boston Real Estate Board.  It would have compelled building owners to assume maintenance, liability and financial responsibility for telecom wiring regardless of owners space limitations or safety and security concerns.

Building Code Changes - Continued to monitor regulatory changes to the building code including changes to the 7^th edition of the Base Building Code. The Elevator Board is proposing to eliminate existing provisions that exempted freight elevators constructed prior to 1962 from certain elevator safety standards effective in March of 2009.

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