SECTION 1. Chapter 40P of the General Laws, as appearing in the 2020 Official Edition, is repealed.

SECTION 2. The General Laws are hereby amended by inserting after chapter 49A the following chapter:-

CHAPTER 49B

LIMITATION OF ANNUAL RENT INCREASES AND NO FAULT EVICTIONS

Section 1. A city or town may accept this chapter in its entirety in the manner provided in section 4 of chapter 4 of the General Laws. The acceptance of this local option by a municipality shall take effect no later than 180 days after adoption. A municipality that accepts this section shall adopt an ordinance or bylaw which effectuates the provisions of this chapter no later than 180 days after acceptance.

Section 2. A city or town accepting this chapter may, by local charter provision, ordinance, by-law, majority vote of its governing body or through a local binding ballot measure impose a limit on the size of annual rent increases and require that evictions be based on defined just cause reasons, for certain dwelling units within the municipality.

Section 3. Exemptions. (a) For the purposes of this chapter, covered dwelling units shall not include:

(i) Dwelling units in owner-occupied buildings with four or fewer units.

(ii) Dwelling units whose rent is subject to regulation by a public authority. Occupancy by a tenant with a mobile housing voucher does not exempt an otherwise covered dwelling unit. 

(iii) College or university dormitories where group sleeping accommodations are provided in one room, or in a series of closely associated rooms.

(iv) Facilities for the residential care of the elderly.

(v) Dwelling units for which the first residential certificate of occupancy was issued on or after January 1, 2020 shall be exempt for a period of 5 years from the date at which such certificate of occupancy was issued.

(b) Where dwelling units are exempt, a notice of exemption must be provided with the lease for all tenancies. If there is no written lease for such dwelling units, the tenants-at-will must be provided with a written notice of exemption.

Section 4. (a) The limit on any annual rent increase for a covered dwelling unit as defined in Section 3(a) shall not exceed the annual change in the Consumer Price Index for the applicable area or 5 per cent, whichever is lower.

(b) For purposes of this chapter, the rent amount in place 12 months prior to the date of adoption shall serve as the base rent upon which any annual rent increase shall be applied. If the dwelling unit is currently vacant, the last rent amount charged shall serve as the base rent. If there was no previous rent amount, or if no rent has been charged for at least the previous five years, for a dwelling unit not exempted under Section 3(a) the rent amount the owner first charges shall serve as the base rent.

Section 5. Cities and towns adopting this chapter shall require that any landlord have just cause for initiating eviction or not renewing a lease; just cause may be further defined by the municipality, but must include the following:

(1)Nonpayment of rent

(2)Tenant commits a substantial violation of a material lease term or term of the tenancy

(3)Tenant engages in criminal activity that threatens the health and safety of other residents, or persons lawfully on the premises

(4)Owner seeks to remove the unit from the rental market to convert to cooperative or condominium, to demolish or convert to non-residential use, or to occupy the unit as the owner’s principal residence

Section 6. Cities and towns adopting this chapter shall provide annual reports to the department of housing and community development, which shall include but not be limited to: the text of the ordinance or bylaw adopting this chapter; any studies undertaken in informing adoption of the ordinance or bylaw; the number of units affected by the ordinance or bylaw; and any other relevant data as determined by the department of housing and community development.

Section 7. Any violation of this section shall be deemed an unfair and deceptive act under chapter 93A of the General Laws. Any person claiming a violation of this section may pursue remedies under section 9 of chapter 93A. The attorney general is hereby authorized to bring an action under section 4 of chapter 93A to enforce this provision and to obtain restitution, civil penalties, injunctive relief, and any other relief awarded pursuant to said chapter 93A.

Section 8. Nothing in this section shall be construed to interfere with any existing rights or protections afforded to tenants under current state or federal law.