It’s time for rent stabilization

On September 13, 2019, in Latest News, by The Somerville Times

(The opinions and views expressed in the commentaries and letters to the Editor of The Somerville Times belong solely to the authors and do not reflect the views or opinions of The Somerville Times, its staff or publishers.)

By Joseph A. Curtatone

The Greater Boston housing crisis is a complex problem that will require a variety of approaches to fix. In Somerville, we’ve been taking steps like building more housing, adopting our 20% inclusionary housing requirement, establishing a community land trust, opening our Office of Housing Stability, and enacting new regulations that will help keep more housing units on the market. But many of these steps will take time to have a broad impact, and we need to help the many people struggling to pay their rent now.

That’s why earlier this month I voiced my support for a new approach to rent control. I’m supporting a bill filed by Representatives Mike Connolly and Nika Elugardo that would allow cities and towns to adopt tenant and foreclosure protections, including rent stabilization rules. Let me be clear from the beginning: this is not the rent control that was voted out in the 1990s. It’s an option for a better version of rent control that works for our community – both renters and landlords.

Representative Connolly and Elugardo’s bill, if passed, would allow cities and towns adopt the parts of it that make sense for them and set policies that work in each community. If given the option, I want Somerville to seriously consider rent stabilization that would cap how much landlords could raise rents each year. But before enacting anything, we need to hear from tenants, landlords, activists, developers – anyone with a stake – to make sure we come up with rules that work for Somerville.

The old system of rent control didn’t work. It often resulted in undervalued properties and didn’t provide enough incentive for landlords to maintain or update their properties. We want to ensure that residents can both afford housing and have a safe, well-maintained home. If a landlord sells, we want them to get a fair return on their investment. We also know that there are landlords who depend on rental income, and we don’t want to undercut anyone’s livelihood. But the reality is that the greater Boston area’s housing crisis is at emergency levels and we need to look at immediate steps we can take to counteract it.

Along with stabilizing tenant’s rents, rent stabilization also helps stabilize the community. Nearly 40% of renters in Somerville are paying 30% or more of their income toward housing costs. Long-term, that’s not sustainable, and often doesn’t leave room in the household budget for a large rent increase. By limiting how much a tenant’s rent can increase each year, we can prevent more people from being priced out while also making sure landlords can make enough money to cover expenses.

Far too often I hear from residents who want to stay in Somerville, but for a variety of reasons they are struggling – often with their rent. For some, their family is expanding and they need more room. Others are happy where they are but have been hit with rents rising faster than their income. When a significant portion of your income is already going toward housing, it’s hard to save up to cover the costs of moving to a new unit or to afford to move into a larger rental unit or to buy a home. Often those residents and families – including kids who want to stay in our schools – end up moving out of Somerville. If we can help keep housing costs in check, more people will have the option to stay in Somerville and continue to be a part of this community.

We want to do whatever we can, as quickly as we can, to help residents struggling to afford housing, but we also want to make sure we get it right. This is just the beginning of the conversation on rent stabilization. If Representatives Connolly and Elugardo’s bill is passed, there will be many opportunities to ask questions and share your ideas. I look forward to this important discussion.

 

10 Responses to “It’s time for rent stabilization”

  1. Matt says:

    I am the owner of a two-family house. I live in one unit and rent out the other. I rely on the rental income to be able to live in Somerville.

    I’m happy to commit to a rent increase cap, if the Mayor will commit to a cap on tax increases (average tax bill went up 6.4% for two-families last year), water rates (up 6%), sewer rates (7.5%), as well as the recently enacted CPA surcharge (currently 1.5%), High School debt exclusion (up to $349 a year for average two-family), and water/sewer usage charges ($180/year).

    Despite all of these tax and fee increases, I’ve kept the rent the same for three years. Maybe if the Mayor tightened his purse strings, other landlords could keep their rents down too.

  2. Old Taxpayer says:

    Myself like many others I know in this city are content to leave our apartments empty. I could use the money but I can just skim by leaving it empty. The others I know just don’t want the hassle. I was renting when they had rent control here. At the time I had the tenants windows cleaned twice a year and if I had a good year I used to give them December off without paying rent. All I did was get screwed. No more.

  3. DatGruntled says:

    Matt, you are one of the rare ones. Most owners do not live anywhere near Somerville and many take a two family and turn it into three units with six or seven bedrooms going for $1k each. I would like to see something done that keeps that in check and allows people like you, who are also trying to live here, a break.

  4. joe says:

    I still haven’t heard a good argument for any type of government intervention in the so-called housing “crisis”. Somerville is desirable! Good! What’s wrong with letting the market dictate prices? Where does Joe get the idea he can tell a property owner what they can/can’t do with their property and how much they can charge? Nobody has a right to live in the most desirable neighborhood… there is plenty lower cost housing to the north and east.

  5. Money Mayor says:

    Maybe the money hunger millionaire mayor should concentrate on his “Vision Zero” goal instead of talking about rent with yet another hit and run this week. There have been multiple pedestrian deaths in the last nine months.

    The streets of Somerville are unsafe and people are dying IN CROSSWALKS.

  6. Old Taxpayer says:

    This is a way of making more apartments available Money Mayor. Worth more if it’s older people rather than young to the mayor.

  7. JAR says:

    As noble a concept as it sounds to be, at the end of the day, rent control destroyed affordable housing in the region. It created distortions and mis-allocations in the market which will take generations to correct.

  8. kirk says:

    Well said Matt! I am also owner occupied and my rent goes up with my taxes. The mayor doesn’t see a correlation between tax rates and the cost of rents.

  9. Scooby Doo says:

    Yes, well said, Matt. I am both a resident and a landlord. Try to keep rent increases minimal but the hikes in taxes, and especially water/sewage are tough to swallow. So much for the promised positive impact of Assembly Row on our property taxes!

  10. kirk says:

    I wonder how many tenants saw their rent increase after the mayors latest diatribe against the evil landlords was posted