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RENT CONTROL: A Reformer's Perspective

i) Nothing in this Act shall prevent the Board, in individual cases and for good cause shown by the owner, from providing compliance alternatives to decontrol the owner's property. Examples of such good cause include but are not limited to the following:

1) dedication of units in other structures; or

2) payment of a one-time tax in lieu of dedicating unit(s); or

3) waiver or deferral of the need for any payment.

SECTION 11. Condominium Conversion and Owner-Occupancy of Condominium Units.

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a) All property currently subject to chapter 183A of the Massachusetts General Laws which contains rent-controlled units must be registered pursuant to section 10 of this act; provided, however, that any condominium unit which is currently legally owner-occupied shall not be subject to the fee requirement of subparagraph A(ii)3 of section 10 unless or until the owner desires to decontrol the property. All units subject to Ordinance 966 prior to this Act shall be decontrolled before the owner may occupy the unit.

b) Any property in the City of Cambridge which otherwise qualifies may be subjected to chapter 183A of general laws, the statute governing condominium conversion, and the City hereby adopts chapter 185 of the general laws ("chapter 185"), the statute governing tenants rights in condominium conversions.

1) Procedures to be followed for conversions made prior to decontrol: Prior to or contemporaneous with the notices to tenants required pursuant to chapter 185, the notices to tenants required pursuant to section 10 of this Act shall be sent. Upon notification to the landlord of those tenants who desire to purchase their units, the landlord shall designate among the remaining units those which are to be dedicated; provided, however, that the owner shall dedicate 60 percent of the units which are not purchased by the tenants or 30 percent of the total number of units in the structure, whichever is less. The Board shall promulgate a legend to be added to the unit deeds of dedicated units advising all interested parties that these units are dedicated for use as housing for low-and moderate-income, handicapped or elderly persons and may not be occupied by nonqualified person(s).

2) Procedures to be followed for conversions made subsequent to decontrol:

i) Tenants in decontrolled units shall have the right to purchase their units; and

ii) Tenants in dedicated units may not purchase their units unless a decontrolled unit is not purchased, in which event the owner and tenant may petition the Board to change the designations of the units, which petition the Board to change the designations of the units, which petition shall not be unreasonably denied. No tenant in a non-dedicated unit may be evicted for condominium conversion.

3) All dedicated condominium units shall have a right of first refusal running to the City so that they may be purchased at a price equal to 10 times the adjusted gross rent. Adjusted gross rent shall mean the rent-controlled rent minus the sum allowed for heat, hot water and other unit utilities provided by the landlord, if any. The money to make such purchases shall come from the City of Cambridge Fund as well as public and private sources. Nothing herein shall prevent the City of Cambridge from selling, on a limited-equity basis, dedicated units to qualified persons.

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