Updated

Updated · Bloomberg · Jun 23

Massachusetts Top Court Blocks 5% Rent Control Ballot Measure Over Religious Housing Exemption

Updated

Updated · Bloomberg · Jun 23

Massachusetts Top Court Blocks 5% Rent Control Ballot Measure Over Religious Housing Exemption

Q: How do rent control laws in states like Oregon and California balance tenant protection with new housing development?

Oregon and California try to protect tenants without choking off construction by capping rent increases on existing tenancies while exempting newer housing and allowing rents to reset when a unit turns over. In Oregon, the statewide law limits annual rent increases to 7% plus inflation, subject to the state’s formula, and bars increases in the first year of tenancy. It also requires just cause for many evictions after a tenant has been in place for a year. But the law exempts units newer than 15 years, giving developers a long runway to charge market rents on new projects. California uses a similar model under the Tenant Protection Act. It generally caps annual increases at 5% plus local inflation, up to 10%, and requires just cause for many evictions, with relocation aid in some no-fault cases. To preserve incentives for building, the law exempts housing less than 15 years old on a rolling basis. Single-family homes and condos not owned by large corporate landlords are often exempt as well, and local governments can impose stricter rules on older stock. A key balancing tool in both states is vacancy decontrol: when a tenant leaves, landlords can usually reset the rent to market rate for the next tenant. Supporters say this gives renters stability without fully freezing the market. Critics still argue caps can reduce investment and maintenance over time, but these exemptions for new construction are designed specifically to avoid discouraging housing production.

3 articles · Updated · Bloomberg · Jun 23

Tuesday's ruling bars a statewide rent-control proposal from appearing on Massachusetts' November ballot, stopping what would have been the strictest statewide cap in the US.
The measure would have limited apartment rent increases to 5% or the annual Consumer Price Index gain, whichever was lower.
The Supreme Judicial Court struck it down because its exemption for religious housing violated the Massachusetts constitution.
The decision halts a push to expand rent regulation statewide and leaves Massachusetts voters without a referendum on the issue this year.