Summary of Bill S 998: An Act to Guarantee a Tenant’s First Right of Refusal

Purpose and Intent

Bill S 998 aims to establish a legal framework in Massachusetts that guarantees tenants the first right of refusal when their rental property is being sold. This legislation seeks to empower tenants by providing them with the opportunity to purchase their housing accommodations before the property is sold to outside buyers, thereby promoting housing stability and affordability.

Key Provisions

The bill amends Chapter 184 of the General Laws by adding a new section (Section 21A) that outlines the following key provisions:

• Definition of Terms: The bill provides clear definitions for various terms, including "Housing Accommodation," "Owner," "Tenant Association," and "Long-Term Affordable Housing." This clarity is essential for understanding the rights and responsibilities of all parties involved.

• Tenant Participation: To activate their right of refusal, a minimum of 51% of tenants in a housing unit must participate in a Tenant Association. This ensures that a significant majority of tenants are involved in the decision-making process.

• Opportunity to Purchase: When an Owner intends to sell a property, they must first offer it to the Tenant Association or a designated entity (such as a nonprofit) for purchase. This right must be exercised within a specified timeframe, allowing tenants to secure their housing.

• Long-Term Affordability: Any purchase made under this act must adhere to affordability guidelines, ensuring that a portion of the housing remains affordable for low- and moderate-income households for at least 30 years.

• Exemptions: Certain types of properties, such as those occupied by the Owner or group residences, are excluded from this right of refusal, focusing the legislation on multi-family rental units.

Who Would Be Affected?

• Tenants: The primary beneficiaries of this bill are tenants in multi-family housing units, who will gain the right to purchase their homes before they are sold to outside buyers.

• Property Owners: Owners of rental properties will have to navigate new requirements when selling their properties, including notifying tenants and potentially negotiating with Tenant Associations.

• Housing Organizations: Nonprofits and public housing authorities may act as designees to facilitate the purchase of properties, thus playing a crucial role in maintaining affordable housing.

Procedural Aspects

• Hearing Scheduled: A public hearing for Bill S 998 is scheduled for November 19, 2025, from 11:00 AM to 5:00 PM in Gardner Auditorium. This hearing will provide an opportunity for stakeholders to express their views on the bill.

• Legislative Journey: The bill was introduced on February 27, 2025, and has been referred to the committee on Housing. The House has concurred with the bill, indicating bipartisan support for its objectives.

Conclusion

Bill S 998 represents a significant step toward enhancing tenant rights and promoting housing stability in Massachusetts. By granting tenants the first right of refusal, the legislation aims to create a more equitable housing market and ensure that affordable housing options remain available to those who need them most.