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Posted in News, policy –
Last Wednesday June 5 the Massachusetts House voted overwhelmingly to maim the housing market by adding bill text for the tenant opportunity to purchase act (TOPA), also known as the right of first refusal, to the housing bond bill. Although the bond bill is sure to pass into law, you can get TOPA removed by contacting your senator now. If you cannot contact your senator, no amount of money donated to MassLandlords will make a difference at this point and you should be prepared to lose a significant fraction of the value of your property as soon as July.
TOPA Summary
Under the bill text adopted by the house, TOPA would:
- Allow any town or city to delay each multifamily sale for up to 220 days after listing;
- Destroy an important source of municipal funding; and
- Make it much more expensive if not impossible to finance the construction of operation of rental housing.
The house listened to the wrong people. Make the senate listen to you! Use the Find My Legislator link and tell them to remove TOPA from the housing bond bill, and keep eviction sealing out, too!
TOPA Detail
First, TOPA collapses the market by delaying closing, in some cases, indefinitely. Compared with a normal 30 day close, TOPA would require 220 days from listing to close any market property, 300 days to close any short sale, and 240 days to foreclose. This creates structural uncertainty forever after with each proposed transaction. Long, uncertain closings will predictably lead investors will shop elsewhere. TOPA will sharply reduce or eliminate private investment in rental housing.
Second, TOPA shuts off the engine of municipal funding, which is local real estate taxes….