Connect with us

Massachusetts

Massachusetts Gov. Healey wants to ‘abolish’ tenant-paid broker’s fees, as Boston City Council eyes similar change

Published

on

Massachusetts Gov. Healey wants to ‘abolish’ tenant-paid broker’s fees, as Boston City Council eyes similar change


Gov. Maura Healey called for the abolition of broker’s fees renters are often forced to pay when signing a lease agreement, as the Boston City Council is set to reintroduce legislation that would shift that responsibility away from tenants.

Healey, on GBH’s Boston Public Radio Tuesday, said she supported doing away with broker’s fees as a way of improving housing affordability in Massachusetts, where the Legislature is preparing to seek a similar statewide change this term.

“I think they should be abolished,” Healey said. “I think they should go away. I totally support that, and I support taking action to make that happen … When it comes to affordability, we’re an expensive state.”

When asked whether landlords should pay the broker’s fee instead of tenants, however, the governor hedged on answering.

Advertisement

“The landlord can make their own arrangements,” Healey said.

The governor’s remarks come amid a renewed push in Massachusetts to reconsider a system that places the burden of broker’s fees on tenants.

Renters are often saddled with paying the fee, typically equivalent to a month’s pay, to a real estate broker hired by their landlord. That’s on top of being required to pay two or three months rent up front to secure an apartment.

The Senate last year included in its housing bill a policy requiring broker’s fees to be paid by landlords rather than tenants, but House negotiators did not agree to the measure, the State House News Service reported.

Senate President Karen Spilka vowed in her inaugural address last week that the Senate would “try again to shift the burden of broker’s fees from renters.”

Advertisement

In the House, state Rep. Tackey Chan, a Quincy Democrat, told State House News that he had filed legislation that clarifies the party who hired the broker must pay the fee.

On the local level, the Boston City Council on Wednesday is set to reintroduce a home rule petition that would similarly shift the fee to the party, lessor or tenant who hired the broker.

Boston’s push follows last year’s vote by the New York City Council to approve a similar change. Unlike New York, however, the Massachusetts Legislature would need to sign off on a move to bar tenant-paid broker’s fees, if the petition is approved by the Boston City Council.

“Boston remains one of the last major rental markets where prospective tenants are commonly required to pay broker’s fees,” the petition states, while framing the payments as “worsening inequities in a market where renters face limited options.”

Elected officials in Somerville and Cambridge are reportedly considering a similar change.

Advertisement

The local and statewide push drew mixed reactions from industry groups. The Greater Boston Real Estate Board was supportive of the potential change. In a statement, CEO Greg Vasil said, “whoever brings a broker to a real estate transaction should be responsible for paying the broker’s fee.”

Demetrios Salpoglou, CEO of Boston Pads, said, however, that the changes being discussed have the potential to put realtors, who “do a tremendous amount of work,” out of business. If landlords were tasked with paying the fees, he said, they might opt not to work with a broker or pass on the costs to tenants through higher rents.

“I think we’re creating a huge amount of this potential disruption on a system that’s not broken,“ Salpoglou told the Herald. “This whole thing should be driven by business leaders, not the politicians.”

Originally Published:



Source link

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Massachusetts

Massachusetts town looking into ICE facility zoning violations after teen described conditions

Published

on

Massachusetts town looking into ICE facility zoning violations after teen described conditions


The New England Regional Headquarters for the U.S. Immigration and Customs Enforcement (ICE) is supposed to be a processing facility where people stay for only hours, and the town of Burlington where the facility is located says that’s how it is zoned. “What I’m just concerned about is fair and humane treatment for anybody in Burlington,” said Mike Espejo, chairman of the Select Board, “and this doesn’t seem like that’s happening.”

Milford teen describes conditions

He tells WBZ-TV the case of Marcelo Gomes da Silva has shined a new light on what is allegedly happening behind the doors. “No one deserves to be down there,” Gomes da Silva told reporters when he posted bail last week. “You sleep on concrete floors, I have to use the bathroom in the open. It’s humiliating.” 

He described what he called inhumane conditions for six days, leaving the town now more than concerned. 

“We had no idea anything like that was happening,” said Espejo. It is why town officials are now gathering information on the scope of the operations inside the building and whether the ICE facility is violating local zoning laws. “We are checking with our legal counsel to see if we can do any type of zoning enforcement, or health code violation enforcement,” Espejo said. “Anything we can do to just make sure that people are at least being treated humanely.”

Advertisement

Town was told no one held overnight

There was some opposition in the town when the facility first opened in 2008, but residents received assurances that no one would be held overnight. Espejo said they were told the same thing in recent weeks when local officials began inquiries amid rumors. 

In a statement ICE tells WBZ-TV, “There are occasions where detainees might need to stay at the Burlington office for a short period that might exceed the anticipated administrative processing time.” 

The statement goes on to say, “detainees are given ample food, regular access to phones, showers and legal representation as well as medical care when needed.” 

That’s not what Marcelo Gomes da Silva said he experienced. “I haven’t showered in six days. I haven’t done anything,” he said when he was released. 

Espejo says it’s a gray area for the town. “It’s a federal facility so we don’t know how much jurisdiction we have over it,” Espejo said. He says town officials feel misled about a building where they believed mostly paperwork was being done. 

Advertisement



Source link

Advertisement
Continue Reading

Massachusetts

Why are banks building so many new branches in Massachusetts?

Published

on

Why are banks building so many new branches in Massachusetts?


With money sending apps and online banking, why are so many new bank branches popping up in Massachusetts? 

Ever spot a “Space Available for Lease” sign and hope a new café, bookstore or restaurant is coming to town? Excitement builds and then you learn… it’s another bank? It seems to be recent trend in banking and now it’s happening in Massachusetts. 

In Needham for instance, a town of about 32,000 people, there are nine bank branches. One of the newest is a Chase Bank that replaced a convenience store which had replaced a Friendly’s restaurant. 

“I was hoping it would be a restaurant,” said Eileen Baker, who owns Proud Mary, a gift and fashion boutique in the heart of Needham. “We would love to see little coffee shops; I know a lot of people would love to see a bookshop in Needham. Little specialty foods.” 

Advertisement

Baker and many other small business owners thrive when people are drawn downtown by new specialty shops and restaurants. Banks, not so much. 

Chase opening 50 new branches

With mobile banking and Venmo, physical banks might seem outdated. But Chase, the country’s largest commercial bank, plans to open 50 new branches in the state by 2027, including brand-new branches in towns like Sudbury and Weston. 

“I don’t really understand why there are so many banks,” said one young man outside of the under-construction Chase in Sudbury.
Opening in wealthy neighborhoods 

Good question. So, we asked Eric Rosengren, former President of the Federal Reserve Bank of Boston. 

“They would only do it because its cost effective,” Rosengren said. “You don’t see it in lower income neighborhoods. You see it in wealthy neighborhoods, because even a few wealthy individuals can provide a significant amount of income coming from the wealth management.” 

Advertisement

Rosengren says these often-plush new branches are designed to attract affluent customers who might still value face-to-face financial advice. 

Recent surge 

This surge is a very recent shift. In fact, nationwide, the total number of bank branches has dropped by 13,000 in the last decade. In 2014 there were about 81,000 U.S. bank branches. In 2023 – for the first time in a long time- there was an uptick in new branches- leaving about 68,000 branches. 

Will the trend continue? Most research says younger customers are using mobile banking and very seldom visit their local branch. Will they change their minds once they begin to accumulate wealth? Sound like some financial companies are banking on it.

If you have a question you’d like us to look into, please email questioneverything@cbsboston.com.

Advertisement



Source link

Continue Reading

Massachusetts

Wealth surtax may generate $3 billion in Mass.

Published

on

Wealth surtax may generate  billion in Mass.


State budget honcho Matthew Gorzkowicz told municipal officials Tuesday that Massachusetts is on track to rake in nearly $3 billion from its surtax on household income greater than about $1 million, more than double the estimate used to craft this year’s budget.

The Department of Revenue reported last month that the state had collected just less than $2.6 billion from the 4% surtax between July 1, 2024, and April 30, 2025, surpassing the $2.46 billion that the surtax generated in fiscal 2024 in just 10 months of fiscal 2025. May and June collections are expected to add to that total, and Gorzkowicz said Tuesday that he now thinks total fiscal 2025 surtax collections “could be closer to $3 billion.”

“We will have the benefit of being able to spend those dollars on education, transportation, as you’ve seen us do with our January supp as part of our transportation package this past year,” the secretary of administration and finance told the Local Government Advisory Commission, referring to the surtax surplus spending bill that is now in conference committee. “We’ll have another opportunity to do that again.”

The Healey administration and legislative Democrats have used conservative collection estimates in the first few years of the surtax, which was approved by voters in 2022. Under the constitution, revenue generated by the surtax can only be used for education or transportation initiatives and the conservative estimating has given lawmakers extra money to dole out separate from the traditional state budget process.

Advertisement

When they built the fiscal 2025 budget, the administration and legislative leaders agreed to spend $1.3 billion in surtax revenue this year. If Gorzkowicz’s estimate proves correct, the Legislature could have as much as $1.7 billion to spend sometime after DOR certifies the full-year surtax collection amount in the fall.

When they agreed on a consensus revenue estimate for fiscal 2026 earlier this year, Gorzkowicz and the Ways and Means Committee chairs mutually estimated the state will collect $2.4 billion from the income surtax in fiscal 2026. But they agreed to spend at most $1.95 billion from that in the annual budget bill, which like the surtax surplus bill is also the subject of conference committee negotiations.



Source link

Advertisement
Continue Reading

Trending