22.043 An Order for Special Legislation Relative to Brokers' Commissions as amendedCity of Northampton
MASSACHUSETTS
In City Council, March 3, 2022
Upon the recommendation of Councilor Alex Jarrett, Councilor Rachel Maiore, and Mayor Gina-Louise Sciarra:
22.043 An Order for Special Legislation to Prohibit Landlords and Brokers from Requiring Brokers’ Commissions to be Paid By a Tenant or Prospective Tenant
Ordered, that
WHEREAS, in August 2019, the Pioneer Valley Planning Commission (PVPC), in conjunction with the Northampton Housing Partnership, issued its report “Unlocking Opportunity: An Assessment
of Barriers to Fair Housing in Northampton”; and
WHEREAS, two-thirds of the landlords in the PVPC study engaged rental brokers whose commissions are paid by the prospective tenant, most of which were at or above 60% of the monthly
rent; and
WHEREAS, the PVPC report found that such rental commissions, along with the necessity of paying first month’s rent, last month’s rent and security deposit, constitute significant barriers
to fair housing in the City; and
WHEREAS, among the items in the PVPC report “action plan” to mitigate this barrier to fair housing in the City is for the City to “address barrier created for tenants by rental agency
finder’s fee requirement”; and
WHEREAS, under section 7 (5) of the Home Rule Amendment to the Massachusetts Constitution, Amendment Article 89, the City may not enact private or civil law governing civil relationships
and, therefore, the city may not regulate the civil contractual relationship between a landowner and a rental broker as to the party paying the commission or fee to such broker; and
WHEREAS, in the Report of the 2020 Special Committee for Review of Ordinances, the committee called upon the City to petition the legislature for a special act prohibiting the charging
of rental commissions to prospective tenants.
NOW, THEREFORE, BE IT ORDERED
Voted, to petition the General Court to the end that legislation be adopted precisely as follows. The General Court may make clerical or editorial changes of form only to the bill, unless
the mayor approves amendments to the bill before enactment by the General Court. The mayor is
hereby authorized to approve amendments which shall be within the scope of the general public objectives of this petition.
AN ACT PROHIBITING LANDLORDS AND BROKERS FROM REQUIRING BROKERS’ COMMISSIONS TO BE PAID BY A TENANT OR PROSPECTIVE TENANT
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the
Authority of the same, as follows:
SECTION 1. No licensed real estate broker or other person or entity engaged in the rental or leasing of residential real estate in the City of Northampton as agent of the landowner,
landlord, lessor, or sub-lessor shall demand, receive or retain any payment, fee, commission or other charge from a tenant or prospective tenant for any services on behalf of such landowner,
landlord, lessor, or sub-lessor for the listing, showing, qualifying of prospective tenants, preparation and execution of documents, or otherwise arising out of the leasing of a residential
rental unit in such city.
SECTION 2. No landowner, landlord, lessor, or sub-lessor shall demand or require that a tenant or prospective tenant retain, hire or engage a rental agent or broker and pay such agent
or broker a fee or commission as a condition to applying for or leasing a residential rental unit in the City of Northampton, and no such landowner, landlord, lessor, or sub-lessor
shall demand or require that a tenant or prospective tenant make any payment in violation of SECTION 1 of this act.
SECTION 3. Violation of this act shall constitute an unfair or deceptive act or practice in the conduct of a trade or commerce in violation of section 2 (a) of chapter 93A.
SECTION 4. The City of Northampton may, by ordinance, establish a fine or penalty for violation of this act, not to exceed $1,000.00 per violation.
This act shall take effect upon passage.