Massachusetts tenants could get the first chance to buy their apartment building when it goes up for sale under a bill now in a legislative conference committee. If the House version prevails, Needham and Dedham could each vote to adopt the policy.

The Tenant Opportunity to Purchase Act, or TOPA, was included in both the House and Senate economic development bond bills this summer. A six-member conference committee is negotiating a single version to send to Gov. Maura Healey, as Banker & Tradesman reported.

Under the policy, renters in a multifamily building being put on the market could organize to match an outside buyer's offer. They could purchase the property themselves or assign that right to a nonprofit or community land trust.

Two versions, different reach

The House and Senate versions differ sharply. The House version would let any city or town opt in. Landlords who own six or fewer units in a participating municipality would be exempt. Tenants would get 15 days to form an association and make an offer after a landlord gives seven days' notice of a planned sale. Once an outside offer arrives, tenants would have 15 to 30 days to match it, then up to 160 days to secure financing and close.

The Senate version, sponsored by Sen. Pat Jehlen, a Somerville Democrat, is narrower. It would create a five-year pilot in five communities selected by the Executive Office of Housing and Livable Communities (EOHLC). Those communities have not been named.

Under the House framework, Needham and Dedham could each vote to participate. Neither town's Select Board or Town Meeting has taken a public position on TOPA.

Local housing picture

Needham is overwhelmingly owner-occupied. American Community Survey data show an 83.1% homeownership rate among the town's 11,929 housing units, meaning about 17% of occupied units are rentals. Both towns are also working to comply with the MBTA Communities Act, which requires Needham to zone for at least 1,784 multifamily units and Dedham for at least 1,569.

Supporters and opponents

Ann Jochnick, a housing attorney with the Massachusetts Law Reform Institute and part of the TOPA Coalition, a group of about 70 organizations, told Banker & Tradesman that preservation is essential. "We like to say trying to solve the housing crisis without preserving affordable housing is like trying to fill up a bathtub with the drain open," Jochnick said.

Harvard's Joint Center for Housing Studies has found Massachusetts loses an average of 16,000 low-rent units a year. A 2023 Metropolitan Area Planning Council report found that nearly 46% of all affordable housing in the state is unsubsidized.

MassLandlords, which represents rental property owners statewide, opposes TOPA in all forms. The group argues the policy's main beneficiaries are nonprofit community development corporations, not tenants, and that the added delay discourages sales. Under the House version, MassLandlords said a landlord selling for health reasons could face more than half a year before closing.

Rep. David F. DeCoste, a Norwell Republican, said in remarks cited by Banker & Tradesman that the measure "will have a severely detrimental impact on small property owners."

What's next

The conference committee must reconcile the two versions before the legislative session ends in early January. Rep. Michael Soter, a Republican member of the committee, told Boston.com that negotiations are ongoing but declined to predict a timeline. Jehlen, who is retiring at the end of this session, estimated a decision would come before the session concludes.

Gov. Healey has not publicly stated whether she would sign TOPA if it reaches her desk.