This is the first week since it took hold in Massachusetts that the majority of the headlines are not about the pandemic. Hopefully, that’s a good sign. Check out last week’s news for a plethora of encouraging facts and figures related to Mass. COVID-19 infections and unemployment.

The big story this week is the extension of the moratorium on evictions and foreclosures until October and a lawsuit against the state to overturn the measures.

Gov. Baker Extends Moratorium On Evictions and Foreclosures Until Mid-October

The moratorium on evictions and foreclosures put in place in Massachusetts has been extended through at least Oct. 17. The proclamation by Gov. Baker comes weeks before the original expiration date of Aug. 18. Obviously the move has caused mixed emotions.

While affordable housing advocates breathed a sigh of relief, landlords and lenders are furious and suing the state.

The sigh of relief by recently unemployed renters and homeowners may be short-lived. City Life/Vida Urbana Executive Director Lisa Owens told the Herald:

“This does give an additional two months of security and protection and that’s important for people, but unfortunately what that means is the moratorium will be lifted … right in the middle of an expected second surge and when people are likely facing higher levels of unemployment than they are facing now.”

Housing advocates are working to pass a “no brainer” bill that would halt evictions and freeze rents as far into the future as one year from the time that the governor lifts the public health emergency.

Renters are still obligated to pay rent under the moratorium. However, some renters who have no emergency savings and might be using the moratorium as a reason to not pay rent.

Landlords and Lenders Fight Back Against Eviction Moratorium

The moratorium on evictions is obviously upsetting to landlords and lenders some of whom are struggling financially as a result. Many property owners are already considering abandoning properties.

In response, attorney Richard Vetstein, representing a coalition of Mass. landlords has filed a lawsuit seeking to overturn the moratorium. The complaint, filed in a federal court, lists the defendants as the state of Massachusetts and the Executive Office of Housing and Economic Development.

Another possible solution to the dilemma would be a bailout of property owners, renters, and/or homeowners. A $20 million relief fund has already been established to help renters and homeowners. However, that figure falls far short of being a cure for the problem. Gov. Baker says his administration is looking into increasing that fund.

Real Estate Boston has more on this story.

Mass Eviction Moratorium at Least Partly Responsible for Drop In Home Sales and Condo Prices

For the third straight month, home sales and prices have dropped in Massachusetts. Many attribute the slowdown to a combination of factors including uncertainty about the economy, high unemployment, increased red tape, and the impact of the eviction moratorium.

According to The Warren Group, publisher of Banker & Tradesman:

Sales of single-family homes and condos dropped by 25 and 30 percent respectively.
The median price for a single-family home rose by 2.6 percent year over year to $440,000.
Condo sellers reported a 5.7 percent year-over-year drop in the median sales price to $396,000.
The median condo price in Greater Boston fell 4.4 percent year over year in June to $592,500.

One thing's for sure. The declines are not due to a lack of inventory which has been falling for some time. Tim Warren, CEO of The Warren Group had this to say about that:

“Even though single-family home sales saw a significant decline in June, it’s not due to a lack of demand. The statewide inventory has steadily declined for years on end, and COVID-19 has given homeowners new reasons to stay put for now. There seem to be plenty of buyers looking for homes, and the median price has climbed every month for 51 straight months.
“The median condo price took its first year-over-year dip in 14 months. Prior to this development, the median sale price exceeded $400,000 for four consecutive months and was actually on track to outpace the median single-family home price during the course of 2020. It seems like potential condo buyers are waiting to see how the pandemic progresses before they commit to urban living and elevator rides.”

And Jason Gell, association president and an agent with RE/Max Unlimited in Brookline believes the slowdown can be pinned on increased red tape and should ease up soon. He states:

“Our challenge these past few months has not been a lack of buyers; it’s the fact that the process of showing property and obtaining the necessary inspections and documentation requires more time and effort to perform the work and ensure the proper safety protocols are met. Although we lost much of the spring market, we think the summer months will be much busier than normal due to pent-up demand and a steady influx of new listings since May, especially in the condo market.”

Another factor that is expected to help the market recover is the current low mortgage rates.

The Greater Boston Association of Realtors’ breakdown for 64 communities can be found here.

Could a Luxury Real Estate Tax Fund Affordable Housing?

By adding a surcharge for the sales of luxury properties, the city of Boston could generate millions of dollars that could be used to boost affordable housing projects. Nearly 40 U.S. states have such a surcharge. That is according to the Institute for Policy Studies (IPS).

A petition drafted by City Councilor Lydia Edwards and Council President Kim Janey would give Boston the authority to collect a 2 percent surcharge on real estate sales of $2 million or greater. However, the proposal has sat in the Massachusetts House Committee on Ways and Means since December 2019.

Under the proposed plan, revenue from the surcharge would go into the Neighborhood Housing Trust fund for low-income housing projects.

Last year the group loaned out $16 million. That amount could have been generated by surcharges on the sale of just two buildings, according to IPS.

A study co-authored by Chuck Collins and Omar Ocampo states:

“As of July 14, 2020, 100 out of the 171 units at One Dalton Place — located in Boston’s Back Bay neighborhood — have been sold, ranging in sale price from studio units under $1 million (thus exempt from the transfer fee) to a penthouse unit that sold for $34 million.”

Several other cities in Massachusetts are considering similar measures.

Read all about it at the Bay State Banner.

Mass. Senate Approves Transportation Bond Bill

Massachusetts senators have passed a $17 billion bond bill aimed at funding major transportation projects throughout the state.

Among the allotments designated in the Senate bond bill are:

$5.6 billion for federally aided highways
$2 billion for highways with no federal aid
$574 million for local and regional transportation projects.

The bill would also establish a special commission to investigate roadway congestion and recommend options for equitable roadway pricing mechanisms.

The bond bill now heads to a committee that includes lawmakers from both chambers of the state legislature in order to reconcile differences between the House and Senate versions of the bill.

Read all about it at LandLine.

Is Massachusetts Planning To Phase Out Natural Gas?

Massachusetts officials have begun considering a managed decline of the state’s natural gas industry. The move would be part of a larger effort to meet the state’s clean energy goals.

Gas-fired appliances account for two-thirds of the space and water heating energy which is the second-largest category of greenhouse gas emissions in the sate.

The plan currently calls for a two-phase investigation.

Phase One - Gas companies would be required to prepare “detailed economic analyses and business plans depicting future gas demand in a carbon-constrained economy.”
Phase Two - Focuses on the development and implementation of policies aligned with the 2050 net-zero target.

A comprehensive report by Green Tech Media covers this topic in detail.

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Eviction Moratorium, Housing and Transportation Dominate News