The fight against TOPA has entered its most critical stage.
On July 8, the Massachusetts House of Representatives passed H.5562, an economic development bill that includes the Tenant Opportunity to Purchase Act (TOPA) provisions contained in Section 133A. The bill now moves to the Massachusetts Senate.
There is still time to stop these provisions, but only if senators hear directly from the people who will be affected.
Please contact your State Senator today and respectfully urge them to oppose the TOPA provisions contained in Section 133A of H.5562.
Find your State Senator here:
https://malegislature.gov/Search/FindMyLegislator
For years, TOPA has been debated as a stand-alone housing proposal. This time, these sweeping changes to Massachusetts real estate law were included as part of a much larger economic development package. A proposal that fundamentally changes how rental housing is bought and sold deserves careful public debate and thorough legislative scrutiny.
If enacted by municipalities, Section 133A would establish an entirely new statutory process governing the sale of many rental properties. Among other things, it would require owners to notify both tenants and the municipality before a sale could proceed, give tenant associations statutory rights to make or match purchase offers, allow up to 160 days to obtain financing and close, and permit those purchase rights to be assigned to specified nonprofit organizations, community development corporations, affordable housing developers, land trusts, and certain governmental entities.
The result is not simply a longer transaction, it is a fundamentally different housing marketplace.
Among our concerns:
TOPA does not create a single new home. Instead, it changes the rules governing the sale of existing rental housing at a time when Massachusetts desperately needs more housing supply.
Lengthy statutory timelines and additional procedural requirements create uncertainty for buyers, sellers, and lenders. Housing markets function best when transactions are predictable, financing can be secured efficiently, and responsible buyers are able to compete on equal footing.
Complexity changes who can participate in the market. Large organizations with lawyers, acquisition teams, and patient capital are far better equipped to navigate lengthy statutory processes than first-time multi-family buyers, family investors, or small independent housing providers.
The bill's exemption for small owners is far narrower than many realize, applying only in limited circumstances to qualifying natural persons and not to many common ownership structures like trusts and LLCs used by independent housing providers.
The proposal also extends into distressed property transactions, including certain short sales, deeds in lieu of foreclosure, and foreclosure-related sales, creating additional procedural requirements during some of the most time-sensitive real estate transactions.
Supporters describe TOPA as a tenant protection measure. Every legislator wants to help tenants. But Massachusetts needs policies that encourage more housing, more investment, and more pathways into homeownership, not policies that risk making housing transactions slower, more expensive, and more uncertain.
Experience in other jurisdictions has raised important questions about whether TOPA-style laws result in widespread tenant ownership. Critics instead point to lengthy transaction delays, increased legal complexity, and the growing advantage enjoyed by sophisticated organizations with the resources to navigate highly regulated transactions. Massachusetts should carefully consider those lessons before adopting similar policies.
To better understand what is at stake, we encourage you to watch the video below from Massachusetts real estate professional Mike Urban. He explains what Section 133A would do and why so many housing organizations oppose these provisions.
Please take a few minutes today to:
Contact your State Senator and respectfully urge them to oppose the TOPA provisions contained in Section 133A of H.5562.
Watch the video below.
Forward this email to fellow property owners, housing providers, and Massachusetts residents who care about the future of housing in our Commonwealth.
If you email your senator, please copy askspoa@gmail.com so we can track constituent outreach and legislative responses.
The House has acted. The Senate has not.
The coming days may determine whether these TOPA provisions become law in Massachusetts. Legislators need to hear from the people who understand how these policies will affect housing providers, first-time multifamily buyers, housing investment, and the future of rental housing across the Commonwealth.
Thank you for standing with SPOA and for making your voice heard.
Mike Urban's Video Explaining the TOPA Provisions in Section 133A of H.5562