To Support Increased Housing Production, SPOA Testifies in Favor of Gov. Maura Healey's Secretariat Bill (H.43)
Since taking office in January, Massachusetts Governor Maura Healey has proposed to establish a new cabinet secretary position to focus on housing exclusively. The new secretary will report to the governor, who aims to elevate housing affordability through increased production, while maintaining a business friendly environment in Massachusetts.
The state legislature held a hearing to consider the governor’s plan, which is presented in the form of House bill 43 (H.43), on March 27, 2023. SPOA Vice President Amir Shahsavari testified in favor of this bill on SPOA’s behalf. The written version of his oral remarks is below.
Small Property Owners Association Delivers Testimony in Support of H.43 at Massachusetts State House Hearing on March 27, 2023.
Thank you to the members of the Committee for listening to me today.
My name is Amir Shahsavari. I am the Vice President of the Small Property Owners Association (SPOA). We support H.43 with enthusiasm — and we would like to thank Governor Healey, Lt. Governor Driscoll, the members of their administration, and the other parties that support this bill.
SPOA primarily represents small housing providers, who provide over 60 percent of the rental housing in Massachusetts. We are small business owners. This includes businesses that are female, minority, and family owned. We pay handsomely through our taxes to fund municipal budgets, while improving our communities and treating our tenants well.
By definition, small property owners are not confined to owner-occupied buildings of six units or less. Most small property owners own more than that. The definition of a small owner is not based on owner-occupied status, or the number of units owned, but rather the size of the business and the degree to which the owner manages the business directly, or with a small group of people, as opposed to having a complex corporate structure that includes multiple offices filled with many managers and employees.
It is important to increase the production of housing to alleviate the current housing shortage, in order to bring about affordability.
Tenants are struggling with higher rents, while owners are struggling with rising operating costs, including taxes, insurance, mortgage, maintenance, and repairs. For every one dollar paid in rent, only nine cents goes to the property owner, while the rest goes to expenses. We must understand both sides of this equation, in order to formulate broader solutions that will help all stakeholders in the Commonwealth.
Thus, we must increase the production of housing, including more affordable housing, as well as diverse types of housing for different people with different needs. In Boston alone, approval of new housing units in 2022 was 75 percent below that of 2020 — during a pandemic.
Moreover, there is an altruistic reward to providing housing for others. When tenants approach us to say, “We really love living here. Thank you for what you do!”, you can’t put a price on that. The American Dream not only involves owning a home — but for us, it means providing others with homes as well. My mother was a new immigrant to the United States. She came here because she loved America, and she thought the best way to give back was to provide its people with housing.
Therefore, we must avoid any restrictive policies that will bring harm to the housing provider community and endanger our businesses, given the important role we play in supplying people with safe, maintained living spaces — while giving work to other businesses.
SPOA would appreciate the opportunity to be included at the table with others and to have conversations with the new secretary, as we are eager to help resolve the housing dilemma.
The government should promote mutual respect, cooperation, and security for all stakeholders and bring communities together, rather than favoring one side over another to the detriment of our communities. It’s time to bring people together to resolve our mutual challenges and realize our shared goals. Increasing the supply of housing is an important step in that direction.
Once again, SPOA supports H.43 with enthusiasm.
Sincerely,
Amir Shahsavari
Vice President
Small Property Owners Association (SPOA)