NORTHAMPTON — A years-long effort to ban landlords from passing on rental broker fees to tenants has gained steam as the City Council considers a plan to request special legislation from the state.
Ward 5 City Councilor Alex Jarrett, who co-sponsored a council order with Mayor Gina-Louise Sciarra and Ward 7 Councilor Rachel Maiore, said a broker’s fee is typically 60-75% of one month’s rent and due before moving in. The legislation would shift the burden of paying the fee from the tenant to the landlord.
On March 3, the City Council sent the proposal to the Northampton Housing Partnership for review, to be followed by the council’s Community Resources and then Legislative Matters subcommittees. Once that process is complete, the full council will take a final vote on whether to seek special legislation.
A virtual public forum on the issue is scheduled for April 25 at 5:30 p.m. The link will be posted on the city website at least two days prior. Tenants, brokers and landlords are encouraged to attend.
“This doesn’t address the cost of housing, but it does look at the upfront cost,” Jarrett said while noting a “tremendous rise” in housing rental rates. “The goal is to reduce that barrier to entry, especially for folks who are right on the line of being able to afford an apartment.”
He pointed out that low-income housing vouchers cannot be used to pay a broker fee.
An August 2019 report by the Pioneer Valley Planning Commission entitled “Unlocking Opportunity” looked at barriers to housing access in Northampton. According to the City Council’s order, the report found that “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.”
In 2020, the city’s Special Committee for Review of Ordinances recommended requesting state legislation.
Jarrett served on the Northampton Housing Partnership and assisted in preparing the PVPC report. He said the “cost will be better absorbed by the landlord than the tenant,” but the legislation would not necessarily prevent the landlord from charging the fee gradually in the form of higher rent payments.
“Brokers provide really important services (and) we want brokers to continue to do their business,” Jarrett said, “but we think this is a better approach.”
Violations of the law “shall constitute an unfair or deceptive act or practice in the conduct of a trade or commerce,” according to the proposed language, and would carry a fine of up to $1,000.
“The Legislature is pretty slow on home rule petitions, so it could take a while there,” Jarrett said, noting the initiative has earned the support of state Rep. Lindsay Sabadosa and state Sen. Jo Comerford, both Democrats of Northampton.
“With home rule petitions, the mayor always has to be onboard, and the mayor is onboard,” Maiore, the Ward 7 councilor, said. “This is something that’s sensible for Northampton and would promote” equity for renters.
She said the special legislation would have another benefit: the state could research the city’s experience under the new law and determine if statewide legislation is warranted.
“This would definitely be a model for our state, but in other parts of the country, it’s the norm for landlords to pay these fees because renters are typically lower-income,” Maiore said. “Municipalities are the labs of the state. If we try this here, the state can see what works and what doesn’t.”
The April 25 public forum, Maiore said, is a critical opportunity to gain community feedback and councilors hope it is well attended.
“We’re looking for the public to get a lot of airtime,” she said.
Brian Steele can be reached at bsteele@gazettenet.com.