Another housing-related showdown between the city of Boston and the state Legislature is poised to unfold next year if city councilors embrace a push to shield renters from paying broker's fees.
City Councilor Liz Breadon and Council President Ruthzee Louijeune on Wednesday introduced a new proposal that would require any broker fees in the city to be paid by the party who contracted with a real estate broker, effectively prohibiting landlords from passing those costs onto their tenants.
"Residents of the city of Boston, working families, young professionals and students, whether here temporarily or intending to settle long term, are severely cost-burdened. The unregulated practice of tenant-paid broker fees in the rental process places undue burdens on prospective tenants," Breadon said. "The housing crisis enables property owners to pass broker fees onto tenants who did not solicit those services, worsening inequities in the housing crunch."
Many renters are familiar with broker's fees, and they are often asked to pay the equivalent of an additional month's rent -- or more, if they also owe rent for the first and last month plus a security deposit -- up front when signing a lease. Councilor Brian Worrell said that asking tenants to pay four months' worth of rent in one lump sum is "unsustainable."
The New York City Council in November required landlords to cover the costs, not renters, leaving Boston as one of the last major metropolitan areas where the burden regularly falls to renters, supporters say.
The measure still needs to be reviewed by the Council's Committee on Government Operations before it can receive the vote needed to send it to Beacon Hill, but several councilors were quick to signal their support during Wednesday's meeting.
"For many, the added expense of broker fees -- often thousands of dollars -- is not just a hurdle. It's a barrier to our housing stability," Councilor Henry Santana said.
Councilor Enrique Pepen said city council counterparts in Somerville and Cambridge are also pursuing similar home rule petitions.
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The push could once again fuel tensions between city officials that want to press forward with their own plans and state lawmakers who must give their approval.
Lawmakers already considered, but ultimately decided against, enshrining a similar policy at the state level this year. In its version of a major housing bill, the Senate included language requiring landlords to pay broker's fees, but the measure did not survive negotiations with the House.
Senate Democrats this week killed another Boston home rule petition that Mayor Michelle Wu and city councilors sought to temporarily rebalance the city's property-tax split. Other powers the city has sought, like restoring rent control and adding a new tax on high-dollar real estate transactions, have stalled out without legislative support.
Councilor Julia Mejia on Wednesday described a future vote on the home rule petition as "send[ing] this over to the State House [asking] our parents to give us permission to do our own business."
