MacMaster To AG: Investigate Rent Gouging

The following is a letter written to Massachusetts Attorney General Maura Healey from Melrose City Councilor Shawn MacMaster:

Dear Attorney General Healey,

As you know, the COVID-19 pandemic continues to have a dire impact on tenants across the state. Although intensely illuminated by the media and championed by a group of state and federal legislators, the precarious position that many tenants face goes far beyond the eviction crisis. For tenants who lost their jobs at an earlier point during the pandemic and who have since obtained employment, emerging from the bottomless bog of rent arrears may be unrealistic, and lead to further debt. Not only does this jeopardize the financial and emotional health of individuals, it can have a devastating impact on families, too. That is, the associated stress and anxiety of debt and housing insecurity -- and in many of these cases, food insecurity -- can lead to poor health outcomes. In fact, our most vulnerable populations -- older adults, immigrants, low-income families, and the physically and mentally disabled -- are most at risk for the collective impacts of this problem.

Although I appreciate and support continued efforts to provide financial assistance to tenants in need, sadly there has been no focus whatsoever -- at any level of government -- on protecting tenants from the practice of rent gouging. Not surprisingly, those who find themselves most at- risk for becoming victims of rent gouging are the vulnerable populations mentioned above, as some may be particularly susceptible to unfair and deceptive business practices at the hands of landlords. Moreover, these groups tend to represent a larger percent of the at-will tenant population who, by nature of their occupancy agreements, do not enjoy the protections afforded by a formal lease.

As background, in the midst of the pandemic, two Nigerian immigrants who live in my ward, were subject to an immediate 73% increase in their rent, a jump of $950 per month. Although I was able to work with the Mayor’s Office to offer temporary rental assistance through our municipal emergency fund, the cost of rent was ultimately too much for them to afford over time. What my constituents experienced raises significant concerns about how landlords, especially those who own multiple properties, may attempt to take advantage of tenants who are employed in order to compensate for lost income from those who cannot fulfill their rental obligations. In other words, I worry that some landlords may be transferring the debt of tenants who are unable to pay rent to those who can in the form of rental spikes, resulting in financial hardship on the latter.

While I applaud the Centers for Disease Control and Prevention for extending the eviction moratorium until October 3, 2021, I fear that rent gouging -- which I suspect is already happening -- will intensify as an unintended consequence of this measure. Look no further than to the words and actions of the National Apartment Association, an organization that has aggressively lobbied for an end to tenant relief efforts. In an August 3 rd Boston Globe article, entitled “Biden extends eviction moratorium another two months, including in most of Mass.,” the association complained that landlords will still be owed $26 billion in aggregate as a result of the eviction moratorium, even after all federal rental relief is dispersed.

In light of these considerations, it is my firm belief that a concerted effort to uncover the depths of rent gouging in Massachusetts, and to prevent future cases of it, needs to occur. When considering that victims of this practice may be reticent to draw attention to this issue for fear of retribution or because they do not have the means or ability to self-advocate, it should spur elected officials to action.

Accordingly, I believe that the Joint Committee on Housing should convene a series of public hearings to ascertain the extent of this problem. With respect to your office, and pursuant to your regulatory power as Attorney General, I would ask that you contemplate an amendment to 940 CMR 3.00 (Unfair and Deceptive Practices) to include rent gouging or, alternatively, that you execute your authority under MGL C. 30A, Section 2 to enact an emergency regulation. Short of these measures, I would respectfully request a legal determination from your office as to whether rent gouging is already covered by the CMR, for one could argue that housing is a “service” that is “necessary for public health and safety,” language currently contained therein. Put another way, perhaps the intent and sprit of the existing regulation inherently applies to rent gouging, even if not seemingly apparent. To me, this would be a natural starting point for any legal analysis on this salient public policy issue.

Allow me to thank you in advance for your careful review of this matter. Your time, consideration, and advocacy on behalf of the Commonwealth and its residents is most appreciated.

Sincerely,

Shawn M. MacMaster
City Councilor, Ward 5
City of Melrose

cc: Senator John Keenan, Chair, Joint Committee on Housing
Representative James Arciero, Chair, Joint Committee on Housing
Senator Jason Lewis, Fifth Middlesex
Representative Kate Lipper-Garabedian, 32nd Middlesex

AUTHOR’S NOTE: The CDC’s eviction moratorium was overturned by the U.S. Supreme
Court since the writing of this letter.