In Boston, converting a rental building into condominiums or a cooperative isn’t just a business transaction — it’s a process regulated by Boston’s Condominium and Cooperative Conversion Ordinance (“Conversion Ordinance”). The Conversion Ordinance, applicable to buildings with four or more rental units, plays a key role in ensuring that long-time renters aren’t displaced without fair notice, meaningful rights, and financial support. As housing pressures intensify in the city, understanding this ordinance is more important than ever if you’re considering a condo conversion of your own.

In today’s real estate climate, where pressure on housing is intense and affordability is scarce, Boston’s Conversion Ordinance is more than just a legal technicality — it’s a bulwark for tenant rights.

Why the Ordinance Matters

First enacted in 1999, and substantially updated in March 2021, Boston’s conversion ordinance reflects the city’s commitment to balancing the interests of property owners and renters. Under the updated rules, any residential property built before December 1983, which has four or more rental units and whose owner intends to convert to a condominium or cooperative form, is subject to the Conversion Ordinance.

Why target pre-1983 buildings? These older properties often make up a substantial portion of Boston’s naturally affordable rental housing stock — and converting them could lead to rapid displacement of longtime residents and further erosion of affordable housing in Boston.

Key Protections for Tenants

One of the ordinance’s goals is to safeguard tenants who may otherwise be at risk of losing their home when a conversion is announced. The ordinance, therefore, provides protections to tenants, including:

• Right to Notice: Once a property owner commits to converting, they must issue a written notice to all tenants, using a city-provided Tenant Notification Form.

• Lease Extension: Every tenant is entitled to a one-year lease extension under the same or similar terms from the date they receive notice.

• Extra Protections for Vulnerable Tenants: Tenants who qualify as elderly, disabled, or low-to-moderate income are eligible for a five-year lease extension.

• Right of First Refusal: Tenants generally get the first shot at buying their unit. Under Section 10-2.13A of the city code, once a conversion is underway, current tenants can make a purchase offer on terms “substantially the same as or more favorable” than what is being offered to the public.

• Relocation Compensation: If a tenant doesn’t or can’t buy their unit, they are eligible for financial relocation assistance: typically, $10,000, but $15,000 for seniors, disabled tenants, or low/moderate-income residents.

• Right to Terminate: Once conversion begins, a tenant can terminate their lease without penalty upon 30 days’ notice to their landlord.

• Renovation Protections: Owners are allowed to renovate during the lease-extension period — but tenants are protected from “unreasonable disruption” and must retain their right to quiet enjoyment.

• Complaints and Hearings: If a tenant or landlord believes the ordinance isn’t being followed, either party can request a hearing before the Mayor’s Office of Housing or the Inspectional Services Department.

Requirements for Property Owners

In addition to the above tenant protections, owners who want to convert a building to condos must jump through important regulatory hoops in order to proceed with the project:

1. Conversion Plan & Permit

o Owners must file a Conversion Plan with Boston’s Office of Housing Stability (OHS).

o After OHS approves the Conversion Plan, the owner must apply for a Conversion Permit from Boston’s Inspectional Services Department (ISD).

o These steps cannot be skipped, even if all units are currently vacant.

2. Fees and Timing

o Owners are responsible for paying a fee is $1,000 per unit when applying for their Conversion Permit.

o The Conversion Plan application must be submitted within one month after serving tenants with the required notice of conversion.

3. Notice to Tenants

o The owner of the property must give notice to all tenants of the rights and protections provided to them by the Conversion Ordinance. The conversion notice must include specific items such as the owner’s intent to convert, tenants’ lease extension rights, tenants’ purchase rights, and more.

o The Notice must be served on each tenant by certified or registered mail, return receipt requested, or by sheriff or constable.

4. Enforcement and Penalties

o Violating the ordinance can be expensive: fines against owners start at $300 per unit per day for non-compliance.

Why the 2021 Update Was Significant

The 2021 revision strengthened tenant protections at a time when real estate markets were booming and displacement risks were growing. The policy change was driven by concerns that without strong measures, many long-term renters could be pushed out as more landlords saw conversion as a lucrative business opportunity.

How to Get Help or More Information

• Tenants with questions or concerns can reach out to Boston’s Office of Housing Stability (OHS) for counseling, resources, or to report non-compliance.

• Landlords interested in converting a rental property to condominiums should work early with OHS and ISD, and carefully follow the required steps and timelines. Owners should also consider consulting with an attorney.

• Both parties can access the Tenant Notification Form (available in 11 languages) and full ordinance text via Boston’s official website.

Why the Ordinance Still Matters

In today’s real estate climate, where pressure on housing is intense and affordability is scarce, Boston’s Conversion Ordinance is more than just a legal technicality — it’s a bulwark for tenant rights. By mandating notice, financial support, and the right to stay (or buy), the city’s rules help reduce displacement and preserve some measure of stability in neighborhoods undergoing transformation.

For owners, the ordinance doesn’t prevent conversion, but it ensures that conversion is fair, transparent, and responsible. For tenants, it offers concrete protections — not just promises — during what can be a disruptive and uncertain process. As Boston continues to grow, this ordinance helps anchor the commitment that growth does not have to come at the expense of long-time residents and the neighborhoods they love.