Chap. 170. AN ACT FURTHER REGULATING THE PAYMENT OF LAST MONTH RENT, SO-CALLED, IN RESIDENTIAL HOUSING. Whereas, The deferred operation of this act would tend to defeat its purpose, which is to immediately regulate the payment of last month rent, so-called, in residential housing, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience_________________ Be it enacted, etc., as follows: SECTION 1. Section 6 of chapter 136 of the General Laws is hereby amended by striking out clause (9), as appearing in section 2 of chapter 616 of the acts of 1962, and inserting in place thereof the following clause:- (9) The showing, sale, or rental of noncommercial real property to be used for residential purposes. SECTION 2. Subsection (2) of section 15B of chapter 186 of the General Laws, as amended by section 1 of chapter 645 of the acts of 1983, is hereby further amended by striking out clause (a) and inserting in place thereof the following clause:- (a) Any lessor or his agent who receives, at or prior to the commencement of a tenancy, rent in advance for the last month of the tenancy from a tenant or prospective tenant shall give to such tenant or prospective tenant at the time of such advance payment a receipt indicating the amount of such rent, the date on which it was received, its intended application as rent for the last month of the tenancy, the name of the person receiving it and, in the case of an agent, the name of the lessor for whom the rent is received, and a description of the rented or leased premises, and a statement indicating that the tenant is entitled to interest on said rent payment at the rate of five per cent per year payable in accordance with the provisions of this clause, and a statement indicating that the tenant should provide the lessor with a forwarding address at the termination of the tenancy indicating where such interest may be given or sent. Any lessor or his agent who receives said rent in advance for the last month of tenacy shall, beginning with the first day of tenacy, pay interest at the rate of five per cent per year. Such interest shall be paid over to the tenant each year as provided in this clause; provided, however, that in the event that the tenancy is terminated before the anniversary date of such tenancy, the tenant shall receive all accrued interest within thirty days of such termination. Interest shall not accrue for the last month for which rent was paid in advance. At the end of each year of tenancy, such lessor shall give or send to the tenant from whom rent in advance was collected a statement which shall indicate the amount payable by such lessor to the tenant. The lessor shall at the same time give or send to such tenant the interest which is due or shall notify the tenant that he may deduct the interest from the next rental payment of such tenant. If, after thirty days from the end of each year of the tenancy, the tenant has not received said interest due or said notice to deduct the interest from the next rental payment, the tenant may deduct from his next rent payment the interest due. If the lessor fails to pay any interest to which the tenant is then entitled within thirty days after the termination of the tenancy, the tenant upon proof of the same in an action against the lessor shall be awarded damages in an amount equal to three times the amount of interest to which the tenant is entitled, together with court costs and reasonable attorneys fees. SECTION 2A. Said section 15B of said chapter 186 is hereby further amended by striking out subsection (5), as amended by section 2 of said chapter 645, and inserting in place thereof the following subsection:- (5) Whenever a lessor who receives a security deposit transfers his interest in the dwelling unit for which the security deposit is held, whether by sale, assignment, death, appointment of a receiver or trustee in bankruptcy, or otherwise, the lessor shall transfer such security deposit together with any interest which has accrued thereon for the benefit of the tenant who made such security deposit to his successor in interest, and said successor in interest shall be liable for the retention and return of said security deposit in accordance with the provisions of this section from the date upon which said transfer is made; provided however, that the granting of a mortgage on such premises shall not be a transfer of interest. The successor in interest shall, within forty-five days from the date of said transfer, notify the tenant who made such security deposit that such security deposit was transferred to him and that he is holding said security deposit. Such notice shall also contain the lessor's name, business address, and business telephone number, and the name, business address, and business telephone number of his agent, if any. Said notice shall be in writing. Upon such transfer, the lessor or his agent shall continue to be liable with respect to the provisions of this section until: (a) there has been a transfer of the amount of the security deposit so held to the lessor's successor in interest and the tenant has been notified in writing of the transfer and of the successor in interest's name, business address, and business telephone number; (b) there has been compliance with this clause by the successor in interest; or (c) the security deposit has been returned to the tenant. In the event that the lessor fails to transfer said security deposit to his successor in interest as required by this subsection the successor in interest shall, without regard to the nature of the transfer, assume liability for payment of the security deposit to the tenant in accordance with the provisions of this section; provided, however, that if the tenant still occupies the dwelling unit for which the security deposit was given, said successor in interest may satisfy such obligation by granting the tenant free use and occupancy of the dwelling unit for a period of time equivalent to that period of time for which the dwelling unit could be leased or occupied if the security deposit were deemed to be rent. The liability imposed by this paragraph shall not apply to a city or town which acquires title to property pursuant to chapter sixty or to a foreclosing mortgagee or a mortgagee in possession which is a financial institution chartered by the commonwealth or the United States. The term "rent", as used in the preceding sentence, shall mean the periodic sum paid by the tenant for the use and occupation of the dwelling unit in accordance with the terms of his lease or other rental agreement. SECTION 3. Said section 15B of said chapter 186 is hereby further amended by inserting after subsection (7) the following subsection :- (7A) Whenever a lessor who receives rent in advance for the last month of tenancy transfers his interest in the dwelling unit for which the rental advance was received, whether by sale, assignment, death, appointment of a receiver or trustee in bankruptcy, or otherwise, the lessor shall credit an amount equal to such rental advance together with any interest which has accrued thereon for the benefit of the tenant who made such rental advance, to the successor in interest of such lessor, and said successor in interest shall be liable for crediting the tenant with such rental advance, and for paying all interest accrued thereon in accordance with the provisions of this section from the date upon which said transfer is made; provided, however, that the granting of a mortgage on such premises shall not be deemed a transfer of interest. The successor in interest shall, within forty-five days from the date of said transfer, notify the tenant who made such rental advance that such rental advance was so credited, and that such successor has assumed responsibility therefor pursuant to the foregoing provision. Such notice shall also contain the lessor's name, business address, and business telephone number, and the name, business address, and business telephone number of his agent, if any. Said notice shall be in writing. Upon such transfer, the lessor or his agent shall continue to be liable with respect to the provisions of this section until :-(a) there has been a credit of the amount of the rental advance so held to the lessor's successor in interest and the tenant has been notified in writing of the transfer and of the successor in interest's name, business address, and business telephone number; (b) there has been compliance with this clause by the successor in interest; or (c) the rental advance has been credited to the tenant and all accrued interest has been paid thereon. In the event that the lessor fails to credit said rental advance to his successor in interest as required by this subsection, the successor in interest shall, without regard to the nature of the transfer, assume liability for crediting of the rental advance, and payment of all interest thereon to the tenant in accordance with the provisions of this section; provided, however, that if the tenant still occupies the dwelling unit for which the rental advance was given, said successor in interest may satisfy such obligation by granting the tenant free use and occupancy of the dwelling unit for a period of time equivalent to the period of time covered by the rental advance. The liability imposed by this subsection shall not apply to a city or town which acquires title to property pursuant to chapter sixty or to a foreclosing mortgagee or a mortgagee in possession which is a financial institution chartered by the commonwealth or by the United States. SECTION 4. Section 3 of chapter 527 of the acts of 1983 is hereby amended by striking out the definition of "Cooperative unit" and inserting in place thereof the following definition:- "Cooperative unit", a unit in a housing cooperative which has been organized under the provisions of General Laws including, without limitation, the provisions of chapter one hundred and fifty-six B, one hundred and fifty-seven, or one hundred and fifty-seven B. SECTION 5. Paragraph (a) of section 4 of said chapter 527 is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- If a building submitted to the provisions of chapter one hundred and eighty-three A, chapter one hundred and fifty-six B, chapter one hundred and fifty-seven, chapter one hundred and fifty-seven B or any provisions of the General Laws governing the cooperative form of ownership has been used in whole or in part for residential purposes within one year prior to the recording of a master deed creating a condominium or the filing of the articles of organization creating a housing cooperative, the owner thereof shall give each tenant of all housing accommodations in such building or buildings notice of intent to convert the building or buildings to the condominium or cooperative form of ownership. SECTION 6. Notwithstanding the provisions of clause (a) of subsection (2) of section fifteen B of chapter one hundred and eighty-six of the General Laws in effect prior to the effective date of this act, no interest shall be due any tenant under the provisions thereof and no claim or defense shall lie for failure to comply with any of said provisions. Rent in advance for the last month of a tenancy held by a lessor, on the effective date of this act shall be governed by the provisions of said clause (a) of said subsection (2) of said section fifteen B of said chapter one hundred and eighty-six, as provided for in sections two and three of this act. SECTION 7. The provisions of sections two and three of this act shall apply to all rent paid in advance for the last month of the tenancy held by a lessor on or after April first, nineteen hundred and eighty-four. Any rent paid in advance under the provisions of clause (a) of subsection (2) of section fifteen B of chapter one hundred and eighty-six of the General Laws in effect prior to the effective date of this act shall be deemed, except for the payment of interest, to be paid under the provisions of said clause (a) of said subsection (2) of said section fifteen B of said chapter one hundred and eighty-six, as provided for in sections two and three of this act. SECTION 8. This act shall take effect as of April first, nineteen hundred and eighty-four. Approved July 9, 1984.