Massachusetts lawmakers are advancing legislation that would grant tenants the right of first refusal to purchase their apartment buildings when owners decide to sell, a measure aimed at preserving affordable housing and reducing tenant displacement. Known as the Tenant Opportunity to Purchase Act (TOPA), the proposed law allows renters in multifamily buildings to organize and match the purchase offers of outside buyers or transfer that right to nonprofits, community land trusts, or affordable housing developers.

Both the state House and Senate have included versions of TOPA in recent economic development bond bills, with a six-member conference committee currently reconciling differing provisions before the legislation can reach Governor Maura Healey’s desk. The House proposal would provide local governments with the option to implement the measure, enabling cities and towns to choose whether to adopt the policy. The Senate’s version, meanwhile, calls for a five-year pilot program limited to five communities. Advocates express a preference for a standalone bill that includes explicit provisions such as exemptions for small property owners and the exclusion of new construction and luxury units from TOPA requirements.

Supporters of the legislation emphasize the urgent need to protect “naturally occurring affordable housing” (NOAH)—rental properties that remain affordable due to their age or condition rather than through government subsidies. According to a 2023 report from the Metropolitan Area Planning Council, approximately 46 percent of all affordable housing stock in Massachusetts falls into this category, yet such units are rapidly being lost. Research from Harvard’s Joint Center for Housing Studies estimates the state loses roughly 16,000 low-rent units annually. Housing advocates attribute much of this decline to investment speculators who acquire properties with intentions to raise rents or redevelop for higher-end uses, thereby displacing long-term residents.

Proponents point to Washington, D.C.’s longstanding TOPA law as a successful example, highlighting its role in preserving thousands of affordable housing units amid rapid housing market growth. They also stress the policy’s potential contribution to addressing racial wealth disparities linked to homeownership inequities. Critics of TOPA raise concerns about government interference in private property transactions, arguing that such intervention could inhibit market dynamics. However, supporters note that Massachusetts already enforces similar protections for condominium and manufactured housing sales.

Negotiations over the bill’s final form are ongoing, with the conference committee tasked with harmonizing the competing Senate and House provisions. While no definitive timeline for passage has been announced, advocates remain hopeful that a robust and workable version of TOPA will be enacted to help stem the loss of affordable housing across the state.