Homes For Profit: Tenant Experiences

Somerville 6 Unit Building

• When an investor purchased her 6 unit building in 2021, they told Vanessa and her family to leave the apartment they'd lived in for over a decade​

• The Community Action Agency of Somerville (CAAS) helped Vanessa negotiate to stay for 2 more years so that her son could graduate from Somerville High School​

• Our data shows 11 properties in Greater Boston purchased by the same investor since 2016 for a total of $9,385,145 (2022 USD)​

  • A 2022 Boston Globe article noted this investor had a 61-unit real estate portfolio valued at $21 million shared on his public Instagram page​

  • Some of these additional properties MAY have been purchased through one of the 19 LLCs this investor is involved with, which may explain why they didn't appear in our data​

Lynn Apartment Building​

• Weeks after purchasing their apartment building an investor raised their tenants' rents by $435 to $700 per month​

• Lynn United for Change helped tenants negotiate a more gradual, but still significant, rent increase that allowed most, but not all, tenants to remain in their homes​

• The rent increases displaced two families. One family of a recent high school graduate was forced to move far from the local community college where he hoped to start classes​

• According to our data, the investor who purchased this building has purchased a total of 20 properties in MA worth $29 million (2022 USD) since 2000​

  • This makes them an 'Institutional Investor'​

  • This investor is potentially involved in five LLCs related to purchasing and managing MA realty, indicating that they likely own even more properties than what we captured in our data​

Blue Hill Ave Apartment Buildings - Mattapan​

• Following the opening of the Blue Hill Ave commuter rail station, 12 nearby apartment buildings were purchased by an investment group​

• The purchase was made through an LLC managed by the investment group's Chief Investment Officer and Chief Operating Officer​

  • Both the CIO and COO are listed on more than 10 other LLCs, indicating that it is common for this investment group to use LLCs to purchase property​

• The new owners increased rents $275 per month​

• Elderly residents on fixed incomes, some who have lived in their homes for 40 years, are concerned they'll end up in a shelter if they're displaced​

A Better Outcome is Possible​

• After 14 years in her East Boston apartment, Ana came home to find a notice to quit on her door as the new owners looked to evict all current tenants and flip the property​

• After years of fighting her eviction with the help of City Life/Vida Urbana, the city stepped in and purchased Ana's building and several others in the neighborhood​

• East Boston Neighborhood Trust formed to manage the mostly 2+ bedroom units in 3 family properties purchased in 2022​

• All 114 units in the portfolio are income-restricted, with most units reserved for residents making less than 60% of the area median income​

Lack of Transparency around Limited Liability Companies (LLCs)

• Why use an LLC?​

  • LLCs protect owners from personal liability​

    • Not personally liable in lawsuits​

    • Protects personal assets​

  • Creates a layer anonymity as the LLC name is listed on the mortgage and deed​

  • Tax benefits – taxes on the property are paid by the LLC, not personally by owners and can be taxed at a lower corporate rate​

  • Easier for multiple owners to share property ownership​

• The Problem: the anonymity of LLCs makes it difficult for researchers, tenants, and housing advocates to understand who owns residential real estate​