Salem council approves condo-conversion ordinance after heated debate, 7-3

Salem City Council voted 7-3 on July 17 to adopt a revised ordinance regulating condominium conversions, establishing tenant notice and relocation-benefit requirements intended to limit sudden displacement.

Supporters said the measure provides protections for renters facing conversion-driven displacement. Councilor Hathworth, reporting the committee recommendation, said the ordinance does not ban conversions but ‘‘sets some guardrails to make sure that when those conversions happen, we give tenants time, notice, and financial support, so they're not left scrambling.’’

The ordinance follows multiple years of public meetings, involvement from the Affordable Housing Trust Fund and a Home Rule petition at the state level. The finalized language removes a previously proposed split-payment schedule and specifies that ‘‘relocation benefits shall be paid to the tenant within 10 days after the date on which the tenant vacates the unit,’’ rather than splitting payments before and after the move.

Opponents argued the ordinance will unduly punish smaller property owners. Councilor Harvey called the measure ‘‘a form of extortion’’ for some longtime local owners who would need to pay relocation benefits when they convert a unit. She warned that the policy could hurt owners who rely on rental income for retirement and said the proposal could prove especially difficult for small landlords.

Proponents pushed back that unchecked condo conversions have driven up rents and displaced working families. Councilor Cohen said neighborhoods have already experienced investor-driven turnover and that slowing conversions while guaranteeing relocation support helps maintain housing stability.

Councilors debated whether further committee review was warranted. A motion to send the ordinance back to committee failed; the council then approved second passage by roll call vote, 7 in favor and 3 opposed. The roll call recorded Councilor Prozniewski, Councilor Varela, Councilor Stott, Councilor Mercillo, Councilor Merkel, Councilor Hopworth and Councilor Davis as voting yes; three councilors recorded no votes.

The ordinance will take effect according to the city charter. Council members who opposed the measure said they may seek future amendments to address perceived inequities for small, long-time property owners.

The council's action completes a multi-year local process; officials said they will monitor implementation and consider changes if the policy produces unintended results.