Associated Industries of Massachusetts is gratified that the state Supreme Judicial Court ruled today that a rent-control referendum that could have chilled housing development across the commonwealth cannot appear on the November ballot.

The court ruled Tuesday that the question could not move forward because it would have exempted units operated in religious facilities. Under the Massachusetts constitution, certain matters, including religion, cannot be subject to an initiative petition. Because the ballot question included the exemption for religious institutions, Justice Frank Gaziano wrote in the 27-page ruling, the question relates to religion and cannot appear on the ballot.

The ballot question would have limited annual rent increases to the annual change in consumer price index (CPI) – which has averaged just 2.58% over the past 20 years – up to a maximum 5%. It would have mandated a one-size-fits-all policy in all 351 communities across Massachusetts, with no opt-out. The limited exemptions in the measure would have meant that virtually every privately owned rental property in the state would eventually be controlled, including single-family homes, condos, and two and three families that are not owner occupied.

The AIM Board of Directors voted to oppose the measure.

“Employers across the state share the same challenge – their employees are having difficulty finding reasonably priced housing,” said Brooke Thomson, President & CEO of AIM. “The history of rent control in Massachusetts and elsewhere is clear: it leads to fewer available rental units, a steep drop in new construction, and lower quality homes. As the Commonwealth fights to grow jobs, improve competitiveness, and retain talent, this policy would have been disastrous for Massachusetts.”

Please contact Stephanie Swanson, Executive Vice President of Government Affairs, for more information.