Bill > H1796

This bill modifies existing Massachusetts law regarding rent escrow, specifically addressing situations where tenants withhold rent due to poor living conditions. The bill establishes a new process for creating a two-party bank account where rent can be deposited during disputes between tenants and landlords. Under the new provisions, tenants can only withhold rent if certain conditions are met, including obtaining certification from a local health board that the premises violate habitability standards, providing written notice to the landlord, and allowing 15 days for the landlord to remedy the issues. Tenants must deposit the withheld rent into a designated escrow account, which can be controlled by the court, an attorney, or a bank account requiring signatures from both the tenant and landlord. The bill specifies that the bank can create such an account without requiring immediate verification from the landlord and can accept a standard signature guarantee for payments. The legislation also provides exceptions for tenants receiving rental assistance and allows for potential use of deposited funds for repairs or addressing landlord financial hardship, as determined by the court. These changes aim to provide a more structured and fair process for resolving housing conditions disputes while protecting the interests of both tenants and landlords.

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https://malegislature.gov/Bills/194/H1796