January 23, 2017

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2016 ANNUAL PROPERTY TRANSFERS DIRECTORY Call 617.896.5388 or email datasolutions@thewarrengroup.com Est ab li s h e d 1 8 7 2

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financial

www.bankerandtradesman.com

WEEK OF MONDAY, JANUARY 23, 2017

services

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real

estate

weekly

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massachusetts

A Publication of The Warren Group COMMERCIAL INTERESTS RX FOR DISPLACEMENT?

Area Colleges’ Credit Ratings Downgraded

A Five-Pack Of Housing Proposals

Renovations, Rehabilitations Continue As Enrollment Declines BY SCOTT VAN VOORHIS BANKER & TRADESMAN COLUMNIST

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Walsh Tackles Gentrification And Evictions A Package Of Proposals An Act Relative to Zoning in the City of Boston Sponsored by Rep. Kevin Honan Would allow the city to amend the zoning code, protecting the Inclusionary Development Policy, a policy that raise funds for affordable housing.

BY STEVE ADAMS | BANKER & TRADESMAN STAFF

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package of anti-displacement bills submitted by Boston Mayor Martin Walsh seeks to place new outside controls on the landlord-tenant relationship in one of the nation’s most expensive places to live. Affordable housing advocates say the proposals would preserve neighborhood stability and protect families from speculators seeking to maximize revenues at rental properties. Landlord groups predict unintended consequences, including chilling development and owners’ ability to pay for maintenance. The most controversial proposal would prevent landlords from evicting at-will tenants or those with expiring leases, with an eye toward renovations and higher rent structures down the road. Backers frame the issue as a quality of life measure, helping middle-class families and other long-time residents remain and preserving demographic diversity. “We lose people who have been living in these neighborhoods a long time,” said Carol Ridge Martinez, executive director of the Allston Brighton Community Development Corp. “They can’t compete with students or young professionals who will pay for a room for a while, and

move out when they have children.” Named after a Roxbury housing activist, the Jim Brooks Community Stabilization Act would limit the ability of landlords to evict tenants and reposition rental properties. Currently, landlords can choose to let leases expire or evict at-will tenants even if they’re up to date on their rent. It’s an increasingly popular strategy at smaller rental properties throughout the city, according to tenant advocates. Landlord advocates say the bill, sponsored by state Rep. Chynah Tyler, would encourage tenants to ignore notices of rent increases. “Both parties have to sign an agreement before there’s an obligation,” said Skip Schloming, executive director of the Cambridge-based Small Property Owners Association. “If the tenant doesn’t agree, that would produce a rent freeze or only minimal voluntary rent increases that the tenant agrees to.” Exceptions could be made if tenants were behind on rent, violated terms of their rental agreement, used the unit for illegal purposes or refused a lease renewal. Landlords also could evict tenants to provide housing for family members. But the measure could backfire on

An Act to Promote Homelessness Prevention in Massachusetts Sponsored by Sen. Sal N. DiDomenico Would make legal representation in eviction proceedings a right, rather than an option. If a tenant cannot afford his or her own attorney, one will be appointed by the Massachusetts Committee for Public Counsel Services.

The Jim Brooks Community Stabilization Act

hat with all the opulent new dorms and hefty presidential pay packages, the ivory towers of Massachusetts’ higher education world would seem to be doing just dandy. But in fact, while they are hardly in danger of going broke, these are actually challenging times for the area’s colleges and universities. College administrators across the Bay State are scrambling to keep the cash flowing in as enrollment falls amid a steady decline in the number of high school graduates in New England and across the country. However, the financial incline that looms ahead is even steeper for a trio of colleges in Boston that have undertaken ambitious expansions in recent years, putting up new dorms, classrooms and performance space. Artsy Emerson College, home to the Continued on Page 3

APPROVAL DENIED

Criminals Find A New Path To Profit Wire Transfer Fraud Bypasses Bankers’ Callbacks

Sponsored by Rep. Chynah Tyler Home rule petition would codify conditions under which landlords can evict a tenant or former homeowner living in their foreclosed unit. In addition, the petition also creates requirements for landlords to notify the city in case of eviction, allowing the city’s Office of Housing Stability to proactively reach out to tenants to inform them of their rights.

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CONTENTS

By The Numbers ������������������������������������������������������� 6

Banking & Lending ������������������������������������������������ 10

Points ����������������������������������������������������������������������� 4

Commercial & Industrial ������������������������������������������ 7

Classified Sections ������������������������������������������������� 11

In Person ������������������������������������������������������������������ 5

Residential �������������������������������������������������������������� 8

Records Section ������������������������������������������������������ B1

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BY LAURA ALIX BANKER & TRADESMAN STAFF

fresh spin on a familiar wire transfer scam is spreading through the banking world – and most bankers don’t hear about it until it happens to them. It goes like this: A bank receives a request from a business customer who wants to make a wire transfer. Bank staff proceeds through all the necessary steps to authenticate the transaction, including calling up the business in question to confirm that they did, indeed, initiate the wire transfer. Confident that it have done its due diligence, the bank makes the wire transfer – only to later receive a panicked phone call from the business in question over an unauthorized wire transfer. How could this have happened? The weak link this time is in the call back, which once stopped a lot of fraud in its tracks. Frustrated by bankers’ due diligence, some criminals attempting fraudulent wire transfers have taken to hacking into Continued on Page 10


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