SALEM +- In a significant move to safeguard tenants and promote housing stability, the City of Salem has enacted a new Condominium Conversion Ordinance requiring property owners with two or more residential units to obtain both a Conditional Conversion Permit and a Final Conversion Permit before removing rental units from the market. This ordinance mandates permits before converting rental units into condominiums or cooperatives.
The ordinance, approved by the Salem City Council and now in effect, establishes a two-step permitting process—Conditional Conversion Permit (CCP) and Final Conversion Permit (FCP)—managed by the City’s Housing Stability Coordinator. This initiative addresses the increasing trend of rental units being converted into ownership units, which has led to tenant displacement and a reduction in affordable rental housing.
“This ordinance is about balance,” said Mayor Dominick Pangallo. “It ensures that property owners can pursue conversions while also protecting tenants, especially older adults, people with disabilities, and low-income renters who are most vulnerable to displacement.”
Key Provisions of the Ordinance Include:
- Permit Requirement: A CCP is required before initiating a conversion, and an FCP is needed to finalize it.
- Tenant Protections: A two-year notice period is mandated for tenants in occupied units, with additional safeguards for older adults, tenants with disabilities, and low-income households.
- Oversight and Enforcement: The Housing Stability Coordinator may deny permits if there is evidence of bad-faith actions, such as unjustified rent increases or service reductions.
- Appeals Process: Decisions may be appealed to the Municipal Hearing Officer.
Between 2016 and 2024, Salem experienced the conversion of over 530 rental units into condominiums—a trend that has disproportionately impacted communities of color and low-income households. The ordinance aims to slow this trend and preserve a diverse and inclusive housing stock.
“This is a proactive step to ensure that Salem remains a city where people of all incomes and backgrounds can live and thrive,” said Lori Stewart, Neighborhood Stability Coordinator. “We’re committed to supporting both tenants and responsible property owners through this transition.”
The ordinance was made possible through the City’s Home Rule Petition (Bill H.3722), which was filed to allow Salem to regulate condominium conversions in buildings with two or more residential units—properties not currently covered under state law. The petition, supported by the Affordable Housing Trust Fund Board, reflects Salem’s commitment to addressing local housing challenges through innovative solutions.
“The proposed ordinance is a tenant protection effort that gives renters more time and financial assistance to secure new housing once a property owner decides to convert,” the Board stated. “This increases the likelihood that renters can remain in the Salem community.”
For more information about the ordinance or to apply for a permit:
Conversion Information: https://www.salemma.gov/1240/Condo-Conversion-Ordinance
Condominium Conversion Permit application: https://salemma.portal.opengov.com/categories/1102/record-types/6659 or contact the Housing Stability Coordinator at (978) 619- 5600.
