Rising Threat: Potential Rental Market Monopoly In Millbury
In Millbury, there's a looming possibility of monopolies taking hold in the apartment rental sector, quietly shaping our community's housing landscape. These monopolies, potentially controlled by a few individuals using various corporations or a select few entities, could dictate rental prices, tenant options, and living standards. This dominance may lead to inflated rents, subpar living conditions, and limited housing choices, particularly affecting low- and middle-income families. Furthermore, the emergence of monopolies could stifle innovation, drive community displacement, and hinder fair competition.
Addressing these potential issues will require proactive advocacy for policies that promote fair competition, diverse ownership, and tenant rights. Empowering smaller landlords and fostering innovative housing models could introduce much-needed balance. Additionally, transparency in rental practices and preemptive regulatory measures to prevent monopolistic behavior will be essential. While local concerns about rental prices and the potential dominance of monopolies persist, understanding and addressing antitrust considerations early on are crucial for ensuring a fair and equitable rental market in Millbury.
The table below displays rental properties with more than 8 dwelling units, including the proposed Chapter 40B Rice Pond Village project, to highlight its potential pivotal influence on our local rental landscape. It illustrates the significant market impact that Steven Venincasa and James Venincasa, either individually or through their numerous limited liability corporations, could wield. This becomes particularly noteworthy if their latest proposed rental property obtains approval, elevating their market dominance from 24% to 56%, making them the predominant rental property stakeholders in Millbury.
| Properties | Units |
|---|---|
| Rice Pond Village (proposed) ² 17 Rice Rd |
192 |
| Spark Millbury (Cordis Mills) 65 Canal St |
112 |
| Cobblestone Village Apartments ² 1-7 Cobblestone Village Way |
72 |
| 19 Canal Street Apartments ² 19 Canal St |
59 |
| Centerview Apartments ¹ 95 Elm St |
54 |
| Woodside Apartments 68A Millbury Ave |
51 |
| Rhodes Street Apartments ² 22 Rhodes St |
12 |
| 9 West St | 12 |
| Barrow Block Building 79-81 Elm St |
11 |
| 126 W Main St | 10 |
| 60 Millbury Ave | 9 |
Footnotes: 1 denotes a town-owned Chapter 40B, and 2 denotes properties owned by Steven Venincasa, James Venincasa, or one of their numerous limited liability corporations.
Rental Market Share
For comparison purposes, considering the rental data collected from Apartments.com and the Chapter 40B Project Eligibility Letter (PEL) for the proposed Rice Pond Village project, the following are the current rental rates as of February 20, 2024. Many individuals are shocked by the monthly rental prices for apartments in Millbury. Homeowners often contrast these monthly rents with their mortgages and frequently assert that their mortgages are more manageable. Each of the apartment complexes shown are properties under the control of Steven Venincasa, James Venincasa, or one of their numerous limited liability corporations.
| Properties | 1 Bed | 2 Bed | 3 Bed |
|---|---|---|---|
| Cobblestone Village | $2600-$2750 | $2850-$3100 | - |
| 19 Canal Street | $2225-$2425 | $2750-$2850 | - |
| Rice Pond Village (Market-Rate) | $2500 | $2910 | $3400 |
| Rice Pond Village (Affordable) | $1564 | $1725 | $1837 |
As many are aware, Millbury faces the potential of its most significant development to date with the submission of the proposed Chapter 40B Rice Pond Village project. This proposal details the intention to construct 192 apartments along Rice Road, a roadway characterized as minor and ill-equipped to accommodate increased traffic. The augmentation of traffic is expected to worsen existing public safety concerns. If approved in its current form, Steven Venincasa and James Venincasa, either independently or through their numerous limited liability corporations, would hold a controlling stake of 56% in multi-family apartment developments with more than 8 units in Millbury. Few individuals are eager to contend with such a prospect.
It's crucial to underscore that there are no accusations or insinuations regarding Steven Venincasa, James Venincasa, or any of their numerous limited liability corporations’ involvement in monopolistic or antitrust practices. The mention of their potential majority ownership of 56% merely underscores their notable presence in Millbury's rental market, far greater than their competition, contingent upon Rice Pond Village's approval at the proposed unit count. Any conduct regarding monopolistic or antitrust matters would be the responsibility of the parties involved to ensure they comport themselves professionally and lawfully, avoiding any semblance of such behavior.
While the ongoing public hearings are not able to address any potential future of monopolies or antitrust issues, certain residents have expressed deep concerns about their implications for the Millbury rental market. These concerns extend beyond large corporate-controlled developments to include smaller local landlords who may consider raising rents to match what many perceive as unreasonably high rates. Such actions could displace long-term residents who have called Millbury home for decades. In this close-knit community, residents vehemently oppose the displacement of their neighbors, friends, or families. Millbury must collectively navigate its path forward, preserving its small-town charm while managing growth responsibly. Unfortunately, town officials, employees, and residents alike have been complacent, neglecting to strike a balance between essential growth and reasonable bylaws for sustainability and inclusivity. While some residents have engaged in the process, a broader participation is necessary to establish all necessary guardrails proactively. Town officials must also refrain from issuing waivers and variances without being in the best public interest. As a community, we have tended to react rather than plan ahead, underscoring the urgency of adopting a proactive approach. Presently, public hearings are underway for various initiatives in Millbury. These include the ongoing evaluation of the Chapter 40B Rice Pond Village project by the Millbury Board of Appeals, public hearings conducted by the Millbury Planning Board on zoning recodification, and discussions regarding the MBTA Communities Act, also scheduled for public hearings by the Millbury Planning Board. Later this year, registered town voters will decide on the recodification of zoning bylaws and the potential creation or amendment of a zoning district to accommodate the proposed 15 dwelling units per acre outlined in the MBTA Communities Act. You can make your voice heard during the different public hearings and by participating in the town meeting through voting. Positive change takes participation and action.
While the specter of a monopoly hangs overhead, the endorsement of the current version of the Chapter 40B Rice Pond Village project is far from certain. Several outcomes are plausible: it may undergo downsizing, receive approval with stipulations addressing public safety concerns that these developers may find unfavorable, or face outright rejection. Should the proposed Chapter 40B Rice Pond Village project be approved, elevating their market share from 24% to 56%, any subsequent monopolistic or anti-competitive actions would necessitate substantiation of claims by affected parties, triggering an investigation to validate allegations before charges can be pressed. We maintain an optimistic outlook, hoping that issues of monopolistic or anti-competitive behavior never arise in our town from any developers or landlords. In the event of such illicit conduct, it's essential to highlight that the Commonwealth of Massachusetts upholds robust anti-trust and consumer protection laws, alongside ensuring strong tenant rights.
Preventative Strategies
Preventing monopolies from taking hold in the local rental market involves several strategies:
Promote Competition: Encourage the entry of new rental property developers and landlords into the market by reducing barriers to entry such as zoning restrictions, permit processes, and licensing requirements.
Regulate Market Concentration: Implement regulations or policies to limit the market share that any single developer or landlord can hold to prevent monopolistic practices. This can include caps on the number of properties one entity can own or regulations on rent increases to maintain affordability.
Enforce Antitrust Laws: Enforce antitrust laws to prevent anti-competitive behavior, such as price-fixing or collusion among landlords to control rental prices or restrict competition.
Increase Transparency: Ensure transparency in rental markets by providing information on rental prices, vacancies, and property ownership to tenants and policymakers. This can help identify and address potential monopolistic behavior.
Encourage Tenant Organizations: Support the formation of tenant associations or organizations to empower renters and advocate for their rights, including fair treatment by landlords and protection against monopolistic practices.
Monitor Market Dynamics: Continuously monitor the rental market for signs of monopolistic behavior or concentration, and take proactive measures to address any emerging issues through regulation or intervention.
By implementing these strategies and fostering a competitive and fair rental market environment, local and state authorities can help prevent monopolies from taking hold and ensure affordable and accessible housing for all residents.
The next public hearing for the proposed Chapter 40B Rice Pond Village project will be hosted by the Millbury Board of Appeals. It is scheduled for Wednesday, February 28, 2024, starting at 7:00 PM. The venue for this event will be determined at a later date.