Chelsea Code of Ordinances ch. 6, art. I § 6-6

(a) Purpose. The purpose of this ordinance is to regulate property management companies operating within the City of Chelsea to ensure compliance with state and local regulations, promote public health and safety, and maintain the quality of housing within the city.
(b) Definitions.
Property management company means any individual, partnership, corporation, or entity engaged in the business of managing rental properties on behalf of property owners within the City of Chelsea.
(c) Licensing requirement.
(1) License mandatory: All property management companies must obtain a property management license to operate within the City of Chelsea from the city's licensing department. It shall further be required that each licensed property manager declare each property that they are contracted to work on prior to beginning work.
(2) Licensing authority: The authority to grant a property management license shall reside with the licensing commission of the city as referenced in part 6 section 6-2 of the City Charter.
(d) Application process.
(1) Application development: The licensing administrator shall develop the application form and promulgate reasonable regulations for all licensed property management companies to follow.
(2) Declaration of properties: Applicants must declare on their application all properties within the city for which they are contracted to provide property management services.
(3) Compliance verification: The licensing administrator shall not accept an application from a property management company that has declared they are contracted to work on any property which:
a. Has open housing complaints which the department of inspectional services has issued an order to correct; or
b. Has not obtained a certificate of habitability pursuant to section 6-2.
(4) Ongoing obligation to declare: Property management companies have an ongoing obligation to notify the licensing administrator within 30 days of beginning work on a property that they had not declared on their annual license for which they are providing property management services to.
(e) Posting requirements.
Licensed property management companies must comply with State Sanitary Code regulations requiring them to post their contact information in a conspicuous manner visible from the sidewalk at each property they manage.
(f) Prohibitions of employment of unlicensed companies.
(1) Employment of unlicensed property owners. No property owner shall employ an unlicensed property management company to manage a building within the City of Chelsea.
(2) Outstanding orders. An order to correct issued to the property owner of any property associated with the licensee shall be adhered to prior to the reinspection date noted on the order.
(3) Certificates of habitability. Licensees under this section shall maintain active certificates of habitability on all residential units and associated properties.
(g) Enforcement and penalties.
(1) Enforcement authority: The inspectional services department and licensing department are authorized to enforce the provisions of this ordinance against property owners employing unlicensed property management companies pursuant to M.G.L. c. 40U. The inspectional services department is authorized to enforce the provisions of this section against property management companies pursuant to M.G.L. c.40 §21d.
(2) Penalties for licensees: Licensed property management companies found in violation of the regulations promulgated under this ordinance may be subject to fines pursuant to M.G.L. c.40 §21d, in addition to suspension, or revocation of their license.
(3) Penalties for property owners: Property owners permitting unlicensed property management companies to engage in property management activities on their property may be subject to fines pursuant to M.G.L. c.40U, in addition to suspension, or revocation of their license.
(h) Appeal of denial or revocation.
(1) Right to appeal: Any applicant or licensee who receives a notice of suspension or denial of a property management license shall have the right to appeal the decision to the licensing commission.
(2) Notice of appeal:
• Filing deadline: The appellant must file a written notice of appeal within 14 days of receiving the suspension or denial notice.
• Submission requirements: The notice of appeal shall include:
○ The appellant's full name and contact information.
○ A copy of the suspension or denial notice.
○ A detailed statement outlining the grounds for the appeal.
○ Any supporting documentation or evidence.
(3) Scheduling of hearing.
a. Prompt scheduling: Upon receipt of a valid notice of appeal, the licensing commission shall schedule an appeal hearing to occur within 30 days or until the next scheduled commission meeting.
b. Notification: The appellant shall be notified in writing of the date, time, and location of the hearing at least ten days prior to the scheduled date.
(4) Hearing procedures.
a. Fair hearing: The appeal hearing shall be conducted in an impartial manner, allowing both the appellant and the licensing commission to present evidence and testimony.
b. Representation: The appellant may represent themselves of be represented by legal counsel.
c. Evidence and testimony: Both parties may present witnesses, documents, and other relevant evidence. Cross-examination of witnesses is permitted.
(5) Decision.
a. Deliberation: Following the hearing, the licensing commission shall deliberate based on the evidence presented.
b. Written decision: A written decision shall be issued within 15 days of the beginning of the hearing, stating the findings of fact, conclusions of law, and the reasons for upholding, reversing, or modifying the original decision.
c. Notification: The decision shall be mailed to the appellant's last known address and considered delivered three days after mailing.
(6) Finality and further appeals.
a. Final agency action: The decision of the licensing commission constitutes final agency action.
b. Judicial review: The appellant may seek judicial review of the licensing commission's decision in accordance with applicable law.
(7) Effect of filing an appeal.
a. Stay of enforcement: The filing of a notice of appeal shall not automatically stay the suspension or denial of the license unless the licensing commission grants a stay upon written request.
(8) Reapplication after denial.
a. Compliance requirements: Any subsequent application must demonstrate that all deficiencies have been corrected and that the appellant is in full compliance with all ordinance requirements and regulations.
(9) Licensees' right to disassociate for lack of cooperation from property owner. At any time prior to the issuance of a decision by the licensing commission for a violation pursuant to subsection (f)(2) or (3) of this section the licensee may declare in writing to the licensing commission and the inspectional services department that the property owner of the property is not cooperating with orders required by the inspectional services and that they are disassociating with the property. The effect of disassociation will be that any fines issued to the licensee related to this property shall be waived and the licensee's status will be reactivated.
(i) Severability.
If any provision of this ordinance is held to be invalid or unenforceable, such invalidity shall not affect other provisions which can be given effect without the invalid provision, and to this end, the provisions of this ordinance are declared to be severable.
(j) Effective date.
This ordinance shall take effect on July 1, 2025, following its passage and publication according to law.