The newly formed Somerville Property Owners Coalition is suing the city in an effort to reverse the recently updated condo conversion ordinance.

The SPOC, in a suit filed July 22, alleges that the ordinance represents significant government overreach and will severely limit options for small property owners.

The revisions update an ordinance that was passed in 1985, and include regulations around vacancy, notice periods for conversion, tenants rights in public hearings and third-party purchase, and increasing relocation payments from landlords.

“The recently passed Somerville Conversion Ordinance is concerning in many respects, dealing with constitutional issues, legal issues regarding property owner’s rights, and is also a version of outlawed rent control provisos and immediately impacts the property values of every small multi-family property owner in the city of Somerville,” the SPOC said in a statement to the Journal.

“That a second meeting was scheduled for residents to be heard on this proposal that was later cancelled, only for the ordinance to be subsequently passed is unconscionable. What we want is to stop the current proposal, create further discussion and changes that are more equitable than this current proposal, and properly inform homeowners as to the affects of this far reaching legislation to hopefully come up with an alternative that is not so one sided against property owners," the statement read.

The city would not comment on pending legislation.

Steve Bremis, a realtor and founding member of SPOC, said he is alarmed how many property owners are not aware of the “extremely one-sided” ordinance, and hopes further revision can make it more “reasonable and palatable.” Total donations to fund the lawsuit now exceed $16,000.

“Somerville is one of the only communities that have a condo review board, so this is something that is already policed through a board, making it strict,” he said. “It’s clear they are trying to flat-out stop development and put small developers out of business.”

He also noted a response to the ordinance filed by the Greater Boston Real Estate Board alleging that parts of the ordinance are unconstitutional.

“After all is said and done, [property owners] might not even be able to go to market for over a year and a half [if they choose to convert], and carrying a property throughout that time – paying for all of that – the bottom line is very few people have the ability to have that property, and the results are property values drop,” Bremis said. “It’s the regional homeowner with a multifamily house [that] is being hurt by this.”

Ward 3 City Council Ben Ewen-Campen, who was a strong supporter of the strict regulations in the condo conversion ordinance, continues to believe this is the right move to protect tenants.

“This legislation protects tenants – it gives them time they need to find a place to live, and that is essential given we have a housing crisis,” he said. “If your business model requires displacing Somerville residents with no notification period or relocation expenses, then you shouldn’t be surprised when Somerville residents elect people who fight for them.”

He also noted that they’ve had a condo conversion ordinance that mandates a year’s notice, but property owners are not following it. This is evident in one statistic: 90 percent of the units the Condo Review Board sees are vacant. Since Somerville is 70 percent renters, and experiencing a housing crisis, the only logical explanation is that property owners are evicting tenants before bringing the unit before the board, therefore avoiding notice periods.

Ewen-Campen emphasized the wide range of public input and feedback the council heard on the ordinance, including making a number of changes to address issues raised by landlords.

“We heard a wide range of legitimate public input, and I feel we addressed it and came out with strong ordinance that addressed the concerns raised,” he said.

Somerville Chamber of Commerce President and CEO Stephen Mackey said the chamber supports the appeal.

When the City Council was addressing the idea of revising the ordinance, the chamber agreed, he said, but the City Council had planned on having two public hearings to work out the issues and the second hearing never happened.

“We tried to appeal to them that there were unintended consequences with the ordinance as they were proposing it, but they didn’t choose to hear any more from the chamber or those affected,” Mackey said. “They passed an ordinance that people believe is an overreach. We are not against condo conversion, we’re against going too far with government intervention.”

The chamber is not part of filing the lawsuit, but it is supporting the SPOC by helping them discuss their options.

“There was naturally a rising feeling among property owners they needed to find another avenue to take action and challenge the ordinance,” Mackey said. “They are looking at what they can do, and the only thing they can do is to appeal.”