Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Section 25 of chapter 23B of the General Laws, as appearing in the 1984 Official Edition, is hereby amended by striking out the definition of "Low and moderate income rental housing project" and inserting in place thereof the following definition:-

"Low and moderate income rental housing project", a rental housing project which shall be rented to (a) low income persons or families; (b) moderate income persons or families; or (c) other persons or families whose annual rental for the unit to be occupied shall be at least equal to the rentals charged for similar units in the market area, as determined by the department so that any benefit to the tenants who are not low or moderate income persons or families derived from the assistance provided to sponsors of rental housing projects pursuant to section twenty-seven will be at most incidental to and no greater than is necessary for achieving proper housing for low and moderate income persons and families.

SECTION 2. Section 1 of chapter 708 of the acts of 1966, as most recently amended by section 17 of chapter 574 of the acts of 1983, is hereby further amended by inserting after paragraph (k) the following paragraph:-

(l) "Housing development area", any blighted open area, or any decadent area, or any substandard area, as respectively defined in section one of chapter one hundred and twenty-one B of the General Laws, and as determined by MHFA.

SECTION 3. Section 6 of said chapter 708, as most recently amended by section 23 of said chapter 574, is hereby further amended by striking out paragraph (b) and inserting in place thereof the following paragraph:-

(b) Subject only to the rights of FHA, if any, the rents to be charged for housing units which receive loans hereunder must be approved by the MHFA. In each project financed under this act, not less than twenty per cent of the units in the project shall be rented at all times to low income persons or families at the adjusted rental. Up to an additional five per cent of the units in each project shall be rented to low or moderate income persons or families if (1) the MHFA determines the additional low or moderate income units are needed in the area in which the project is located; and (2) state or federal housing subsidy funds are available to the MHFA to pay to the mortgagor the difference between the rental paid by such persons or families, which in the case of low-income persons and families shall not exceed the adjusted rental, and the below market rental for each additional unit rented to such low or moderate income persons or families. The remaining units not made available to low-income persons or families shall be made available at rents sufficiently high as determined by MHFA to achieve and maintain a fiscally sound project, provided, in each project which is not located in a housing development area, such units not made available to low or moderate income persons or families shall be made available at rentals at least equal to the rental charged for similar units in the market area, as determined by MHFA so that any benefit to the tenants who are not low and moderate income persons or families derived from the assistance provided to sponsors of projects will be at most incidental to and no greater than is necessary for achieving proper housing for low and moderate income persons and families. Such determinations shall be reviewed by MHFA from time to time, but not less often than once every two years and may be adjusted if necessary, by MHFA from time to time.

SECTION 4. Said chapter 708 is hereby further amended by striking out section 7, as most recently amended by section 7 and 8 of chapter 855 of the acts of 1970, and inserting in place thereof the following section:-

Section 7. Prior to making a loan commitment under this act, the MHFA shall approve a tenant selection plan submitted by the applicant for such a loan. The MHFA shall publish regulations from time to time governing the terms of such tenant selection plans. Such plans shall include criteria for tenant selection which establish income limits for eligible tenants which may vary with the size and circumstances of the persons or family. Tenant selection plans provide that as between applicants equally in need and eligible for occupancy of the unit, preference shall be given to persons displaced by public action or natural disaster, pursuant to such regulations as the department of community affairs may formulate. Tenant selection plans shall also provide with respect to apartment units designated for rent at the adjusted rental that the housing authority in the city or town in which the project is located, or such other agency as the executive office of community and development may from time to time designate, shall have the rights to designate tenants, who are otherwise eligible, for such units as they become available, either in the initial renting of the projects or as vacancies thereafter occur.

SECTION 5. Paragraph (b) of section 8 of said chapter 708, as most recently amended by section 25 of chapter 574 of the acts of 1983, is hereby further amended by striking out the last sentence and inserting in place thereof the following sentence:- The aggregate principal amount of notes and bonds of the MHFA and the MHMFA issued to make loans pursuant to section five A of this chapter and chapter eight hundred and forty-six of the acts of nineteen hundred and seventy-four outstanding at any one time shall not exceed the sum of one billion and eighty million dollars.

SECTION 6. The second paragraph of section 9C of said chapter 708, as appearing in section 16 of chapter 264 of the acts of 1982, is hereby amended by adding the following sentence:- Notwithstanding anything herein to the contrary, the MHFA shall not at any time issue bonds secured by a Capital Reserve Fund as provided in this section without the prior approval of the governor or his designee, after consultation with the finance advisory board.

SECTION 7. The third paragraph of said section 9C of said chapter 708, as so appearing, is hereby amended by striking out the second sentence and inserting in place thereof the following two sentences:- The chairperson of the MHFA shall annually, on or before December first, make and deliver to the governor the chairperson's certificate stating the amount, if any, required to restore a Capital Reserve Fund to the amount aforesaid and the amount so stated, if any, shall be appropriated and paid to the MHFA during the then current fiscal year of the commonwealth. Such amount, if any, shall be repaid as soon as possible by the MHFA from monies in excess of the amount required to make and keep MHFA self-supporting.

SECTION 8. The second paragraph of section 8 of chapter 846 of the acts of 1974 is hereby amended by striking out the seventh sentence, as most recently amended by section 23 of chapter 264 of the acts of 1982, and inserting in place thereof the following sentence:- The aggregate principal amount of notes and bonds of the MHMFA and the MHFA issued to make loans pursuant to this chapter and section five A of chapter seven hundred and eight of the acts of nineteen hundred and sixty-six outstanding at any one time shall not exceed the amount set forth in paragraph (b) of section eight of said chapter seven hundred and eight.