HOUSE DOCKET, NO. 4765        FILED ON: 5/5/2016

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 4315

The Commonwealth of Massachusetts

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PRESENTED BY:

Timothy R. Madden and Daniel A. Wolf

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act relative to the Nantucket Islands Land Bank Act.

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PETITION OF:

HOUSE DOCKET, NO. 4765        FILED ON: 5/5/2016

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 4315

The Commonwealth of Massachusetts

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In the One Hundred and Eighty-Ninth General Court
(2015-2016)

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An Act relative to the Nantucket Islands Land Bank Act.

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

The Nantucket Islands Land Bank Act (being chapter 669 of the Acts of 1983, as amended by chapter 407 of the Acts of 1984, by chapter 202 of the Acts of 1985, by chapter 666 of the Acts of 1987, by chapter 392 of the Acts of 1991, by chapter 309 of the Acts of 1994, by chapter 370 of the Acts of 2002, by chapter 130 of the Acts of 2006 and by chapter 354 of the Acts of 2010, referred to collectively as the "Land Bank Act") is hereby amended as follows:

(a)    The definition of "Affordable Housing Restriction" shall be added to Section 1 of the Land Bank Act between the preamble and the definition of “Commission”, as follows:

   "Affordable Housing Restriction" is a recorded instrument held by a qualified holder which encumbers and/or restricts a real property interest so that the real property interest is perpetually or for a term of at least thirty (30) years limited to use as a residence occupied by a low or moderate income household which earns less than a specified income level, the upper limit of which may not exceed one hundred seventy-five percent (175%) of the Nantucket median income.  A “qualified holder” is a governmental body or charitable corporation or trust which qualifies under the terms of Massachusetts General Laws Chapter 184 (“Chapter 184”) to hold an affordable housing restriction as defined in Chapter 184.  Without limiting the generality of the foregoing, “Affordable Housing Restriction” includes any instrument which conforms to the requirements of (i) a Nantucket Housing Needs Covenant as described in chapter 301 of the Acts of 2002 and defined from time to time in the Town of Nantucket Code, or (ii) an affordable housing restriction complying with the definition and other requirements stated in Massachusetts General Laws Chapter 184.”

(b)   The following Subsection (-o-) shall be inserted at the end of Section 12 of the Land Bank Act: 

  “(-o-) Transfer of a real property interest which is subject to and used consistent with an Affordable Housing Restriction; provided that the Affordable Housing Restriction has a term remaining at the time of the Transfer of five (5) or more years; and provided further the purchaser shall make the real property interest which is the subject of the transfer the purchaser's actual domicile within two (2) years of the time of transfer, and shall remain permanently or for an indefinite time and without any certain purpose to return to a former place of abode for a period lasting at least to the fifth (5th) anniversary of the transfer.  Notwithstanding the foregoing, if the real property interest is transferred again within five (5) years and the later transfer complies with this Exemption “O”, no fee, interest or penalties will be due.  In the event that the holder of an Affordable Housing Restriction determines within five (5) years of the transfer that the real property interest to which it pertains is not being used consistent with the requirements of the Affordable Housing Restriction, or in the event of a later transfer within five (5) years which does not comply with this Exemption “O”, the fee exempted hereunder shall become due, together with the accumulated interest and penalties calculated from the date of the transfer exempted hereunder.  The purchaser shall certify as to the foregoing, and the Commission shall attach to the deed a certificate which shall recite the fact that there is running with the land a lien equal to the amount of the fee exempted plus accumulated interest and penalties until such time as all conditions of this subsection have been met.