SECTION 1. To provide for the purpose of facilitating the development of mixed income social housing, the sums set forth in section 2 for the several purposes and subject to the conditions specified in this act are hereby made available, subject to the laws regulating the disbursement of public funds.
EXECUTIVE OFFICE OF HOUSING AND LIVABLE COMMUNITIES
7004-XXXX For costs associated with facilitating the development of mixed income social housing to be administered by the Massachusetts Housing Finance Authority or other designee as provided for in this act……………………………………………………………………………………………………………..…….$100,000,000
SECTION 3. Chapter 708 of the acts of 1966 is hereby amended by inserting after section 13B the following section:-
Section 13C. (a) There is hereby established within the MHFA a revolving fund, herein referred to as the Social Housing Production Revolving Loan Fund, for the purpose of facilitating the development of mixed income social housing. The Fund shall consist of amounts credited to the Fund in accordance with this section.
(b)(1) The MHFA shall, pursuant to regulations adopted by it, provide financial assistance to local and regional housing authorities for the development of mixed income social housing. Housing developments financed under this section shall remain in public ownership, which is defined as at least majority ownership or control or ownership by a local or regional housing authority.
(2) (A) The MHFA shall provide for and administer revolving loans, bridge loans and other credit instruments from payments from loans disbursed from the Fund and any other monies, deposited into the Fund by the commonwealth and local and regional housing authorities.
(B) The MHFA may use monies and payments from loans disbursed from the Fund, deposited into the Fund by the commonwealth or local and regional housing authorities for the purposes of debt service, administration of this section and costs for increased development capacity within local and regional housing authorities.
(3) Upon lease-up of a development financed under this section, the MHFA may provide additional financing pursuant to this act; provided, however, that priority shall be given to developments that do not use Low Income Housing Tax Credit equity and tax-exempt volume cap.
(c)(1) The MHFA shall make the following rental determinations for each housing development financed by MHFA: (i) market rate rental units in the development; and (ii) below market rate rental units that meet or exceed federal Title 42 affordable set-asides of no less than 20 per cent at 50 per cent of the area median income or no less than 40 per cent at 60 per cent of area median income for the statistical area in which the development is to be constructed.
(2) Below market rental units set at the elected levels pursuant to paragraph (1) shall remain restricted at elected levels for not less than 99 years.
(3) Developments financed by the MHFA pursuant to this section shall, pursuant to regulations adopted by the MHFA, adopt rent stabilization guidelines.
(4) Developments financed by the MHFA pursuant to this section shall target net zero energy performance standards and shall not include any new gas hookups.
SECTION 4. The commonwealth shall issue a bond or bonds in an amount of $100,000,000 to initially capitalize the Social Housing Production Revolving Loan Fund established in section 13C of chapter 708 of the acts of 1966. Any such bond sale shall be for taxable bonds. Upon receipt of any bond proceeds the treasurer shall deposit said funds into the Social Housing Production Revolving Loan Fund established in section 13C of chapter 708 of the acts of 1966
SECTION 5. Notwithstanding any general or special law to the contrary, the Executive Office of Housing and Livable Communities may designate an alternate state agency or state authority, as those terms are defined in section 1 of chapter 29 of the General Laws, to administer the Social Housing Production Revolving Loan Fund and the social housing program pursuant to section 13C of chapter 708 of the acts of 1966. The executive office may promulgate regulations to implement this section.
SECTION 6. To meet the expenditures necessary in carrying out item 7004-XXXX of section 2, the state treasurer shall, upon request of the governor, issue and sell bonds of the commonwealth in an amount, in the aggregate of $100,000,000. All such bonds issued by the commonwealth shall be designated on their face, Massachusetts Social Housing Program Act of 2023, and shall be issued for a maximum term of years, not exceeding 30 years, as recommended by the governor to the general court pursuant to section 3 of Article LXII of the Amendments to the Constitution. The bonds shall be payable not later than June 30, 2058. All interest and payments on account of principal on these obligations shall be payable from the General Fund. Bonds issued under this section and interest thereon shall be general obligations of the commonwealth.
SECTION 7. Notwithstanding any general or special law to the contrary, MHFA may enter into partnerships with (1) other quasi-governmental agencies; (ii) non-profits; and (iii) community land trusts for the purposes of facilitating or assisting with the production of mixed-income social housing and the purposes of this act.
SECTION 8. (a) Notwithstanding any general or special law to the contrary, any project of construction and development activity pursuant to this act shall be deemed to be a public work under section 26 of chapter 149 of the General Laws and shall be subject to all laws, rules and regulations related to the payment of wages at rates set by the director of the department of labor standards pursuant to said chapter 149.
(b) Notwithstanding any general or special law to the contrary, any contract for construction, reconstruction, installation, demolition, maintenance or repair of any building for the purposes of development of social housing pursuant to this act shall be subject to public procurement and bidding laws, including section 44A to section 44J, inclusive, of chapter 149 of the General Laws.
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