SECTION 1. Chapter 40B of the General Laws, as appearing in the 2020 Official Edition, is hereby amended by adding the following new section at the end thereof:-

Section 31. (a) For the purposes of this section, "Homeowners Association (HOA)" shall mean an organization in a condominium or other planned housing community that establishes and enforces rules regarding the appearance and maintenance of properties and maintains common areas with funds collected from membership fees.

(b) Notwithstanding the provisions of this chapter, residents who purchased their properties pursuant to this chapter prior to 2010 shall have the right to sell their properties at fair market value without the furtherance of the 40B status.

(c) The sale, transfer, or disposition of Chapter 40B properties shall be subject to all applicable laws and regulations governing property transactions as specified in Chapters 40B, 40T, 62, 183A and 254. 

(d) Upon the sale of a pre-2010 40B property by its resident at fair market value:

(1) The 40B status of the property shall be removed.

(2) The property shall be classified as any other non-unique property on the market, with no reference to its former 40B status.

(3) Each town and city where the pre-2010 Chapter 40B property is sold shall be responsible to ensure that the soonest residential development project includes a proportional number of Chapter 40B affordable housing units to compensate for the reduction in such units due to the sale of the aforementioned property.

(e) Former residents who received reduced HOA fees due to their 40B status must pay the difference between the reduced rate and the regular rate. The HOA fee differential shall be paid in gross following the sale of the property to the HOA.

(g) The Executive Office of Housing and Livable Communities shall be responsible for implementing the provisions of this Act.