SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2834

 

The Commonwealth of Massachusetts

_______________

In the One Hundred and Ninety-Third General Court
(2023-2024)

_______________

 

 

SENATE, June 24, 2024.

The committee on Senate Ways and Means to whom was referred the House Bill relative to the Affordable Homes Act (House, No. 4726); reports, recommending that the same ought to pass with an amendment striking out all after the enacting clause and inserting in place thereof the text of Senate document numbered 2834. (General Obligation Bonds: $5,196,000,000.00)

 

For the committee,

Michael J. Rodrigues



SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2834

 

 

The Commonwealth of Massachusetts

 

_______________

In the One Hundred and Ninety-Third General Court
(2023-2024)

_______________

 

SECTION 1. To provide for a capital outlay program to rehabilitate, produce and modernize state-aided public housing developments; to preserve the affordability and the income mix of state-assisted multifamily developments; to support home ownership and rental housing opportunities for low and moderate income citizens; to stem urban blight through the implementation of housing stabilization programs; to support housing production for the elderly, disabled and homeless; to preserve housing for the elderly, the homeless and low and moderate income citizens and persons with disabilities; to develop facilities for licensed early care and education and out of school time programs; and to promote economic reinvestment through the funding of infrastructure improvements, the sums set forth in sections 2 to 2B, inclusive, 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.

SECTION 2.

EXECUTIVE OFFICE OF EDUCATION

Department of Early Education and Care

3000-0411For the purpose of state financial assistance in the form of grants for the Early Education and Out of School Time Capital Fund for the development of eligible facilities for licensed early care and education and out of school time programs established in section 18 of chapter 15D of the General Laws; provided, that the department of early education and care may contract with quasi-public or non-profit entities to administer the program, including, but not limited to, the Community Economic Development Assistance Corporation established in chapter 40H of the General Laws; provided further, that the department may develop or finance eligible facilities and may enter into subcontracts with nonprofit organizations established pursuant to chapter 180 of the General Laws or organizations in which such nonprofit corporations have a controlling financial or managerial interest; provided further, that the department shall consider: (i) a balanced geographic plan for such eligible facilities when issuing the funding commitments; and (ii) funding large group and school age child care centers, as defined by the department; provided further, that the services made available pursuant to such grants shall not be construed as a right or entitlement for any individual or class of persons to the benefits financing; provided further, that no expenditure shall be made from this item without the prior approval of the secretary of administration and finance; and provided further, that eligibility shall be established by regulations promulgated by the department pursuant to chapter 30A of the General Laws for the implementation, administration and enforcement of this item.......................... $50,000,000

EXECUTIVE OFFICE OF HOUSING AND LIVABLE COMMUNITIES

7004-0069For a program of loans or grants to assist homeowners or tenants with a household member with blindness or severe disabilities in making modifications to their primary residence for the purpose of improving accessibility or to allow such individuals to live independently in the community or for construction costs to allow for the building of an accessory unit, which shall mean a unit constructed as an additional dwelling unit separate from the primary dwelling unit, for a person with disabilities or an elder needing assistance with activities of daily living; provided, that not more than 10 per cent shall be used for grants to assist landlords seeking to make modifications for a current or prospective tenant with disabilities, who but for such a grant would be unable to maintain or secure permanent housing; provided further, that the secretary of housing and livable communities and the secretary of health and human services shall take all steps necessary to minimize the program’s administrative costs; provided further, that the secretary of health and human services may contract with quasi-public or non-profit entities to administer the program, including, but not limited to, the Community Economic Development Assistance Corporation established in chapter 40H of the General Laws; provided further, that the program shall be available pursuant to income eligibility standards approved by the secretary of health and human services; provided further, that the repayment of the loans may be delayed until the sale of the principal residence by the homeowner; provided further, that persons residing in a development covered by section 4 of chapter 151B of the General Laws shall not be eligible for the program unless the owner can show that the modification is an undue financial burden or that the landlord is participating in the grant program to maintain or secure housing for a tenant with disabilities; provided further, that the secretary of health and human services shall consult with the Massachusetts commission for the blind and the Massachusetts rehabilitation commission to develop rules, regulations and guidelines for the program; provided further, that nothing in this item shall give rise to enforceable legal rights in any party or an enforceable entitlement to services; provided further, that funds expended from this item shall, to the maximum extent feasible, be prioritized for projects that comply with decarbonization and sustainability standards; and provided further, that the secretary of housing and livable communities shall submit quarterly reports to the house and senate committees on ways and means, the joint committee on bonding, capital expenditures and state assets and the joint committee on housing detailing the status of the program established in this item.................. $60,000,000

7004-0070For state financial assistance in the form of loans for the development of community-based housing or supportive housing for individuals with mental illness and individuals with intellectual disabilities; provided, that the loan program shall be administered by the executive office of housing and livable communities through contracts with 1 or more of the following agencies: the Massachusetts Development Finance Agency established under chapter 23G of the General Laws, the Community Economic Development Assistance Corporation established under chapter 40H of the General Laws, operating agencies established under chapter 121B of the General Laws and the Massachusetts Housing Finance Agency established under chapter 708 of the acts of 1966; provided further, that those agencies may develop or finance community-based housing or supportive housing or may enter into subcontracts with nonprofit organizations, established under chapter 180 of the General Laws, or organizations in which such nonprofit corporations have a controlling financial or managerial interest or for-profit organizations; provided further, that preference for subcontracts shall be given to nonprofit organizations; provided further, that the executive office shall consider a balanced geographic plan for such community-based housing or supportive housing when issuing the loans; provided further, that the executive office shall consider development of a balanced range of housing models by prioritizing funds for integrated housing as defined by the appropriate housing and service agencies, including, but not limited to, the executive office of housing and livable communities, the department of mental health and the department of developmental services, in consultation with relevant and interested clients, clients’ families, advocates and other parties as necessary; provided further, that loans issued pursuant to this item shall: (i) not exceed 50 per cent of the financing of the total development costs; (ii) not be issued unless a contract or agreement for the use of the property for such housing provides for repayment to the commonwealth at the time of disposition of the property if such property will no longer be subject to a recorded deed restriction pursuant to clause (iii) of this item; provided further, that such repayment shall: (1) be in an amount equal to the commonwealth’s proportional contribution from the Facilities Consolidation Fund to the cost of the development through payments made by the state agency making the contract; and (2) not be required if the executive office of housing and livable communities, in consultation with the department of mental health and the department of developmental services, determines that relevant clients will be better served at an alternative property and the proceeds from the disposition of the property will be used, to the extent necessary for replacement of the housing at the property, to: (A) acquire such alternative property; or (B) rehabilitate such alternative property; (iii) not be issued unless the contract or agreement for the use of the property for the purposes of such housing provides for the recording of a deed restriction in the registry of deeds or the registry district of the land court of the county in which the real property is located, for the benefit of the executive office and the departments, running with the land, that the land shall be used to provide community-based housing or supportive housing for eligible individuals as determined by the department of mental health and the department of developmental services; provided further, that the property shall not be released from such restriction unless: (1) the balance of the principal and interest for the loan has been repaid in full; (2) a mortgage foreclosure deed has been recorded; or (3) the executive office of housing and livable communities has determined, pursuant to subclause (2) of clause (ii) of this item, that repayment to the commonwealth is not required; (iv) be issued for a term not to exceed 30 years, during which time repayment may be deferred by the loan issuing authority; provided further, that if on the date the loans become due and payable to the commonwealth, an outstanding balance exists and if, on such date, the executive office of housing and livable communities, in consultation with the executive office of health and human services, determines that there still exists a need for such housing and that there is continued funding available for the provision of services to such development, the executive office of housing and livable communities may, by agreement with the owner of the development, extend the loans for such periods not to exceed 10 years, as the executive office shall determine; provided further, that the project, whether at the original property, or at an alternative property pursuant to subclause (2) of clause (ii) of this item, shall remain affordable housing for the duration of the loan term, including any extension thereof, as set forth in the contract or agreement entered into by the executive office; provided further, that in the event the terms of repayment detailed in this item would cause a project authorized by this item to become ineligible to receive federal financial assistance which would otherwise assist in the development of that project, the executive office may waive the terms of repayment which would cause the project to become ineligible; and (v) have interest rates fixed at a rate, to be determined by the executive office, in consultation with the state treasurer; provided further, that the loans shall be provided only for projects conforming to this item; provided further, that the loans shall be issued in accordance with a facilities consolidation plan prepared by the secretary of health and human services, reviewed and approved by the executive office of housing and livable communities and filed with the secretary of administration and finance, the house and senate committees on ways and means, the joint committee on bonding, capital expenditures and state assets and the joint committee on housing; provided further, that no expenditure shall be made from this item without the prior approval of the secretary of administration and finance; provided further, that the executive office of housing and livable communities, the department of mental health and the Community Economic Development Assistance Corporation may identify appropriate financing mechanisms and guidelines for grants or loans from this item to promote private development to produce housing, provide for independent integrated living opportunities, write down building and operating costs and serve households at or below 15 per cent of the area median income for the benefit of department of mental health clients; provided further, that funds expended from this item shall, to the maximum extent feasible, be prioritized for projects that comply with decarbonization and sustainability standards; provided further, that prioritization shall be determined through objective scoring criteria in the Qualified Allocation Plan developed by the executive office of housing and livable communities; provided further, that for new construction projects, the standards set forth in the Municipal Opt-in Specialized Stretch Energy Code under 225 CMR 22.00 and 23.00 and the Enterprise Green Communities standards shall be the applicable standards for prioritization; provided further, that any project proposing less than full compliance with said standards shall provide detailed analysis demonstrating why full compliance would render the project infeasible notwithstanding utilization of all available federal and state incentives, including rebates and tax credits; provided further, that for retrofits of existing units, prioritization shall be given to projects that include energy efficiency and electrification decarbonization measures, including, but not limited to, electric or ground source heat pumps, net-zero developments, Passive House Institute certification or an equivalent energy efficiency certification, and all-electric buildings and projects that incorporate green, sustainable and climate-resilient elements; provided further, that projects that include lower embodied carbon construction materials and methods shall be further prioritized; provided further, that not more than $10,000,000 may be expended from this item for a pilot program of community-based housing or supportive housing loans to serve mentally ill homeless individuals in the current or former care of the department of mental health; provided further, that in implementing the pilot program, the executive office shall consider a balanced geographic plan when establishing community-based residences; provided further, that the housing services made available pursuant to such loans shall not be construed as a right or an entitlement for any individual or class of persons to the benefits of the pilot program; provided further, that eligibility for the pilot program shall be established by regulations promulgated by the executive office; and provided further, that the executive office shall promulgate regulations under chapter 30A of the General Laws to implement, administer and enforce this item, consistent with the facilities consolidation plan prepared by the secretary of health and human services and after consultation with the secretary and the commissioner of capital asset management and maintenance…........................................$70,000,000

7004-0071For state financial assistance in the form of loans for the development and redevelopment of community-based housing or supportive housing for persons with disabilities who are institutionalized or at risk of being institutionalized and who are not eligible for housing developed pursuant to item 7004-0070; provided, that the loan program shall be administered by the executive office of housing and livable communities, through contracts with the Massachusetts Development Finance Agency established under chapter 23G of the General Laws, the Community Economic Development Assistance Corporation established under chapter 40H of the General Laws, operating agencies established under chapter 121B of the General Laws and the Massachusetts Housing Finance Agency established under chapter 708 of the acts of 1966; provided further, that the agencies may develop or finance community-based housing or supportive housing or may enter into subcontracts with nonprofit organizations established under chapter 180 of the General Laws or organizations in which such nonprofit corporations have a controlling financial or managerial interest or for-profit organizations; provided further, that preference for such subcontracts shall be given to nonprofit organizations; provided further, that the executive office shall consider a balanced geographic plan for such community-based housing or supportive housing when issuing the loans; provided further, that all housing developed with these funds shall be integrated housing as defined by the appropriate state housing and service agencies, including, but not limited to, the executive office of housing and livable communities, the executive office of health and human services and the Massachusetts rehabilitation commission, in consultation with relevant and interested clients, clients’ families, advocates and other parties as necessary; provided further, that loans issued pursuant to this item shall: (i) not exceed 50 per cent of the financing of the total development costs; (ii) not be issued unless a contract or agreement for the use of the property for the purposes of such housing provides for repayment to the commonwealth at the time of disposition of the property if such property will no longer be subject to a recorded deed restriction pursuant to clause (iii) of this item; provided further, that such repayment shall:(1) be in an amount equal to the commonwealth’s proportional contribution from community-based housing to the cost of the development through payments made by the state agency making the contract; and (2) not be required if the executive office of housing and livable communities, in consultation with the Massachusetts rehabilitation commission, determines that relevant clients will be better served at an alternative property and the proceeds from the disposition of the property will be used, to the extent necessary for replacement of the housing at the property, to: (A) acquire such alternative property; or (B) rehabilitate such alternative property; (iii) not be issued unless a contract or agreement for the use of the property for the purposes of such community-based housing or supportive housing provides for the recording of a deed restriction in the registry of deeds or the registry district of the land court of the county in which the real property is located, for the benefit of the executive office, running with the land, that the land shall be used to provide community-based housing or supportive housing for eligible individuals as determined by the Massachusetts rehabilitation commission or other agency of the executive office of health and human services; provided further, that the property shall not be released from such restrictions unless: (1) the balance of the principal and interest for the loan has been repaid in full; (2) a mortgage foreclosure deed has been recorded; or (3) the executive office of housing and livable communities has determined, pursuant to subclause (2) of clause (ii) of this item, that repayment to the commonwealth is not required; (iv) be issued for a term not to exceed 30 years during which time repayment may be deferred by the loan issuing authority; provided further, that if, on the date the loans become due and payable to the commonwealth, an outstanding balance exists and if, on that date, the executive office of housing and livable communities, in consultation with the executive office of health and human services, determines that there still exists a need for such housing, the executive office may, by agreement with the owner of the development, extend the loans for such periods not to exceed 10 years, as the executive office shall determine; provided further, that the project, whether at the original property or at an alternative property pursuant to clause subclause (2) of (ii) of this item, shall continue to remain affordable housing for the duration of the loan term, including any extensions thereof, as set forth in the contract or agreement entered into by the executive office; provided further, that in the event the terms of repayment detailed in this item would cause a project authorized by this item to become ineligible to receive federal financial assistance, which would otherwise assist in the development of that project, the executive office may waive the terms of repayment which would cause the project to become ineligible; and (v) have interest rates fixed at a rate, to be determined by the executive office, in consultation with the state treasurer; provided further, the loans shall be provided only for projects conforming to this item; provided further, that the loans shall be issued in accordance with an enhancing community-based services plan prepared by the secretary of health and human services, in consultation with the executive office of housing and livable communities and filed with the secretary of administration and finance, the house and senate committees on ways and means, the joint committee on bonding, capital expenditures and state assets and the joint committee on housing; provided further, that funds expended from this item shall, to the maximum extent feasible, be prioritized for projects that comply with decarbonization and sustainability standards; provided further, that prioritization shall be determined through objective scoring criteria in the Qualified Allocation Plan developed by the executive office of housing and livable communities; provided further, that for new construction projects, the standards set forth in the Municipal Opt-in Stretch Specialized Energy Code under 225 CMR 22.00 and 23.00 and the Enterprise Green Communities standards shall be the applicable standards for prioritization; provided further, that any project proposing less than full compliance with said standards shall provide detailed analysis demonstrating why full compliance would render the project infeasible notwithstanding utilization of all available federal and state incentives, including rebates and tax credits; provided further, that for retrofits of existing units, prioritization shall be given to projects that include energy efficiency and electrification decarbonization measures, including, but not limited to, electric or ground source heat pumps, net-zero developments, Passive House Institute certification or an equivalent energy efficiency certification, and all-electric buildings and projects that incorporate green, sustainable and climate-resilient elements; provided further, that projects that include lower embodied carbon construction materials and methods shall be further prioritized; provided further, that no expenditure shall be made from this item without the prior approval of the secretary of administration and finance; and provided further, that the executive office shall promulgate regulations pursuant to chapter 30A of the General Laws for the implementation, administration and enforcement of this item, consistent with the enhancing community-based services plan prepared by the secretary of health and human services after consultation with the secretary and the commissioner of capital asset management and maintenance...........................................$55,000,000             

7004-0072For the capitalization of the Affordable Housing Trust Fund established in section 2 of chapter 121D of the General Laws; provided, that funds expended from this item  shall, to the maximum extent feasible, be prioritized for projects that comply with decarbonization and sustainability standards; provided further, that prioritization shall be determined through objective scoring criteria in the Qualified Allocation Plan developed by the executive office of housing and livable communities; provided further, that the executive office shall consider geographic equity in awarding funds from this item; provided further, that for new construction projects, the standards set forth in the Municipal Opt-in Specialized Stretch Energy Code under 225 CMR 22.00 and 23.00 and the Enterprise Green Communities standards shall be the applicable standards for prioritization; provided further, that any project proposing less than full compliance with said standards shall provide detailed analysis demonstrating why full compliance would render the project infeasible notwithstanding utilization of all available federal and state incentives, including rebates and tax credits; provided further, that for retrofits of existing units, prioritization shall be given to projects that include energy efficiency and electrification decarbonization measures, including, but not limited to, electric or ground source heat pumps, net-zero developments, Passive House Institute certification or an equivalent energy efficiency certification, and all-electric buildings and projects that incorporate green, sustainable and climate-resilient elements; provided further, that projects that include lower embodied carbon construction materials and methods shall be further prioritized; provided further, that not more than $50,000,000 of the funds made available in this item may be used to create and maintain opportunities for homeownership for first-time homebuyers; provided further, that funds shall be expended to create and enhance access to homeownership in order to foster long-term benefits for housing security, health and economic outcomes and to address a systemic homeownership gap in socially disadvantaged communities and among targeted populations; provided further, that funds may be expended for down payment assistance programs, mortgage insurance programs and mortgage interest subsidy programs administered by the Massachusetts Housing Finance Agency and the Massachusetts Housing Partnership; and provided further, that funds may be expended to first-time homebuyer counseling and financial literacy programs......................$800,000,000

7004-0073For state financial assistance in the form of grants or loans for the Housing Stabilization and Investment Trust Fund established in section 2 of chapter 121F of the General Laws and awarded only pursuant to the criteria established in said section 2 of said chapter 121F; provided, that not less than 25 per cent shall be used to fund projects that preserve and produce housing for families and individuals with incomes of not more than 30 per cent of the area median income, as defined by the United States Department of Housing and Urban Development; provided further, that if the executive office of housing and livable communities has not spent the amount authorized under the bond cap for this program, at the end of each fiscal year following the effective date of this act, the executive office may award the remaining funds to projects that serve households earning more than 30 per cent of the area median income, as defined by the United States Department of Housing and Urban Development; provided further, that funds expended from this item shall, to the maximum extent feasible, be prioritized for projects that comply with decarbonization and sustainability standards; provided further, that prioritization shall be determined through objective scoring criteria in the Qualified Allocation Plan developed by the executive office of housing and livable communities; provided further, that the executive office shall consider geographic equity in awarding funds from this item; provided further, that for new construction projects, the standards set forth in the Municipal Opt-in Specialized Stretch Energy Code under 225 CMR 22.00 and 23.00 and the Enterprise Green Communities standards shall be the applicable standards for prioritization; provided further, that any project proposing less than full compliance with said standards shall provide detailed analysis demonstrating why full compliance would render the project infeasible notwithstanding utilization of all available federal and state incentives, including rebates and tax credits; provided further, that for retrofits of existing units, prioritization shall be given to projects that include energy efficiency and electrification decarbonization measures, including, but not limited to, electric or ground source heat pumps, net-zero developments, Passive House Institute certification or an equivalent energy efficiency certification, and all-electric buildings and projects that incorporate green, sustainable and climate-resilient elements; and provided further, that projects that include lower embodied carbon construction materials and methods shall be further prioritized.................$425,000,000

7004-0074For state financial assistance in the form of grants for projects undertaken pursuant to clause (j) of section 26 of chapter 121B of the General Laws; provided, that contracts entered into by the executive office of housing and livable communities for those projects may include, but shall not be limited to, projects providing for renovation, remodeling, reconstruction, redevelopment and hazardous material abatement, including asbestos and lead paint, and for compliance with state codes and laws and for adaptations necessary for compliance with the Americans with Disabilities Act of 1990, the provision of day care facilities, learning centers and teen service centers and the adaptation of units for families and persons with disabilities; provided further, that priority shall be given to projects undertaken for the purpose of compliance with state codes and laws or for other purposes related to the health and safety of residents; provided further, that funds may be expended from this item to make such modifications to congregate housing units as may be necessary to increase the occupancy rate of such units; provided further, that the executive office shall continue to fund a program to provide predictable funds to be used flexibly by housing authorities for capital improvements to extend the useful life of state-assisted public housing; provided further, that not less than 25 per cent of the funds made available in this item shall be used to fund projects that preserve or produce housing for families and individuals with incomes of not more than 30 per cent of the area median income, as defined by the United States Department of Housing and Urban Development; provided further, that not less than $15,000,000 of the funds made available in this item shall be used to increase accessibility of state-aided public housing for persons with disabilities; provided further, that not more than $150,000,000 of the funds made available in this item may be used to fund projects that include sustainability initiatives to reduce greenhouse gas emissions and make progress towards decarbonization through energy efficiency and electrification decarbonization measures, including, but not limited to, electric or ground source heat pumps, net-zero developments, Passive House Institute certification or an equivalent energy efficiency certification, and all-electric buildings and projects that incorporate green, sustainable and climate-resilient elements; provided further, that projects that include lower embodied carbon construction materials and methods shall be further prioritized; and provided further, that funds made available in this item shall, to the extent feasible, be used in accordance with the Massachusetts state hazard mitigation and climate adaptation plan….....................................................$2,000,000,000

7004-0075For state financial assistance in the form of grants for a demonstration program, administered by the executive office of housing and livable communities, to demonstrate cost effective revitalization methods for state-aided family and elderly-disabled public housing that seek to reduce the need for future state modernization funding; provided, that housing authorities with state-aided housing developments pursuant to chapter 200 of the acts of 1948, chapter 667 of the acts of 1954, chapter 705 of the acts of 1966, chapter 689 of the acts of 1974 or chapter 167 of the acts of 1987 shall be eligible to participate in the demonstration program; provided further, that the executive office may exempt a recipient of demonstration grants from the requirements of chapters 7C and 121B of the General Laws upon a showing by the recipient that such exemptions are necessary to accomplish the effective revitalization of public housing and shall not adversely affect public housing residents or applicants of any income who are otherwise eligible; provided further, that the executive office may provide to recipients of demonstration grants such additional regulatory relief as may be required to further the objectives of the demonstration program; provided further, that funds may be made available for technical assistance provided by the Community Economic Development Assistance Corporation established under chapter 40H of the General Laws or the Massachusetts Housing Partnership Fund established under section 35 of chapter 405 of the acts of 1985 to recipients of demonstration grants and for evaluation of the demonstration; provided further, that the executive office’s regulations for the implementation, administration and enforcement of this item shall: (i) require that selected housing authorities demonstrate innovative and replicable solutions to the management, marketing or capital needs of state-aided family and elderly-disabled public housing developments and contribute to the continued viability of the housing as a resource for public housing eligible residents; (ii) encourage proposals that demonstrate regional collaborations among housing authorities; and (iii) encourage proposals for new affordable housing units on municipally-owned land, underutilized public housing sites or other land owned by the housing authority; provided further, that funds expended from this item shall, to the maximum extent feasible, be prioritized for projects that comply with decarbonization and sustainability standards; provided further, that prioritization shall be determined through objective scoring criteria in the Qualified Allocation Plan developed by the executive office of housing and livable communities; provided further, that the executive office shall consider geographic equity in awarding funds from this item; provided further, that for new construction projects, the standards set forth in the Municipal Opt-in Specialized Stretch Energy Code under 225 CMR 22.00 and 23.00 and the Enterprise Green Communities standards shall be the applicable standards for prioritization; provided further, that any project proposing less than full compliance with said standards shall provide detailed analysis demonstrating why full compliance would render the project infeasible notwithstanding utilization of all available federal and state incentives, including rebates and tax credits; provided further, that for retrofits of existing units, prioritization shall be given to projects that include energy efficiency and electrification decarbonization measures, including, but not limited to, electric or ground source heat pumps, net-zero developments, Passive House Institute certification or equivalent energy efficiency certification, and all-electric buildings and projects that incorporate green, sustainable and climate-resilient elements; and provided further, that projects that include lower embodied carbon construction materials and methods shall be further prioritized ..............................................$200,000,000

7004-0076For state financial assistance in the form of grants or loans for the Housing Innovations Trust Fund established in section 2 of chapter 121E of the General Laws; provided, that not less than 25 per cent of the funds made available in this item shall be used to fund projects that preserve and produce housing for families and individuals with incomes of not more than 30 per cent of the area median income, as defined by the United States Department of Housing and Urban Development; provided further, that funds expended from this item  shall, to the maximum extent feasible, be prioritized for projects that comply with decarbonization and sustainability standards; provided further, that prioritization shall be determined through objective scoring criteria in the Qualified Allocation Plan developed by the executive office of housing and livable communities; provided further, that the executive office shall consider geographic equity in awarding funds from this item; provided further, that for new construction projects, the standards set forth in the Municipal Opt-in Specialized Stretch Energy Code under 225 CMR 22.00 and 23.00 and the Enterprise Green Communities standards shall be the applicable standards for prioritization; provided further, that any project proposing less than full compliance with said standards shall provide detailed analysis demonstrating why full compliance would render the project infeasible notwithstanding utilization of all available federal and state incentives, including rebates and tax credits; provided further, that for retrofits of existing units, prioritization shall be given to projects that include energy efficiency and electrification decarbonization measures, including, but not limited to, electric or ground source heat pumps, net-zero developments, Passive House Institute certification or an equivalent energy efficiency certification, and all-electric buildings and projects that incorporate green, sustainable and climate-resilient elements; and provided further, that projects that include lower embodied carbon construction materials and methods shall be further prioritized…...........$200,000,000

7004-0078For state financial assistance in the form of no interest loans, grants, subsidies, credit enhancements and other financial assistance for innovative, sustainable and green housing initiatives; provided, that entities eligible to receive financial assistance under this item shall include qualified for-profit or non-profit developers, community development corporations, local housing authorities, community action agencies, community-based or neighborhood-based non-profit housing organizations, other non-profit organizations and for-profit entities, and governmental bodies; provided further, that funds may be used to assist units occupied by and affordable to persons with incomes not more than 110 per cent of the area median income, as defined by the United States Department of Housing and Urban Development with priority given to projects that provide higher and deeper levels of affordability; provided  further, that not less than 25 per cent of the occupants of housing in projects assisted by this item shall be persons whose income is not more than 60 per cent of the area median income, as defined by the United States Department of Housing and Urban Development; provided further, that financial assistance shall be awarded in a manner that promotes geographic, social, racial and economic equity; provided further, that funds expended from this item shall, to the maximum extent feasible, be prioritized for projects that comply with decarbonization and sustainability standards; provided further, that prioritization shall be determined through objective scoring criteria in the Qualified Allocation Plan developed by the executive office of housing and livable communities; provided further, that funds from this item shall not be expended in communities deemed by the secretary of housing and livable communities not in compliance with the multi-family zoning requirement established in section 3A of chapter 40A of the General Laws; provided further, that for new construction projects, the standards set forth in the Municipal Opt-in Specialized Stretch Energy Code under 225 CMR 22.00 and 23.00 and the Enterprise Green Communities standards shall be the applicable standards for prioritization; provided further, that any project proposing less than full compliance with said standards shall provide detailed analysis demonstrating why full compliance would render the project infeasible notwithstanding utilization of all available federal and state incentives, including rebates and tax credits; provided further, that for retrofits of existing units, prioritization shall be given to projects that include energy efficiency and electrification decarbonization measures, including, but not limited to, electric or ground source heat pumps, net-zero developments, Passive House Institute certification or an equivalent energy efficiency certification, and all-electric buildings and projects that incorporate green, sustainable and climate-resilient elements; provided further, that projects that include lower embodied carbon construction materials and methods shall be further prioritized; provided further, that financial assistance under this item shall be to accelerate and support: (i) innovative strategies for the production of affordable and mixed-income housing developments and other market transformation activities, including but not limited to: (a) re-use of commercial space, office space, and underutilized state- or locally-controlled land or assets, including, but not limited to, brownfield or greyfield sites, or other property that the secretary of housing and livable communities has determined is suitable for sustainable residential or mixed-use development; (b) modular construction, manufactured housing, and other innovative housing models that offer development or operating cost savings, utilize advanced and applied technologies, provide efficiencies to help accelerate production and incorporate energy efficiency or energy conservation into their design, construction or rehabilitation; (c) accessory dwelling units and co-housing models; and (d) other market transformation efforts to be determined by the executive office of housing and livable communities, which may include, but shall not be limited to, any pilot program or demonstration program that is consistent with the purposes of this item; provided further, that such strategies may include a mixed income social housing pilot program in which a local or regional housing authority or other public or quasi-public entity maintains majority ownership or control of such housing; (ii) the creation of low-income and moderate-income residential housing units and mixed use developments that include both residential housing units and commercial or retail space in close proximity to transit nodes or within neighborhood commercial areas including, but not limited to, those areas designated as main street areas and rural villages; provided further, that the program shall be administered to: (a) maximize the amount of affordable residential and mixed-use space in close proximity to transit nodes or within neighborhood commercial areas, resulting in higher density, compact development and pedestrian-friendly, inclusive and connected neighborhoods; (b) increase mass transit ridership; (c) decrease traffic congestion and reduce greenhouse gas emissions; and (d) increase economic opportunity for disadvantaged populations by making it easier for residents of affordable housing to access public transportation, including transportation supporting commutes to employment centers; provided further, that the program may be administered to include projects that have residential units above commercial space located in areas characterized by a predominance of commercial land uses, a high daytime or business population or a high concentration of daytime traffic and parking; provided further, that the financial subsidy for the commercial portion of a project shall not exceed 25 per cent of the total development cost of the commercial portion of the project or $1,000,000, whichever is lesser; provided further, that the executive office may provide financial support to non-profit and for-profit developers that enter into binding agreements to set aside residential units in existing market-rate, transit-oriented housing, over and above any units required to be set aside under local zoning or approvals, for rent or sale to income-qualified households at affordable rents or sale prices, as applicable; and (iii) the creation and preservation of sustainable and climate resilient affordable multifamily housing; provided further, that such financial assistance shall be made to: (a) incorporate efficient, sustainable and climate resilient design practices in affordable residential development to support positive climate mitigation outcomes; (b) reduce greenhouse gas emissions and reliance on fossil fuels; (c) increase resiliency of existing housing developments to mitigate impacts of climate change, including flooding and extreme temperatures; and (d) enhance emergency preparedness, including sustainable means of power generation to allow for sheltering vulnerable populations in place; provided further, that financial assistance provided pursuant to clause (i) or clause (iii) may be administered by the executive office of housing and livable communities through contracts with the Massachusetts Housing Partnership Fund, established in section 35 of chapter 405 of the acts of 1985, or the Massachusetts Housing Finance Agency, established in chapter 708 of the acts of 1966, or both, which may, as the case may be, directly offer financial assistance for the purposes set forth herein or may enter into subcontracts with non-profit organizations, established pursuant to chapter 180 of the General Laws for those purposes; provided further, that financial assistance provided pursuant to clause (ii) may be administered by the executive office through contracts with said Massachusetts Housing Partnership Fund; and provided further, that the executive office of housing and livable communities or an administering agency under contract with the executive office may establish additional program requirements through regulations or  policy guidelines……………………………………………………………………...$275,000,000 

7004-0080For the Middle-Income Housing Fund administered by the Massachusetts Housing Finance Agency.......................................$100,000,000

SECTION 2A.

EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE

Office of the Secretary

1100-2518For costs associated with planning and studies, the preparation of plans and specifications, demolition, remediation, construction and relocation of utilities, construction and reconstruction of infrastructure, predevelopment, and site preparation; provided, that any funds received by a state agency in connection with projects funded from this item may be retained by the executive office for administration and finance and expended for the purposes of the project, without further appropriation, in addition to the amounts appropriated in this item; provided further, that where appropriate, the commissioner of capital asset management and maintenance may transfer funds authorized herein in accordance with a delegation of project control and supervision process pursuant to section 5 of chapter 7C of the General Laws or for the capitalization of the Surplus Real Property Disposition Fund established in section 119; and provided further, that funds from this item shall be distributed in furtherance of affordable housing production goals and availability of sites suitable for construction or expansion of housing opportunities in the commonwealth in consultation with the secretary of housing and livable communities........................... $30,000,000

1599-1953For local housing initiatives……………………………………$1,000,000

EXECUTIVE OFFICE OF HOUSING AND LIVABLE COMMUNITIES

7004-0077For a local capital projects grant program to support and encourage implementation of the housing choice designation for communities that have demonstrated housing production and adoption of housing best practices; provided, that not less than $25,000,000 shall be expended for a grant program to assist MBTA communities in complying with the multi-family zoning requirement in section 3A of chapter 40A of the General Laws....................$60,000,000

7004-0079For the Smart Growth Housing Trust Fund established in section 35AA of chapter 10 of the General Laws…………………………………………………..$20,000,000

7004-0081For a reserve to support the production of for-sale, below market housing to expand homeownership opportunities for first-time homebuyers and socially and economically disadvantaged individuals; provided, that grants and loans to developers shall be used to facilitate production of affordable homeownership units for households earning not more than 120 per cent of the area median income; provided further, that projects with units restricted to households with incomes of not more than 80 per cent of the area median income shall receive preference; provided further, that funds expended from this item shall, to the maximum extent feasible, be prioritized for projects that comply with decarbonization and sustainability standards; provided further, that prioritization shall be determined through objective scoring criteria in the Qualified Allocation Plan developed by the executive office of housing and livable communities; provided further, that for new construction projects, the standards set forth in the Municipal Opt-in Specialized Stretch Energy Code under 225 CMR 22.00 and 23.00 and the Enterprise Green Communities standards shall be the applicable standards for prioritization; provided further, that any project proposing less than full compliance with said standards shall provide detailed analysis demonstrating why full compliance would render the project infeasible notwithstanding utilization of all available federal and state incentives, including rebates and tax credits; provided further, that for retrofits of existing units, prioritization shall be given to projects that include energy efficiency and electrification decarbonization measures, including, but not limited to, electric or ground source heat pumps, net-zero developments, Passive House Institute certification or an equivalent energy efficiency certification, and all-electric buildings and projects that incorporate green, sustainable and climate-resilient elements; provided further, that projects that include lower embodied carbon construction materials and methods shall be further prioritized; provided further, that the minimum number of units for qualifying projects under the program shall be 10 units unless otherwise approved by the secretary of housing and livable communities; provided further, that funds in this item shall be distributed in a manner that promotes geographic equity; provided further, that grants may include a requirement for matching funds; provided further, that the executive office of housing and livable communities may enter into such contracts and agreements with the Massachusetts Housing Finance Agency, or such other public agencies and instrumentalities as it may determine, for the administration of such program; and provided further, that not more than 5 per cent of this item shall be used for the reasonable costs of administering the program....................................$200,000,000

7004-0082For grants and technical assistance for municipalities and regional applicants to support planning and locally-driven initiatives related to community development, housing production, workforce training and economic opportunity, childcare and early education initiatives and climate resilience initiatives, including nature-based solutions projects, that incorporate these elements, across the commonwealth within individual communities, regions or a defined subset of communities therein; provided, that funds may be expended for culturally competent and multi-lingual technical assistance and training to small businesses; provided further, that preference for such funds shall be given to businesses located in low- or moderate-income areas and owned by socially and economically disadvantaged individuals; provided further, that grants shall be awarded in a manner that promotes geographic equity; and provided further, that funds from this item shall not be expended in communities deemed by the executive office of housing and livable communities not in compliance with the multi-family zoning requirement established in section 3A of chapter 40A of the General Laws.................$25,000,000

7004-0083For the HousingWorks infrastructure program established by section 27½ of chapter 23B of the General Laws; provided, that not less than $100,000,000 shall be expended as grants to cities and towns for sewer, septic and water infrastructure upgrades that advance projects that support housing development, preservation or rehabilitation; provided further, that not less than $50,000,000 shall be expended as grants to cities and towns that (i) are compliant with the multi-family zoning requirement under section 3A of chapter 40A of the General Laws; and (ii) have demonstrated continued effort to advance housing production beyond the minimum multi-family zoning requirement in said section 3A of said chapter 40A, as determined by the secretary of housing and livable communities; provided further, that not less than $50,000,0000 shall be expended as grants to cities and towns that have: (a) accepted sections 3 to 7, inclusive, of chapter 44B of the General Laws; and (b) expended an amount of not less than 10 per cent of revenues available to the city or town under said sections 3 to 7, inclusive, of said chapter 44B on community housing; and provided further, that the executive office of housing and livable communities shall prioritize the awarding of said grants to cities and towns with higher percentages of total revenues available to the city or town under said sections 3 to 7, inclusive, of said chapter 44B expended on community housing …………………………………………..$375,000,000 

7004-0085For state financial assistance to cities and towns or agencies, boards, commissions, authorities, departments or instrumentalities thereof or community development corporations or non-profit organizations to assist in the revitalization of neighborhoods and communities with properties in blighted or substandard conditions by subsidizing the purchase price, borrowing costs or costs of demolition or renovation projects of not more than 50 units of residential rental housing or 1 to 4 units, inclusive, of home ownership residential housing that have been cited for building or sanitary code violations or that are subject to cancellation of commercial property insurance due to substandard property conditions or are otherwise blighted or substandard; provided, that contracts entered into by the executive office of housing and livable communities for those projects may include, but shall not be limited to, projects providing for demolition, renovation, remodeling, reconstruction, redevelopment and hazardous material abatement, including asbestos and lead paint, and for compliance with state codes and laws and for adaptations necessary for compliance with the Americans with Disabilities Act of 1990; provided further, that preference shall be given to community development corporations and local non-profit organizations, organizations sponsoring projects that secure private funds and projects with the greatest impact on community stabilization in weak markets, including, but not limited to, rural communities and communities that have been disproportionately affected by disinvestment, foreclosure and abandonment; provided further, that financial assistance shall be awarded in a manner that promotes geographic, social, racial, and economic equity; provided further, that funds from this item shall not be expended in communities deemed by the secretary of housing and livable communities not in compliance with the multi-family zoning requirement established in section 3A of chapter 40A of the General Laws; provided further, that funds expended from this item shall, to the maximum extent feasible, be prioritized for projects that comply with decarbonization and sustainability standards; provided further, that prioritization shall be determined through objective scoring criteria in the Qualified Allocation Plan developed by the executive office of housing and livable communities; provided further, that for new construction projects, the standards set forth in the Municipal Opt-in Specialized Stretch Energy Code under 225 CMR 22.00 and 23.00 and the Enterprise Green Communities standards shall be the applicable standards for prioritization; provided further, that any project proposing less than full compliance with said standards shall provide detailed analysis demonstrating why full compliance would render the project infeasible notwithstanding utilization of all available federal and state incentives, including rebates and tax credits; provided further, that for retrofits of existing units, prioritization shall be given to projects that include energy efficiency and electrification decarbonization measures, including, but not limited to, electric or ground source heat pumps, net-zero developments, Passive House Institute compliance or an equivalent energy efficiency certification, and all-electric buildings and projects that incorporate green, sustainable and climate-resilient elements; provided further, that projects that include lower embodied carbon construction materials and methods shall be further prioritized; provided further, that such rehabilitated housing shall remain affordable for such period as shall be established by the executive office through guidance taking into account differences in market conditions and the type of restrictions best suited to promoting community stabilization in different markets; and provided further, that an amount not to exceed 2 per cent of the amount expended may be used for administrative costs directly attributable to the purposes of this program, including costs of support personnel......................................................$50,000,000

7004-0096For a rural and small town housing program; provided, that funds shall be expended as state financial assistance in the form of no interest loans, grants, subsidies, credit enhancements and other financial assistance for the development and redevelopment of housing in rural areas; provided further, that entities eligible to receive financial assistance under this item shall include qualified for-profit or non-profit developers, community development corporations, local housing authorities, community action agencies, community-based or neighborhood-based non-profit housing organizations, other non-profit organizations and for-profit entities, cities and towns and other governmental entities; provided further, that state financial assistance shall be awarded for projects in cities and towns that have: (i) a total population of not more than 7,000 persons; or (ii) a population density of not more than 500 persons per square mile; provided further, that preference shall be given to projects in communities designated a housing choice community by the executive office of housing and livable communities or with an approved smart growth plan under chapter 40R of the General Laws; provided further, that financial assistance to eligible entities shall be used for housing production, preservation or rehabilitation for households with income of not more than 110 per cent of the area median income; provided further, that projects with units restricted to households with income of not more than 60 per cent of the area median income shall receive preference; provided further, that projects awarded financial assistance under this item shall not be subject to a minimum unit threshold determined by the executive office of housing and livable communities; provided further, that funds may be expended to construct or repair non-publicly-owned septic systems within a housing development or redevelopment project that has been awarded financial assistance under this item; provided further, that any septic system construction or repair completed under this item shall be compliant with 310 CMR 15.00; and provided further, that the executive office may contract with a public agency, quasi-public agency or non-profit entity for the administration of this program…………………………..$50,000,000

7004-0097For a seasonal community housing innovation program; provided, that funds shall be expended as state financial assistance in the form of no interest loans, grants, subsidies, credit enhancements and other financial assistance for the development and redevelopment of housing in seasonal communities, as defined by the executive office of housing and livable communities and as informed by the recommendations of the advisory council established under section 32 of chapter 23B of the General Laws; provided further, that entities eligible to receive financial assistance under this item shall include qualified for-profit or non-profit developers, community development corporations, local housing authorities, community action agencies, community-based or neighborhood-based non-profit housing organizations, other non-profit organizations and for-profit entities, cities and towns and other governmental entities; provided further, that state financial assistance to eligible entities shall be used to facilitate production, preservation or rehabilitation of affordable housing in seasonal communities for year-round residents with incomes at or below a level to be set by the executive office; provided further, that projects with units restricted to households with income of not more than 60 per cent of the area median income shall receive preference; provided further, that projects that receive financial assistance under this item may include but shall not be limited to: (i) affordable housing restricted to individuals who maintain primary residence in a seasonal community for a period not less than 10 months during any 12-month period; (ii) housing for individuals holding an office, position or employment for municipal or county government or agency within a municipality designated as a seasonal community, which shall include but not be limited to, teachers, public works employees, public safety employees, first responders, town administrators and other municipal employees; and (iii) housing for individuals who, by vocation, produce or support artistic and literary activities; provided further, that preference shall be given to projects in seasonal communities that have a zoning ordinance or by-law that provides for at least 1 district of reasonable size in which small scale, year-round housing is permitted as of right; provided further, that such multi-family housing shall be without age restrictions and shall be suitable for families with children; and provided further, that the executive office may contract with a public agency, quasi-public agency, or non-profit entity for the administration of this program…………………………..$50,000,000

7004-0098For state financial assistance in the form of no interest loans, grants, subsidies, credit enhancements and other financial assistance for the development and redevelopment of housing in midsized and suburban communities; provided, that entities eligible to receive financial assistance under this item shall include qualified for-profit or non-profit developers, community development corporations, local housing authorities, community action agencies, community-based or neighborhood-based non-profit housing organizations, other non-profit organizations and for-profit entities, and governmental entities; provided further, that state financial assistance shall be awarded for projects in cities and town with a total population of not more than 35,000 persons; provided further, that projects eligible for financial assistance under item 7004-0096 shall not be eligible for financial assistance under this item; provided further, that financial assistance to eligible entities shall be used for housing production, preservation or rehabilitation for households with income of not more than 110 per cent of the area median income; provided further, that projects with units restricted to households with income of not more than 60 per cent of the area median income shall receive preference; provided further, that funds from this item shall not be expended for projects in communities deemed by the secretary of housing and livable communities not in compliance with the multi-family zoning requirement established in section 3A of chapter 40A of the General Laws; and provided further, that the executive office may contract with a public agency, quasi-public agency, or non-profit entity for the administration of this program…………………………..$50,000,000             

SECTION 2B.

EXECUTIVE OFFICE OF HOUSING AND LIVABLE COMMUNITIES

7004-4784For the Massachusetts Housing Finance Agency, established in section 3 of chapter 708 of the acts of 1966, to capitalize a permanent, revolving Residential Production Momentum Fund for the purpose of accelerating the development of mixed-income and workforce multifamily housing production projects by providing financial assistance in the form of innovative, low-cost, and flexible capital funding, which may be in the form of debt, equity, or other instruments, depending on individual underwriting needs of the project; provided, that not less than 20 per cent of the units in a project that receives financial assistance under this item shall be restricted to households with incomes between 60 per cent and 120 per cent, inclusive, of the area median income; provided further, that, notwithstanding paragraph (f) of section 5 of said chapter 708, the Agency may in its discretion set the term and prepayment options for any mortgage or other loan or instrument issued to any project receiving such financial assistance based on the individual underwriting needs of the project; provided further, that such financial assistance shall be awarded in a manner that promotes geographic equity; provided further, that funds expended from this item shall, to the maximum extent feasible, be prioritized for projects that comply with decarbonization and sustainability standards; provided further, that prioritization shall be determined through objective scoring criteria in the Qualified Allocation Plan developed by the executive office of housing and livable communities; provided further, that for new construction projects, the standards set forth in the Municipal Opt-in Specialized Stretch Energy Code under 225 CMR 22.00 and 23.00 and the Enterprise Green Communities standards shall be the applicable standards for prioritization; provided further, that any project proposing less than full compliance with said standards shall provide detailed analysis demonstrating why full compliance would render the project infeasible notwithstanding utilization of all available federal and state incentives, including rebates and tax credits; provided further, that for retrofits of existing units, prioritization shall be given to projects that include energy efficiency and electrification decarbonization measures, including, but not limited to, electric or ground source heat pumps, net-zero developments, Passive House Institute certification or an equivalent energy efficiency certification, and all-electric buildings and projects that incorporate green, sustainable and climate-resilient elements; and provided further, that projects that include lower embodied carbon construction materials and methods shall be further prioritized....................$50,000,000

SECTION 3. Section 20 of chapter 6C of the General Laws, as appearing in the 2022 Official Edition, is hereby amended by inserting after the second paragraph the following paragraph:-

Any agreement related to any sale or lease of property may require that a developer construct, design, build, finance, operate or maintain, or any combination thereof, transportation facilities in the state highway system, including land and air rights or any related facility or component thereof controlled by the department; provided, however, that the department shall state in its bid documentation that such transportation facilities or related facility will be accepted or required as a part of any such development agreement. There shall not be any further procurement or advertising requirements except for the requirements set forth in this section.

SECTION 4. Section 46 of said chapter 6C, as so appearing, is hereby amended by inserting after the first paragraph the following paragraph:-

An agreement related to any lease of property may require that a developer construct, design, build, finance, operate or maintain, or any combination thereof, transportation facilities in the state highway system, including land and air rights or any related facility or component thereof controlled by the department; provided, however, that the department shall state in its bid documentation that such transportation facilities or related facility will be accepted or required as a part of any such development agreement. There shall not be any further procurement or advertising requirements except for the requirements set forth in section 20.

SECTION 5. Subsection (b) of section 1 of chapter 23B of the General Laws, as amended by section 102 of chapter 7 of the acts of 2023, is hereby further amended by inserting after clause (xvii) the following clause:-

(xviii) Develop and implement, not less than once every 5 years, a written comprehensive housing plan for the commonwealth, which shall include, but shall not be limited to, housing supply and demand data, affordability and affordability gaps, identification of housing affordability challenges and needs by region, an analysis of local zoning and strategies to address such housing needs.             

SECTION 6. Section 27½ of said chapter 23B, inserted by section 117 of said chapter 7, is hereby amended by striking out subsections (a) and (b) and inserting in place thereof the following 2 subsections:-

(a) There shall be in the executive office of housing and livable communities a HousingWorks infrastructure program to: (i) issue infrastructure grants that support housing to municipalities and other public entities for design, construction, building, rehabilitation, repair and other improvements to infrastructure that support the objectives of the secretariat, including, but not limited to, sewers, utility extensions, streets, roads, curb-cuts, parking, water treatment systems, telecommunications systems, transit improvements, public parks and spaces that support planned or proposed housing improvements and pedestrian and bicycle ways; and (ii) assist municipalities to advance projects that support housing development, preservation or rehabilitation. Preference for grants or assistance under this section shall be given to: (i) infrastructure serving locations within 0.5 miles of a transit station or transit route; (ii) other eligible locations as defined in section 1A of chapter 40A; (iii) multi-family zoning districts that comply with section 3A of said chapter 40A; provided, however, that no funds shall be awarded to a community deemed by the secretary as not in compliance with said section 3A of said chapter 40A; (iv) communities that: (a) have accepted sections 3 to 7, inclusive, of chapter 44B; and (b) have expended not be less than 10 per cent of revenues available to the city or town under said sections 3 to 7, inclusive, of said chapter 44B for community housing; and (v) projects that support regional equity.

(b)  A project that uses grants to municipalities for public infrastructure provided by this section shall be procured by a municipality in accordance with chapter 7, section 39M of chapter 30, chapter 30B and chapter 149.

SECTION 7. Said chapter 23B is hereby further amended by adding the following 3 sections:-

Section 31. (a) There shall be within the executive office of housing and livable communities an office of fair housing. The secretary of housing and livable communities shall appoint a director of the office who shall serve at the pleasure of the secretary.

(b) The office shall:

(i) collaborate with state agencies on policies and strategies to: (a) advance the elimination of housing discrimination and increase access to fair housing; (b) overcome patterns of segregation; (c) foster inclusive communities without barriers that restrict access for individuals or groups protected from unlawful practices pursuant to chapter 151B; and (d) support enforcement of and compliance with all fair housing laws, including, but not limited to, said chapter 151B and the Fair Housing Act, 42 U.S.C. 3601 et seq.;

(ii) facilitate communication and partnership among state agencies and municipalities to identify the intersections between activities of state agencies, activities of municipalities and fair housing;

(iii) facilitate the development of interagency initiatives to examine and address the social and economic determinants of housing disparities, including, but not limited to: (a) equal access to quality housing; (b) housing affordability; (c) access and proximity to multimodal transportation options, including cost of such transportation; (d) air, water and land usage and quality, including, but not limited to, consideration of environmental justice principles as defined in section 62 of chapter 30; (e) employment and workforce development; (f) access to healthcare; (g) access to and quality of education; and (h) language access; and

(iv) administer the Fair Housing Trust Fund established under section 2EEEEEE of chapter 29.

(c)(1) Not less than every 3 years, the office shall prepare a report evaluating the progress of the commonwealth toward eliminating housing discrimination and increasing access to fair housing. The report shall comply with applicable federal requirements for analysis and reporting. Where possible, the report shall include quantifiable measures and comparative benchmarks and shall detail progress on a regional basis. The office shall hold public hearings in geographically diverse regions of the commonwealth to gather public information on the topics of the report.

(2) Annually, the office shall prepare a supplemental report describing the activities and outcomes of the Fair Housing Trust Fund established under section 2EEEEEE of chapter 29.

(3) Reports pursuant to this subsection shall be filed with the clerks of the house of representatives and senate and the joint committee on housing not later than July 1 in the year in which the report is due. Each report shall be posted publicly on the office’s website.

Section 32. (a) There shall be within the executive office of housing and livable communities an office of livable communities and community services, which shall be under the charge of an undersecretary or director who shall be appointed and may be removed by the secretary and who shall be subject to the direction, control and supervision of the secretary or an undersecretary as determined by the secretary.

(b) The office shall: (i) seek to enrich housing opportunities across the commonwealth and carry out its duties in a regionally equitable manner; (ii) provide technical assistance regarding housing needs to cities and towns, including rural communities, as defined in section 66 of chapter 23A and seasonal communities, as designated by the secretary pursuant to section 33, to address preservation and production of affordable and attainable year-round housing specific to the needs of the community or region; and (iii) ensure that all programs administered by the office comply with federal, state and fair housing laws.

(c) The office may: (i) administer grants and programs specifically designated for urban, suburban, rural or seasonal communities; and (ii) pilot innovative housing programs to address a communities’ unique housing needs.

Section 33. (a) For the purposes of this section “year-round housing”, shall mean housing for occupancy by persons or families who occupy either rental or other housing as their principal residence for not less than 10 months a year. 

(b) The secretary may designate a municipality as a seasonal community; provided, however, that all municipalities in the county of Dukes County and Nantucket county, and all municipalities with over 40 per cent seasonal housing units in Barnstable county, as determined by the executive office in consultation with the Cape Cod commission established under chapter 716 of the acts of 1989, shall receive such designation. The executive office may designate additional municipalities as seasonal communities based on consideration of the following factors: (i) a high rate of short-term rentals in relation to the overall housing inventory; (ii) a significant population increase in seasonal visitors; (iii) an excessive disparity between the area median income and the income required to purchase the municipality’s median home price; (iv) the percentage of housing stock that is used for seasonal, occasional or recreational use or is otherwise not used as a primary residence by the property’s owner; and (v) high variations in the average monthly variation of employment in the sector over the full year, in relation to the municipality’s minimum employment threshold. A municipality designated by the executive office as a seasonal community pursuant to this section shall accept or deny the designation by vote of its chief executive officers. The secretary shall consult with the advisory council established in subsection (c) to review additional municipalities under consideration to receive the seasonal community designation.

(c) The executive office shall convene an advisory council to offer expertise in issues pertaining to municipal government, the hospitality industry, the tourism industry, housing law and housing development and finance in seasonal communities. The council shall consist of: the secretary or a designee, who shall serve as chair; 1 member of the senate appointed by the senate president, who represents a district in which at least 1 municipality is designated as a seasonal community; 1 member of the house of representatives appointed by the speaker of the house of representatives, who represents a district in which at least 1 municipality is designated as a seasonal community; 1 person appointed by the Massachusetts Municipal Association, Inc.; and the following persons to be appointed by the secretary: 1 person who shall be a representative of the developer community and is a resident of a municipality designated as a seasonal community; 1 person who shall be a licensed real estate agent with the board of registration of real estate brokers and salespersons and is a resident of a municipality designated as a seasonal community; 1 person to represent each regional planning agency whose jurisdiction encompasses at least 1 municipality designated as a seasonal community; 1 licensed attorney who practices in the area of land use and who is a resident of a municipality designated as a seasonal community; and 1 person who shall be a representative of the lending and banking community and who is a resident of a municipality designated as a seasonal community. The secretary may appoint additional members with knowledge and with expertise in land use law, fair housing law, municipal law and operations or the housing needs of seasonal communities. The council shall adopt by-laws to govern its affairs. The council shall provide advice and recommendations to the executive office regarding policies or programs necessary to serve the distinct needs of seasonal communities, including, but not limited to, accessing specialized or general application grant programs and best practices on incentivizing the production of attainable year-round housing in seasonal communities. Annually, not later than December 31, the council shall submit a report of any recommendations to the executive office, the clerks of the house of representatives and the senate and the joint committee on housing.

The executive office shall review, on an as-needed basis, the ongoing needs of municipalities designated as seasonal communities and may deny a municipality’s continued seasonal community designation based on the municipality’s ongoing needs and eligibility.

(d) A seasonal community may: (i) acquire year-round housing occupancy restrictions for rental or other housing; provided, however, that such a year-round housing occupancy restriction held by a city or town shall be construed as a restriction held by a governmental body with the benefit of section 26 of chapter 184; (ii) acquire and develop housing units specifically intended for housing seasonal community public employees that are necessary to the health and safety of maintaining a year-round community; and (iii) expend funds designated for the creation and preservation of year-round affordable and attainable housing for individuals who, by vocation, produce or support artistic and literary activities.

(e) For the purposes of this section, “tiny house” shall mean a detached structure containing a dwelling unit that 400 square feet or less in floor area excluding lofts.  A seasonal community shall: (i) adopt by-laws or zoning ordinances to permit undersized lots to be used for the creation of attainable year-round housing; provided, however, that the lot, at the time of recording or endorsement, shall be located in a zoning district that allows for single-family residential use; provided further, that any single-family residential structure constructed on said lot shall adhere to the municipality’s floor area ratio by-laws and shall comply with all laws governing wastewater and sewer systems; and provided further, that any residential housing built upon undersized lots shall not be used as a seasonal home or short-term rental of less than 6 months and shall be used as year-round housing; and (ii) adopt by-laws to permit the construction of tiny houses; provided, however, that said tiny houses are designated for use as year-round housing units and meet all requirements of the state building code and local building code; and provided further, that any movable tiny house shall be registered with the registry of motor vehicles, as applicable.

(f) A seasonal community may increase the exemption established in section 5C of chapter 59, at the option of the board of selectmen or mayor, with the approval of the city council, to 50 per cent of the average assessed value of all Class One, residential parcels within such city or town; provided, however, that the exemption shall be applied only to the principal residence of a taxpayer as used by the taxpayer for income tax purposes.

(g) A seasonal community designated pursuant to this section may apply to the executive office of housing and livable communities for a waiver from any of the requirements of this section. In deciding whether to grant the municipal's request for a waiver, the executive office may consider whether the requirements of this section can reasonably be carried out by existing town staff or a regional staff person performing equivalent duties.

(h) The executive office shall promulgate regulations or guidance to carry out this section.

SECTION 8. Chapter 29 of the General Laws is hereby amended by inserting after section 2DDDDDD the following section:-

Section 2EEEEEE. (a) There shall be a Fair Housing Trust Fund, which shall be credited with revenue from appropriations or other monies authorized by the general court and specifically designated for the fund and any gifts, grants, private contributions and investment income earned on the fund’s assets and any other sources.

(b) The fund shall be administered by the office of fair housing established in section 31 of chapter 23B and funds shall be expended from the fund for the purpose of eliminating housing discrimination and affirmatively furthering fair housing, overcoming patterns of segregation, fostering inclusive communities free from barriers that restrict access to opportunity for individuals or groups of individuals that are protected from unlawful practices pursuant to chapter 151B and supporting enforcement of and compliance with all fair housing laws, including, but not limited to, said chapter 151B and the Fair Housing Act, 42 U.S.C. 3601 et seq. Activities eligible for assistance from the trust fund shall include, but not be limited to, private enforcement initiatives, education and outreach initiatives, fair housing testing, lending discrimination, affirmatively furthering fair housing and special projects.

(c) Amounts credited to the fund shall be expended without further appropriation. Any balance in the fund at the close of a fiscal year shall be available for expenditure in subsequent fiscal years and shall not be transferred to any other fund or revert to the General Fund; provided, however, that the comptroller shall report the amount remaining in the fund at the end of each fiscal year to the house and senate committees on ways and means.

(d) Grantees eligible for assistance shall include, but not be limited to, fair housing assistance programs and fair housing initiative programs, as defined by the United States Department of Housing and Urban Development, any private or non-profit agency or any state-funded public housing authority.             

SECTION 9. Section 1A of chapter 40A of the General Laws, as appearing in the 2022 Official Edition, is hereby amended by striking out the definition “Accessory dwelling unit” and inserting in place thereof the following definition:-

“Accessory dwelling unit”, a self-contained housing unit, inclusive of sleeping, cooking and sanitary facilities on the same lot as a principal dwelling, subject to otherwise applicable dimensional and parking requirements, that: (i) maintains a separate entrance, either directly from the outside or through an entry hall or corridor shared with the principal dwelling sufficient to meet the requirements of the state building code for safe egress; (ii) is not larger in gross floor area than 1/2 the gross floor area of the principal dwelling or 900 square feet, whichever is smaller; and (iii) is subject to such additional restrictions as may be imposed by a municipality, including, but not limited to, additional size restrictions and restrictions or prohibitions on short-term rental, as defined in section 1 of chapter 64G; provided, however, that no municipality shall unreasonably restrict the creation or rental of an accessory dwelling unit that is not a short-term rental.

SECTION 10. Section 3 of said chapter 40A, as so appearing, is hereby amended by adding the following paragraph:-

No zoning ordinance or by-law shall prohibit, unreasonably restrict or require a special permit or other discretionary zoning approval for the use of land or structures for a single accessory dwelling unit, or the rental thereof, in a single-family residential zoning district; provided, however, that the use of land or structures for such accessory dwelling unit under this paragraph may be subject to reasonable regulations, including, but not limited to, 310 CMR 15.000 et seq., if applicable, site plan review, regulations concerning dimensional setbacks and the bulk and height of structures and may be subject to restrictions and prohibitions on short-term rental, as defined in section 1 of chapter 64G. The use of land or structures for an accessory dwelling unit under this paragraph shall not require owner occupancy of either the accessory dwelling unit or the principal dwelling; provided, however, that not more than 1 additional parking space shall be required for an accessory dwelling unit; and provided further, that no additional parking space shall be required for an accessory dwelling located not more than 0.5 miles from a commuter rail station, subway station, ferry terminal or bus station. For more than 1 accessory dwelling unit, or rental thereof, in a single-family residential zoning district there shall be a special permit for the use of land or structures for an accessory dwelling unit. The executive office of housing and livable communities may issue guidelines or promulgate regulations to administer this paragraph.             

SECTION 11. Section 3A of said chapter 40A is hereby amended by striking out the words “section 27”, as appearing in section 152 of chapter 7 of the acts of 2023, and inserting in place thereof the following words:- section 27½.

SECTION 12. The fifth paragraph of section 5 of said chapter 40A, as appearing in the 2022 Official Edition, is hereby amended by adding the following clause:- (5) an inclusionary zoning ordinance or by-law that requires not more than 13 per cent of units be affordable; provided, however, that such zoning ordinance or by-law shall not unduly constrain the production of housing in the area impacted by the inclusionary zoning ordinance or by-law; provided further, such ordinance or by-law shall require a density bonus; and provided further, that the executive office of housing and livable communities may issue guidelines or promulgate regulations consistent with the purposes of this clause.

SECTION 13. Section 6 of said chapter 40A, as so appearing, is hereby amended by inserting after the fourth paragraph, the following paragraph:–

Adjacent lots under common ownership shall not be treated as a single lot for local zoning purposes if, at the time of recording or endorsement, the lots: (i) conformed to then existing requirements of area, frontage, width, yard or depth, where each such lot has not less than 10,000 square feet of area and 75 feet of frontage; and (ii) are located in a zoning district that allows for single-family residential use.  Any single-family residential structure constructed on said lot shall not exceed 1,850 square feet of heated living area, shall contain not less than 3 bedrooms and shall not be used as a seasonal home or short-term rental.

SECTION 14. The first paragraph of section 17 of said chapter 40A, as so appearing, is hereby amended by inserting after the fourth sentence the following sentence:- If the complaint is filed by someone other than the original applicant, appellant or petitioner, then each plaintiff, whether or not previously constituting parties in interest for notice purposes, shall also sufficiently allege and must plausibly demonstrate that measurable injury, which is special and different to such plaintiff, to a private legal interest will likely flow from the decision through credible evidence.

SECTION 15. Said section 17 of said chapter 40A, as so appearing, is hereby further amended by striking out the third paragraph and inserting in place thereof the following paragraph:-

The court, in its discretion, may require a plaintiff in an action under this section appealing a decision to approve a special permit, variance or site plan to post a surety or cash bond in an amount of not more than $250,000 to secure the payment of and to indemnify and reimburse damages and   costs and expenses incurred in such an action if the court finds that the harm to the defendant or to the public interest resulting from delays caused by the appeal outweighs the financial burden of the surety or cash bond on the plaintiffs. The court shall consider the relative merits of the appeal and the relative financial means of the plaintiff and the defendant. Nothing in this section shall require bad faith or malice of a plaintiff for the court to issue a bond under this section.

SECTION 16. Said section 17 of said chapter 40A, as so appearing, is hereby further amended by striking out the sixth paragraph and inserting in place thereof the following paragraph:-

Costs, including reasonable attorneys’ fees, in an amount to be fixed by the court may be allowed against the party appealing from the decision of the board or special permit granting authority if the court finds that said appellant or appellants acted in bad faith or with malice in making the appeal to court.

SECTION 17. Section 9 of chapter 40H of the General Laws, as so appearing  , is hereby amended by striking out, in line 1, the words “section 16G” and inserting in place thereof the following words:- section 16G½.

SECTION 18. Said section 9 of said chapter 40H, as so appearing, is hereby further amended by striking out, in line 2, the words “and section 56 of chapter 23A”.

SECTION 19. Section 6M of chapter 62 of the General Laws, as so appearing, is hereby amended by striking out, in lines 226 and 227, the words “$12,000,000 in each of taxable years 2023 to 2025, inclusive” and inserting in place thereof the following words:- $15,000,000 in taxable years beginning on or after January 1, 2025.

SECTION 20. Said chapter 62 is hereby further amended by inserting after section 6M the following section:-

Section 6O. (a) For the purposes of this section, the following words shall have the following meanings unless the context clearly requires otherwise:

“Affordability period”, the 10-year period that commences on the date of the initial sale of a single-family dwelling constructed as part of a qualified homeownership development project.

“Affordability restriction”, a restriction in a form and substance approved by the director and the secretary, imposing resale restrictions on a single-family dwelling constructed as part of a qualified homeownership development project during the affordability period.

“Commissioner”, the commissioner of revenue.

“Credit amount”, the amount computed by the director pursuant to subsection (d) before issuing an eligibility certificate.

“Credit award amount”, the amount determined by the director and stipulated in the notice sent pursuant to paragraph (2) of subsection (c).

“Director”, the executive director of the Massachusetts Housing Finance Agency, established pursuant to chapter 708 of the acts of 1966.

“Eligibility certificate”, a certificate issued to a sponsor pursuant to subsection (d).

“Eligible location”, a geographic area in which a qualified homeownership development project may be located, based on criteria established in the qualified homeownership allocation plan.

“Maximum credit amount”, an amount equal to 35 per cent of the lesser of: (i) the total qualified project expenditures calculated on a per single-family dwelling basis; or (ii) 80 per cent of the area median new single-family dwelling sales price, subject to such further limitations as may be established under the qualified homeownership credit allocation plan.

“Project development team”, the group of entities that develops, constructs, reports, appraises, finances and services the associated properties of a qualified homeownership development project in partnership with the project development owner.

“Qualified buyer”, an individual that is a first-time homebuyer with an annual income not exceeding 120 per cent of the area median income, as determined by the United States Department of Housing and Urban Development, for the location in which the single-family dwelling being purchased is located and who satisfies any additional qualifications established by the director under the qualified homeownership credit allocation plan.

“Qualified homeownership credit allocation plan”, a plan adopted by the director with the approval of the secretary establishing: (i) criteria and metrics under which homeownership development projects shall be assessed for qualification and the geographic areas in which qualified homeownership development projects may be located; (ii) criteria for approving and ranking applications for credits; (iii) a methodology to determine applicable median new single-family dwelling sales prices for the area in which the project is located; (iv) mechanisms to maintain affordability of each single-family dwelling that is created as part of a qualified homeownership development project and restricted for sale to qualified buyers, throughout the affordability period; (v) criteria to be used in determining qualification as a qualified buyer; (vi) criteria governing the purchase, ownership and sale of completed qualified homeownership development project single-family dwellings; and (vii) the manner of determining qualified project expenditures.

“Qualified homeownership development project”, a project to develop for sale single-family dwellings in the commonwealth that satisfies any qualifications established by the director with the approval of the secretary in the qualified homeownership credit allocation plan; provided, however, that the proposed project shall: (i) involve the new construction of not less than 10 single-family dwellings; (ii) be located in an eligible location; and (iii) result in not less than 20 per cent of the single-family dwellings being sold to qualified buyers, subject to an affordability restriction in accordance with the qualified homeownership credit allocation plan.

“Qualified project expenditure”, an expenditure directly related to the construction of a qualified homeownership development project, including, but not limited to, the cost of acquiring land, site assessment and remediation of hazardous materials and as further provided in the qualified homeownership credit allocation plan; provided, however, that: (i) the director has certified that the proposed project meets the definition of a qualified homeownership development project; (ii) prior to construction, the director has certified that all or a portion of the project costs are for new construction; and (iii) after the construction of the project has been completed, the director has certified that the project has been completed in compliance with this section and the requirements and conditions of any prior certifications.

“Secretary”, the secretary of housing and livable communities.

“Single-family dwelling”, (i) a residential property containing not more than 4 residential units; provided, however, that all units shall comprise a single property to be sold to and owned by a single homeowner; or (ii) a condominium unit in a professionally managed condominium development.

“Sponsor”, a sponsor, as defined in section 25 of chapter 23B, of a qualified homeownership development project or owner of a qualified homeownership development project.

“Taxpayer”, a taxpayer subject to the income tax under this chapter.

(b)(1) There shall be a Massachusetts homeownership tax credit. The director, in consultation with the secretary, may authorize annually under this section and section 38PP of chapter 63 a total sum not exceeding: (i) $10,000,000; (ii) the amount, if any, not authorized in the preceding taxable year; and (iii) any Massachusetts homeownership tax credits returned to the director by a sponsor.

(2) A taxpayer may be allowed a nonrefundable tax credit with respect to a qualified homeownership development project under this section equal to the credit amount listed on the eligibility certificate pursuant to subsection (d). If the credit allowable for any taxable year is unused by the taxpayer or exceeds the taxpayer’s tax liability under this chapter for the taxable year, the taxpayer may carry forward and apply in any subsequent taxable year, the portion, as reduced from year to year, of the credit that exceeds the tax for the taxable year; provided, however, that in no event shall the taxpayer apply the credit to the tax due for any taxable year beginning after the affordability period.

(3) To be eligible to receive a credit pursuant to this section, a sponsor shall submit an application to the director on a form and in a manner prescribed by the director, in consultation with the secretary; provided, however, that said application shall include, but shall not be limited to: (i) the name and address of the sponsor; (ii) the names and addresses of all members of the project development team; (iii) an estimate of the total qualified project expenditures; and (iv) any other information as the director, in consultation with the secretary, may require pursuant to the qualified homeownership credit allocation plan.

(c)(1) The director, in consultation with the secretary, shall competitively evaluate and approve applications and award tax credits under this section for a qualified homeownership development project in accordance with the qualified homeownership credit allocation plan. The director, in consultation with the secretary, shall determine the credit amount awarded for each qualified homeownership development project, which shall not exceed the maximum credit amount.

(2) The director shall send written notice of the tax credit award to the sponsor of a qualified homeownership development project. The notice shall stipulate that receipt of the tax credit is contingent upon the sale of all single-family dwellings that are required to be sold to qualified buyers and issuance of an eligibility certificate.

(d)(1) Upon completion of a qualified homeownership development project for which a tax credit was awarded under this section and the sale of all single-family dwellings that are required to be sold to qualified buyers, the sponsor shall provide the director a final qualified project expenditures certification for approval. Immediately after approving the final cost certification, the director shall compute the credit amount and issue an eligibility certificate to the project development owner. The credit amount, which shall be stated on the certificate, shall equal the credit award amount stated in the notice issued under paragraph (2) of subsection (c), subject to any reduction or increase as the result of the approval of the final qualified project expenditures certification; provided, however, that such amount shall not exceed the maximum credit amount.

(2) Each eligibility certificate shall state the credit amount, the years that comprise the affordability period, the name, address and taxpayer identification number of the sponsor and all members of the project development team, the date the certificate is issued, a unique identifying number and any additional information the director, in consultation with the secretary and the commissioner, may require. The director shall certify a copy of each eligibility certificate to the secretary and the commissioner.

(e)(1) The sponsor shall maintain ownership of a qualified homeownership development project and all single-family dwellings that are required to be sold to qualified buyers until such dwellings are sold to qualified buyers.

(2) The qualified buyer of a single-family dwelling constructed as part of a qualified homeownership development project for which a tax credit was issued under this section shall occupy such single-family dwelling as the qualified buyer’s primary residence during the affordability period; provided, however, that a qualified buyer of a single-family dwelling that includes more than 1 residential unit need only occupy a single residential unit within the single-family dwelling as the qualified buyer’s primary residence during the affordability period and may lease any additional units to third-party lessees.

(3) If a single-family dwelling constructed as part of a qualified homeownership development project is sold during the affordability period, the seller shall transfer to the director an amount equal to 90 per cent of the gain from such resale, reduced by 10 per cent for each year of the affordability period which ends before the date of such sale, subject to such additional criteria as may be established under the qualified homeownership credit allocation plan. The director shall use any amount received pursuant to a repayment under this paragraph to provide financial assistance to first-time homebuyers and to offset the costs of administering this section. The director may place a lien on each single-family dwelling constructed as part of a qualified homeownership development project for an amount it deems necessary to ensure potential repayment pursuant to this paragraph.

(4) During the affordability period, a qualified buyer of a single-family dwelling that includes more than 1 residential unit shall not separate the ownership of individual residential units within the single-family dwelling.

(f)(1) All or any portion of a tax credit issued in accordance with this section may be transferred, sold or assigned to any individual or entity and the transferee shall be entitled to claim the credit pursuant to paragraph (2) of subsection (b) with the same effect as if the transferee had incurred the qualified project expenditures itself.

(2) A sponsor or transferee desiring to make a transfer, sale or assignment as described in paragraph (1) shall submit to the commissioner a statement that describes the amount of the tax credit for which such transfer, sale or assignment of the tax credit is eligible. The sponsor shall provide to the commissioner appropriate information for proper allocation of the tax credit.

(3) If the recapture of a tax credit is required pursuant to subsection (g), any statement submitted to the commissioner pursuant to paragraph (2) shall include the proportion of the tax credit required to be recaptured, the identity of each transferee subject to recapture and the amount of the tax credit previously transferred to such transferee.

(g) The director, in consultation with the secretary, shall determine whether a sponsor or qualified homeownership development project: (i) does not qualify for the credit; (ii) ceases to qualify for the credit; or (iii) did not qualify for the credit at the time the credit was claimed. If such a determination is made, notwithstanding the time limitations on assessments pursuant to chapter 62C, the commissioner shall determine the taxpayer or taxpayers that claimed the credit, the tax against which the credit was claimed and the amount to be recaptured and shall make an assessment against the taxpayer or taxpayers for the amount to be recaptured under this section.

(h) The director may assess application, processing and reporting fees to cover the cost of administering this section.

(i) The credit under this section shall be attributed on a pro rata basis to the owners, partners or members of the legal entity entitled to the credit under this section and shall be allowed as a credit against the tax due under this chapter from such owners, partners or members in a manner determined by the commissioner.

(j) The secretary, in consultation with the commissioner and director, shall adopt any rules and promulgate any regulations necessary to administer this section.

SECTION 21. Subsection (b) of section 6O of said chapter 62, inserted by section 20, is hereby amended by striking out paragraph (1) and inserting in place thereof the following paragraph:-

(1) There shall be a Massachusetts homeownership tax credit. The director, in consultation with the secretary, may authorize annually under this section and section 38OO of chapter 63 a total sum not exceeding: (i) the amount, if any, not authorized in the preceding taxable year; and (ii) any Massachusetts homeownership tax credits returned to the director by a sponsor.

SECTION 22. Section 38EE of said chapter 63, as so appearing, is hereby amended by striking out, in lines 213 and 214, the words “$12,000,000 in each of taxable years 2023 to 2025, inclusive” and inserting in place thereof the following words:- $15,000,000 in taxable years beginning on or after January 1, 2025.

SECTION 23. Said chapter 63 is hereby further amended by inserting after section 38NN the following section:-

Section 38OO. (a) For the purposes of this section, the following words shall have the following meanings unless the context clearly requires otherwise:

“Affordability period”, the 10-year period that commences on the date of the initial sale of a single-family dwelling constructed as part of a qualified homeownership development project.

“Affordability restriction”, a restriction in form and substance approved by the director and the secretary, imposing resale restrictions on a single-family dwelling constructed as part of a qualified homeownership development project during the affordability period.

“Commissioner”, the commissioner of revenue.

“Credit amount”, the amount computed by the director pursuant to subsection (d) before issuing an eligibility certificate.

“Credit award amount”, the amount determined by the director and stipulated in the notice sent pursuant to paragraph (2) of subsection (c).

“Director”, the executive director of the Massachusetts Housing Finance Agency, established pursuant to chapter 708 of the acts of 1966.

“Eligibility certificate”, a certificate issued to a sponsor pursuant to subsection (d).

“Eligible location”, a geographic area in which a qualified homeownership development project may be located, based on criteria established in the qualified homeownership allocation plan.

“Maximum credit amount”, an amount equal to 35 per cent of the lesser of: (i) the total qualified project expenditures calculated on a per single-family dwelling basis; or (ii) 80 per cent of the area median new single-family dwelling sales price, subject to such further limitations as may be established under the qualified homeownership credit allocation plan.

“Project development team”, the group of entities that develops, constructs, reports, appraises, finances and services the associated properties of a qualified homeownership development project in partnership with the project development owner.

“Qualified buyer”, an individual that is a first-time homebuyer with an annual income not exceeding 120 per cent of the area median income, as determined by the United States Department of Housing and Urban Development, for the location in which the single-family dwelling being purchased is located and who satisfies any additional qualifications established by the director under the qualified homeownership credit allocation plan.

“Qualified homeownership credit allocation plan”, a plan adopted by the director with the approval of the secretary, establishing: (i) criteria and metrics under which homeownership development projects shall be assessed for qualification and the geographic areas in which qualified homeownership development projects may be located; (ii) criteria for approving and ranking applications for credits; (iii) a methodology to determine applicable median new single-family dwelling sales prices for the area in which the project is located; (iv) mechanisms to maintain affordability of each single-family dwelling that is created as part of a qualified homeownership development project and restricted for sale to qualified buyers, throughout the affordability period; (v) criteria to be used in determining qualification as a qualified buyer; (vi) criteria governing the purchase, ownership and sale of completed qualified homeownership development project single-family dwellings; and (vii) the manner of determining qualified project expenditures.

“Qualified homeownership development project”, a project to develop for sale single-family dwellings in the commonwealth that satisfies any qualifications established by the director with the approval of the secretary in the qualified homeownership credit allocation plan; provided, however, that the proposed project shall: (i) involve the new construction of not less than 10 single-family dwellings; (ii) be located in an eligible location; and (iii) result in not less than 20 per cent of the single-family dwellings being sold to qualified buyers, subject to an affordability restriction in accordance with the qualified homeownership credit allocation plan.

“Qualified project expenditure”, an expenditure directly related to the construction of a qualified homeownership development project, including, but not limited to, the cost of acquiring land, site assessment and remediation of hazardous materials and as further provided in the qualified homeownership credit allocation plan; provided, however, that: (i) the director has certified that the proposed project meets the definition of a qualified homeownership development project; (ii) prior to construction, the director has certified that all or a portion of the project costs are for new construction; and (iii) after the construction of the project has been completed, the director has certified that the project has been completed in compliance with this section and the requirements and conditions of any prior certifications.

“Secretary”, the secretary of housing and livable communities.

“Single-family dwelling”, (i) a residential property containing not more than 4 residential units; provided, that all units shall comprise a single property, to be sold to and owned by a single homeowner; or (ii) a condominium unit in a professionally managed condominium development.

“Sponsor”, a sponsor, as defined in section 25 of chapter 23B, of a qualified homeownership development project or owner of a qualified homeownership development project.

“Taxpayer”, a taxpayer subject to the income tax under this chapter.

(b)(1) There shall be a Massachusetts homeownership tax credit. The director, in consultation with the secretary, may authorize annually under this section and section 6O of chapter 62 a total sum not exceeding: (i) $10,000,000; (ii) the amount, if any, not authorized in the preceding taxable year; and (iii) any Massachusetts homeownership tax credits returned to the director by a sponsor.

(2) A taxpayer may be allowed a nonrefundable tax credit with respect to a qualified homeownership development project under this section equal to the credit amount listed on the eligibility certificate pursuant to subsection (d). If the credit allowable for any taxable year is unused by the taxpayer or exceeds the taxpayer’s tax liability under this chapter for the taxable year, the taxpayer may carry forward and apply in any subsequent taxable year, the portion, as reduced from year to year, of the credit which exceeds the tax for the taxable year; provided, however, that in no event shall the taxpayer apply the credit to the tax due for any taxable year beginning after the affordability period.

(3) To be eligible to receive a credit pursuant to this section, a sponsor shall submit an application to the director on a form and in a manner prescribed by the director, in consultation with the secretary; provided, that said application shall include, but shall not be limited to: (i) the name and address of the sponsor; (ii) the names and addresses of all members of the project development team; (iii) an estimate of the total qualified project expenditures; and (iv) any other information as the director, in consultation with the secretary, may require pursuant to the qualified homeownership credit allocation plan.

(c)(1) The director, in consultation with the secretary, shall competitively evaluate and approve applications and award tax credits under this section for a qualified homeownership development project in accordance with the qualified homeownership credit allocation plan. The director, in consultation with the secretary, shall determine the credit amount awarded for each qualified homeownership development project, which shall not exceed the maximum credit amount.

(2) The director shall send written notice of the tax credit award to the sponsor of a qualified homeownership development project. The notice shall stipulate that receipt of the tax credit is contingent upon the sale of all single-family dwellings that are required to be sold to qualified buyers and issuance of an eligibility certificate.

(d)(1) Upon completion of a qualified homeownership development project for which a tax credit was awarded under this section and the sale of all single-family dwellings that are required to be sold to qualified buyers, the sponsor shall provide the director a final qualified project expenditures certification for approval. Immediately after approving the final cost certification, the director shall compute the credit amount and issue an eligibility certificate to the project development owner. The credit amount, which shall be stated on the certificate, shall equal the credit award amount stated in the notice issued under paragraph (2) of subsection (c), subject to any reduction or increase as the result of the approval of the final qualified project expenditures certification; provided, that such amount shall not exceed the maximum credit amount.

(2) Each eligibility certificate shall state the credit amount, the years that comprise the affordability period, the name, address and taxpayer identification number of the sponsor and all members of the project development team, the date the certificate is issued, a unique identifying number and any additional information the director, in consultation with the secretary and the commissioner, may require. The director shall certify a copy of each eligibility certificate to the secretary and the commissioner.

(e)(1) The sponsor shall maintain ownership of a qualified homeownership development project and associated single-family dwellings that are required to be sold to qualified buyers until such dwellings are sold to qualified buyers.

(2) The qualified buyer of a single-family dwelling constructed as part of a qualified homeownership development project for which a tax credit was issued under this section shall occupy such single-family dwelling as the qualified buyer's primary residence during the affordability period. If a single-family dwelling constructed as part of a qualified homeownership development project is sold during the affordability period, the seller shall transfer to the director an amount equal to 90 per cent of the gain from such resale, reduced by 10 per cent for each year of the affordability period that ends before the date of such sale, subject to such additional criteria as may be established under the qualified homeownership credit allocation plan. The director shall use any amount received pursuant to a repayment under this paragraph for the purposes of providing financial assistance to first-time homebuyers and offsetting the costs of administering this section; provided, however, that a qualified buyer of a single-family dwelling that includes more than 1 residential unit need only occupy a single residential unit within the single-family dwelling as the qualified buyer’s primary residence during the affordability period and may lease any additional units to third-party lessees.  

(3) The director may place a lien on each single-family dwelling constructed as part of a qualified homeownership development project for an amount it deems necessary to ensure potential repayment pursuant to this paragraph.

(4) During the affordability period, a qualified buyer of a single-family dwelling that includes more than 1 residential unit shall not separate the ownership of individual residential units within the single-family dwelling.

(f)(1) All or any portion of a tax credit issued in accordance with this section may be transferred, sold or assigned to any individual or entity and the transferee shall be entitled to claim the credit pursuant to paragraph (2) of subsection (b) with the same effect as if the transferee had incurred the qualified project expenditures itself.

(2) A sponsor or transferee desiring to make a transfer, sale or assignment as described in paragraph (1) shall submit to the commissioner a statement that describes the amount of the tax credit for which such transfer, sale or assignment of the tax credit is eligible. The sponsor shall provide to the commissioner appropriate information for the proper allocation of the homeownership tax credit.

(3) In the event that recapture of a tax credit is required pursuant to subsection (g), any statement submitted to the commissioner pursuant to paragraph (2) shall include the proportion of the tax credit required to be recaptured, the identity of each transferee subject to recapture and the amount of the tax credit previously transferred to such transferee.

(g) The director, in consultation with the secretary, may request that the commissioner disallow or recapture any portion of a tax credit if the director determines that: (i) a sponsor or the qualified homeownership development project does not qualify for the creditor ceases to qualify for the credit; or (ii) the qualified project did not qualify for the credit at the time when the credit was claimed. Notwithstanding the time limitations on assessments pursuant to chapter 62C, the commissioner shall determine the taxpayer or taxpayers that claimed the credit, the tax against which the credit was claimed and the amount to be recaptured and shall make an assessment against the taxpayer or taxpayers for the amount to be recaptured under this section. 

(h) The director may assess application, processing and reporting fees to cover the cost of administering this section.

(i) The tax credit under this section shall be attributed on a pro rata basis to the owners, partners or members of the legal entity entitled to the credit under this section and shall be allowed as a credit against the tax due under this chapter from such owners, partners or members in a manner determined by the commissioner.

(j) The secretary, in consultation with the commissioner and director, shall adopt any rules and promulgate any regulations necessary to administer this section.

SECTION 24. Subsection (b) of section 38OO of said chapter 63, inserted by section 23, is hereby amended by striking out paragraph (1) and inserting in place thereof the following paragraph:-

(1) There shall be a Massachusetts homeownership tax credit. The director, in consultation with the secretary, may authorize annually under this section and section 6O of chapter 62 a total sum not exceeding: (i) the amount, if any, not authorized in the preceding taxable year; and (ii) any Massachusetts homeownership tax credits returned to the director by a sponsor.

SECTION 25. Subsection (c) of section 10 of chapter 70B of the General Laws, as appearing in the 2022 Official Edition, is hereby amended by adding the following sentence:- At least 1 incentive percentage point shall be provided for a project in a district that has adopted an overlay zoning district under chapter 40R; provided, however, that no incentive points shall be awarded for a project in a district determined to be noncompliant by the executive office of housing and livable communities under section 3A of chapter 40A.

SECTION 26. Subsection (a) of section 52 of chapter 93 of the General Laws, as so appearing, is hereby amended by adding the following clause:- (7) eviction records sealed pursuant to section 16 of chapter 239.

SECTION 27. Section 127I of chapter 111 of the General Laws, as so appearing, is hereby amended by adding the following paragraph:-

Notwithstanding the fourth paragraph, following the appointment of a receiver for a vacant residential property, the court, upon motion by the receiver with notice to the owner, mortgagee and all interested parties, may allow the sale of the property to a nonprofit entity for fair market value in its then current condition. Any such sale shall be conditioned upon the court finding that the nonprofit entity agrees to correct all outstanding state sanitary code violations and rehabilitate the property for sale to a first-time homebuyer whose income is not more than 120 per cent of the area median income as determined by the United States Department of Housing and Urban Development; provided, however, that a nonprofit entity shall demonstrate to the court adequate expertise and resources necessary to rehabilitate the property and correct outstanding state sanitary code violations. Any such motion filed by a receiver pursuant to this paragraph shall be heard by the court not less than 30 days following the filing date, during which period the owner, mortgagee and any other interested parties may join a motion for leave to correct all outstanding state sanitary code violations at the property. Upon a finding by the court that the owner, mortgagee or other interested party has the intention and ability to correct all outstanding state sanitary code violations, the court shall stay the hearing on the receiver’s motion for a reasonable period of time to allow the owner, mortgagee or other interested party to correct such outstanding sanitary code violations.

SECTION 28. Section 87DDD1/2 of chapter 112 of the General Laws, as so appearing, is hereby amended by adding the following 2 sentences: - Such licensed broker or salesperson may solely contract with a prospective tenant to find for rent residential or commercial real property for a tenant and present an offer to lease to the landlord or landlord's agent and negotiate on behalf of the tenant or may solely contract with a landlord or landlord’s agent to find a tenant for a property. Any fee shall only be paid by the party, lessor or tenant who originally engaged and entered into a contract with the licensed broker or salesperson.

SECTION 29. Chapter 121B of the General Laws is hereby amended by striking out section 3A, as so appearing, and inserting in place thereof the following section:-

Section 3A. (a) Any number of cities or towns may, with the approval of their respective municipal officers and the department, create or disband by a contract subject to the approval of the department a regional housing authority with all of the powers and obligations of the constituent authorities to act in the place of the several housing authorities, if any, theretofore existing. Such contract shall set forth the rights, powers and obligations of the regional housing authority within the several cities or towns in which it is to operate. Any unresolved dispute that may arise as to the rights, powers or obligations conferred by such contract shall be referred to the department for resolution.

(b) Notwithstanding the foregoing, or any general or special law to the contrary, not less than 2 local housing authorities may, with the approval of their respective boards and the department, merge to create a regional housing authority with all the powers and obligations of the constituent authorities theretofore existing. Such creation of a regional housing authority by merger of not less than 2 local housing authorities shall not require the use of special legislation pursuant to chapter 268A of the General Laws. The department shall issue guidelines for approving mergers of not less than 2 local housing authorities pursuant to this subsection; provided, however, that such guidelines shall include, but not be limited to, provisions for approving board structures of regional housing authorities created pursuant to this subsection and provisions for the creation and operation of a regional local preference to apply to residents of the cities or towns in which a regional housing authority created pursuant to this subsection is to operate.

SECTION 30. Section 11 of said chapter 121B, as so appearing, is hereby amended by striking out paragraphs (n) and (o) and inserting in place thereof the following 3 paragraphs:-             

(n) To join or cooperate at least 1 other operating agencies in the exercise, either jointly or otherwise, of any of their powers for the purpose of financing, including the issuance of bonds, notes or other obligations and the giving of security therefore, planning, undertaking, owning, constructing, operating or contracting with respect to any project or projects authorized by this chapter located within the area within which at least 1 of such authorities are authorized to exercise their powers and for such purpose to prescribe and authorize, by resolution, any operating agency so joining and cooperating with it to act in its behalf in the exercise of any of such powers;

(o) To lease energy saving systems that replace non-renewable fuels with renewable energy such as solar powered systems; and

(p) To secure, with the approval of the department, in consultation with the executive office for administration and finance, indebtedness incurred for the preservation, modernization and maintenance of at least 1 of its low rent housing developments assisted under section 32 or 34 by a pledge of a portion of capital funds awarded to it for improvements to be carried out pursuant to a capital improvement plan, approved by the department and in accordance with department regulations governing capital projects. The department, in consultation with the executive office for administration and finance, shall promulgate regulations to establish limitations on the percentage of awarded capital funds that may be pledged to secure indebtedness, describe permitted terms for borrowing and repayment and establish criteria for operating agencies permitted to incur indebtedness secured by a pledge of capital funds. Any pledge of future year capital funds pursuant to this section shall be subject to the availability of funds under the department’s capital spending plan. All financing documents related to future year capital fund amounts shall include a statement that the credit of the commonwealth is not pledged and that the pledging of funds shall be subject to the availability of funds under the department’s capital spending plan.

SECTION 31. Section 26C of said chapter 121B is hereby amended by striking out, in lines 20 and 21, as so appearing, the words “the housing authority without requiring payment for the services by the housing authority” and inserting in place thereof the following words:- a housing authority with not more than 500 state-aided units without requiring payment for services by the housing authority; and provided further, that the capital assistance team may require payment for services provided to a housing authority with more than 500 state-aided units and for additional services not covered by this section and approved by the department.

SECTION 32. Said section 26C of said chapter 121B  is hereby further amended by striking out subsection (e), as so appearing, and inserting in place thereof the following subsection:-

(e) There shall be a capital assistance advisory board consisting of 2 members appointed by each of the 3 capital assistance teams and 1 member appointed by the department, who shall have not less than 5 years of experience as the manager of not less than 200 units of privately-owned housing. Only members of participating housing authorities in the region shall be eligible for appointment to the advisory board. The advisory board shall meet on an annual basis with the capital assistance team directors, host housing authority directors and the secretary of housing and livable communities, or a designee, and shall discuss issues of program performance and coordination.

SECTION 33. The first paragraph of section 29 of said chapter 121B, as so appearing , is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- The members of a housing authority shall biennially, or more frequently as required by the department, and at a time to be determined by the department, file with the department a written report for its preceding fiscal years since its last previously filed written report.

SECTION 34. Said first paragraph of said section 29 of said chapter 121B, as so appearing, is hereby further amended by adding the following sentence:-Notwithstanding the foregoing, nothing in this section shall exempt a housing authority from submitting an annual plan pursuant to section 28A and this section.

SECTION 35. Section 34 of said chapter 121B, as so appearing, is hereby amended by adding the following paragraph:-

Notwithstanding any general or special law to the contrary, the tenants of a state-aided or federally-aided public housing project transferred or conveyed pursuant to the fourteenth paragraph shall maintain all rights pursuant to federal, state and local subsidy programs originally applicable to the project, including tenant contribution, lease terms, eviction, right to return, grievance, resident participation, preference in hiring and privacy rights, except as may be required to secure financing necessary for the feasibility of the project or to meet associated programmatic eligibility requirements after notice to affected tenants with an opportunity to comment. The redevelopment of such public housing project shall not be the basis for the: (i) termination of assistance or eviction of any tenant; (ii) reduction of assistance or eviction of any tenant; or (iii) re-screening any existing tenant; provided, however, that no existing tenant shall be considered a new admission for any purpose, including, but not limited to, compliance with any income targeting requirements. Any such project shall have at least the same number of low rent housing units as the number of low rent housing units in the existing project. The requirements of this paragraph shall be implemented through contracts, use agreements, regulations or other means, as determined by the department; provided, however, that such contracts, use agreements, regulations or other means shall be in compliance with all local, state and federal subsidy programs applicable and shall delineate: (i) the roles of the housing authority and other agencies in monitoring and enforcing compliance, including tracking temporary and permanent displacement; (ii) how the housing authority shall rehouse tenants so there shall be no displacement from affordable housing programs operated by the housing authority; and (iii) how tenants shall be provided with technical assistance to facilitate meaningful input related to the redevelopment of the proposed project. The benefits of such contracts, use agreements, regulations or other means shall inure to any tenant who occupied a unit within the project at the time of the transfer or conveyance of the project. Protections relating to tenant contribution, lease terms, eviction, grievance, resident participation, preference in hiring and privacy rights, except as may be required to secure financing necessary for the feasibility of the project or to meet associated programmatic eligibility requirements, shall inure to both present or future tenants or applicants of the project, who shall have the right to enforce the same as third-party beneficiaries. Nothing in this section shall create a separate or new administrative process of appeal or review for any grievance governed by the lease of any tenant. Tenants shall have an opportunity for comment on a project proposed under the fourteenth paragraph and an opportunity for public comment to be organized by the owners, controlled entities, designated private entities or public housing authorities responsible for such projects with adequate notice.

SECTION 36. The third sentence of subsection (b) of section 3 of chapter 121E of the General Laws, as so appearing, is hereby amended by striking out clause (3) and inserting in place thereof the following clause:-

(3) issued only if a contract or agreement for the use of the property for housing purposes provides for the recording of a restriction in the registry of deeds or the registry district of the land court in the county in which the affected real property is located, for the benefit of the department, running with the land, that the land be used for providing alternative forms of rental and ownership housing; provided, however, that the property shall not be released from the restriction until: (i) the balance of the principal and interest for the loan has been repaid in full; (ii) a mortgage foreclosure deed has been recorded; or (iii) there has been a disposition of the property; provided further, that the department may release the property from the restriction if the department determines that relevant clients will be better served at an alternative property and the proceeds from the disposition of the property will be used, to the extent necessary, for the replacement of the housing at the property to: (A) acquire such alternative property; or (B) rehabilitate such alternative property;.

SECTION 37. Said section 3 of said chapter 121E, as so appearing, is hereby further amended by striking out, in lines 41 to 44, inclusive, the words “, provided that the project continues to remain affordable housing as set forth in the contract or agreement entered into for the duration of the project by the department” and inserting in place thereof the following words:- ; provided further, that the project, whether at the original property or at an alternative property pursuant to clause (3), continues to remain affordable housing as set forth in the contract or agreement entered into for the duration of the project by the department.

SECTION 38. Section 2 of chapter 121F of the General Laws, as so appearing, is hereby amended by striking out subsection (a) and inserting in place thereof the following subsection:-

(a) There shall be within the department a separate fund to be known as the Housing Stabilization and Investment Trust Fund. The department shall administer the fund and shall ensure that funds are distributed among urban, suburban and rural areas with a particular emphasis on the development of alternative forms of housing and local and regional needs. Such funds shall be used for the purpose of undertaking projects to develop and support affordable housing developments and homeownership affordability through the acquisition, preservation, new construction and rehabilitation of affordable housing, including, but not limited to, the preservation and improvement of existing privately-owned and state or federally-assisted housing. The fund may be used to provide assistance for: (i) projects to stabilize and promote reinvestment in cities and towns, including, but not limited to, preserving and improving existing privately-owned and state or federally-assisted housing and any other techniques necessary to achieve reinvestment; provided, however, that funds may be expended for energy audits and housing modifications to achieve energy efficiency and conservation; and (ii) housing where the expiration of federal or state low-income housing tax credits or other federal or state subsidies would lead or has led to the termination of a use agreement for low-income housing or in which a project-based rental assistance contract is expiring or has expired. The fund shall be an expendable trust fund and shall not be subject to appropriation.

SECTION 39. Said section 2 of said chapter 121F, as so appearing, is hereby further amended by striking out, in line 28, the words “nonprofit or for-profit organizations” and inserting in place thereof the following words:- eligible entities pursuant to subsection (a) of section 3.

SECTION 40. Said section 2 of said chapter 121F, as so appearing, is hereby further amended by striking out, in lines 35 to 38, inclusive, the words “or the Community Economic Development Assistance Corporation established in chapter 40H to provide assistance from the fund for projects owned or sponsored by nonprofit organizations” and inserting in place thereof the following words:- to provide assistance from the fund.

SECTION 41. Section 3 of said chapter 121F, as so appearing, is hereby amended by striking out subsections (a) and (b) and inserting in place thereof the following 2 subsections:-

(a) The fund shall finance low and no-interest loans, grants, subsidies, credit enhancements and other financial assistance for rental and ownership housing; provided, however, that any assistance provided shall be the minimum amount necessary to make a project feasible; provided further, that loans, grants, subsidies, credit enhancements and other financial assistance pursuant to this chapter may be provided to qualified for-profit or non-profit developers, community development corporations, local housing authorities, community action agencies, community-based or neighborhood-based non-profit housing organizations, other nonprofit organizations and for-profit entities and governmental entities; provided further, that recipients may enter into subcontracts to administer the contracts with other for-profit or nonprofit organizations; provided further, that loans, grants, subsidies, credit enhancements and other financial assistance pursuant to this chapter may be provided for the acquisition of property to provide or preserve affordable housing; provided further, that the loan program may be administered by the department through contracts with the Massachusetts Housing Partnership Fund established in section 35 of chapter 405 of the acts of 1985; provided further, that the program may include acquisition, financing and other holding costs, interim management costs and operating costs and may be used by the Massachusetts Housing Partnership Fund to secure, collateralize or reserve against other financing obtained by the Massachusetts Housing Partnership Fund to support such costs; and provided further, that not less than 75 per cent of the beneficiaries of the housing shall be persons whose income is not more than 60 per cent of the area median income as determined by the United States Department of Housing and Urban Development and not less than 13 per cent of the beneficiaries of the housing shall be persons whose income is not more than 30 per cent of the area median income as determined by the United States Department of Housing and Urban Development.

(b)(1) Activities eligible for assistance from the fund shall include, but not be limited to: (i) projects to develop and support affordable housing developments and homeownership affordability through the acquisition, preservation, new construction and rehabilitation of affordable housing; and (ii) the preservation of affordable housing developments that: (A) are currently, or were previously, subject to prepayment or payment of a state or federally-assisted mortgage; (B) are receiving project-based rental assistance under section 8 of the United States Housing Act of 1937, 42 U.S.C. 1437f, and the rental assistance is expiring; or (C) have received other project-based federal or state subsidies that are terminating or have terminated.

(2) Property eligible for assistance shall include, but not be limited to, housing where the prepayment or payment of a state or federally-assisted mortgage or the expiration of federal low income housing tax credits or other federal or state subsidies would lead or has led to the termination of a use agreement for low income housing or in which a project-based rental assistance contract is expiring or has expired; provided, however,, that a property eligible for assistance that has been acquired for the purpose of preserving or improving the property shall not lose eligibility due to actions by the purchaser to renew or extend state or federal contracts or subsidies.

(3) The department, in consultation with nonprofit organizations, the Community Economic Development Assistance Corporation, the Massachusetts Housing Finance Agency and the Massachusetts Housing Partnership Fund, shall identify projects at the greatest risk of prepayment, payment, termination of subsidies and use restrictions or nonrenewal of rental assistance. Funding priority shall be based on at-risk criteria to be determined by the department and set forth in regulations promulgated by the department.

SECTION 42. Said section 3 of said chapter 121F, as so appearing, is hereby further amended by striking out subsection (d) and inserting in place thereof the following subsection:-

(d) Prior to providing assistance pursuant to this section, the department shall determine that the: (i) housing would not, by private enterprise alone and without government assistance, be available to lower income families and individuals; and (ii) amount of assistance is the minimum amount necessary to make the housing development feasible. The department shall require, as a condition of receiving assistance, that: (i) the housing remain affordable for its useful life as determined by the department; and (ii) with respect to rental housing, the operations of the owner and its articles of organization and by-laws, and any changes thereto, shall be subject to regulation by the department.

SECTION 43. Section 5 of said chapter 121F, as so appearing, is hereby amended by striking out, in lines 2 to 5, inclusive, the words “including, but not limited to, regulations relative to grants to cities and towns for the demolition of certain vacant and abandoned buildings and procedures for neighborhood revitalization plans”.

SECTION 44. The General Laws are hereby amended by inserting after chapter 121G the following chapter:-

CHAPTER 121H

SUPPORTIVE HOUSING POOL TRUST FUND

Section 1. As used in this chapter, the following words shall have the following meanings unless the context clearly requires otherwise:

“Chronically homeless”, a person who has been homeless for at least 1 year or has been repeatedly homeless.

“Executive office”, the executive office of housing and livable communities.

“Fund”, the Supportive Housing Pool Trust Fund established in section 2.

“Permanent supportive housing”, rental housing that includes supportive services for individuals and families who may be homeless or chronically homeless, individuals and families with behavioral health needs or substance addiction needs, survivors of domestic violence, survivors of human trafficking, survivors of sexual violence, individuals and families at risk of entering or transitioning out of the foster care system, youth and young adults, seniors and veterans or other individuals with similar needs, as determined by the executive office.

Section 2. (a) There shall be a Supportive Housing Pool Trust Fund to support the production of permanent supportive housing. The fund shall be administered by the executive office, directly or through contracts with at least 1 of the following administering agencies: (i) the Community Economic Development Assistance Corporation, established under chapter 40H; (ii) the Massachusetts Housing Partnership Fund, established under section 35 of chapter 405 of the acts of 1985; or (iii) the Massachusetts Housing Finance Agency, established under section 3 of chapter 708 of the acts of 1966; provided, however, that an administering agency may directly offer financial assistance for the purposes pursuant to this section or may enter into subcontracts with nonprofit organizations established under chapter 180 for those purposes; and provided further, that the administering agency may establish additional program requirements through regulations or policy guidelines.

(b) There shall be credited to the fund: (i) revenue from appropriations or other money authorized by the general court and specifically designated for the fund; (ii) any gifts, grants, private contributions, repayment of loans, fees and charges imposed relative to the making of loans, grants, subsidies, credit enhancements and other financial assistance; (iii) any investment income earned on the fund’s assets; and (iv) any other sources. Money remaining in the fund at the end of a fiscal year shall not revert to the General Fund.

Section 3. Funds expended pursuant to this chapter shall be in the form of grants, loans or other financial assistance to projects and organizations that shall provide stable housing options and supportive services to residents of permanent supportive housing, which may include, but shall not be limited to, staffing, case management, service coordination or other tenancy-related services provided by a project sponsor or through a third party, or other services or activities that the executive office has determined are essential to the day-to-day operation of permanent supportive housing.

Section 4. The executive office may promulgate regulations for the implementation, administration and enforcement of this chapter and may, in consultation with the executive office of health and human services, the executive office of elder affairs, the department of children and families and the Massachusetts office of victim assistance, issue guidelines for the fund.

SECTION 45. Chapter 183A of the General Laws is hereby amended by striking out section 16, as appearing in the 2022 Official Edition, and inserting in place thereof the following section:-

Section 16. The owners of any land may submit the land under this chapter by the recording in the registry of deeds of a master deed or, if the title to the land is registered under chapter 185, by filing the master deed under said chapter 185.

SECTION 46. Chapter 185 of the General Laws is hereby amended by striking out section 52, as so appearing, and inserting in place thereof the following section:-

Section 52. (a) As used in this section, “notice of voluntary withdrawal” shall mean an instrument in writing, signed and acknowledged by all owners of the land to be voluntarily withdrawn, that contains the following information: (i) names and addresses of all owners; (ii) the certificate of title number with the registration book and page number; (iii) a description of the land in the form contained in the certificate of title or a description, incorporating by reference the lot numbers, if numbered, and the land court plan, together with a reference to the certificate with which the plan is filed; and (iv) the street address of the land, if any. The notice of voluntary withdrawal shall include a notification to all interest holders entitled to notice that any objection to the requested withdrawal shall be filed with the court not later than 30 days following the service of the notice or the right to file an objection shall be waived.

(b) A judgment of registration and the entry of a certificate of title shall be

regarded as an agreement running with the land and binding upon the plaintiff and the plaintiff's successors in title that the land shall be and forever remain registered land and subject to this

chapter unless withdrawn under this section and except as provided in section 26.

(c) If all of a parcel of land, the title to which is registered under this chapter, is acquired by the commonwealth, any agency, department, board, commission or authority of the commonwealth, any political subdivision of the commonwealth or any agency, department, board, commission or authority of any political subdivision of the commonwealth, the acquisition shall be a sufficient ground for withdrawal of the registered land from this chapter. Such land shall be withdrawn upon the filing with the land court of a complaint for voluntary withdrawal by the public entity and the endorsement by a justice of the land court of such notice of withdrawal, which shall be filed in the registry district where the land is located.

(d) The owners of the fee simple estate in a parcel of land, the title to which has been registered under this chapter, may voluntarily withdraw the registered land from this chapter by filing with the land court a complaint for voluntary withdrawal naming themselves as all of the owners of the fee simple estate in the entire parcel of land and identifying any mortgagees, lessees or option holders of record having an interest in the registered land, together with a notice of voluntary withdrawal. The plaintiff shall file with the complaint sufficient documentation to establish conclusively their ownership of the fee simple estate in the entire parcel of land that is the subject of the complaint including, but not limited to, a last-prepared certificate of title, deeds, conveyance records and any other documents or instruments that demonstrate their ownership interest. The plaintiff may also file with the court written and signed assents from any interest holders entitled to notice who have agreed to the withdrawal. Upon the request of the plaintiff or upon the court’s determination of reasonable need, the court may appoint an examiner of title, whose fees shall be paid by the plaintiffs, to prepare a report sufficient to identify the current owners and all current mortgagees, lessees and option holders with interests in the land who are entitled to notice. The court’s order of appointment shall be made not later than 30 days after receipt of the complaint or upon request for appointment, if such request is later made, unless the court, for good cause , determines that appointment at a later time is indicated, and shall direct such report to be prepared and filed with the court not later than 14 days after the appointment is made, unless the court, for good cause , then or thereafter allows further time. All interest holders entitled to notice who have not assented to the voluntary withdrawal shall be served by certified mail with a file-stamped copy of the complaint and notice of voluntary withdrawal. The court may order further notice to be given, including by additional means, if the court determines it to be necessary or desirable to accomplish effective service. The plaintiff shall file with the court an affidavit certifying that such notice by certified mail or other means ordered by the court has been given, together with proof of service. If the plaintiffs are represented by counsel, the affidavit shall be executed by counsel.

(e) If no objection has been filed by any interest holder entitled to notice not later than 30 days following service, a justice of the court shall approve and endorse the notice of voluntary withdrawal not later than 30 days following receipt of all required information and documentation unless the court, for good cause, determines that further time is indicated. Notwithstanding the filing of an objection not later than 30 days, the notice of voluntary withdrawal shall be endorsed by a justice of the land court unless the court determines that there is good cause for the objection. Upon endorsement by a justice of the land court, the notice of voluntary withdrawal shall be filed for registration and noted on the memorandum of encumbrances for the certificate of title and may be recorded with the registry of deeds for the district within which the land lies, whereupon the land shall be withdrawn from this chapter and shall become unregistered land. The owners shall hold title to the land free of all liens and encumbrances, including adverse possession and prescriptive rights, existing as of the date the judicially-endorsed notice of voluntary withdrawal is noted on the memorandum of encumbrances, as though a judgment of confirmation without registration had been recorded under section 56A; provided, however, that the owners shall not hold title free of the encumbrances set forth or referred to in section 46 and those noted on the certificate of title or filed for registration before the date the endorsed notice of voluntary withdrawal is noted on the memorandum of encumbrances.

(f) The chief justice of the land court or a designee may promulgate rules or establish practices, guidelines, forms or procedures, including an appropriate filing fee for the complaint and notice of voluntary withdrawal, as necessary to implement this section.

SECTION 47. Said chapter 185 is hereby further amended by striking out section 114, as so appearing, and inserting in place thereof the following section:-

Section 114. (a) No erasure, alteration or amendment shall be made upon the registration book after the entry of a certificate of title or of a memorandum thereon and the attestation of the same by the recorder or an assistant recorder without court order, except when an  assistant recorder, upon approval of the chief title examiner of the land court or the chief title examiner’s designee, determines that a clerical error or omission has been made in the entry of the certificate of title or memorandum thereon.

(b) A registered owner or other person in interest may apply by complaint to the court upon the grounds that: (i) registered interests of any description, whether vested, contingent, expectant or inchoate, have terminated and ceased; (ii) new interests not appearing upon the certificate have arisen or been created; (iii) an error or omission was made in entering a certificate or any memorandum thereon; (iv) the name of any person on the certificate has been changed; (v) the registered owner has married or, if registered as married, the marriage has been dissolved; (vi) a corporation which owned registered land and has been dissolved has not conveyed the same within 3 years after its dissolution; or (vii) upon any other reasonable ground and the court may hear and determine the complaint after notice to all parties in interest. The court may order the entry of a new certificate, the entry or cancellation of a memorandum upon a certificate or grant any other relief upon such terms as it deems proper, including requiring security if necessary.  Nothing in this section shall authorize the court to open the original judgment of registration and nothing shall be done by the assistant recorder or ordered by the court that shall impair the title or other interest of a purchaser holding a certificate for value and in good faith, or their heirs or assigns, without their written consent.

SECTION 48. Chapter 239 of the General Laws is hereby amended by adding the following section:-

Section 16. (a) For the purposes of this section, the following words shall have the following meanings unless the context clearly requires otherwise:-

“Consumer report”, a written, oral or other communication of any information by a consumer reporting agency bearing on a person’s credit worthiness, credit standing or credit capacity that is used or expected to be used or collected, in whole or in part, for the purpose of serving as a factor in establishing the person’s eligibility for rental housing or other purposes authorized under section 51 of chapter 93.

“Consumer reporting agency”, an individual, partnership, corporation, trust, estate, cooperative, association, government or governmental subdivision or agency or other entity that, for monetary fees, dues or on a cooperative nonprofit basis, regularly engages, in whole or in part, in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties.

“Court”, the trial court of the commonwealth established pursuant to section 1 of chapter 211B and any departments or offices established within the trial court.

“Court record”, any paper or electronic records or data in any communicable form compiled by, on file with or in the care custody or control of, the court that concern a person and relate to the nature or disposition of an eviction action or a lessor action.

“Eviction action”, a summary process action under this chapter to recover possession of residential premises.   

“Lessor action”, any civil action brought against the owner, manager or lessor of residential premises by the tenant or occupant of such premises relating to or arising out of such property, rental, tenancy or occupancy for breach of warranty, breach of any material provision of the rental agreement or violation of any other law.

“No-fault eviction”, any eviction action in which the notice to quit, notice of termination or complaint does not include an allegation of nonpayment of rent or violation of any material term of the tenancy by the tenant or occupant; provided, however, that a “no-fault eviction” shall include an action brought after termination of a tenancy for economic, business or other reasons not constituting a violation of the terms of the tenancy.            

(b) Any person having a court record of a no-fault eviction on file in a court may petition the court to seal the court record at any time after the conclusion of the action, including exhaustion of all rights of appeal. The petition shall be on a form furnished by the trial court of the commonwealth, signed under the penalties of perjury and filed in the same court as the action sought to be sealed. If an action was active in more than 1 court during its pendency,  a petition may be filed in each such court. Notice shall be given to parties to the original action. The court shall comply with the petitioner’s request to seal the court record pursuant to this subsection; provided, however, that the record only pertains to a no-fault eviction and the action to which the record relates has concluded with all rights of appeal exhausted. If no objection is filed by a party within 7 days of filing the petition, such court may, in its discretion, process such petitions administratively without a hearing.

(c)  Any person having a court record in an eviction action for nonpayment of rent on file in a court may, on a form furnished by the trial court and signed under the penalties of perjury, petition the court to seal the court record. The petition shall be filed in the same court as the action sought to be sealed. If an action was active in more than 1 court during its pendency, a petition may be filed in each such court. Notice shall be given to parties to the original action. The court shall comply with the petitioner’s request to seal the court record pursuant to this subsection; provided, however, that the action to which the record relates concluded, including exhaustion of all rights of appeal, not less than 4 years before the request and no eviction action for nonpayment or lessor action has been brought against the petitioner within the commonwealth in the 4 years preceding the request; provided further, that the petitioner certifies on the petition that the nonpayment of rent was due to an economic hardship and such economic hardship has rendered them unable to satisfy the judgment. If no objection is filed by a party, the court may, in its discretion, process such petitions administratively without a hearing. If an objection is filed by a party, within 7 days of filing the petition, the court shall conduct a hearing to determine the petitioner’s compliance with the foregoing conditions and may require the petitioner to complete a financial statement on a form furnished by the trial court.    

(d) Any person having a court record of a fault eviction on file in a court may, on a form furnished by the trial court and signed under the penalties of perjury, petition the court to seal the court record. The petition shall be filed in the same court as the action sought to be sealed. If an action was active in more than 1 court during its pendency, a petition may be filed in each such court. Notice shall be given to parties to the original action. The court shall comply with the petitioner’s request to seal the court record pursuant to this subsection; provided, however, that the action to which the record relates concluded, including exhaustion of all rights of appeal, not less than 7 years before the request and no eviction action for fault or lessor action has been brought against the petitioner within the commonwealth in the 7 years preceding the request. If no objection is filed by a party, within 7 days of filing the petition, the court may, in its discretion, process such petitions administratively without a hearing.

(e)  Any person having a court judgment against them in a civil action commenced pursuant to section 19 of chapter 139 on file in a court may, on a form furnished by the trial court and signed under the penalties of perjury, petition the court to seal the court record. The petition shall be filed in the same court as the action sought to be sealed. If an action was active in more than 1 court during its pendency, a petition may be filed in each such court. Notice shall be given to parties to the original action. The court shall schedule a hearing to determine whether: (i) the action to which the record relates concluded, including exhaustion of all rights of appeal, not less than 7 years before the request and no eviction action for fault, or action pursuant to said section 19 of said chapter 139, has been brought against the petitioner within the commonwealth in the 7 years preceding the request, and such petitioner has not been convicted of any criminal offense referenced in said section 19 of said chapter 139 during such 7-year period; and (b) the sealing of such record is in the interest of justice and public safety. Notwithstanding any provision to the contrary, where the plaintiff did not obtain a judgment in its favor, the defendant may petition to seal the court record at any time after the conclusion of the action, including exhaustion of all rights of appeal. 

(f) Upon motion and for good cause shown, or as otherwise authorized by this section, court records sealed under this section may, at the discretion of the court and upon a balancing of the interests of the litigants and the public in nondisclosure of the information with the interests of the requesting party, be made available for public safety, scholarly, educational, journalistic or governmental purposes only; provided, however, that the personal identifying information of the parties involved in the action shall remain sealed unless the court determines that release of such information is appropriate under this subsection and necessary to fulfill the purpose of the request.  Nothing in this subsection shall permit the release of personal identifying information for commercial purposes.

(g) Nothing in this section shall prohibit the dissemination of information contained in a record sealed pursuant to this section as the court deems necessary or appropriate: (i) for the collection of a money judgment; (ii) to pursue a criminal investigation; (iii) to pursue a criminal prosecution; or (iv) where information in the sealed record was entered into evidence in a criminal prosecution that resulted in a criminal charge.

(h) Nothing in this section shall prohibit a person or their representative from petitioning the court to obtain access to sealed eviction records in which the person is a party.

(i) A consumer reporting agency shall not disclose the existence of, or information regarding, an eviction record sealed under this section or use information contained in a sealed court record as a factor to determine any score or recommendation to be included in a consumer report unless the court record was available for inspection with the court not more than 30 days of the report date. A consumer reporting agency may include in a consumer report information found in publicly available court records; provided, however, that the consumer report shall include a person’s full name, whether an eviction action was a fault eviction, a no-fault eviction or a lessor action and the outcome of any eviction action if such information is contained in the publicly-available court record. Information contained in a court record sealed under this section shall be removed from the consumer report or from the calculation of any score or recommendation to be included in a consumer report not more than 30 days of the sealing of the court record from which it is derived. Any consumer reporting agency that violates this subsection shall be liable to the person who is the subject of the consumer report in an amount equal to the sum of any actual damages sustained by the consumer as a result of the violation and the costs of the action, including reasonable attorney’s fees. The attorney general shall enforce this subsection, and the remedies provided hereunder shall not be exclusive. Nothing in this subsection shall waive the rights or remedies of any person under any other law or regulation.

(j) An application used to screen applicants for housing or credit that seeks information concerning prior eviction actions of the applicant shall include the following statement: “An applicant for housing or credit with a sealed record on file with the court pursuant to section 16 of chapter 239 of the General Laws may answer ‘no record’ to an inquiry relative to that sealed court record.” No party shall be liable for any violation of the foregoing provision unless such party has first been issued a written warning from the attorney general and has failed to address the violation within 90 days of such notice.

The petition provided by the court for the sealing of records as provided under this section and any order granting such petition shall contain the following notice: “An applicant for housing or credit with a sealed record on file with the court pursuant to section 16 of chapter 239 of the General Laws may answer ‘no record’ to an inquiry relative to that sealed court record.” 

(k) A party who obtains a judgment or enters into an agreement in an eviction action solely for nonpayment of rent shall, not more than 14 days after satisfaction of the judgment or agreement, file with the court in which the judgment or agreement was entered a notice of satisfaction of the judgment or agreement. A party that has satisfied such judgment or agreement may, upon noncompliance with this subsection by the other party, file a petition for the judgment or agreement to be deemed satisfied, with notice to the parties to such action.  The court shall comply with the petitioner’s request; provided, however, that the record only pertains to an action for nonpayment of rent and the judgment or agreement has been satisfied.  If no objection is filed by a party within 7 days of filing the petition, the court may, in its discretion, process such petition administratively without a hearing. Upon the filing of a notice of satisfaction of judgment or an agreement, or court judgment deeming the judgment or agreement satisfied, a party may petition the court to seal the court record pertaining to that action. The petition shall be on a form furnished by the trial court, signed under the penalties of perjury and filed in the same court as the action sought to be sealed. If an action was active in more than 1 court during its pendency, a petition may be filed in each such court. Notice shall be given to the parties to the original action. The court shall comply with the petitioner’s request and seal the court record if the judgment or agreement has been satisfied and the action has concluded, with all rights of appeal exhausted and with no objection filed by a party within 7 days of filing the petition. The court may process such petitions administratively without a hearing.”

SECTION 49. The first sentence of the first paragraph of section 3 of chapter 708 of the acts of 1966 is hereby amended by striking out the words “department of housing and community development”, as appearing in section 43 of chapter 204 of the acts of 1996, and inserting in place thereof the following words:- executive office of housing and livable communities.

SECTION 50. Said first paragraph of said section 3 of said chapter 708, as amended by said section 43  of said chapter 204, is hereby further amended by striking out the third sentence and inserting in place thereof the following sentence:- Notwithstanding any general or special law to the contrary, the MHFA shall not be subject to  chapter 30A of the General Laws, sections 24 to 28, inclusive, of chapter 93 of the General Laws and chapters 255E and 255F of the General Laws.

SECTION 51. The first sentence of the second paragraph of said section 3 of said chapter 708 is hereby amended by striking out the words “director of housing and community development”, inserted by section 44 of said chapter 204, and inserting in place thereof the following words:- secretary of housing and livable communities.

SECTION 52. Paragraph (b) of section 8 of said chapter 708, is hereby amended by striking out the sixth sentence, as appearing in section 1 of  chapter 34 of the acts of 2003, and inserting in place thereof the following sentence:- The aggregate principal amount of notes and bonds of the MHFA issued to make mortgage loans pursuant to section 5 and to make or purchase loans pursuant to section 5A, outstanding at any 1 time, shall not exceed $10,800,000,000.

SECTION 53. Clause (iii) of the definition of “housing accommodation” in section 3 of chapter 527 of the acts of 1983, as appearing in section 4 of chapter 709 of the acts of 1989, is hereby amended by striking out the word “buildings” and inserting in place thereof the following words:- “owner-occupied buildings”.

SECTION 54. The third sentence of the second paragraph of paragraph (a) of section 35 of chapter 405 of the acts of 1985, as appearing in section 47 of chapter 204 of the acts of 1996, is hereby amended by striking out the words “department of housing and community development” and inserting in place thereof the following words:-  executive office of housing and livable communities.

SECTION 55. Said paragraph (a) of said section 35 of said chapter 405 is hereby further amended by striking out the words “communities and development”, as appearing in section 36 of chapter 102 of the acts of 1990, and inserting in place thereof the following words:- housing and livable communities.

SECTION 56. Section 2 of chapter 52 of the acts of 1993 is hereby amended by striking out item 4000-8200, as most recently amended by sections 18 of chapter 244 of the acts of 2002, and inserting in place thereof the following item:-

4000-8200For state financial assistance to implement the recommendations of the special commission in the form of loans for the development of community-based housing for individuals with mental health, intellectual or developmental disabilities; provided, that such loan program shall be administered by the executive office of housing and livable communities through contracts with housing authorities and redevelopment authorities duly organized and existing under chapter 121B of the General Laws, community development corporations duly organized and existing under chapter 40F of the General Laws, the Massachusetts Housing Finance Agency, a body politic and corporate entity, established under section 3 of chapter 708 of the acts of 1966, the Community Economic Development Assistance Corporation or CEDAC, a body politic and corporate, established under section 3 of chapter 40H of the General Laws and the government land bank, a body politic and corporate established under section 2 of chapter 212 of the acts of 1975; provided further, that the loan issuing authorities may develop or finance community-based housing or may enter into subcontracts therefor with nonprofit organizations established pursuant to chapter 180 of the General Laws or organizations in which such nonprofit corporations have a controlling financial or managerial interest; provided further, that the department shall take due consideration of a balanced geographic plan for such community-based housing when issuing such loans; provided further, that loans issued pursuant to this item shall: (i) be limited to not more than 50 per cent of the financing of the total development costs; (ii) be issued for a community-based housing project contingent on the title to the real property reverting to the commonwealth when the loan becomes due and payable, except as provided by clause (iii); (iii) only be issued when any contract or agreement for the use of the property for community-based housing provides for the recording of a restriction in the registry of deeds or the registry district of the land court of the county in which the affected real property is located, for the benefit of the departments, running with the land, that the land shall be used for the community-based housing for eligible individuals as determined by the department of mental health; provided further, that the property shall not be released from such restrictions unless: (a) the balance of the principal and interest for the loan has been repaid in full; (b) a mortgage foreclosure deed has been recorded; or (c) there has been a disposition of the property; provided further, that the executive office of housing and livable communities may release the property from such restriction if the executive office, in consultation with the department of mental health and the department of developmental services, determines that relevant clients will be better served at an alternative property and the proceeds from the disposition of the property shall be used, to the extent necessary for replacement of the housing at the property to: (1) acquire such alternative property; and (2) rehabilitate such alternative property; (iv) be issued for a term of not more than 30 years during which time repayment may be deferred by the loan issuing authority unless, at the end of any fiscal year, cash collections from all sources in connection with a community-based housing project, except for contributions, donations or grant monies, exceed 105 per cent of cash expenditures on behalf of the project, including debt service, operating expenses and capital reserves, in which event such excess cash shall be paid to the commonwealth within 45 days of the end of the fiscal year, payable first to interest due thereunder and thereafter to principal advanced pursuant to the loan; provided further, that if, on the date a loan become due and payable to the commonwealth, an outstanding balance exists and if, on such date, the executive office of housing and livable communities, in consultation with the executive office of health and human services, determines that there still exists a need for such housing and that there is continued funding available for the provision of services to such development, the executive office may, by agreement with the owner of the development, extend the loans for such periods not to exceed 10 years, as the executive office determines; provided further, that the project, whether at the original property or at an alternative property pursuant to clause (iii), shall remain affordable housing for the duration of the loan term, including any extensions, as set forth in the contract or agreement entered into by the executive office; provided further, that if the terms of repayment detailed in this item would cause a project authorized by this item to become ineligible to receive federal funds which would otherwise assist in the development of that project, the secretary may waive the terms of repayment which would cause the project to become ineligible; (v) have interest rates that shall be fixed at a rate, to be determined by the secretary of housing and livable communities, in consultation with the state treasurer, that shall be equal to the rate anticipated to be that paid by the commonwealth for bonds issued pursuant to section 8, which financing shall not exceed terms of 30 years; (vi) be provided only for projects conforming to this act; and (vii) be issued in accordance with a facilities consolidation plan prepared by the secretary of health and human services, reviewed and approved by the secretary of housing and livable communities and filed with the secretary of administration and finance and the house and senate committees on ways and means; provided further, that no expenditures shall be made pursuant to this item without the prior approval of the secretary of administration and finance; provided further, that not more than $10,000,000 shall be expended from this item for a pilot program of community-based housing loans to serve mentally-ill homeless individuals in the current or former care of the department of mental health; provided further, that in implementing the pilot program, the executive office shall take due consideration of a balanced geographic plan when establishing community-based residences; provided further, that housing services made available pursuant to such loans shall not be construed as a right or an entitlement for any individual or class of persons to the benefits of the pilot program; provided further, that eligibility for the pilot program shall be established by regulations promulgated by the executive office; provided further, that the executive office shall promulgate emergency regulations pursuant to section 2 of chapter 30A of the General Laws for the implementation of the community-based housing loan program and the mentally ill homeless pilot loan program authorized by this item, consistent with the facilities consolidation plan prepared by the secretary of health and human services and after consultation with said secretary and the commissioner of capital asset management and maintenance.…………….$50,000,000.

SECTION 57. Clause (2) of item 3722-8899 of section 2 of chapter 494 of the acts of 1993 is hereby amended by striking out the words “unless and until the balance of the principal and interest for said loan is repaid in full or unless and until a mortgage foreclosure deed is recorded” and inserting in place thereof the following words:- until: (i) the balance of the principal and interest for the loan has been repaid in full; (ii) a mortgage foreclosure deed has been recorded; or (iii) there has been a disposition of the property; provided further, that the executive office of housing and livable communities may release the property from such restriction if the executive office shall have determined that relevant clients will be better served at an alternative property and the proceeds from the disposition of the property shall be used, to the extent necessary for replacement of the housing at the property to: (A) acquire such alternative property; or (B) rehabilitate such alternative property.

SECTION 58. Clause (4) of said item 3722-8899 of said section 2 of said chapter 494 is hereby amended by striking out the words “provided, that the project continues to remain affordable housing as set forth in the contract or agreement entered into for the duration of the project by the department” and inserting in place thereof the following words:- provided, that the project, whether at the original property or at an alternative property pursuant to clause (2), continues to remain affordable housing as set forth in the contract or agreement entered into for the duration of the project by the executive office.

SECTION 59. Said item 3722-8899 of said section 2 of said chapter 494 is hereby further amended by striking out clauses (6) to (8), inclusive, and inserting in place thereof the following clause:- and (6) the executive office shall take due consideration of a balanced geographic plan for such alternative forms of housing when issuing such loans;.

SECTION 60. The first paragraph of section 16 of chapter 179 of the acts of 1995 is hereby amended by striking out, in line 3, the word “mobile” and inserting in place thereof the following words:- either mobile vouchers or project-based.

SECTION 61. The second paragraph of section 12 of chapter 257 of the acts of 1998, as amended by section 52 of chapter 235 of the acts of 2000, is hereby further amended by striking out clause (2) and inserting in place thereof the following clause:-

(2) such loans shall only be issued when a contract or agreement for the use of the property for such housing provides for the recording of a restriction in the registry of deeds or the registry district of the land court in the county in which the affected real property is located, for the benefit of the executive office of housing and livable communities, running with the land, that the land shall be used for the purpose of providing alternative forms of rental and ownership housing; provided, however, that such property shall not be released from such restriction until: (i) the balance of the principal and interest for any such loan has been repaid in full; (ii) a mortgage foreclosure deed has been recorded; or (iii) there has been a disposition of the property; provided further, that the executive office may release the property from such restriction if the executive office shall have determined that relevant clients will be better served at an alternative property and the proceeds from the disposition of the property shall be used, to the extent necessary, for replacement of the housing at the property to: (a) acquire such alternative property; or (b) rehabilitate such alternative property.

SECTION 62. Clause (3) of said second paragraph of said section 12 of said chapter 257, as so amended, is hereby further amended by striking out the words “, provided that the project continues to remain affordable housing as set forth in the contract or agreement entered into for the duration of the project by the department” and inserting in place thereof the following words:- ; provided, however, that the project, whether at the original property or at an alternative property pursuant to clause (2), continues to remain affordable housing as set forth in the contract or agreement entered into for the duration of the project by the executive office.

SECTION 63. Said section 12 of said chapter 257, as so amended, is hereby further amended by striking out clauses (5) to (7), inclusive, and inserting in place thereof the following clause:-

(5) the executive office shall take due consideration of a balanced geographic plan for such alternative forms of housing when issuing such loans.

SECTION 64. The second paragraph of section 5 of chapter 244 of the acts of 2002 is hereby amended by striking out clause (2) and inserting in place thereof the following clause:-

(2) such loans shall only be issued when a contract or agreement for the use of the property for such housing provides for the recording of a restriction in the registry of deeds or the registry district of the land court in the county in which the affected real property is located, for the benefit of the executive office of housing and livable communities, running with the land, that the land shall be used for the purpose of providing alternative forms of rental and ownership housing; provided, however, that such property shall not be released from such restriction until: (i) the balance of the principal and interest for any such loan has been repaid in full; (ii) a mortgage foreclosure deed has been recorded; or (iii) there has been a disposition of the property; and provided further, that the executive office may release the property from such restriction if the executive office shall have determined that relevant clients will be better served at an alternative property and the proceeds from the disposition of the property shall be used, to the extent necessary, for replacement of the housing at the property to: (a) acquire such alternative property; or (b) rehabilitate such alternative property;.

SECTION 65. Clause (3) of said second paragraph of said section 5 of said chapter 244 is hereby amended by striking out the words “provided that the project continues to remain affordable housing as set forth in the contract or agreement entered into for the duration of the project by the department” and inserting in place thereof the following words:- ; provided, however, that the project, whether at the original property or at an alternative property pursuant to clause (2), continues to remain affordable housing as set forth in the contract or agreement entered into for the duration of the project by the executive office.

SECTION 66. Said second paragraph of said section 5 of said chapter 244 is hereby further amended by striking out clauses (5) to (7), inclusive, and inserting in place thereof the following clause:-

(5) the executive office shall take due consideration of a balanced geographic plan for such alternative forms of housing when issuing such loans.

SECTION 67. Item 4000-8202 of section 2E of chapter 290 of the acts of 2004, as amended by section 20 of chapter 6 of the acts of 2005, is hereby further amended by striking out clause (2) and inserting in place thereof the following clause:-  (2) such loans shall be issued only when any contract or agreement for the use of the property for such housing provides for repayment to the commonwealth at the time of disposition of the property if such property will no longer be subject to a recorded deed restriction pursuant to clause (3); provided, however, that such repayment shall be an amount equal to the commonwealth’s proportional contribution from the Facilities Consolidation Fund to the cost of the development through payments made by the state agency making the contract; provided further, that such repayment shall not be required if the executive office of housing and livable communities, in consultation with the department of mental health and the department of developmental services, determines that relevant clients will be better served at an alternative property and the proceeds from the disposition of the property shall be used, to the extent necessary for replacement of the housing at the property to: (i) acquire such alternative property; or (ii) rehabilitate such alternative property;.

SECTION 68. Clause (3) of said item 4000-8202 of said section 2E of said chapter 290, as so amended, is hereby amended by striking out the words “provided, that the property shall not be released from such restrictions until the balance of the principal and interest for the loan is repaid in full or until a mortgage foreclosure deed is recorded” and inserting in place thereof the following words:- provided, that the property shall not be released from such restrictions unless: (i) the balance of the principal and interest for the loan has been repaid in full; (ii) a mortgage foreclosure deed has been recorded; or (iii) the executive office of housing and livable communities has determined pursuant to clause (2) that repayment to the commonwealth is not required.

SECTION 69. Clause (4) of said item 4000-8202 of said section 2E of said chapter 290, as so amended, is hereby amended by striking out the words “provided, however, that the project shall continue to remain affordable housing for the duration of the loan term, as extended, as set forth in the contract or agreement entered into by the department” and inserting in place thereof the following words:- provided, however, that the project, whether at the original property or at an alternative property pursuant to clause (3), shall continue to remain affordable housing for the duration of the loan term, as extended, as set forth in the contract or agreement entered into by the executive office.

SECTION 70. Said item 4000-8202 of said section 2E of said chapter 290, as so amended, is hereby further amended by striking out clauses (6) and (7).

SECTION 71. Said item 4000-8202 of said section 2E of said chapter 290, as so amended, is hereby further amended by striking out the figure “(8)” and inserting in place thereof the following figure:- (6).

SECTION 72. Said item 4000-8200 of said section 2E of said chapter 290, as so amended, is hereby further amended by striking out the figure “(9)” and inserting in place thereof the following figure:- (7).

SECTION 73. Said item 4000-8202 of said section 2E of said chapter 290, as so amended, is hereby further amended by striking out the figure “(10)” and inserting in place thereof the following figure:- (8).

SECTION 74. Item 4000-8201 of said section 2E of said chapter 290 is hereby amended by striking out clause (2) and inserting in place thereof the following clause:- (2) such loans shall be issued only when any contract or agreement for the use of the property for such housing provides for repayment to the commonwealth at the time of disposition of the property if such property will no longer be subject to a recorded deed restriction pursuant to clause (3); provided, however, that such repayment shall be an amount equal to the commonwealth’s proportional contribution from this item to the cost of the development through payments made by the state agency making the contract; provided further, that such repayment shall not be required if the executive office of housing and livable communities, in consultation with the Massachusetts rehabilitation commission, determines that relevant clients will be better served at an alternative property and the proceeds from the disposition of the property shall be used, to the extent necessary, for replacement of the housing at the property to: (i) acquire such alternative property; or (ii) rehabilitate such alternative property.

SECTION 75. Clause (3) of said item 4000-8201 of said section 2E of said chapter 290 is hereby amended by striking out the words “provided further, that the property shall not be released from such restrictions until the balance of the principal and interest for the loan is repaid in full or until a mortgage foreclosure deed is recorded” and inserting in place thereof the following words:- provided further, that the property shall not be released from such restrictions unless: (A) the balance of the principal and interest for the loan has been repaid in full; (B) a mortgage foreclosure deed has been recorded; or (C) the executive office of housing and livable communities has determined pursuant to clause (2) that repayment to the commonwealth is not required.

SECTION 76. Clause (4) of said item 4000-8201 of said section 2E of said chapter 290 is hereby amended by striking out the words “provided, however, that the project shall continue to remain affordable housing for the duration of the loan term, as extended, as set forth in the contract or agreement entered into by the department” and inserting in place thereof the following words:- provided, however, that the project, whether at the original property or at an alternative property pursuant to clause (2), shall continue to remain affordable housing for the duration of the loan term, as extended, as set forth in the contract or agreement entered into by the executive office.

SECTION 77. Said item 4000-8201 of said section 2E of said chapter 290 is hereby further amended by striking out clauses (6) and (7).

SECTION 78. Said item 4000-8201 of said section 2E of said chapter 290 is hereby further amended by striking out the figure “(8)” and inserting in place thereof the following figure:- (6).

SECTION 79. Said item 4000-8201 of said section 2E of said chapter 290 is hereby further amended by striking out the figure “(9)” and inserting in place thereof the following figure:- (7).

SECTION 80. Said item 4000-8201 of said section 2E of said chapter 290 is hereby further amended by striking out the figure “(10)” and inserting in place thereof the following figure:- (8).

SECTION 81. Item 7004-7018 of said section 2E of said chapter 290, as amended by section 21 of chapter 6 of the acts of 2005, is hereby further amended by inserting after the figure “2002” the following words:- , as amended.

SECTION 82. Section 5 of chapter 293 of the acts of 2006 is hereby amended by inserting after the definition of “Economic development project” the following definition:-

“Eligible housing increment”, a new residential unit that may either be a single-family house or 1 dwelling unit in a building or development containing 2 or more dwelling units, which dwelling units may be rental units or units in a condominium or cooperative or a combination thereof  that is created as part of an economic development project and pursuant to an infrastructure development assistance agreement approved by the secretary under this act.

SECTION 83. Said section 5 of said chapter 293 is hereby further amended by striking out the definition of “New revenue” and inserting in place thereof the following definition:-

“New revenue”, revenue derived from a commercial or residential component of an economic development project by the creation of any eligible new jobs or eligible housing increments or by new economic activity that would otherwise not have taken place on the commercial component or on or as a result of the residential component, as each may be more fully defined by any rules, regulations or guidelines promulgated by the secretary or the commissioner.

SECTION 84. The definition of “New state tax revenues” in said section 5 of said chapter 293 is hereby amended by inserting after the word “components”, in line 2, the following words:- or on account of the residential components.

SECTION 85. Said section 5 of said chapter 293, is hereby further amended by inserting after the definition of “Public infrastructure improvements” the following definition:-

“Residential component”, any component of an economic development project comprising 1 or more eligible housing increments, as more fully described in, or determined in accordance with, a certified economic development project.

SECTION 86. Subsection (a) of section 7 of said chapter 293 is hereby amended by inserting after the word “commercial”, in line 9, the following words:- or residential.

SECTION 87. Said subsection (a) of said section 7 of said chapter 293 is hereby further amended by inserting after the words “commercial”, in line 11, the following words:- and residential.

SECTION 88. Subsection (c) of said section 7 of said chapter 293 is hereby amended by inserting after the word “commercial”, in line 16, the following words:- and residential.

SECTION 89. Subsection (e) of said section 7 of said chapter 293, added by section 7 of chapter 129 of the acts of 2008, is hereby amended by inserting after the word “met”, in line 11, the following words:- and, with respect to projects which include a residential component, shall give priority to projects within an MBTA community as defined in section 1A of chapter 40A of the General Laws; provided, however, that such MBTA community shall be in compliance with section 3A of said chapter 40A.

SECTION 90. Subsection (a) of section 10 of said chapter 293, as amended by section 10 of said chapter 129, is hereby further amended by inserting after the word “commercial” the following words:- or residential.

SECTION 91. Said subsection (a) of said section 10 of said chapter 293, as so amended, is hereby further amended by inserting after the words “each commercial”, each time they appear, the following words:- or residential.

SECTION 92. Subsection (b) of said section 10 of said chapter 293, as appearing in section 11 of said chapter 129, is hereby amended by inserting after the word “commercial”, each time it appears, the following words:- or residential.

SECTION 93. Subsection (c) of said section 10 of said chapter 293 is hereby amended by inserting after the word “commercial ”, in lines 3 and 5, each time it appears, the following words:- or residential.

SECTION 94. Item 7004-0029 of section 2 of chapter 119 of the acts of 2008 is hereby amended by striking out clause (2) and inserting in place thereof the following clause:-  (2) be issued only when a contract or agreement for the use of the property for such housing provides for repayment to the commonwealth at the time of disposition of the property if such property will no longer be subject to a recorded deed restriction pursuant to clause (3); provided, however, that such repayment shall be in an amount equal to the commonwealth’s proportional contribution from the Facilities Consolidation Fund to the cost of the development through payments made by the state agency making the contract; provided further, that such repayment shall not be required if the executive office of housing and livable communities, in consultation with the department of mental health and the department of developmental services, determines that relevant clients will be better served at an alternative property and the proceeds from the disposition of the property shall be used, to the extent necessary for replacement of the housing at the property to: (i) acquire such alternative property; or (ii) rehabilitate such alternative property.

SECTION 95. Clause (3) of said item 7004-0029 of said section 2 of said chapter 119 is hereby amended by striking out the words “provided, that the property shall not be released from such restriction until the balance of the principal and interest for the loan has been repaid in full or until a mortgage foreclosure deed has been recorded” and inserting in place thereof the following words:- provided, that the property shall not be released from such restriction unless: (i) the balance of the principal and interest for the loan has been repaid in full; (ii) a mortgage foreclosure deed has been recorded; or (iii) the executive office of housing and livable communities has determined pursuant to clause (2) that repayment to the commonwealth is not required.

SECTION 96. Clause (4) of said item 7004-0029 of said section 2 of said chapter 119 is hereby amended by striking out the words “provided, however, that the project shall remain affordable housing for the duration of the loan term, including any extension thereof, as set forth in the contract or agreement entered into by the department” and inserting in place thereof the following words:- provided, however, that the project, whether at the original property or at an alternative property pursuant to clause (2), shall remain affordable housing for the duration of the loan term, including any extensions thereof, as set forth in the contract or agreement entered into by the executive office.

SECTION 97. Clause (5) of said item 7004-0029 of said section 2 of said chapter 119 is hereby amended by striking out the words “; provided further, that expenditures from this item shall not be made for the purpose of refinancing outstanding mortgage loans for community-based housing in existence prior to the effective date of this act; provided further, that community-based housing projects developed pursuant to this item shall not be refinanced during the term of any loan issued pursuant to this item unless the balance of the principal and interest for such loan has been repaid in full at the time of such refinancing; provided further, that the community-based housing projects may be refinanced if the refinancing would result in a reduction of costs paid by the commonwealth; provided further, that a refinanced loan shall be due and payable on a date not later than the date on which the original loan was due and payable, except in accordance with clause (4) when necessary to effect extraordinary repairs or maintenance which shall be approved by the commissioner of mental retardation or the commissioner of mental health, as the case may be, and the department”.

SECTION 98. Item 7004-0030 of said section 2 of said chapter 119 is hereby amended by striking out clause (2) and inserting in place thereof the following clause:-

(2) be issued only when a contract or agreement for the use of the property for such housing provides for repayment to the commonwealth at the time of disposition of the property if such property will no longer be subject to a recorded deed restriction pursuant to clause (3); provided, however, that such repayment shall be in an amount equal to the commonwealth’s proportional contribution from community-based housing to the cost of the development through payments made by the state agency making the contract; provide further, that such repayment shall not be required if the executive office of housing and livable communities, in consultation with the Massachusetts rehabilitation commission, determines that relevant clients will be better served at an alternative property and the proceeds from the disposition of the property shall be used, to the extent necessary for replacement of the housing at the property to: (i) acquire such alternative property; or (ii) rehabilitate such alternative property.

SECTION 99. Clause (3) of said item 7004-0030 of said section 2 of said chapter 119 is hereby amended by striking out the words “provided further, that the property shall not be released from such restrictions until the balance of the principal and interest for the loan has been repaid in full or until a mortgage foreclosure deed has been recorded” and inserting in place thereof the following words:- provided further, that the property shall not be released from such restrictions unless: (A) the balance of the principal and interest for the loan has been repaid in full; (B) a mortgage foreclosure deed has been recorded; or (C) the executive office of housing and livable communities has determined pursuant to clause (2) that repayment to the commonwealth is not required.

SECTION 100. Clause (4) of said item 7004-0030 of said section 2 of said chapter 119 is hereby amended by striking out the words “provided, however, that the project shall continue to remain affordable housing for the duration of the loan term, including any extensions thereof, as set forth in the contract or agreement entered into by the department” and inserting place thereof the following words:- provided, however, that the project, whether at the original property or at an alternative property pursuant to clause (2), shall continue to remain affordable housing for the duration of the loan term, including any extensions thereof, as set forth in the contract or agreement entered into by the executive office.

SECTION 101. Said item 7004-0030 of said section 2 of said chapter 119 is hereby further amended by striking out clause (5) and inserting in place thereof the following clause:- (5) have interest rates fixed at a rate, to be determined by the executive office, in consultation with the state treasurer; provided, however, that the loans shall be issued in accordance with an enhancing community-based services plan prepared by the secretary of health and human services, in consultation with the executive office ,and filed with the secretary for administration and finance and the house and senate committees on ways and means and the joint committee on housing; provided further, that no expenditure shall be made from this item without the prior approval of the secretary for administration and finance; provided further, that the executive office shall promulgate regulations pursuant to chapter 30A of the General Laws for the implementation, administration and enforcement of this item and such regulations shall be consistent with the enhancing community-based services plan prepared by the secretary of health and human services, after consultation with the secretary and the commissioner of capital asset management and maintenance.

SECTION 102. Sections 30, 36 and 98 of chapter 238 of the acts of 2012 are hereby repealed.

SECTION 103. Item 7004-0040 of section 2 of chapter 129 of the acts of 2013 is hereby amended by striking out clause (ii) and inserting in place thereof the following clause:-

(ii) be issued only when a contract or agreement for the use of the property for such housing provides for repayment to the commonwealth at the time of disposition of the property if such property will no longer be subject to a recorded deed restriction pursuant to clause (iii); provided, however, that such repayment shall be in an amount equal to the commonwealth’s proportional contribution from the Facilities Consolidation Fund to the cost of the development through payments made by the state agency making the contract; provided further, that such repayment shall not be required if the executive office of housing and livable communities, in consultation with the department of mental health and the department of developmental services, determines that relevant clients will be better served at an alternative property and the proceeds from the disposition of the property shall be used, to the extent necessary for replacement of the housing at the property, to: (A) acquire such alternative property; or (B) rehabilitate such alternative property.

SECTION 104. Clause (iii) of said item 7004-0040 of said section 2 of said chapter 129 is hereby amended by striking out the words “provided, however, that the property shall not be released from such restriction until the balance of the principal and interest for the loan has been repaid in full or until a mortgage foreclosure deed has been recorded” and inserting in place thereof the following words:- provided, however, that the property shall not be released from such restriction unless: (A) the balance of the principal and interest for the loan has been repaid in full; (B) a mortgage foreclosure deed has been recorded; or (C) the executive office of housing and livable communities has determined pursuant to clause (ii) that repayment to the commonwealth is not required.

SECTION 105. Clause (iv) of said item 7004-0040 of said section 2 of said chapter 129 is hereby amended by striking out the words “provided further, that the project shall remain affordable housing for the duration of the loan term, including any extension thereof, as set forth in the contract or agreement entered into by the department” and inserting in place thereof the following words:- provided further, that the project, whether at the original property or an alternative property pursuant to clause (ii), shall remain affordable housing for the duration of the loan term, including any extensions thereof, as set forth in the contract or agreement entered into by the executive office.

SECTION 106. Item 7004-0041 of said section 2 of said chapter 129 is hereby amended by striking out clause (ii) and inserting in place thereof the following clause:-

(ii) be issued only when a contract or agreement for the use of the property for the purposes of such housing provides for repayment to the commonwealth at the time of disposition of the property if such property will no longer be subject to a recorded deed restriction pursuant to clause (iii); provided, however, that such repayment shall be in an amount equal to the commonwealth’s proportional contribution from community-based housing to the cost of the development through payments made by the state agency making the contract; provided further, however, that such repayment shall not be required if the executive office of housing and livable communities, in consultation with the Massachusetts rehabilitation commission, determines that relevant clients will be better served at an alternative property and the proceeds from the disposition of the property will be used, to the extent necessary for replacement of the housing at the property, to: (A) to acquire such alternative property; or (B) to rehabilitate such alternative property;.

SECTION 107. Clause (iii) of said item 7004-0041 of said section 2 of said chapter 129 is hereby amended by striking out the words “provided, however, that the property shall not be released from such restrictions until the balance of the principal and interest for the loan has been repaid in full or until a mortgage foreclosure deed has been recorded” and inserting in place thereof the following words:- provided,  however, that the property shall not be released from such restrictions unless: (A) the balance of the principal and interest for the loan has been repaid in full; (B) a mortgage foreclosure deed has been recorded; or (C) the executive office of housing and livable communities has determined pursuant to clause (ii) that repayment to the commonwealth is not required.

SECTION 108. Clause (iv) of said item 7004-0041 of said section 2 of said chapter 129 is hereby amended by striking out the words “provided, however, that the project shall continue to remain affordable housing for the duration of the loan term, including any extensions thereof, as set forth in the contract or agreement entered into by the department” and inserting place thereof the following words:- provided, however, that the project, whether at the original property or an alternative property pursuant to clause (ii), shall continue to remain affordable housing for the duration of the loan term, including any extensions thereof, as set forth in the contract or agreement entered into by the executive office.

SECTION 109. Item 7004-0050 of section 2 of chapter 99 of the acts of 2018 is hereby amended by striking out clause (ii) and inserting in place thereof the following clause:-

(ii) not be issued unless a contract or agreement for the use of the property for such housing provides for repayment to the commonwealth at the time of disposition of the property if such property will no longer be subject to a recorded deed restriction pursuant to clause (iii); provided, however, that such repayment shall be in an amount equal to the commonwealth’s proportional contribution from the Facilities Consolidation Fund to the cost of the development through payments made by the state agency making the contract; provided further, however, that such repayment shall not be required if the executive office of housing and livable communities, in consultation with the department of mental health and the department of developmental services, determines that relevant clients will be better served at an alternative property and the proceeds from the disposition of the property will be used, to the extent necessary for replacement of the housing at the property, to: (A) acquire such alternative property; or (B) rehabilitate such alternative property.

SECTION 110. Said item 7004-0050 of said section 2 of said chapter 99 is hereby further amended by striking out the words “until the balance of the principal and interest for the loan has been repaid in full or until a mortgage foreclosure deed has been recorded” and inserting in place thereof the following words:- unless: (A) the balance of the principal and interest for the loan has been repaid in full; (B) a mortgage foreclosure deed has been recorded; or (C) the executive office of housing and livable communities has determined pursuant to clause (ii) that repayment to the commonwealth is not required.

SECTION 111. Said item 7004-0050 of said section 2 of said chapter 99 is hereby further amended by striking out the words “shall remain affordable housing for the duration of the loan term, including any extension thereof, as set forth in the contract or agreement entered into by the department” and inserting in place thereof the following words:-, whether at the original property or an alternative property pursuant to clause (ii), shall remain affordable housing for the duration of the loan term, including any extensions thereof, as set forth in the contract or agreement entered into by the executive office.

SECTION 112. Item 7004-0051 of said section 2 of said chapter 99 is hereby amended by striking out clause (ii) and inserting in place thereof the following clause:-

(ii) not be issued unless a contract or agreement for the use of the property for the purposes of such housing provides for repayment to the commonwealth at the time of disposition of the property if such property will no longer be subject to a recorded deed restriction pursuant to clause (iii); provided, however, that such repayment shall be in an amount equal to the commonwealth’s proportional contribution from community-based housing to the cost of the development through payments made by the state agency making the contract; provided further, however, that such repayment shall not be required if the executive office of housing and livable communities, in consultation with the Massachusetts rehabilitation commission, determines that relevant clients will be better served at an alternative property and the proceeds from the disposition of the property will be used, to the extent necessary for replacement of the housing at the property, to: (A) acquire such alternative property; or (B) rehabilitate such alternative property;.

SECTION 113. Said item 7004-0051 of said section 2 of said chapter 99 is hereby further amended by striking out the words “until the balance of the principal and interest for the loan has been repaid in full or until a mortgage foreclosure deed has been recorded” and inserting in place thereof the following words:- unless: (A) the balance of the principal and interest for the loan has been repaid in full; (B) a mortgage foreclosure deed has been recorded; or (C) the executive office of housing and livable communities has determined pursuant to clause (ii) that repayment to the commonwealth is not required.

SECTION 114. Said item 7004-0051 of said section 2 of said chapter 99 is hereby further amended by striking out the words “shall continue to remain affordable housing for the duration of the loan term, including any extensions thereof, as set forth in the contract or agreement entered into by the department” and inserting place thereof the following words:-, whether at the original property or an alternative property pursuant to clause (ii), shall continue to remain affordable housing for the duration of the loan term, including any extensions thereof, as set forth in the contract or agreement entered into by the executive office.

SECTION 115. Notwithstanding any general or special law, rule or regulation to the contrary, the architectural access board, established pursuant to section 13A of chapter 22 of the General Laws, shall determine the value of any multiple dwelling, as defined in 521 CMR 5.00, that is owned, constructed or renovated by a housing authority, as defined in section 1 of chapter 121B of the General Laws, by setting a replacement cost that is determined by and reflected in the executive office of housing and livable communities’ Capital Planning System survey and database for state-funded public housing. For such dwellings that are not included in the survey and database, the replacement cost shall be calculated by the executive office based on the replacement cost for comparable dwellings that are included in the survey and database. The executive office shall supplement the survey and database on file with the architectural access board for any such dwelling by preparing and filing documentation identifying the replacement cost for the dwelling and the method by which it was calculated.

SECTION 116. (a) Notwithstanding any general or special law to the contrary, there shall be a special commission to study and make recommendations on creating affordable and healthy senior housing in the commonwealth. The commission’s recommendations shall include, but not be limited to, strategies to better align housing, homecare and healthcare policy and programs to increase access and opportunity for residents of the commonwealth to age in their community. 

(b) The commission shall consist of the secretary of housing and livable communities or a designee, who shall serve as chair; the secretary of elder affairs or a designee; the chairs of the joint committee on elder affairs or their designees; the chairs of the joint committee on housing or their designees; 1 member who shall be appointed by the minority leader of the house of representatives; 1 member who shall be appointed by the minority leader of the senate; 1 member who shall be a representative of Citizens Housing and Planning Association, Inc.; 6 members chosen by the governor, 4 who shall be representatives of statewide organizations focusing on aging concerns and 2 members who shall be representatives of nonprofit housing developers with experience developing affordable senior rental housing. 

(c) The study shall include, but not be limited to: (i) mapping out the economic profile of older adults;  (ii) determining gaps in services to older adults; (iii) identifying best practices for creating supportive senior housing with sustainable funding; (iv) determining strategies for connecting and streamlining services supporting older adults in their community, including identifying federal waivers or other actions to support integration of such services; (v) identifying partners to create opportunities for supportive housing development that incorporates health care infrastructure and service; (vi) estimating the costs and potential impact of programs and recommending comprehensive strategies; (vii) recommendations for creating academic partnerships to document and evaluate program innovations; (viii) an analysis of the projected demand for senior housing in the 5 years following the first meeting of the commission; (ix) recommendations to ensure senior housing is physically accessible and compliant with the Americans with Disabilities Act; (x) a review of barriers to necessary housing modifications and potential funding sources; (xi) recommendations to encourage development of senior housing in areas within reasonable walking distance of amenities and public transportation; (xii) an evaluation of age-restricted housing and intergenerational housing with respect to costs, tenant preferences, accessibility and safety; and (xiii) recommendations for design and infrastructure features, such as increased ventilation and functional outdoor space, for the purpose of preventing the spread of contagious diseases.

(d) Not later than June 30, 2025, the commission shall file a report of their study with the clerks of the senate and house of representatives, the joint committee on elder affairs and the joint committee on housing.

SECTION 117. (a) As used in this section and sections 118 and 119, the following words shall have the following meanings unless the context clearly requires otherwise:

“Affordable housing purposes”, development of multi-family housing, of which either: (i) not less than 25 per cent shall be affordable to households with incomes at or below 80 per cent of the area median income, adjusted for household size; or (ii) not less than 20 per cent shall be affordable to households with incomes at or below 50 per cent of the area median income, adjusted for household size; provided, that affordable housing purposes may include subsequent conveyance by a public agency, other than a state agency, with a restriction for affordable housing purposes.

“Commissioner”, the commissioner of capital asset management and maintenance.

“Housing purposes”, development of housing for use as the primary residence of the occupant including, but not limited to, market rate housing, affordable housing and public housing; provided, however, that housing purposes may include subsequent conveyance by a public agency, other than a state agency, with a restriction for housing purposes; provided further, that housing purposes shall include affordable housing purposes.

“Public agency”, as defined in section 1 of chapter 7C of the General Laws; provided, however, that “public agency” shall include the Massachusetts Department of Transportation, the Massachusetts Bay Transportation Authority and the University of Massachusetts Building Authority; provided further,  that public agency shall not include cities, towns or counties or any boards, committees, commissions or other instrumentalities thereof; and provided further, that public agency shall not include any agency that is a state agency as defined in said section 1 of said chapter 7C.

“Public institution of higher education”, as set forth in section 5 of chapter 15A of the General Laws.

“Real property”, as defined in said section 1 of chapter 7C of the General Laws.

“Real property of the commonwealth”, real property of a state agency consistent with  chapter 7C of the General Laws.

“Real property of a public agency”, as defined in section 32 of chapter 7C of the General Laws.

“Secretary”, the secretary of administration and finance.

“State agency”, as defined in said section 1 of said chapter 7C; provided, however, that state agency shall not include counties.

“Surplus real property”, (i) real property of the commonwealth that has been determined by the commissioner to be surplus: (A) to the current and foreseeable needs of the commonwealth pursuant to clause (i) of paragraph (2) of subsection (b); or (B)  to the current and foreseeable needs of any state agency pursuant to section 33 or 34 of chapter 7C of the General Laws; or (ii) real property of a public agency determined by the commissioner to be surplus to the current and foreseeable needs of the public agency, as determined by the public agency; provided, however, that surplus real property shall not include property subject to Article XCVII of the Amendments to the Constitution.

(b)(1) Notwithstanding sections 32 to 37, inclusive, of chapter 7C of the General Laws, or any other general or special law to the contrary, the commissioner may sell, lease for a term not to exceed 99 years, transfer or otherwise dispose of surplus real property of the commonwealth or surplus real property of a public agency for housing purposes.

(2)(i) The commissioner may, in consultation with the secretary and the secretary of housing and livable communities, determine that real property of the commonwealth is surplus real property and shall be disposed of for housing purposes; provided, however, that prior to determining that the real property is surplus real property, the commissioner shall provide a suitable written notice and inquiry to the state agency with care and control of the real property with a date certain required for any response. If no written response is timely received from the state agency specifying a current or foreseeable need for the real property, the commissioner shall declare such real property as surplus real property and dispose of such surplus real property for housing purposes. If a written response is timely received from the state agency specifying a current or foreseeable need for the real property, the commissioner shall, in consultation with the secretary, the secretary of housing and livable communities and such state agency, determine whether the real property shall be declared surplus real property and disposed of for housing purposes.

(ii) Notwithstanding sections 32 to 37, inclusive, of said chapter 7C or any other general or special law to the contrary, if any real property of the commonwealth is determined to be surplus to the current needs, but not to the foreseeable needs, of any state agency, the commissioner shall take such necessary action to ensure that any disposition of the real property is temporary and maintains the commissioner’s ability to make such real property available to a state agency as needed.

(iii) Notwithstanding sections 32 to 37, inclusive, of said chapter 7C or any other general or special law to the contrary, the commissioner may, in consultation with the secretary and the secretary of housing and livable communities, make real property of the commonwealth that has been determined to be surplus to the current needs, but not the foreseeable needs, of any state agency available for a period of time not to exceed the foreseeable need of any state agency for housing and related purposes to municipalities, public agencies and non-profit organizations for nominal consideration.

(3) The president of any public institution of higher education may, with the approval of the commissioner of higher education, determine that property of any public institution of higher education is surplus to the current and foreseeable needs of such institution and the commissioner may dispose of such property for housing purposes, provided, however, that  the institution’s board of trustees does not disapprove of such determination within 60 days of the president’s determination.

(4)(i) The governor may identify parcels of land owned or controlled by a public agency and any buildings or improvements thereon as potential surplus real property by submitting a written notice to the public agency. Not later than 30 days of receipt of the notice, the public agency shall determine whether such real property is surplus to its current and foreseeable needs. If the public agency determines that the real property is not surplus to its current and foreseeable needs, such public agency shall respond in writing not later than 30 days after receipt of a request by the governor, specifying the reason for its determination.

(ii) The commissioner may, in consultation with the secretary and the secretary of housing and livable communities, enter into agreements with a public agency to dispose of surplus real property of the public agency for housing purposes; provided, however, that the commissioner shall not be required to determine if the real property of the public agency is surplus to the current and foreseeable needs of the commonwealth and shall not be required to provide written notice and inquiry to any public agency.

(c) Notwithstanding sections 32 to 37, inclusive, of chapter 7C of the General Laws, or any other general or special law to the contrary, the commissioner may amend a use restriction held by the commonwealth for general municipal purposes or any other purpose, except those purposes subject to Article XCVII of the Amendments to the Constitution, to include housing purposes.

(d)(1) Notwithstanding sections 32 to 37, inclusive, of chapter 7C of the General Laws, or any other general or special law to the contrary, if the commissioner, in consultation with the secretary and the secretary of housing and livable communities, determines that real property is surplus real property pursuant to clause (i) of paragraph (2) of subsection (b) or the commissioner enters into an agreement with a public agency pursuant to clause (ii) of paragraph (4) of subsection (b), the commissioner shall: (i) provide written notice, for each city or town in which the property is located, to the city manager in the case of a city under Plan E form of government, the mayor and city council in the case of all other cities, the chair of the board of selectmen or the select board in the case of a town, the county commissioners, the chair of the zoning board of appeals, the chair of the planning board, the regional planning agency and the members of the general court representing the city or town in which the property is located; provided, that such notice shall include a statement that the proposed reuse of the property is for housing purposes, with a date certain for any response that shall be not less than 30 days from the date of such notice; (ii) following the date certain set forth in such notice, declare said real property available for disposition and identify all reuse restrictions including, but not limited to, a restriction for housing purposes; and (iii) ensure that any deed, lease or other disposition agreement shall: (A) set forth all reuse restrictions including, but not limited to, a restriction for housing purposes; (B) provide for effective remedies on behalf of the commonwealth; and (C) provide, in the event of a failure to comply with the reuse restrictions by the grantee, lessee or other recipient, that title or such lesser interest as may have been conveyed may revert to the commonwealth. The commissioner shall, in identifying reuse restrictions for such property, consider in good faith any comments presented by local officials and members of the general court representing each city or town in which the property is located.

(2) The commissioner shall, in consultation with the secretary of housing and livable communities, dispose of surplus real property: (i) by utilizing appropriate competitive processes and procedures; or (ii) through a sales-partnership agreement with the municipality wherein said real property is located; provided, however, that the sales-partnership agreement shall require the municipality to utilize appropriate competitive processes and procedures; provided further, that the sales-partnership agreement may require the municipality to utilize said competitive processes and select a developer prior to disposition of the real property; provided further, that the commissioner may transfer the real property directly to the selected developer pursuant to the sale-partnership agreement; and provided further, that the sales-partnership agreement may provide for payment to the municipality in an amount not to exceed 50 per cent of the net sales price paid to the commonwealth, as determined by the commissioner. A competitive process pursuant to clause (i) may include, but shall not be limited to, absolute auction, sealed bids and requests for price and development proposals. The commissioner may accept any consideration for surplus real property disposed of pursuant to this section deemed appropriate by the commissioner and the secretary of housing and livable communities. The commissioner shall prioritize disposition of surplus real property for affordable housing purposes.

(3) Not less than 30 days before the date of an auction or the date on which bids or proposals or other offers to purchase or lease surplus real property are due, the commissioner shall place a notice in the central register published by the state secretary pursuant to section 20A of chapter 9 of the General Laws stating the availability of such property, the nature of the competitive process and other information deemed relevant, including the time and location of the auction, the submission of bids or proposals and the opening thereof. The commissioner shall not be required to place said notice if the property is conveyed: (i) to a municipality or developer selected by a municipality in accordance with paragraph (2); or (ii) for nominal consideration in accordance with clause (ii) of paragraph (2) of subsection (e).

(4) All surplus real property shall be conveyed with a restriction for housing purposes. The deed or other instrument conveying the surplus real property shall provide that said real property shall be used solely for housing purposes.

(5) The commissioner shall place a notice in the central register identifying the municipality, public agency, individual or firm selected as party to such real property transaction, along with the amount of such transaction. If the commissioner accepts an amount below the value calculated pursuant to paragraph (1) of subsection (e), the commissioner shall include the justification therefore, specifying the difference between the calculated value and the price received.

(e)(1) The commissioner shall establish the value of surplus real property using customarily accepted appraisal methodologies. The value shall be calculated for: (i) the highest and best use of the property as may be encumbered; and (ii) subject to uses, restrictions and encumbrances defined by the commissioner. In no instance in which the commonwealth retains responsibility for maintaining the property shall the terms provide for payment of less than the annual maintenance costs.

(2)(i) Notwithstanding paragraph (1), the commissioner may, in consultation with the secretary and the secretary of housing and livable communities, dispose of surplus real property for nominal consideration; provided, however, that the surplus real property shall be conveyed with a restriction for affordable housing purposes. The deed or other instrument conveying the surplus real property shall provide that said property shall be used solely for affordable housing purposes and may include a reversionary clause that stipulates that if the parcel ceases at any time to be used for affordable housing purposes, title and the parcel shall, at the election of the commonwealth, revert to the commonwealth.

(ii) Notwithstanding any time limit established pursuant to section 7 of chapter 184A of the General Laws or any general or special law to the contrary, the reversionary clause may be enforceable.

(iii) The commissioner may, in consultation with the secretary and the secretary of housing and livable communities, amend a use restriction held by the commonwealth to include housing purposes.

(f) Notwithstanding sections 32 to 37, inclusive, of chapter 7C of the General Laws or any other general or special law to the contrary, the commissioner may, in consultation with the secretary, the secretary of housing and livable communities and the state agency with care and control of the real property, transfer care and control of real property between state agencies for housing purposes.

(g)(1) No agreement for the sale, lease, transfer or other disposition of surplus real property and no deed executed by or on behalf of the commonwealth shall be valid unless such agreement or deed contains the following certification, signed by the commissioner:

“The undersigned certifies under penalties of perjury that I have fully complied with requirements of law related to any real property described herein.”

(2) No agreement for the sale, lease, transfer or other disposition of surplus real property shall be valid unless the purchaser or lessee has executed and filed with the commissioner the statement required by section 38 of chapter 7C of the General Laws.

(h) The grantee or lessee of any surplus real property shall be responsible for all costs relating to the conveyance, including, but not limited to, appraisals, surveys, plans, recordings and any other expenses, as shall be deemed necessary by the commissioner.

(i) The commissioner shall deposit the proceeds from any disposition of real property pursuant to this section into the surplus real property disposition fund established in section 119.

(j) The commissioner may, in consultation with the secretary of housing and livable communities, promulgate regulations to implement this section.

SECTION 118. (a) Notwithstanding chapter 40A of the General Laws or any other general or special law or any local zoning or municipal ordinance or by-law to the contrary, a city or town shall permit the residential use of real property conveyed by the commissioner pursuant to section 117 for housing purposes as of right, as defined in section 1A of said chapter 40A, notwithstanding any use limitations otherwise applicable in the zoning district in which the real property is located, including, but not limited to, commercial, mixed-use development or industrial uses; provided, however, that the city or town may impose reasonable regulations concerning the bulk and height of structures and determining yard sizes, lot area, setbacks, open space and building coverage requirements; provided further, that the city or town may require site plan review; provided further, that the city or town shall permit no fewer than 4 units of housing per acre.

(b) Real property conveyed by the commissioner pursuant to section 117 shall include, but not be limited to, the amendment of use restrictions held by the commonwealth to allow for the use of such real property for housing purposes.

(c) The secretary of housing and livable communities may promulgate regulations to implement this section.

SECTION 119. (a) There is hereby established a Surplus Real Property Disposition Trust Fund to be administered by the secretary of administration and finance.

(b) The fund shall be credited with: (i) the proceeds realized from the disposition of surplus real property and the amendment of use restrictions pursuant to section 117; (ii) any appropriation, grant, gift or other contribution made to the fund; and (iii) any interest earned on money in the fund. Amounts credited to the fund shall not be subject to further appropriation and any money remaining in the fund at the end of a fiscal year shall not revert to the General Fund and shall be available for expenditure in the subsequent fiscal year.

(c) Amounts credited to the fund may be: (i) transferred by the secretary to the state agency that had care and control of the land conveyed pursuant to section 117 if the real property was conveyed for fair market value consideration in an amount equal to the net proceeds of the disposition; (ii) transferred by the secretary to the state agency that had care and control of the real property conveyed pursuant to section 117 if the real property was conveyed for consideration less than fair market value in an amount equal to $10,000 per unit of housing permitted by the city or town in which the real property is located or the net proceeds of the disposition, whichever is greater; (iii) transferred by the secretary to a municipality in accordance with a sales partnership agreement pursuant to section 117; or (iv) expended for costs associated with the disposition of real property pursuant to section 117, including, but not limited to, demolition, site preparation and environmental remediation; provided, that all money transferred to a state agency pursuant to clauses (i) and (ii) shall be expended by the agency for capital facility projects as defined in section 1 of chapter 7C of the General Laws; provided further, that all net proceeds from the disposition of surplus real property of a public agency other than a state agency, as determined by the commissioner of capital asset management and maintenance, shall be transferred to such public agency.

SECTION 120. (a) Notwithstanding any general or special law to the contrary, not more than 120 days after the expiration of affordability restrictions on housing units assisted under items 7004-0070 and 7004-0071 of section 2, the executive office of housing and livable communities or its assignee, who shall be a qualified developer selected pursuant to the terms of said items 7004-0700 and 7004-0071 under the guidelines of the executive office, shall have an option to purchase any such housing units at their current appraised value, reduced by any remaining obligation of the owner, upon the expiration of the affordability restrictions. The executive office or its assignee shall only purchase or acquire such housing units to preserve or provide affordable housing. The executive office or its assignee shall hold such purchase option for 120 days after the expiration of the affordability restrictions. Failure to exercise the purchase option within 120 days after the expiration of the affordability restriction shall constitute a waiver of the purchase option by the executive office or its assignee.

(b) Not later than 30 days after the expiration of an affordability restriction pursuant to subsection (a), the owner and the executive office shall each designate a professional in the field of multi-unit residential housing. Each professional shall select an impartial appraiser. Not later than 60 days after the expiration of the affordability restriction, the 2 impartial appraisers shall determine the current appraised value in accordance with recognized professional standards. If there is a difference in the valuations, the valuations shall be added together and divided by 2 to determine the current appraised value of the units.

(c) No sale, transfer or other disposition of the property shall be completed until either the purchase option period has expired or the owner has been notified, in writing, by the executive office or its assignee that the option will not be exercised. The option shall be exercised only by written notice signed by a designated representative of the executive office or its assignee, sent to the owner by certified mail at the address specified in the notice of intention and recorded with the registry of deeds or the registry district of the land court of the county in which the affected real property is located, within the option period. If the purchase option has been assigned to a qualified developer selected pursuant to said items 7004-0070 and 7004-7071 of said section 2, the written notice shall state the name and address of the developer and the terms and conditions of the assignment.

(d) Before any sale, transfer or other disposition of property for which the executive office has not previously exercised an option to purchase, an owner shall offer the executive office or its assignee, who shall be a qualified developer selected pursuant to said items 7004-0070 and 7004-0071 of said section 2, a first refusal option to meet a bona fide offer to purchase the units. The owner shall provide to the executive office or its assignee written notice by regular and certified mail, return receipt requested, of the owner’s intention to sell, transfer or otherwise dispose of the property. The executive office or its assignee shall hold the first refusal option for 120 days after receipt of the owner’s written notice of intent to transfer the property. Failure to respond to the written notice of intent to sell, transfer or otherwise dispose of the property within the 120-day period shall constitute a waiver of the right of first refusal by the executive office. No sale, transfer or other disposition of the property shall be completed until either the first refusal option period has expired or the owner has been notified in writing by the executive office or its assignee that the option will not be exercised. The option shall be exercised only by written notice signed by a designated representative of the executive office or its assignee, sent to the owner by certified mail at the address specified in the notice of intention and recorded with the registry of deeds or the registry district of the land court of the county in which the affected real property is located, within the option period. If the first refusal option has been assigned to a qualified developer selected pursuant to said items 7004-0070 and 7004-0071 of said section 2, the written notice shall state the name and address of the developer and the terms and conditions of the assignment.

(e) An affidavit before a notary public that the notice of intent was mailed on behalf of an owner shall conclusively establish the manner and time of the giving of notice to sell, transfer or otherwise dispose of the property. The affidavit and notice that the option shall not be exercised shall be recorded with the registry of deeds or the registry district of the land court in the county in which the affected real property is located. Each notice of intention, notice of exercise of the purchase option or first refusal option and notice that the purchase option or first refusal option shall not be exercised shall contain the name of the recorded owner of the property and a reasonable description of the property to be sold or converted. Each affidavit signed before a notary public shall have attached to it a copy of the notice of intention to which it relates. The notices of intention shall be mailed to the relevant parties in the care of the keeper of the records for the party in question. Upon notifying the owner in writing of its intention to exercise its purchase option or first refusal option during the 120-day period, the executive office or its assignee shall have an additional 120 days, beginning on the date the purchase option period or first refusal option period expires, to purchase the units. The time periods may be extended by mutual agreement between the executive office or its assignee and the owner of the property. Any extension agreed upon shall be recorded in the registry of deeds or the registry district of the land court of the county in which the affected real property is located. Within a reasonable time after requesting an extension, the owner shall make available to the executive office or its assignee any information that is reasonably necessary for the executive office to exercise its option.

SECTION 121. Notwithstanding any general or special law to the contrary, a private entity engaged in a construction, development, renovation, remodeling, reconstruction, rehabilitation or redevelopment project receiving funds pursuant to this act shall properly classify individuals employed on the project and shall comply with all laws concerning workers’ compensation insurance coverage, unemployment insurance, social security taxes and income taxes with respect to all such employees. All construction contractors engaged by a private entity on any such project shall furnish documentation to the appointing authority showing that all employees employed on the project have hospitalization and medical benefits that meet the minimum requirements of the commonwealth health insurance connector established in chapter 176Q of the General Laws.

SECTION 122. (a) There shall be a special commission to study and make recommendations on expanding the supply of housing available and affordable to tenants with a household income of not more than 30 per cent of the area median income, adjusted for household size, as periodically determined by the United States Department of Housing and Urban Development. The commission shall review and evaluate federal, state and local subsidies that support the creation of housing for such tenants and make recommendations to increase the supply of housing that is available and affordable to households earning not more than 30 per cent of the area median income.

(b) The commission shall review and consider the following: (i) the number of deeply subsidized rental units targeted at families with incomes at or below 30 per cent of the area median income and the percentage of those units that are accessible to persons with disabilities; (ii) the number of families with such incomes per deeply subsidized rental unit; (iii) the gap between median rents and rents affordable to families with such incomes and an analysis of whether existing housing subsidies are sufficient to bridge such gap; (iv) the ratio of households with such incomes to unsubsidized units available at rents up to 50 per cent of such income; (v) housing market factors such as vacancy rates, rate of rent increases and conversion of rental housing to homeownership units; (vi) the impact of non-housing subsidies including, but not limited to, the earned income tax credit on cost burdens for working families; (vii) barriers to accessing available housing, including racial and ethnic disparities in housing access; and (viii) any other factors that the commission deems relevant.

(c) The commission shall consist of the secretary of housing and livable communities or a designee, who shall serve as chair; the chairs of the joint committee on housing or their designees; the minority leader of the house of representatives or a designee; the minority leader of the senate or a designee; the secretary of administration and finance or a designee; the secretary of health and human services or a designee; a representative of the Citizens Housing and Planning Association, Inc.; a representative of the Massachusetts Housing Partnership; a representative of the Massachusetts Housing Finance Agency; a representative of the Community Economic Development Assistance Corporation; a representative of Massachusetts Law Reform Institute, Inc.; a representative of Massachusetts Association of Community Development Corporations; a representative of Regional Housing Network of Massachusetts, Inc.; and 5 members appointed by the governor, 1 of whom shall be a representative of a local housing authority, 1 of whom shall be a representative of an advocacy organization representing tenants, 1 of whom shall have expertise in affordable housing finance, 1 of whom shall have expertise in nonprofit affordable housing development and 1 of whom shall have expertise in development of permanent supportive housing.

(d) Not later than June 30, 2025, the commission shall file its recommendations with the clerks of the house of representatives and the senate and the joint committee on housing.

SECTION 123. (a) The executive office of housing and livable communities, in consultation with the executive office for administration and finance and the department of revenue, shall conduct a study on the feasibility and impact of allowing cities and towns, by local option, to exempt new affordable housing developments from the limitations set forth in paragraphs (b) and (f) of section 21C of chapter 59 of the General Laws. The study shall include, but not be limited to: (i) the potential revenue benefits of such exemption; (ii) the potential number of affordable housing units constructed as a result of such exemption; (iii) the impact of allowing cities or towns, by local option, to exempt the value of new affordable housing developments at a multiplier of 5 and 10 times the amount of said value from said limitations; (iv) the impact of applying such exemption to entire housing developments with different percentages of affordable units; (v) the impact of requiring certain thresholds of affordability for new affordable housing developments in order to qualify for such exemption; and (vi) a comparison of potential impacts of such exemption to different cities and towns across the state.

(b) The executive office of housing and livable communities shall submit a report of its findings to the clerks of the senate and house of representatives, the joint committee on housing, the joint committee on revenue and the senate and house committees on ways and means not later than March 1, 2025.

SECTION 124. (a) There shall be a special commission to analyze, report and recommend a policy or pilot programs to meaningfully address housing shortages in the commonwealth. The commission shall focus on finding sustainable and equitable housing solutions to: (i) improve housing production; (ii) address racial wealth disparities in housing; (iii) ensure regional equity in housing; and (iv) prevent chronic homelessness.

(b)  The commission shall consist of: the secretary of housing and livable communities or a designee, who shall serve as chair; the secretary of administration and finance or a designee; the director of rural affairs or a designee; the attorney general or a designee; the chairs of the joint committee on housing or their designees; 3 members to be appointed by the speaker of the house of representatives, 1 representing a gateway city, 1 representing a seasonal community and 1 representing a rural community; 3 members to be appointed by the senate president, 1 representing a gateway city, 1 representing a seasonal community and 1 representing a rural community; 1 member who shall be appointed by the minority leader of the house of representatives; 1 member who shall be appointed by the minority leader of the senate; 1 person who shall be a representative of the Citizens’ Housing and Planning Association, Inc.; 1 person who shall be a representative of the Massachusetts Municipal Association, Inc.; 1 person who shall be a member of the Greater Boston Real Estate Board; 1 person from the Massachusetts Association of Community Development Corporations; 1 person who shall be a representative from Western Massachusetts Housing Coalition; 1 person appointed by the president of the AFL-CIO; 1 of whom shall be a representative of the Massachusetts Taxpayers Foundation, Inc.; 1 of whom shall be a representative of the Center for State Policy Analysis at Tufts University; 1 person who shall be a representative of the Tiny Home Industry Association; 1 person from Greater Boston Community Land Trust; 1 person from the Massachusetts Association of Housing Cooperatives, Inc.; 1 person who shall be a representative of the Center for Economic Democracy, Inc.; 1 person who shall be a representative of the Greater Boston Chamber of Commerce, Inc.; and the following members to be appointed by the governor, 1 of whom shall represent the public housing authorities, 1 of whom shall be a representative of a regional planning agency, 1 of whom shall be a housing developer committed to affordable housing development in rural communities and 1 of whom shall be from a tenant advocacy organization.

       (c) The commission shall examine and make recommendations on: (i) a local option transfer fee to be applied on transactions involving the transfer of real property interests, including, but not limited to, its impact on both residential and commercial property, the property value threshold amount, the impact on the housing economy both statewide and regionally, spending requirements and potential exemptions; (ii) the potential impact of a local option vacancy tax to be applied to unoccupied residential properties; (iii) the potential impact of a high-end blight tax to be applied to unused distressed commercial property; (iv) scaling of mixed income neighborhood trusts or community land trusts to preserve affordable housing; (v) increasing the existing deed excise tax to support local and statewide affordable housing trusts; (vi) additional types of residential housing cooperatives and land trusts; (vii) changes to the community preservation program established under chapter 44B of the General laws to encourage additional production of new housing units; and (viii) any other topic areas the commission deems relevant to its mandate.

      (d) The commission shall file its recommendations with the clerks of the senate and house of representatives, the senate and house committees on ways and means and the joint committee on housing not later than September 15, 2025.

SECTION 125. Notwithstanding any general or special law to the contrary, the unexpended and unencumbered balances of the bond-funded authorizations in the following accounts shall cease to be available for expenditure 180 days after the effective date of this act: 3000-0410, 7002-8032, 7004-0049, 7004-0050, 7004-0051, 7004-0052, 7004-0053, 7004-0055, 7004-0056, 7004-0057, 7004-0058, 7004-0059, 7004-0060, 7004-0061, 7004-0062, 7004-0064, 7004-0065, 7004-0066, 7004-0067, 7004-8016, 7004-8026.

SECTION 126. To meet the expenditures necessary in carrying out sections 2 and 2A the state treasurer shall, upon request of the governor, issue and sell bonds of the commonwealth in an amount to be specified by the governor from time to time but not exceeding, in the aggregate, $5,146,000,000. All bonds issued by the commonwealth as aforesaid shall be designated on their face, The Affordable Homes Act of 2024, and shall be issued for a maximum term of years, not exceeding 30 years, as the governor may recommend to the general court under section 3 of Article LXII of the Amendments to the Constitution. All such bonds shall be payable not later than June 30, 2059, pursuant to said section 3 of said Article LXII of the Amendments to the Constitution. All interest and payments on account of principal on these obligations shall be payable from the General Fund. Bonds and interest thereon issued under the authority of this section shall, notwithstanding any other provision of this act, be general obligations of the commonwealth. An amount not to exceed 2 per cent of the authorizations may be expended by the executive office of housing and livable communities for administrative costs directly attributable to the purposes of this act, including costs of clerical and support personnel. The secretary of housing and livable communities shall file an annual spending plan detailing, by subsidiary, all personnel costs and any administrative costs charged to expenditures made pursuant to this act with the fiscal affairs division within the executive office for administration and finance, the house and senate committees on ways and means, the joint committee on bonding, capital expenditures and state assets and the joint committee on housing.

SECTION 127. To meet the expenditures necessary in carrying out section 2B, the state treasurer shall, upon request of the governor, issue and sell bonds in an amount to be specified by the governor from time to time but not exceeding, in the aggregate, $50,000,000. All bonds issued by the commonwealth as aforesaid shall be designated on their face, The Affordable Homes Act of 2024, and shall be issued for a maximum term of years, not exceeding 30 years, as the governor may recommend to the general court pursuant to section 3 of Article LXII of the Amendments to the Constitution; provided, however, that all such bonds shall be payable not later than June 30, 2059. All interest and payments on account of principal on such obligations shall be payable from the General Fund. Bonds and interest thereon issued under the authority of this section shall, notwithstanding any other provision of this act, be general obligations of the commonwealth. An amount not to exceed 2 per cent of the authorizations may be expended by the executive office of housing and livable communities for administrative costs directly attributable to the purposes of this act, including costs of clerical and support personnel. The secretary of housing and livable communities shall file an annual spending plan with the fiscal affairs division within the executive office for administration and finance, the house and senate committees on ways and means, the house and senate committees on bonding, capital expenditures and states assets and the joint committee on housing which details, by subsidiary, all personnel costs and any administrative costs charged to expenditures made pursuant to this act.

SECTION 128. Not later than December 15, 2024, the executive office of housing and livable communities shall promulgate guidance or regulations pursuant to subsection (h) of section 33 of chapter 23B of the General Laws.

SECTION 129. Sections 19, 20 and 22 and section 38OO of chapter 63 of the General Laws shall take effect for tax years beginning on or after January 1, 2025.

SECTION 130. Section 38OO of chapter 63 of the General Laws is hereby repealed.

SECTION 131. Sections 117 to 119, inclusive, are hereby repealed.

SECTION 132. Sections 10, 28, 45, 46 and 47 shall take effect 180 days after the effective date of this act.

SECTION 133. Sections 21, 24 and 130 shall take effect on January 1, 2030.

SECTION 134. Section 131 shall take effect on June 30, 2030; provided, however, that the commissioner of capital asset management and maintenance may complete any transaction for which agreements have been signed and delivered on or before June 30, 2030.