SECTION 1. Chapter 23B of the General Laws is hereby amended by adding the following new section:-

Section 37. (a) For the purposes of this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:-

“Executive office”, The Executive Office of Housing and Livable Communities.

“Low and moderate income”, income is not less than 70 percent, or more than 120 percent of the area median income as defined by the United States Department of Housing and Urban Development.

''Mixed-use development'', development containing a mix of residential uses and non-residential uses, including, without limitation, commercial, institutional, industrial or other uses.

“Permanently affordable”, a housing unit subject to an affordable housing restriction in perpetuity pursuant to Section 31 of Chapter 184.                            

(b)(1) Subject to appropriation, the executive office shall establish the permanent affordability homeownership program to aid in the development and construction of permanently affordable homeownership opportunities for low and moderate income home buyers in the Commonwealth. The executive office may, on behalf of the commonwealth, accept and expend federal funds to carry out this section.

(2) Funding allocation and expenditures shall be subject to the following criteria; provided, that the executive office shall determine the process by which funding is allocated, the amount of funding provided per housing units and the specific expenses covered under the program:

(i) Funds expended from the program shall only be used to fund the creation of permanently affordable homeownership units; provided, however, that the funds may be used to fund permanently affordable homeownership units within a mixed-use development project.

(ii) Funds expended for the program shall only be used on permanently affordable homeownership units affordable to low and moderate income households

(iii) Funds expended from the program shall only be used to fund housing projects with 1 to 25 units.

(c) The secretary of housing and livable communities shall report annually to the clerks of the house of representatives and the senate, who shall forward the report to the house of representatives and the senate and the chairs of the joint committee on housing, on the activities and status of the program. The report shall include a list and description of all projects that received funds under the program, the amount of each grant, the number of housing units created by each grant, the number of housing units created at each affordability level, and the size of the projects funded.

SECTION 2. The executive office of housing and livable communities shall promulgate regulations pursuant to section 37 of chapter 23B, as inserted by this act, no later than December 31, 2027.