Bill S.989 194th (Current)

Establishes a starter home program to be managed by the Executive Office of Housing and Livable Communities in partnership with the Massachusetts Housing Finance Agency. The program creates a Starter Home Development Fund which is designed to provide subsidies to developers to build owner-occupied "starter homes" for households whose incomes are between 80 and 120 percent of the area median income. These subsidies would not exceed 35% of the total cost of eligible development and could be used to bring down costs for homebuyers if not fully used during development. The legislation also stipulates that equity may stay in the home to keep the sale price affordable for future buyers, either by ensuring the subsidy remains with the home to offset the cost to future homebuyers, or through the use of a housing subsidy covenant at the time of purchase that preserves the affordability of the home for not less than 99 years. This specific fund will be composed of a) revenue from appropriations; b) other monies authorized by the General Court; c) gifts; d) grants; e) private contributions; f) repayment of loans; g) investment income earned on the fund assets; h) other sources. Additionally, the bill requires the adoption of a program plan and selection criteria to ensure that funds are only disbursed to appropriate developments. Finally, the bill establishes an advisory committee to make policy recommendations to the Executive Office of Housing and Livable Communities and the Massachusetts Housing Finance Agency.