Amendment #428 to H3800

Rent Reporting Demonstration Program

Mr. Madaro of Boston moves to amend the bill, in section 2, by inserting after item 7004-9316 the following item:- “7004-XXXX For the implementation of a 3 year rent reporting demonstration project at the department of housing and community development established in section 55A of this act...$500,0000”; and

by inserting after section 55 the following section:-

“SECTION 55A. The department of housing and community development shall establish a rent reporting demonstration program for eligible organizations, including local housing authorities, affordable housing property management companies and community development corporations, to implement a credit-building program that uses regular monthly reporting of tenant rent payments to major consumer reporting agencies as a mechanism to help these tenants build credit profiles. Program initiatives may include, but are not limited to, the following:

(1) furnish rental payment data on behalf of residents at a selected development or developments;

(2) identify opportunities to engage tenants to educate them about rent reporting as a credit building tool and to enroll them in the program. Protections under the Privacy Act of 1974 may require program participants to secure written consent from tenants to report data to the credit bureaus;

(3) offer individualized credit coaching and educational support to tenants whose rent is reported, or identify third-party providers that can provide such services if an eligible organization is not able to do so;

(4) assess the impact of rent reporting on participating tenants' credit outcomes, including changes in credit score and establishing a credit history or credit score and other measures of tenants' financial capability, which may include but is not limited to, on-time rent payment rates, debt levels and access to affordable credit; and

(6) include Credit Builders Alliance and similar nonprofit intermediary resources that provide credit building and financial capability resources geared for low-income communities to provide technical assistance to program participants to implement the program.

(b) Eligible organizations will participate in a 3-year demonstration program, which will record and report tenants’ timely rent payments to consumer reporting agencies.

(c) Eligible organizations or an identified third-party shall provide training and support to the eligible organizations’ staff and tenants regarding the pilot as feasible. Organization staff or an identified third party shall conduct educational briefings for tenants to learn about the program and the benefits of participation. In addition, organizations will provide ongoing financial education and coaching either directly or through a third party.

(d) The program shall collect the following data points and make them available to organization staff and tenants in an aggregated and anonymized format: (1) rates of on-time rent payment of tenants; (2) credit score tiers of tenants; (3) average credit score point fluctuations; (4) tenant attendance at trainings, coaching sessions and informational briefings; and (5) tenant dropout and enrollment rate in program.

The department of housing and community development shall evaluate the collected data and   file a report with the clerks of the senate and house of representatives, the chairs of the joint committee on financial services and the chairs not later than 6 months after the conclusion of the demonstration program.

(e) The department shall establish an advisory committee with the following members: the secretary of the executive office housing and economic development or a designee; 4 representatives appointed by the governor, 2 of whom shall be representatives from a community development corporation, and 2 of whom shall be representatives from a public housing tenant organization; 1 member selected by the joint committee on economic development; 1 member selected by the joint committee on housing; and 1 member selected by the joint committee on financial services. The advisory committee shall provide assistance and track the implementation of the pilot program; provided, further, that the advisory committee shall study the report referenced in subsection (d) and recommend expansion of the pilot to other eligible organizations.”.


Amendment #428 to H3800

Rent Reporting Demonstration Program

Representative:

Frank A. Moran

Denise Provost

Kay Khan

Elizabeth A. Malia

Daniel Cahill

Tami L. Gouveia

David Henry Argosky LeBoeuf

Thomas M. Stanley

Patrick Joseph Kearney

Nika C. Elugardo

Tram T. Nguyen

Marjorie C. Decker

Steven Ultrino

Mike Connolly

John C. Velis

Marcos A. Devers