Amendment #720 to H4700

Statutory Clarification

Mr. Cahill of Lynn moves to amend the bill by adding the following two sections:-

SECTION XX.  Section 35C of chapter 244 of the General Laws, as so appearing in the 2020 Official Edition, is hereby amended by striking out subsection (h) and replacing with the following subsection:-

(h)In all circumstances in which an entity with a tax-exempt filing status under section 501(c)(3) of the Internal Revenue Code, or an entity controlled by an entity with such tax exempt filing status—

a.Offers to purchase either a mortgage loan or residential property, no creditor shall require as a condition of sale or transfer to any such entity any affidavit, statement, agreement or addendum limiting ownership or occupancy of the residential property by the borrower and, if obtained, such affidavit, statement, agreement or addendum shall not provide a basis to avoid a sale or transfer nor shall it be enforceable against such acquiring entity or any real estate broker, borrower or settlement agent named in such affidavit, statement or addendum.

b.Obtains from a person acquiring or re-acquiring a residential property any mortgage, note, or security instrument encumbering such residential property that secures the contingent right of the entity to receive a share of the appreciation in value of such residential property upon the sale, conveyance, assignment, or other transfer thereof, upon refinancing of the first priority mortgage loan, or upon the occurrence of other events, including reaching a defined maturity date, said entity shall not be liable for monetary relief, injunctive relief, or other equitable relief at common law or by statute, including Chapter 93A, Chapter 140D, Chapter 183C, and/or Chapter 271, Section 49 of the General Laws, for the use or terms of said mortgage, note, or security instrument so long as such person is advised, in ‎advance of the closing of such person’s acquisition or re-acquisition of ‎such residential property, that such person will be required to give such a mortgage, note, or security instrument to such entity at the closing.

SECTION XX.  This act shall be effective both retroactively and prospectively.