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The 190th General Court of the Commonwealth of Massachusetts

AN ACT RELATIVE TO THE NANTUCKET ISLANDS LAND BANK ACT.

      Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same as follows:
      SECTION 1.  Section l of chapter 669 of the acts of l983, as most recently amended by section l of chapter 354 of the acts  of 2010, is hereby further amended by striking out the definition of “Commission” and inserting in place thereof the following 2 definitions:- 
      “Affordable housing restriction”, a recorded instrument held by a qualified holder which encumbers or restricts a real property interest so that the real property interest is perpetually, or for a term of at least 30 years, limited to use as a residence occupied by a low or moderate income household that earns less than a specified income level, the upper limit of which may not exceed 175 per cent of the Nantucket median income; provided, however, that a “qualified holder” shall be a governmental body or charitable corporation or trust that qualifies under the terms of chapter 184 of the General Laws to hold an affordable housing restriction as defined in section 31 of said chapter 184; and provided further, that without limiting the generality of the foregoing, an affordable housing restriction shall include any instrument that conforms to the requirements of: (i) a Nantucket housing needs covenant as described in chapter 301 of the acts of 2002 and defined from time to time in the town of Nantucket code; or (ii) an affordable housing restriction complying with the definition and other requirements of said chapter 184.
      “Commission”, the Nantucket Islands Land Bank Commission established in section 3.
      SECTION 2.  Section 12 of said chapter 669 is hereby amended by adding the following paragraph:-   
      (o)  Transfer of a real property interest that is subject to and used consistent with an affordable housing restriction; provided, however, that the affordable housing restriction has a term remaining at the time of the transfer of not less than 5 years; and provided further, that the purchaser shall make the real property interest, that is the subject of the transfer, the purchaser's actual domicile within 2 years of the time of transfer and shall remain permanently or for an indefinite time and without any certain purpose to return to a former place of abode for a period lasting not less than the fifth anniversary of the transfer.  Notwithstanding this paragraph, if the real property interest is transferred again within 5 years and the later transfer complies with this paragraph, a fee, interest or penalty shall not be due.  If the holder of an affordable housing restriction determines within 5 years of the transfer that the real property interest to which it pertains is not being used consistent with the requirements of the affordable housing restriction or if a later transfer within 5 years that does not comply with this paragraph, the fee exempted hereunder shall become due, together with the accumulated interest and penalties calculated from the date of the transfer exempted hereunder.  The purchaser shall certify as to the foregoing and the commission shall attach to the deed a certificate that shall recite the fact that there is running with the land a lien equal to the amount of the fee exempted plus accumulated interest and penalties until such time as all conditions of this paragraph have been met.

Approved, January 11, 2017