Bill Summary – FastDemocracy

FILED ON: 6/5/2024
     HOUSE . . . . . . . . . . . . . . . No. 4726
    House, No. 4707, as changed by the committee on Bills in the Third Reading, and as amended
    and passed to be engrossed by the House. June 5, 2024.
                               The Commonwealth of Massachusetts
                                                     _______________
                                   In the One Hundred and Ninety-Third General Court
                                                      (2023-2024)
                                                     _______________
    An Act relative to the Affordable Homes Act.
            Whereas, The deferred operation of this act would tend to defeat its purpose, which is to
    authorize forthwith the financing of the production and preservation of housing for low and
    moderate income citizens of the commonwealth and to make related changes in certain laws,
    therefore it is hereby declared to be an emergency law, necessary for the immediate preservation
    of the public convenience.
             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. To provide for a capital outlay program to rehabilitate, produce and
 modernize state-aided public housing developments; to preserve the affordability and the income
 mix of state-assisted multifamily developments; to support home ownership and rental housing
 opportunities for low and moderate income citizens; to stem urban blight through the
 implementation of housing stabilization programs; to support housing production for the elderly,
 disabled and homeless; to preserve housing for the elderly, the homeless and low and moderate
 income citizens and persons with disabilities; to develop facilities for licensed early care and
 education and out of school time programs; and to promote economic reinvestment through the
 funding of infrastructure improvements, the sums set forth in sections 2 to 2B, inclusive for the
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 several purposes and subject to the conditions specified in this act, are hereby made available
 subject to the laws regulating the disbursement of public funds.
        SECTION 2.
                             EXECUTIVE OFFICE OF EDUCATION
                              Department of Early Education and Care
        3000-0411       For the purpose of state financial assistance in the form of grants for the
 Early Education and Out of School Time Capital Fund for the development of eligible facilities
 for licensed early care and education and out of school time programs established in section 18
 of chapter 15D of the General Laws; provided, that the department of early education and care
 may contract with quasi-public or non-profit entities to administer the program, including, but
 not limited to, the Community Economic Development Assistance Corporation established in
 chapter 40H of the General Laws; provided further, that the department may develop or finance
 eligible facilities, may enter into subcontracts with nonprofit organizations established pursuant
 to chapter 180 of the General Laws or organizations in which such nonprofit corporations have a
 controlling financial or managerial interest; provided further, that the department shall consider:
 (i) a balanced geographic plan for such eligible facilities when issuing the funding commitments;
 and (ii) funding large group and school age child care centers, as defined by the department;
 provided further, that the services made available pursuant to such grants shall not be construed
 as a right or entitlement for any individual or class of persons to the benefits financing; provided
 further, that no expenditure shall be made from this item without the prior approval of the
 secretary of administration and finance; and provided further, that eligibility shall be established
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 by regulations promulgated by the department pursuant to chapter 30A of the General Laws for
 the implementation, administration and enforcement of this item............................... $50,000,000
             EXECUTIVE OFFICE OF HOUSING AND LIVABLE COMMUNITIES
                                         Office of the Secretary
         7004-0069       For a program of loans or grants to assist homeowners or tenants with a
 household member with blindness or severe disabilities in making modifications to their primary
 residence for the purpose of improving accessibility or to allow such individuals to live
 independently in the community or for construction costs to allow for the building of an
 accessory unit, which shall mean a unit constructed as an additional dwelling unit separate from
 the primary dwelling unit, for a person with disabilities or an elder needing assistance with
 activities of daily living; provided, that not more than 10 per cent shall be used for grants to
 assist landlords seeking to make modifications for a current or prospective tenant with
 disabilities, who but for such a grant would be unable to maintain or secure permanent housing;
 provided further, that the secretary of housing and livable communities and the secretary of
 health and human services shall take all steps necessary to minimize the program’s
 administrative costs; provided further, that the secretary of health and human services may
 contract with quasi-public or non-profit entities to administer the program, including, but not
 limited to, the Community Economic Development Assistance Corporation established in
 chapter 40H of the General Laws; provided further, that the program shall be available pursuant
 to income eligibility standards approved by the secretary of health and human services; provided
 further, that the repayment of the loans may be delayed until the sale of the principal residence
 by the homeowner; provided further, that persons residing in a development covered by section 4
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 of chapter 151B of the General Laws shall not be eligible for the program unless the owner can
 show that the modification is an undue financial burden or that the landlord is participating in the
 grant program to maintain or secure housing for a tenant with disabilities; provided further, that
 the secretary of health and human services shall consult with the Massachusetts commission for
 the blind and the Massachusetts rehabilitation commission to develop rules, regulations and
 guidelines for the program; provided further, that nothing in this item shall give rise to
 enforceable legal rights in any party or an enforceable entitlement to services; provided further,
 that funds expended from this item shall, to the maximum extent feasible, be prioritized for
 projects that comply with decarbonization and sustainability standards; provided further, that
 prioritization shall be determined through objective scoring criteria in the Qualified Allocation
 Plan developed by the executive office of housing and livable communities; provided further,
 that for new construction projects, the standards set forth in the commonwealth’s Opt-in
 Specialized Energy Code in 225 CMR 22.00 and 23.00 and the Enterprise Green Communities
 standards shall be the applicable standards for prioritization; provided further, that any project
 proposing less than full compliance with said standards shall provide detailed analysis
 demonstrating why full compliance would render the project infeasible notwithstanding
 utilization of all available federal and state incentives, including rebates and tax credits; provided
 further, that for retrofits of existing units, prioritization shall be given to projects that include
 energy efficiency and electrification decarbonization measures, including, but not limited to
 electric or ground source heat pumps, net-zero developments, Passive House or equivalent
 energy efficiency certification, and all-electric buildings and projects that incorporate green,
 sustainable and climate-resilient elements; provided further, that projects that include lower
 embodied carbon construction materials and methods shall be further prioritized; and provided
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 further, that the secretary of housing and livable communities shall submit quarterly reports to
 the house and senate committees on ways and means, the joint committee on bonding, capital
 expenditures and state assets and the joint committee on housing detailing the status of the
 program established in this item................................................................................... $60,000,000
           7004-0070          For state financial assistance in the form of loans for the development of
 community-based housing or supportive housing for individuals with mental illness and
 individuals with intellectual disabilities; provided, that the loan program shall be administered by
 the executive office of housing and livable communities through contracts with 1 or more of the
 following agencies: the Massachusetts Development Finance Agency established in chapter 23G
 of the General Laws, the Community Economic Development Assistance Corporation
 established in chapter 40H of the General Laws, operating agencies established pursuant to
 chapter 121B of the General Laws and the Massachusetts Housing Finance Agency established
 in chapter 708 of the acts of 1966; provided further, that those agencies may develop or finance
 community-based housing or supportive housing or may enter into subcontracts with nonprofit
 organizations, established pursuant to chapter 180 of the General Laws, or organizations in
 which such nonprofit corporations have a controlling financial or managerial interest or for-profit
 organizations; provided, however, that preference for the subcontracts shall be given to nonprofit
 organizations; provided further, that the executive office shall consider a balanced geographic
 plan for such community-based housing or supportive housing when issuing the loans; provided
 further, that the executive office shall consider development of a balanced range of housing
 models by prioritizing funds for integrated housing as defined by the appropriate housing and
 service agencies, including, but not limited to, the executive office of housing and livable
 communities, the department of mental health and the department of developmental services, in
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 consultation with relevant and interested clients, clients’ families, advocates and other parties as
 necessary; provided further, that loans issued pursuant to this item shall: (i) not exceed 50 per
 cent of the financing of the total development costs; (ii) not be issued unless a contract or
 agreement for the use of the property for such housing provides for repayment to the
 commonwealth at the time of disposition of the property if such property will no longer be
 subject to a recorded deed restriction pursuant to clause (iii) of this item; provided, however, that
 such repayment shall be in an amount equal to the commonwealth’s proportional contribution
 from the Facilities Consolidation Fund to the cost of the development through payments made by
 the state agency making the contract; provided further, that such repayment shall not be required
 if the executive office of housing and livable communities, in consultation with the department
 of mental health and the department of developmental services, determines that relevant clients
 will be better served at an alternative property and the proceeds from the disposition of the
 property will be used, to the extent necessary for replacement of the housing at the property, for
 1 or more of the following purposes: (A) to acquire such alternative property; or (B) to
 rehabilitate such alternative property; (iii) not be issued unless the contract or agreement for the
 use of the property for the purposes of such housing provides for the recording of a deed
 restriction in the registry of deeds or the registry district of the land court of the county in which
 the real property is located, for the benefit of the executive office and the departments, running
 with the land, that the land shall be used to provide community-based housing or supportive
 housing for eligible individuals as determined by the department of mental health and the
 department of developmental services; provided, however, that the property shall not be released
 from such restriction unless: (A) the balance of the principal and interest for the loan has been
 repaid in full; (B) a mortgage foreclosure deed has been recorded; or (C) the executive office of
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 housing and livable communities has determined, pursuant to clause (ii) of this item, that
 repayment to the commonwealth is not required; (iv) be issued for a term not to exceed 30 years,
 during which time repayment may be deferred by the loan issuing authority; provided, however,
 that if on the date the loans become due and payable to the commonwealth, an outstanding
 balance exists and if, on such date, the executive office, in consultation with the executive office
 of health and human services, determines that there still exists a need for such housing and that
 there is continued funding available for the provision of services to such development, the
 executive office may, by agreement with the owner of the development, extend the loans for
 such periods, each period not to exceed 10 years, as the executive office shall determine;
 provided further, that the project, whether at the original property, or at an alternative property
 pursuant to clause (ii) of this item, shall remain affordable housing for the duration of the loan
 term, including any extension thereof, as set forth in the contract or agreement entered into by
 the executive office; provided further, that in the event the terms of repayment detailed in this
 item would cause a project authorized by this item to become ineligible to receive federal
 financial assistance which would otherwise assist in the development of that project, the
 executive office may waive the terms of repayment which would cause the project to become
 ineligible; and (v) have interest rates fixed at a rate, to be determined by the executive office, in
 consultation with the state treasurer; provided further, that the loans shall be provided only for
 projects conforming to this item; provided further, that the loans shall be issued in accordance
 with a facilities consolidation plan prepared by the secretary of health and human services,
 reviewed and approved by the executive office and filed with the secretary of administration and
 finance, the house and senate committees on ways and means, the joint committee on bonding,
 capital expenditures and state assets and the joint committee on housing; provided further, that
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 no expenditure shall be made from this item without the prior approval of the secretary of
 administration and finance; provided further, that the executive office of housing and livable
 communities, the department of mental health and the Community Economic Development
 Assistance Corporation may identify appropriate financing mechanisms and guidelines for grants
 or loans from this item to promote private development to produce housing, to provide for
 independent integrated living opportunities, to write down building and operating costs and to
 serve households at or below 15 per cent of the area median income for the benefit of department
 of mental health clients; provided further, that funds expended from this item shall, to the
 maximum extent feasible, be prioritized for projects that comply with decarbonization and
 sustainability standards; provided further, that prioritization shall be determined through
 objective scoring criteria in the Qualified Allocation Plan developed by the executive office of
 housing and livable communities; provided further, that for new construction projects, the
 standards set forth in the commonwealth’s Opt-in Specialized Energy Code in 225 CMR 22.00
 and 23.00 and the Enterprise Green Communities standards shall be the applicable standards for
 prioritization; provided further, that any project proposing less than full compliance with said
 standards shall provide detailed analysis demonstrating why full compliance would render the
 project infeasible notwithstanding utilization of all available federal and state incentives,
 including rebates and tax credits; provided further, that for retrofits of existing units,
 prioritization shall be given to projects that include energy efficiency and electrification
 decarbonization measures, including, but not limited to electric or ground source heat pumps,
 net-zero developments, Passive House or equivalent energy efficiency certification, and all-
 electric buildings and projects that incorporate green, sustainable and climate-resilient elements;
 provided further, that projects that include lower embodied carbon construction materials and
                                                     8 of 177
 methods shall be further prioritized; provided further, that not more than $10,000,000 may be
 expended from this item for a pilot program of community-based housing or supportive housing
 loans to serve mentally ill homeless individuals in the current or former care of the department of
 mental health; provided further, that in implementing the pilot program, the executive office
 shall consider a balanced geographic plan when establishing community-based residences;
 provided further, that the housing services made available pursuant