Code of Massachusetts Regulations › 760 CMR - HOUSING AND LIVABLE COMMUNITIES, EXECUTIVE OFFICE OF › Title 760 CMR 23.00 - Housing Innovations Funds › Section 23.02 - Definitions

Current through Register 1525, July 5, 2024
The following definitions will apply to HIF I, HIF II, HIF III, HIF
				IV, HIF V, HIF VI, HIF VII, and M.G.L. c. 121E:
Alternative Form of Housing
. A Residential
				Housing Development that involves an unusual or specialized type of management or
				social services, an innovative financing or ownership structure, or other innovative
				features as determined by DHCD.
Application
. An application for a loan or,
				for M.G.L. c. 121E, other form of financial assistance, in the format specified by
				the HIF Program Guidelines, including a description of a proposed project, all
				financing sources, and all other matters required by the applicable HIF Program
				Guidelines.
Creation of Housing
. New construction,
				rehabilitation of an existing building, or the conversion of an existing
				non-eligible Project to an Eligible Project.
DHCD
. The Department of Housing and
				Community Development (including, where applicable, its predecessor, the Executive
				Office of Communities Development).
Deferred Payment Loan (DPL)
. A loan secured
				by a mortgage on an Eligible Project which defers the repayment of principal and
				interest (if any) for a defined or undefined period of time.
Developer
. The developer of an Eligible
				Project and its permitted successors and assigns. The Developer may also be the
				owner of the Eligible Project, but need not be the owner, so long as such Developer
				has control of the site pursuant to a ground lease or other instrument acceptable to
				DHCD, in its discretion, for a period at least equal to the term of the applicable
				HIF loan or, if applicable, other financial assistance and the owner assents to the
				Developer's execution, delivery and recording of the Land Use Restriction, and
				executes and delivers the Land Use Restriction and such additional documentation as
				DHCD may require, in its discretion, regarding the rights of DHCD and/or any
				Financial Intermediary with respect to the site.
Eligible Project/Use (Project)
. The
				acquisition, construction, renovation and/or rehabilitation and the operation of an
				Alternative Form of Housing that meets the requirements of
				760 CMR
				23.03. Such housing may include any of the
				following types of housing owned and operated by a Nonprofit Corporation: Single
				Room Occupancy Housing, Limited Equity Cooperative Housing, Transitional Housing,
				permanent or Transitional Housing for the homeless, shelters for survivors of
				domestic abuse, Special Needs Housing, Mutual Housing, Expiring Use Restriction
				Housing, and other forms of housing as determined by DHCD. For HIF IV and M.G.L. c.
				121E, such housing may also include any of the following types of housing owned and
				operated by a Nonprofit Corporation: Employer Assisted Housing, Housing in
				Receivership,
Lease-to-purchase Housing, and Housing in College Communities. For
				M.G.L. c. 121E, such housing may also include Projects making Alternative Forms of
				Housing more accessible to senior citizens and persons with disabilities, and
				Municipally Sponsored Housing. For M.G.L. c. 121E, an Eligible Project may also be
				owned and operated by a Local Housing Authority. For housing assisted under HIF IV,
				HIF V, or M.G.L. c. 121E, preference shall be given to Projects that provide
				transitional or permanent housing for homeless individuals and families and disabled
				persons. For housing assisted under HIF VII, such housing also may include projects
				for people in recovery from substance use disorder.
Employer Assisted Housing
. An Eligible
				Project undertaken jointly with a local employer that has agreed to devote private
				resources to the Project, in connection with which the participating employer may
				obtain dedicated housing units for Low-income or Extremely Low-income employees. If
				funded under M.G.L. c. 121E, financial assistance for such housing may include
				matching funds, in a ratio to be determined by DHCD, associated with the capital
				costs of an employer-based program to assist employees who qualify as Low-income
				Persons or Families in meeting their rental or homeownership housing costs, where
				the details of buyer or tenant eligibility, form of assistance, limits on property
				value, and other requirements meet the criteria set forth in the HIF Program
				Guidelines for such a program.
Expiring Use Restriction Housing
. A
				Residential Housing Development that is acquired by a Nonprofit Corporation or a
				Limited Equity Cooperative Housing Corporation under Title II of the National
				Emergency Low Income Housing Preservation Act of 1987 or Title VI of the National
				Affordable Housing Act of 1990.
Extremely Low-income Person or Family
. A
				single person or family whose adjusted income is less than or equal to 30% of the
				median gross income for the area in which the Project is located, adjusted for
				family size and region, as determined by the United States Department of Housing and
				Urban Development, or any successor department or agency thereto, pursuant to §
				8 of the United States Housing Act of 1937.
Financial Intermediary
. The Community
				Economic Development Assistance Corporation, the Massachusetts Housing Finance
				Agency, the Massachusetts Development Finance Agency (formerly the Massachusetts
				Government Land Bank), a Local Housing Authority, a redevelopment authority, a
				community development corporation, or, in the case of HIF IV, HIF V, or M.G.L. c.
				121E, a Nonprofit Corporation that has been certified by the United States
				Department of Housing and Urban Development as a "community development housing
				organization" as defined in
				24 CFR
				§
									92.2, which entity serves as the conduit
				for HIF loan funds and is not a member of the development team.
Financially Feasible Project
. An Eligible
				Project that is likely to secure binding financial commitments from other funding
				sources which, together with HIF funds, total the budgeted amount necessary to
				develop and operate the Project.
Gross Cash Expenditures
. All expenses paid
				out by the Project, including: all payments of principal and interest (if any) and
				any other debt service on outstanding loans, all operating and maintenance expenses,
				and reasonable payments into capital and operating reserves for the Project.
Gross Cash Receipts
. All cash collections
				received by the Project from all sources, with the exception of documented
				contributions, donations and grant proceeds.
HIF Legislation
. Collectively, the HIF I
				Legislation, the HIF II Legislation, the HIF III Legislation, the HIF IV
				Legislation, the HIF V Legislation, the HIF VI Legislation, the HIF VII Legislation,
				and M.G.L. c. 121E or, where the context so requires, the specific legislation
				applicable, respectively, to HIF I, HIF II, HIF III, HIF IV, HIF V, HIF VI, HIF VII,
				and M.G.L. c. 121E loans or, as applicable, other financial assistance.
HIF Program Guidelines
. Guidelines issued
				by DHCD setting out, clarifying and further explaining
				760 CMR 23.00 (and/or the prior
				regulations appearing at 760 CMR 40.00 [HIF I] and 760 CMR 52.00 [HIF II], as
				applicable), program policy and procedure. The HIF Program Guidelines shall apply to
				all HIF financing programs (subject to
				760 CMR
				23.01(6)) .
Housing Development Agencies
. Any of the
				authorities through which DHCD is authorized to administer the HIF program pursuant
				to the HIF IV Legislation, the HIF V Legislation, or M.G.L. c. 121E.
Housing in College Communities
. Residential
				Housing intended to address the need for housing for Low-income Persons and Families
				and Extremely Low-income Persons and Families in communities that have experienced a
				particular shortage of such housing due to the demand for housing by students and
				faculty of institutions of higher learning; the housing may involve Eligible
				Projects undertaken jointly by municipalities or Housing Development Agencies and
				institutions of higher learning where a Non-profit Corporation or, if funded under
				M.G.L. c. 121E, a Local Housing Authority, has been designated to develop and manage
				the Project(s).
Housing in Receivership
. Residential
				Housing for which a receiver has been appointed by a court pursuant to M.G.L. c.
				111, § 127I.
Land Use Restriction
. An agreement by the
				Developer (and, as required by DHCD, by the owner of the site on which the Eligible
				Project is located, if other than the Developer), running with the land and
				restricting a Project to use as an Alternative Form of Housing for Low-income
				Persons or Families and, as required under the applicable HIF Legislation, Very
				Low-income Persons or Families or Extremely Low-income Persons or Families. Such
				agreement, as further described in
				760 CMR 23.03(1)
				 and
				760
				CMR 23.04(2)(f), shall include
				such terms and conditions as are imposed under the applicable HIF Legislation and/or
				HIF Program Guidelines or are otherwise required by DHCD, and may also include
				provisions relating to the Purchase Option and/or First Refusal Option (as described
				in
				760
				CMR 23.04(5)) , if
				applicable.
Lease-to-purchase Housing
. Residential
				Housing that may be purchased by a tenant of such housing pursuant to a
				lease-purchase agreement between the tenant and the owner; the housing must be
				purchased within 36 months of entering into the lease-purchase agreement, and the
				homebuyer must qualify as a Low-income Person or Family at the time of entering into
				the leasepurchase agreement.
Limited Equity Cooperative Housing
. A
				Residential Housing Development that is owned by a Limited Equity Cooperative
				Housing Corporation.
Limited Equity Cooperative Housing
				Corporation
. A corporation established in accordance with M.G.L. c.
				157B or a corporation which has added an amendment to its articles to comply with
				M.G.L. c. 157B; the corporation must be organized and operated primarily for the
				benefit of low-and moderate-income persons, and its equity, after allowance for
				maximum transfer value of its stock, must be permanently dedicated to providing
				housing to persons of low- and moderateincome or to charitable purposes.
Local Housing Authority (LHA)
. A local
				housing authority created pursuant to M.G.L. c. 121B, § 3, prior statute or
				special act.
Low-income Person or Family
. A single
				person or family whose adjusted income is less than or equal to 80% of the median
				gross income for the area in which the Project is located, adjusted for family size
				and region, as determined from time to time by the United States Department of
				Housing and Urban Development, or any successor department or agency thereto,
				pursuant to § 8 of the United States Housing Act of 1937.
Municipally Sponsored Housing
. An Eligible
				Project receiving financial assistance from the municipality in which the Project is
				located in a minimum amount as specified in the HIF Program Guidelines. HIF
				financial assistance for such housing may include matching funds, in a ratio to be
				determined by DHCD, associated with the costs of such a Project, provided that the
				amount of the HIF loan (or grant in the case of M.G.L. c. 121E) shall not exceed the
				percentage of Total Development Cost specified by the applicable HIF Legislation as
				set forth in
				760
				CMR 23.04(2).
Mutual Housing
.
(a) a group of cooperative housing corporations which provide
				support services to their members, including: housing development assistance,
				property management assistance and training for cooperative boards; or
(b) a Residential Housing Development, developed, owned and managed
				by a non-profit, tax-exempt mutual housing association in which current and future
				residents hold the majority membership.
Non-profit Corporation
. A corporation
				organized under M.G.L. c. 180 which may also be required to be a 501(c)(3)
				organization under the Internal Revenue Code at the time of Application or Loan
				closing. To qualify as a Non-profit Corporation for purposes of the or HIF program,
				no member, shareholder, officer or employee of the corporation or its board of
				directors can profit, in any way, from the HIF assistance or from the Project. The
				Non-profit Corporation must also demonstrate, to the satisfaction of DHCD, the
				capability of managing all of its responsibilities to the Project.
Preservation of Housing
. New capital
				financing for an Eligible Project that is already used for an Eligible Use. In this
				case, the Project can be funded through the HIF Legislation only if the Project
				involves:
(a) a transfer of ownership to a Non-profit Corporation, or in the
				case of M.G.L. c. 121E a Local Housing Authority;
(b) physical improvements to the real estate; and
(c) improved forms of management and social services;
(d) an Expiring Use Restriction Housing project; or
(e) the preservation of an Alternative Form of Housing, as
				determined by DHCD.
Residential Housing Development/Residential
				Housing
. Property that is predominantly used for housing and is in
				compliance with applicable laws and ordinances.
Single Room Occupancy Housing
. A
				Residential Housing Development that contains single rooms to be leased to
				individuals, which is not a student dormitory, a religious order residence, or a
				private club, and which is subject to such other specific requirements as may be
				imposed by DHCD.
Special Needs Housing
. A Residential
				Housing Development that provides special design features or support services for
				residents with special needs. Special needs residents may include, but are not
				limited to: persons with AIDS/HIV, battered women, and consumers of the services of
				the Massachusetts Department of Mental Health or Department of Mental
				Retardation.
Total Development Costs
. Total hard and
				soft costs of developing an Eligible Project, including the costs to purchase,
				design, construct and finance the Project.
Transitional Housing
. A Residential Housing
				Development that provides shelter and social services to homeless persons or persons
				in need of a supportive housing environment. This type of housing has as its purpose
				transition of its residents to independent living within a reasonable period of
				time.
Very Low-income Person or Family
. A person
				or family whose adjusted income is less than or equal to 50% of the median gross
				income for the area in which the Project is located, adjusted for family size and
				region, as determined by the United States Department of Housing and Urban
				Development, or any successor department or agency thereto, pursuant to § 8 of
				the United States Housing Act of 1937.