Code of Massachusetts Regulations › 760 CMR - HOUSING AND LIVABLE COMMUNITIES, EXECUTIVE OFFICE OF › Title 760 CMR 19.00 - Facilities Consolidation Fund Program › Section 19.02 - Definitions

Current through Register 1525, July 5, 2024
Application
. An application for a loan or
				grant, in the format specified by the FCF Guidelines, including a description of a
				proposed Project, all financing sources, and all other matters required by
				760 CMR 19.00 and the FCF
				Guidelines.
Area Median Income
. Income, adjusted for
				family size, and for the pertinent region, as determined by the United States
				Department of Housing and Urban Development.
Community-based Housing
. A
				non-institutional Residential Housing Development, or unit therein, that is reserved
				for clients of the Executive Office of Health and Human Services (EOHHS) who have
				been found eligible for such housing by DDS or DMH, of one of the following
				types:
(a)
Group Home or Single Room Occupancy
				Housing
. A residence that provides separate sleeping facilities for
				each resident. The building must also provide facilities for living, eating, cooking
				and sanitation for all residents; however, these facilities may be shared;
(b)
Scattered Site Housing
. A residence
				that provides separate facilities for living, sleeping, eating, cooking and
				sanitation for each resident; or
(c)
Independent Integrated Housing
. A
				residence reserved for Low Income Households or Individuals located in a Residential
				Housing Development on a single site or multiple sites, in which no more than a of
				the housing units are reserved for Low Income Households or Individuals and which
				complies with any additional requirements that may be specified in the FCF
				Guidelines, as approved by DHCD.
DCAM
. The Division of Capital Asset
				Management and Maintenance of the Executive Office of Administration and Finance
				(which term shall encompass its predecessor, the Division of Capital Planning and
				Operations).
DDS
. The Department of Developmental
				Services of the Executive Office of Health and Human Services.
Deferred Payment Loan (DPL)
. A loan secured
				by a mortgage on a 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 satisfying the requirements of
				760 CMR
				19.03, 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:
(a) such Developer has control of the site on which the Eligible
				Project is located pursuant to a ground lease or other instrument acceptable to
				DHCD, in its discretion, for a period at least equal to the term of any applicable
				FCF loan; and
(b) 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/or 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.
DHCD
. The Department of Housing and
				Community Development (including, where applicable, its predecessor, the Executive
				Office of Communities Development).
DMH
. The Department of Mental Health of the
				Executive Office of Health and Human Services.
Eligible Project/Use (Project)
. The
				acquisition, construction, renovation and/or rehabilitation and operation of
				Community-based Housing for Individuals with Mental Illness or Individuals with
				Intellectual Disabilities that meets the requirements of
				760 CMR
				19.03. An Eligible Project supported by an FCF
				loan or grant is sometimes referred to herein as a "Project".
EOHHS
. The Executive Office of Health and
				Human Services.
FCF Guidelines
. Guidelines issued by DHCD
				setting out, clarifying and further explaining
				760 CMR 19.00, program policy and
				procedure. The FCF Guidelines shall apply to all FCF financing programs (subject
				always to
				760 CMR
				19.01(3)  ).
Facilities
. Institutional Facilities owned
				or operated by the Commonwealth for either Individuals with Mental Illness or
				Individuals with Intellectual Disabilities, which are more specifically identified
				in the Report of the Special Commission.
Facilities Consolidation
. The closure and
				consolidation of Facilities and the reorganization of community service systems by
				the Commonwealth in accordance with the Report of the Special Commission.
Facilities Consolidation Plan
. The December
				1993 Facilities Consolidation Plan prepared by the Secretary of EOHHS, which has
				been reviewed and approved by DHCD and filed with the Secretary of Administration
				and Finance of the Commonwealth and the House and Senate Ways and Means
				Committees.
FCF Legislation
. Collectively, the Original
				FCF Legislation, the FCF 2 Legislation, the FCF 3 Legislation, the FCF 4
				Legislation, the FCF 5 Legislation, and the FCF 6 Legislation, or where the context
				so requires, the specific legislation applicable, respectively, to Original FCF, FCF
				2 or FCF 3 loans, or to FCF 4, FCF 5 or FCF 6 loans or grants, as
				appropriate.
FCF Units
. The housing units of an Eligible
				Project that are supported by the FCF loan or grant and reserved for Individuals
				with Mental Illness or Individuals with Intellectual Disabilities that meet the
				requirements of
				760 CMR
				19.03.
Financial Intermediary
. For all Projects
				funded under the FCF Legislation, a local housing authority or a redevelopment
				authority, the Community Economic Development Assistance Corporation, the
				Massachusetts Housing Finance Agency, the Massachusetts Development Finance Agency
				(formerly the Massachusetts Government Land Bank), or only for Projects funded under
				the Original FCF or FCF 2 Legislation, a community development corporation, which
				serves as the conduit for FCF loan funds, or funding under the FCF 4, FCF 5, or FCF
				6 Legislation, or loan or grant funds, and is not a member of the development
				team.
Financially Feasible Project
. An Eligible
				Project that is likely to secure binding financing commitments from other funding
				sources which, together with the FCF funds, total the budgeted amount necessary to
				develop and operate the Project.
For-profit Organization
. An entity,
				including a corporation, partnership or trust organized under the laws of the
				Commonwealth or another state. The For-profit Organization must also demonstrate, to
				the satisfaction of DHCD, the capability of managing all of its responsibilities to
				the Eligible 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.
Individual with Mental Illness/Individual Served by
				DMH
. A person DMH determines is eligible to receive services and
				subsidies provided by DMH.
Individual with Intellectual Disabilities/Individual
				Served by DDS
. A person DDS determines is eligible to receive services
				and subsidies provided by DDS.
Land Use Restriction
. An agreement by a
				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 for the
				benefit of the DHCD, DMH and DDS, and restricting a Project to use as
				Community-based Housing, or for funding under the FCF 5 or FCF 6 Legislation,
				Community-based Housing or Supportive Housing, for Individuals with Mental Illness
				or Individuals with Intellectual Disabilities. Such agreement, as further described
				in
				760 CMR
				19.04(2)(f), shall include such
				terms and conditions as are imposed under the FCF Legislation and/or the FCF
				Guidelines or are otherwise required by DHCD, and shall be recorded and/or
				registered in the Registry of Deeds and/or Registry District of the Land Court where
				the Project is located.
Lease-purchase Agreement
. In the case of
				Projects funded under the Original FCF and FCF 2 Legislation, an agreement between
				the Developer and DCAM, as further described in
				760 CMR
				19.04(4), under which DCAM leases
				an Eligible Project for the benefit of DDS or DMH for 30 years. The Lease-purchase
				Agreement may be for a shorter period if the DCAM Commissioner, in consultation with
				DDS or DMH, as applicable, determines that the amortization of such agreement for a
				shorter period would be as cost-effective as a 30-year term. The Lease-purchase
				Agreement may be extended for up to ten years, if the DDS or DMH commissioner
				recommends an extension to DCAM to satisfy repayment of an FCF loan. The
				Lease-purchase Agreement may incorporate a Title Transfer Agreement.
Low Income Household or Individual
. An
				individual or family, including one or more Individuals with Mental Illness or
				Individuals with Intellectual Disabilities, whose adjusted income is less than or
				equal to 80% of the Area Median Income.
Nonprofit Corporation
. A corporation
				organized under M.G.L. c. 180, which may also be required by DHCD to be a 501(c)(3)
				organization under the Internal Revenue Code at the time of Application or loan
				closing. To qualify as a Nonprofit Corporation for purposes of the FCF program, no
				member, shareholder, officer or employee of the corporation or its board of
				directors can profit, in any way, from the FCF assistance or from the Project. The
				Nonprofit Corporation must also demonstrate, to the satisfaction of DHCD, the
				capability of managing all of its responsibilities to the Project.
Report of the Special Commission
. The
				report entitled "Actions for Quality Care" dated June, 1991, together with the
				subsequent report dated May, 1992 by the Governor's Special Commission on the
				Consolidation of Health and Human Services Institutional Facilities in the
				Commonwealth.
Residential Housing Development
. Property
				which is predominantly used for housing and is in compliance with applicable laws
				and ordinances.
Supportive Housing
. Community-based Housing
				that provides residents with supports and services linked to their housing.
Title Transfer Agreement
. In the case of
				Projects funded under the Original FCF and FCF 2 Legislation, an agreement
				reflecting the option granted by the Developer/owner for the Commonwealth to acquire
				title to the Project:
(a) when the FCF loan becomes due and payable; or
(b) upon the expiration of a Lease-purchase Agreement with DCAM, as
				applicable (except that the commissioners of DDS and DMH may recommend that title be
				transferred to the provider of housing or other services at the Project, subject to
				a Land Use Restriction, in accordance with the requirements of the FCF Legislation).
				The option shall be granted by the Developer to DCAM, as agent for the Commonwealth.
				The Title Transfer Agreement shall run with the land, and shall be recorded in the
				appropriate Registry of Deeds or Registry District of the Land Court at the closing
				of the FCF loan, or at the time of the execution and delivery of the Lease-purchase
				Agreement, as applicable (or upon the earlier of the foregoing events, if an FCF
				loan is being made for an Eligible Project that is also (or will also be) the
				subject of a Lease-purchase Agreement). If an exception described in
				760 CMR
				19.04(2)(i)  applies, no Title
				Transfer Agreement shall be required. When an FCF loan is made in conjunction with a
				Lease-purchase Agreement, DHCD may require that the Title Transfer Agreement be
				incorporated into the Lease-purchase Agreement.
Total Development Costs
. Total hard and
				soft costs of developing an Eligible Project, including the costs to purchase,
				design, construct and finance the Project.