Code of Massachusetts Regulations › 760 CMR - HOUSING AND LIVABLE COMMUNITIES, EXECUTIVE OFFICE OF › Title 760 CMR 4.00 - General Administration Of Local Housing Authorities › Section 4.13 - Acquisition and/or Development of Real Property Never Subject to a Contract for Financial Assistance

Current through Register 1525, July 5, 2024
(1) Pursuant to M.G.L.
			 c. 121B, § 31 an LHA may submit to the Department an application for an
			 affordable housing development utilizing private or mixed public and private
			 financing on real property which is owned or which is to be acquired by the LHA but
			 which is not and never has been subject to a contract for financial assistance
			 between the LHA and the Department. Such application for approval shall not be
			 required for an acquisition or development to be financed by a state or federal
			 affordable housing agency or program. If an application is required the form and
			 contents of the application shall be prescribed by the Department. Within 60 days of
			 receipt of a complete application the Department shall approve such application
			 provided that it shall have made the following findings:
(a) The proposal for an affordable housing
			 development appears capable of achievement.
(b) The affordable housing to be constructed will
			 be deed restricted to occupancy by low or moderate income households at affordable
			 rents or at affordable sales prices. Any deed restrictions shall specify the term
			 for which the housing shall be affordable. The term may be perpetual or for a lesser
			 term of years. The purpose of the deed restriction shall be to ensure affordability
			 of the housing during the term.
(c) The
			 tenant share of the rent for such an affordable housing unit shall be:
1. no more than the percentage of monthly net
			 household income which is specified in
			 760 CMR 6.04(1)(b)
			  with net household income of the tenant household
			 determined in the manner specified in
			 760 CMR
			 6.05:
Determination of Gross Household
			 Income and Net Household Income
; or
2. a rental amount which shall not in any event
			 exceed 30% of 80% of area median household income adjusted for household size as
			 determined by HUD; or
3. an amount
			 determined as an allowable rent by a state or federal affordable housing
			 program.
(d) Sales prices for
			 such affordable housing shall be no more than a low or moderate income household of
			 appropriate size could afford using reasonable assumptions determined by a state or
			 federal low or moderate income homeownership program.
(e) Adequate provision has been made so that the
			 lot or lots of land on which the housing will be constructed will be suitably
			 subdivided from any other land of the LHA which is subject to a contract for
			 financial assistance.
(f) Adequate
			 provision will be made, insofar as reasonably possible and financially feasible, to
			 protect against loss of affordability in the event of foreclosure of any
			 mortgage.
(g) Public construction and
			 prevailing wage requirements, insofar as applicable, will be complied with in the
			 construction of the housing.
(h) Tenant
			 or homeowner selection procedures, including residency preferences, shall be fair
			 and reasonable and will not contravene any applicable state and federal
			 antidiscrimination laws any state or federal fair housing laws.