Code of Massachusetts Regulations › 760 CMR - HOUSING AND LIVABLE COMMUNITIES, EXECUTIVE OFFICE OF › Title 760 CMR 24.00 - Massachusetts Housing Stabilization Fund › Section 24.04 - Eligible Projects

Current through Register 1525, July 5, 2024
(1) The Department may
			 make HSF loans, grants, and, additional, in the case of funding under M.G.L. c.
			 121F, subsidies, credit enhancements and other financial assistance for alternative
			 forms of rental and ownership housing:
(a) to
			 acquire, preserve, rehabilitate, and construct affordable rental and ownership
			 housing, including foreclosed and distressed properties and other
			 properties;
(b) to demolish
			 privately-owned buildings as provided in the HSF I, HSF II, HSF III, HSF IV
			 Legislation or M.G.L. c. 121F, and, in connection with such demolition, to
			 undertake, pursuant to a Neighborhood Revitalization Plan pursuant to
			 760 CMR
			 24.06, new construction of housing for Low or
			 Moderate Income Families in the area in which such demolition took place, to the
			 extent authorized in the HSF II, HSF III, HSF IV Legislation or M.G.L. c.
			 121F;
(c) to qualify as matching
			 contributions under § 220 of the HOME Investment Partnership Act, Title II of
			 the Cranston Gonzalez National Affordable Housing Act;
(d) if funded pursuant to the HSF I, HSF II, or
			 HSF IV Legislation, for Soft Second Mortgage Loans as described in the HSF I, HSF II
			 or HSF IV Legislation, and if funded pursuant to M.G.L. c. 121F, to write down
			 interest rates and related costs for a program for low-income and moderate-income
			 first-time homebuyers administered by MHP;
(e) if funded pursuant to the HSF II, HSF III or
			 HSF IV Legislation or M.G.L. c. 121F for the rehabilitation of one to four-family
			 properties owned and occupied by persons of low or moderate income, and for the
			 acquisition and rehabilitation of one to four-family properties by persons of low
			 and moderate income, provided that the Department finds that such a project relies
			 to the greatest extent possible on bank financing and other taxable financing for
			 acquisition and rehabilitation. Funding under M.G.L. c. 121F may include, with out
			 limitation, direct loans, loan guarantees and loan loss reserves. Projects funded
			 under M.G.L. c. 121F shall be subject to the Department's findings that the Project
			 includes the following additional objectives:
1.
			 coordinating the delivery of the financing and related rehabilitation services with
			 cities and towns that provide such assistance using federal community development
			 block grants, federal HOME funds and other resources;
2. expediting and simplifying the process by which
			 home buyers may obtain financial and technical assistance for acquisitions and
			 rehabilitation; and
3. ensuring that
			 adequate provisions are in place to assure that rehabilitation is completed in a
			 timely and professional manner and to protect homeowners from excessive acquisition
			 and rehabilitation costs.
(f)
			 if funded pursuant to the HSF II Legislation, to preserve the affordability of
			 existing privately-owned housing subject to a state or federally-assisted
			 Massachusetts Housing Finance Agency mortgage where the prepayment of that mortgage
			 would lead or has led to the termination of a use agreement for low-income housing.
			 HSF funds may be used for a capital access reserve to provide loan guarantees to
			 facilitate the purchase of such housing, and the Department may contract with the
			 Massachusetts Housing Finance Agency to administer such a program of loan
			 guarantees;
(g) if funded pursuant to
			 the HSF III or HSF IV Legislation or M.G.L. c. 121F, for second mortgage loans for
			 the acquisition and rehabilitation, and in the case of funding pursuant to HSF IV,
			 or M.G.L. c. 121F, new construction, of small multifamily rental properties
			 receiving primary financing from the MHP Permanent Plus Program. Such loans shall be
			 administered through contracts with MHP. All housing acquired, rehabilitated and
			 newly constructed pursuant to 760 CMR 24.04(1)(g) shall meet one of the following
			 minimum requirements:
1. at least 20% of the total
			 units shall be rented to individuals or families whose income is less than 50% of
			 the Area Median Income, or
2. at least
			 40% of the total units shall be rented to individuals or families whose income is
			 less than 60% of the Area Median Income, or
3. at least 50% of the total units shall be rented
			 to Low or Moderate Income Persons or Families.
(h) if funded pursuant to the HSF IV Legislation
			 or M.G.L. c. 121F, to preserve or restore the affordability of housing that is or
			 was subject to the prepayment of a state or federally assisted mortgage, or is
			 receiving project-based rental assistance under § 8 of the United States
			 Housing Act of 1937 (
			 42 U.S.C.
			 1437f) that is expiring, or has received other
			 project-based federal or state subsidies that are terminating or have terminated,
			 including the expiration of federal low-income housing tax credits, where such
			 mortgage prepayment or expiration of federal or state assistance would lead or has
			 led to the termination of a use agreement for low-income housing. The Department
			 will consult with nonprofit housing organizations, MassHousing and CEDAC, and, if
			 funded pursuant to M.G.L. c. 121F, MHP, to identify those projects at greatest risk
			 of prepayment or payment of state or federal subsidy loans, termination of subsidies
			 and use restrictions, or non-renewal of rental assistance. The Department will give
			 priority to projects based on the following at-risk criteria:
1. Housing at risk of losing affordability
			 restrictions due to the potential for the prepayment of its mortgage;
2. Housing in which a project-based rental
			 assistance contract has expired or is expiring; and
3. Occupied projects with substantial capital
			 needs.
(i) if funded pursuant
			 to M.G.L. c. 121F, to stabilize and promote reinvestment in cities and towns
			 including, but not limited to acquisition, rehabilitation and preservation of
			 foreclosed and distressed properties and any other techniques to achieve
			 reinvestment.
(j) for any other purpose
			 permissible under the HSF I, HSF II, HSF III or HSF IV Legislation or M.G.L. c.
			 121F.