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 4.15 - Transfer of Existing Public Housing Developments to Controlled Affiliates for Substantial Rehabilitation

Current through Register 1525, July 5, 2024
(1) Pursuant to M.G. L.
			 c. 121B, §§ 31 and 34 an LHA may submit to the Department an application
			 for the transfer of a housing project, which is in need of substantial
			 rehabilitation, to a controlled affiliate of the LHA for purposes of securing
			 additional financing, which in conjunction with any financing available from the
			 Department, is necessary for paying the cost of substantial rehabilitation of the
			 housing project. The form and contents of the application shall be prescribed by the
			 Department. In connection with any development by a controlled affiliate under 760
			 CMR 4.15 the controlled affiliate shall enter into a binding legal contract and land
			 use restriction with the LHA and the Department which requires:
(a) compliance by the controlled affiliate with
			 the provisions of M.G.L. c. 21B and
			 760 CMR 4.00,
			 5.00:
Eigibility and
			 Selection Criteria
and 6.00:
Ocupancy Standards and Tenant
			 Participation for State-aided Housing
in the same manner and to the same
			 effect as if it were an LHA, subject to any waivers in
			 760 CMR 4.00 given by the
			 Department to the controlled affiliate as may be necessary for securing
			 financing;
(b) appropriate remedies for
			 the Department, the LHA, investors and lenders in the event that the controlled
			 affiliate fails to meet its obligations to the Department, the LHA, investors or
			 lenders, including, but not limited to, enforcement rights by the Department over
			 the controlled affiliate pursuant to M.G.L. c. 121B and the Department's regulations
			 just as if the controlled affiliate were an LHA. Within 120 days of receipt of a
			 complete application, if the Department shall find that a transfer to a controlled
			 affiliate is reasonably necessary for securing necessary financing, shall have made
			 the findings hereafter specified and shall find that the proposed legal documents
			 satisfy the requirements of 760 CMR 4.15, it shall approve the transfer, and the LHA
			 may deed the housing project and land associated therewith and necessary therefor to
			 the controlled affiliate; and
(c)
			 appropriate remedies for the controlled affiliate, investors and lenders, subject to
			 the approval of the Department and LHA, in the event that any annual subsidy which
			 is due under a contract for financial assistance is reduced or eliminated and other
			 financial measures to remediate the deficit are unsuccessful. Such measures shall
			 include, when feasible: reasonable reductions in operating expenses; accessing debt
			 service reserves, other reserves or surplus cash flow; refinancing project debt;
			 seeking alternative operating subsidy funding; and seeking other funds to reduce
			 project debt. Remedies shall be designed to eliminate operating deficits and may
			 include adjustment in the target mix of incomes of resident households.