Code of Massachusetts Regulations › 760 CMR - HOUSING AND LIVABLE COMMUNITIES, EXECUTIVE OFFICE OF › Title 760 CMR 60.00 - Community-based housing fund program › Section 60.02 - Definitions

Current through Register 1525, July 5, 2024
The following definitions will apply to the CBH Program:
Application
. An application for a loan, in
				the format specified by the CBH Guidelines, including a description of a proposed
				Eligible Project, all financing sources, and all other matters required by
				760 CMR 60.00 and the CBH
				Guidelines.
CBH Guidelines
. Guidelines issued by DHCD
				setting out, clarifying and further explaining
				760 CMR 60.00 program policy and
				procedure, as such guidelines may be amended, supplemented or replaced. The CBH
				Guidelines shall apply to all CBH financing programs (subject always to
				760 CMR
				60.01(2)) .
CBH Legislation
. Collectively the CBH 1
				Legislation, the CBH 2 Legislation, and the CBH 3 Legislation, and the CBH 4
				Legislation, or where the context so requires, the specific legislation applicable,
				respectively, to CBH 1, CBH 2, or CBH 3, or CHB 4 loans, as appropriate. With
				respect to any CBH Loan, references to the CBH Legislation shall mean those
				provisions of the CBH 3 Legislation or CBH 4 Legislation that apply to the CBH
				Program generally and any special provisions of the CBH Legislation that apply to
				the funding phase under which such CBH Loan is made.
CBH Loan
. The loan made by DHCD or its
				Financial Intermediary to a Developer for an Eligible Project/Use under the CBH
				Program.
CBH Units
. The housing units of an Eligible
				Project that are supported by the CBH Loan or grant and reserved for PCEs.
Community-based Housing
. Housing reserved
				for Persons Certified Eligible (PCEs) that is:
(a)
Integrated Housing
. A non-institutional
				Residential Housing Development, or housing units therein, either on a single site
				or multiple sites, in which no more than a of the housing units are reserved for
				PCEs and which complies with any additional requirements that may be specified in
				the CBH Guidelines, as approved by DHCD; or
(b) any other non-institutional Residential Housing Development, or
				one or more housing units therein, that is reserved for PCEs, as approved by
				DHCD.
Creation of Housing
. New construction,
				rehabilitation of an existing building, or the conversion of an existing
				non-Eligible Project to an Eligible Project.
DDS
. The Department of Developmental
				Services.
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 satisfying the requirements of
				760 CMR
				60.03(1), 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 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 CBH Loan; and
(b) the owner assents to the Developer's execution and the recording
				of the Land Use Restriction, and executes and accepts the Land Use Restriction and
				such additional documentation as DHCD and/or any Financial Intermediary 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.
DMH
. The Department of Mental
				Health.
Eligible Project/Use
. The acquisition,
				construction, renovation and/or rehabilitation and operation of Community-based
				Housing for PCEs that meets the requirements of
				760 CMR 60.00. An Eligible Project
				supported by a CBH Loan is sometimes referred to as a "Project".
EOHHS
. The Executive Office of Health and
				Human Services.
EOHHS Services Plan
. The Enhancing
				Community-based Services Plan dated August 2002, 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.
Expiring Use Restriction Housing
. A
				Residential Housing Development that is acquired by one or more Nonprofit
				Corporations (or an entity or entities in which one or more Nonprofit Corporations
				have a controlling financial or managerial interest, as approved by DHCD) 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.
Financial Intermediary
. An entity or
				entities selected by DHCD in accordance with the applicable CBH Legislation.
Financially Feasible Project
. An Eligible
				Project that is likely to secure binding financial commitments from other funding
				sources which, together with the CBH Loan described in the Firm Financing
				Commitment, total the amount reflected in the estimated budget necessary to develop
				and operate the Eligible Project (as approved by DHCD and/or the Financial
				Intermediary).
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.
Land Use Restriction
. An agreement by the
				Developer (and, as required by DHCD, by the owner of the site on which the Project
				is located, if other than the Developer), running with the land for the benefit of
				DHCD, EOHHS and MRC, and restricting the Project to use as Community-based Housing,
				or if funded under the CBH 3 Legislation or CBH 4 Legislation, as Community-based
				Housing or Supportive Housing, for PCEs, with the CBH Units reserved for PCEs who
				are Low-income Persons or Families. Such agreement, as further described in
				760 CMR 60.03(4)
				 and
				760 CMR
				60.04(2)(f), shall include such
				terms and conditions as are imposed under the CBH Legislation and/or CBH Guidelines
				or are otherwise required by DHCD. The Land Use Restriction shall be recorded and/or
				registered in the Registry of Deeds and/or Registry District of the Land Court where
				the Project is located.
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 by the United States Department of Housing and Urban
				Development, or any successor department or agency thereto, pursuant to Section 8 of
				the United States Housing Act of 1937.
MRC
. The Massachusetts Rehabilitation
				Commission.
Nonprofit 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 Nonprofit Corporation for purposes of the CBH Program, no
				member, shareholder, director, officer or employee of the corporation or its board
				of directors can profit, in any way, from the CBH assistance or from the Eligible
				Project. The Nonprofit Corporation must also demonstrate, to the satisfaction of
				DHCD, the capability of managing all of its responsibilities to the Eligible
				Project.
Person Certified Eligible (PCE)
. A
				Low-income Person or Family with disabilities who is institutionalized or at risk of
				being institutionalized, but who is not eligible for housing developed pursuant to
				the FCF program, authorized by the FCF 3 Legislation, as modified and continued by
				the FCF 4 Legislation, the FCF 5 Legislation, and the FCF 6 Legislation, and who has
				been certified as an eligible PCE by MRC or any other agency of EOHHS in accordance
				with the procedure described in the CBH Guidelines.
Preservation of Housing
. New capital
				financing for an Eligible Project that is already used for an Eligible Use. A
				proposed Eligible Project will qualify as Preservation of Housing that may be
				supported by CBH funding only if such Eligible Project involves:
(a)
1. a transfer of ownership to a Nonprofit Corporation, or if funded
				pursuant to CHB 2, CBH 3, or CBH 4 Legislation, For-profit Organizations, subject to
				760 CMR
				60.01(2);
2. physical improvements to the real estate; and/or
3. improved forms of management and social services;
(b) an Expiring Use Restriction Housing project; or
(c) the preservation of Community-based Housing, as determined by
				DHCD.
Residential Housing Development
. Property
				that is predominantly used for housing and is in compliance with applicable laws and
				ordinances.
Single-purpose Owner Entity
. A Nonprofit
				Corporation or any other single-purpose entity in which one or more Nonprofit
				Corporations have a controlling financial or managerial interest, or a For-profit
				Organization, whose business and operations relate solely to the Eligible Project,
				as approved by DHCD.
Supportive Housing
. Community-based Housing
				that provides residents with supports and services linked to their housing.
Total Development Costs
. Total hard and
				soft costs of developing an Eligible Project, including the costs to acquire,
				design, construct, renovate and/or rehabilitate and finance the Eligible
				Project.