Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S1782 Compare Versions

Only one version of the bill is available at this time.

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1	1	1 of 1
2	2	SENATE DOCKET, NO. 703 FILED ON: 1/17/2023
3	3	SENATE . . . . . . . . . . . . . . No. 1782
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Julian Cyr
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act establishing the Martha’s Vineyard housing bank.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Julian CyrCape and Islands 1 of 28
16	16	SENATE DOCKET, NO. 703 FILED ON: 1/17/2023
17	17	SENATE . . . . . . . . . . . . . . No. 1782
18	18	By Mr. Cyr, a petition (accompanied by bill, Senate, No. 1782) of Julian Cyr for legislation to
19	19	establish the Martha’s Vineyard housing bank. Revenue.
20	20	The Commonwealth of Massachusetts
21	21	_______________
22	22	In the One Hundred and Ninety-Third General Court
23	23	(2023-2024)
24	24	_______________
25	25	An Act establishing the Martha’s Vineyard housing bank.
26	26	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
27	27	of the same, as follows:
28	28	1 SECTION 1: For purposes of this act, the words and phrases set forth in this section
29	29	2shall have the following meanings:
30	30	3 “Anti-flipping restriction”, a restriction that limits the time and price at which a real
31	31	4property interest or real property in connection with which a real property interest is held may be
32	32	5transferred following receipt of the real property interest from the housing bank or the receipt of
33	33	6housing bank funding with respect to the real property interest, as shall be set forth in regulations
34	34	7adopted by the commission. Any person who transfers a real property interest in contravention of
35	35	8an anti-flipping restriction shall pay a penalty equal to 100 per cent of the amount of housing
36	36	9bank funding received and 100 per cent of the amount by which the purchase price exceeds the
37	37	10permissible purchase price established by the commission’s regulations. 2 of 28
38	38	11 “Area median income”, the median income for Dukes County, with adjustments made for
39	39	12smaller and larger families, as such median income shall be determined from time to time by the
40	40	13United States Department of Housing and Urban Development.
41	41	14 “Commission”, the Martha’s Vineyard housing bank commission established by section
42	42	153.
43	43	16 "Community housing", rental and ownership housing units for use as year-round housing
44	44	17by those residents of Martha's Vineyard earning up to 240 per cent of area median income, or
45	45	18such lower limit determined by the Commission with respect to, or otherwise applicable to,
46	46	19particular housing units.
47	47	20 “Community housing restriction”, a perpetual restriction, whether or not stated in the
48	48	21form of a restriction, easement, covenant or condition in any deed, mortgage, will, agreement, or
49	49	22other instrument limiting the use of real property or housing units to occupancy for community
50	50	23housing.
51	51	24 “Housing bank”, the Martha’s Vineyard housing bank established by section 2.
52	52	25 "Legal representative", with respect to any person, shall mean any other person acting
53	53	26under a written power-of-attorney executed by that person; provided, however, that any affidavit
54	54	27attesting to the true and complete purchase price of a real property interest, submitted to the
55	55	28commission pursuant to section 15, may also be signed on behalf of that person by an attorney
56	56	29admitted to practice in the commonwealth.
57	57	30 “Purchaser”, the transferee, grantee or recipient of any real property interests. 3 of 28
58	58	31 “Purchase price”, all consideration paid or transferred by or on behalf of a purchaser to a
59	59	32seller or a seller’s nominee, or for the seller’s benefit, for the sale, lease, exchange, or transfer of
60	60	33any real property interest, and shall include, but not be limited to: (i) all cash or its equivalent so
61	61	34paid or transferred; (ii) all cash or other property paid or transferred to discharge or reduce any
62	62	35obligation of the seller; (iii) the principal amount of all notes or their equivalent, or other
63	63	36deferred payments, given or promised to be given to the seller or the seller’s nominee; (iv) the
64	64	37outstanding balance of all obligations of the seller which are assumed by the purchaser or to
65	65	38which the real property interest transferred remains subject after the transfer, determined at the
66	66	39time of transfer, but excluding real estate taxes and other municipal liens or assessments which
67	67	40are not overdue at the time of transfer; and (v) the fair market value, at the time of transfer, of
68	68	41any other consideration or thing of value paid or transferred, including, but not limited to, any
69	69	42property, goods or services paid, transferred or rendered in exchange for such real property
70	70	43interest.
71	71	44 "Real property interest", any present or future legal or equitable interest in or to real
72	72	45property, and any beneficial interest therein, including the interest of any beneficiary in a trust
73	73	46which holds any legal or equitable interest in real property, the interest of a partner or member in
74	74	47a partnership or limited liability company which holds any legal or equitable interest in real
75	75	48property, the interest of a stockholder in a corporation which holds any legal or equitable interest
76	76	49in real property, the interest of a holder of an option to purchase real property, the interest of a
77	77	50buyer or seller under a contract for purchase and sale of real property, the transferable
78	78	51development rights created under chapter 183A of the General Laws; the dominant estate in any
79	79	52easement or right of way, the right to enforce any restriction, an estate at will or at sufferance, or
80	80	53an estate for years or leasehold interest. 4 of 28
81	81	54 “Seller”, the transferor, grantor or immediate former owner of any real property interests.
82	82	55 “Shared appreciation equity loan,” a loan agreement pursuant to which the housing bank
83	83	56receives a percentage of a property’s appreciation upon transfer for consideration.
84	84	57 “Time of transfer”, of any real property interest shall mean, the time at which such
85	85	58transfer is legally effective as between the parties thereto, and, in any event, with respect to a
86	86	59transfer evidenced by an instrument recorded with the appropriate registry of deeds or filed with
87	87	60the assistant recorder of the appropriate registry district, not later than the time of such recording
88	88	61or filing.
89	89	62 “Town advisory board”, a town board created in each member town to assist the
90	90	63commission in administering this act, each to consist of 1 representative duly appointed, either
91	91	64from its membership or otherwise, by each of the following town boards: select board,
92	92	65conservation commission, planning board, zoning board, board of assessors, housing committee,
93	93	66board of health and, if one exists, wastewater committee. Should a position become vacant, a
94	94	67member appointed by the respective board to complete the unexpired term shall fill said vacancy.
95	95	68Members shall hold 3-year staggered terms with the length of the terms of each of the initial
96	96	69town advisory board members to be designated by the town select board. All decisions of the
97	97	70town advisory boards shall be by two-thirds vote of those present and voting at a meeting at
98	98	71which a majority of the members is present.
99	99	72 “Transfer price restriction”, a perpetual restriction, whether or not stated in the form of a
100	100	73restriction, easement, covenant or condition in any deed, mortgage, will, agreement, or other
101	101	74instrument limiting the price at which real property may be transferred or the rental rates that 5 of 28
102	102	75might be charged, based on a formula as shall be set forth in regulations adopted by the
103	103	76commission.
104	104	77 “Year-round housing”, shall be as defined in regulations adopted by the commission;
105	105	78provided that year-round housing shall not include housing units in which the primary occupants
106	106	79reside for less than 11 months during any 1-year period.
107	107	80 “Year-round housing restriction”, a perpetual restriction whether or not stated in the form
108	108	81of a restriction, easement, covenant or condition in any deed, mortgage, will, agreement, or other
109	109	82instrument limiting the use of the real property to occupancy for year-round housing.
110	110	83 SECTION 2. There shall be a Martha’s Vineyard housing bank, to be administered by a
111	111	84commission established by section 3, for the purpose of creating and preserving both year-round
112	112	85housing and community housing. The housing bank shall be a body politic and corporate and a
113	113	86public instrumentality, and the exercise of the powers herein conferred upon the housing bank
114	114	87shall be deemed to be the performance of an essential governmental function.
115	115	88 SECTION 3. (a) The housing bank shall be administered by a commission consisting of:
116	116	891 town-representative member elected by each of the member towns, each of whom shall be a
117	117	90legal resident of the member town he or she represents; and 1 at-large member elected by island-
118	118	91wide vote who shall be a legal resident of Martha’s Vineyard. Each town-representative member
119	119	92shall be elected to a 3-year term in the same manner as other elected town officials.
120	120	93Notwithstanding the foregoing, (a) the commission shall initially consist of: 1 town-
121	121	94representative member appointed by the select board of each of the member towns, to serve until
122	122	95the first election of a town-representative member at such town’s regular or special town election
123	123	96following the effective date of this act, and (b) the terms of the initial town-representative 6 of 28
124	124	97members elected as set forth herein shall be drawn by lot by representatives appointed by the
125	125	98member towns’ select boards prior to the first election of any town-representative member, and
126	126	99shall be staggered so that, as nearly as possible, an equal number of terms expire each year
127	127	100following the first election of town-representative members. The initial at-large member shall be
128	128	101appointed by the county commissioners to serve from the effective date of this act until the first
129	129	102election of the at-large member following the effective date of this act. The election of the at-
130	130	103large member of the commission shall be conducted at the biennial state election in 2024 and
131	131	104succeeding elections of the at-large member shall take place at the biennial state election. The
132	132	105nomination of candidates for election to such office shall be in accordance with sections 6 and 8
133	133	106of chapter 53 of the General Laws; provided, however, that no more than 10 signatures of voters
134	134	107shall be required on the nomination papers for such office. Notwithstanding the provisions of
135	135	108section 10 of chapter 53 of the General Laws, nomination papers for said candidates shall be
136	136	109filed with the office of the state secretary on or before the tenth Tuesday preceding the day of the
137	137	110election. Such nomination papers shall be subject to the provisions of section 7 of said chapter
138	138	11153. Upon election or appointment to the commission, the at-large commission member shall be
139	139	112sworn to the faithful execution of his or her duties by the town clerk of the town in which he or
140	140	113she resides.
141	141	114 (b) Should a vacancy occur during the term of any town-representative member, the
142	142	115select board of the town represented by such member shall appoint an interim member to serve
143	143	116for the unexpired portion of the term. Should a vacancy occur during the term of the at-large
144	144	117member, the county commissioners shall appoint an interim member to serve for the unexpired
145	145	118portion of the term. 7 of 28
146	146	119 (c) The commission shall elect a chair and a vice chair from among its members and shall
147	147	120elect a secretary and a treasurer who may be the same person, but who need not be members of
148	148	121the commission.
149	149	122 (d) Decisions of the commission shall be by majority vote of those present and voting at a
150	150	123meeting at which a majority of the members is present.
151	151	124 (e) If approved by each town advisory board, members of the commission may be paid a
152	152	125stipend, provided that such stipend shall not exceed $2,000 annually unless a higher amount is
153	153	126both authorized by a majority vote of town meeting in each member town and approved by each
154	154	127town advisory board.
155	155	128 (f) The commission shall keep accurate records of its meetings and actions and shall file
156	156	129an annual report which shall be distributed with the annual report of each member town.
157	157	130 SECTION 4. The commission shall have the power and authority to:
158	158	131 (a) acquire, by purchase, lease, gift, grant, contribution, devise or transfer from any
159	159	132person, firm, corporation or other public or private entity, any real property interest, including a
160	160	133year-round restriction, within any of the member towns; provided, however, that the commission
161	161	134shall, in considering any such acquisition, use as guidelines town or regional master plans,
162	162	135wastewater plans, watershed management plans, open space plans, and climate and energy goals;
163	163	136 (b) acquire, by purchase, gift, grant, contribution, devise or transfer, personal property,
164	164	137and accept and receive money, by gift, grant, contribution, devise or transfer, from any person,
165	165	138firm, corporation or other public or private entity, including but not limited to grants of funds or 8 of 28
166	166	139other property tendered to the housing bank in connection with any ordinance or by-law or any
167	167	140general or special law or any other source;
168	168	141 (c) sell, lease, exchange, transfer or convey any real property interest or personal property
169	169	142at public auction or by private contract for such consideration and on such terms as to credit or
170	170	143otherwise as the commission may determine, subject to restrictions as described in section 12;
171	171	144 (d) subject to the requirements described in section 11, extend grants, loans, guarantees,
172	172	145lines of credit, interest subsidies, rental assistance, or any other means of funding the
173	173	146commission deems advisable to further the goals of the housing bank;
174	174	147 (e) execute, acknowledge and deliver deeds, assignments, transfers, pledges, leases,
175	175	148covenants, contracts, promissory notes, releases, grant agreements and other instruments sealed
176	176	149or unsealed, necessary, proper or incident to any transaction in which the commission engages
177	177	150for the accomplishment of the purposes of the housing bank;
178	178	151 (f) incur debt by pledging the full faith and credit of the housing bank subject to the
179	179	152limitations set forth in this act, provided that the commission may incur debt only to the extent
180	180	153that its projected annual debt service obligation prior to maturity with respect to any existing and
181	181	154any new debt will not, in the aggregate, exceed 10 per cent of the average annual revenues
182	182	155received by the housing bank during its prior three fiscal years, commencing with the initial
183	183	156partial fiscal year following the effective date of this act; and provided further that, for the
184	184	157purpose of determining the housing bank’s projected annual debt service obligation, any interest
185	185	158other than a fixed rate shall be calculated as the rate payable for the most recent 12 month period,
186	186	159or the period for which the indebtedness has been outstanding if less than 12 months, and the rate
187	187	160payable on the date that the indebtedness is incurred for any new indebtedness; 9 of 28
188	188	161 (g) hire such staff and obtain such professional services as are necessary in order to
189	189	162perform its duties; and
190	190	163 (i) after holding a public hearing and after requesting recommendations from the town
191	191	164advisory board of each of the member towns, adopt, amend or rescind such rules, regulations and
192	192	165procedures as the commission deems necessary or appropriate to carry out the provisions of this
193	193	166act.
194	194	167 Notwithstanding anything herein to the contrary, any expenditure or use of housing bank
195	195	168funds, including any loans or disbursement of down payment assistance provided by the housing
196	196	169bank, and any acquisition of a real property interest, whether by purchase, lease, gift, grant,
197	197	170contribution, devise or transfer, shall require approval by the town advisory board or boards in
198	198	171the town or towns in which the project will be located or in which a real property interest will be
199	199	172acquired.
200	200	173 SECTION 5. Each member town is hereby authorized to appropriate money to be
201	201	174deposited in the fund as provided in section 13.
202	202	175 SECTION 6. The housing bank is hereby empowered to issue its bonds and notes,
203	203	176including notes in anticipation of bonds, for the purpose of acquiring real property interests and
204	204	177providing funding as provided in section 4(d). The proceeds of such bonds or notes may be used
205	205	178to pay, in whole or in part, acquisition costs; to provide reserves for debt service and other
206	206	179expenses; to pay consulting, appraisal, advisory and legal fees and costs incidental to the
207	207	180issuance and sale of such bonds or notes; to purchase, refund or renew bonds or notes previously
208	208	181issued; and to pay any other costs and expenses of the housing bank necessary for the
209	209	182accomplishment of its purposes. Bonds or notes issued under this act shall be authorized by the 10 of 28
210	210	183commission which shall have full power and authority to determine the amount, form, terms,
211	211	184conditions, provisions for the payment of interest and all other details thereof and to provide for
212	212	185their sale and issuance at such price and in such manner as the commission shall determine,
213	213	186subject only to any limitations set forth in this act; provided, however, that the issuance of bonds
214	214	187or notes by the commission shall require the approval of two-thirds of the town advisory boards.
215	215	188All bonds or notes issued hereunder shall be payable solely from the fees and other revenues of
216	216	189the housing bank pledged to their payment and shall not be deemed a pledge of the full faith and
217	217	190credit of any town in the county of Dukes County, the county of Dukes County, or the
218	218	191commonwealth.
219	219	192 The commission may enter into any agreements, including without limitation a loan
220	220	193agreement and a trust agreement, necessary to effectuate and to secure any bonds or notes issued
221	221	194by the housing bank. Such agreements may pledge or assign, in whole or in part, the revenues
222	222	195and other money held or to be received by the housing bank. Such agreements may contain
223	223	196provisions for protecting and enforcing the rights, security and remedy of the holders of such
224	224	197bonds or notes, including, without limiting the generality of the foregoing, provisions defining
225	225	198defaults and providing for remedies in the event thereof which may include the acceleration of
226	226	199maturities and covenants setting forth the duties of, and limitations on, the housing bank in
227	227	200relation to the custody, safeguarding, investment and application of money, the issuance of
228	228	201additional debt obligations, the use of any surplus proceeds of the borrowing, including any
229	229	202investment earnings thereon, and the establishment of special funds and reserves.
230	230	203 The pledge of any such agreement shall be valid and binding and shall be deemed
231	231	204continuously perfected for the purposes of the Uniform Commercial Code from the time when
232	232	205the pledge is made; the revenues, money, rights and proceeds so pledged and then held or 11 of 28
233	233	206thereafter acquired or received by the housing bank shall immediately be subject to the lien of
234	234	207such pledge without any physical delivery or segregation thereof or further act; and the lien of
235	235	208any such pledge shall be valid and binding against all parties having claims of any kind in tort,
236	236	209contract or otherwise against any member town or the county of Dukes County, irrespective of
237	237	210whether such parties have notice thereof. No document by which a pledge is created need be
238	238	211filed or recorded except in the records of the housing bank and no filing need be made under the
239	239	212Uniform Commercial Code.
240	240	213 The trustee with respect to any such trust agreement entered into pursuant to this section
241	241	214shall be a trust company or a bank having the powers of a trust company within the
242	242	215commonwealth. Any such trust agreement may provide that any money received thereunder may
243	243	216be held, deposited or invested by the trustee, notwithstanding the provisions of section 13,
244	244	217pending the disbursement thereof, in any deposits or investments which are lawful for the funds
245	245	218of savings banks and shall provide that any officer with whom or any bank or trust company with
246	246	219which such money shall be deposited shall act as trustee of such money and shall hold and apply
247	247	220the same for the purposes hereof and thereof, subject to such regulation or limitation as this act
248	248	221or such trust agreement may provide.
249	249	222 It shall be lawful for any bank or trust company within the commonwealth to act as
250	250	223depository of the proceeds of bonds or notes, revenues or other money hereunder and to furnish
251	251	224such indemnifying bonds or to pledge such security, if any, as may be require by the
252	252	225commission. Any trust agreement entered into pursuant to this section may set forth the rights
253	253	226and remedies of the holders of any bonds or notes and of the trustee and may restrict the
254	254	227individual right of action by any such holders. In addition to the foregoing, any such trust
255	255	228agreement may contain other such provisions as the commission may deem reasonable and 12 of 28
256	256	229proper. All expenses incurred in carrying out the provisions of such trust agreement may be (i)
257	257	230treated as part of the cost of operation of the housing bank and (ii) paid from the revenues or
258	258	231other funds pledged or assigned to the payment of the principal of and the premium, if any, and
259	259	232interest on the bonds or notes or from any other funds available to the housing bank. In addition
260	260	233to other security provided herein or otherwise by law, bonds or notes issued under this section
261	261	234may be secured, in whole or in part, by insurance or by letters or lines of credit or other credit
262	262	235facilities issued to the housing bank by any bank, trust company or other financial institution,
263	263	236within or without the commonwealth, and the housing bank may pledge or assign any of its
264	264	237revenues as security for the reimbursement by the housing bank to the issuers of such letters or
265	265	238lines of credit, insurance or credit facilities of any payments made hereunder.
266	266	239 SECTION 7. Bonds and notes issued under the provisions of this act are hereby made
267	267	240securities in which all public officers and public bodies of the commonwealth and its political
268	268	241subdivisions, all insurance companies, trust companies in their commercial departments, savings
269	269	242banks, cooperative banks, banking associations, investment companies, executors,
270	270	243administrators, trustees and other fiduciaries may properly and legally invest funds, including
271	271	244capital in their control or belonging to them. Such bonds and notes are hereby made securities
272	272	245which may properly and legally be deposited with and received by any state or municipal officer
273	273	246or any agency or political subdivision of the commonwealth for any purpose for which the
274	274	247deposit of bonds or obligations of the commonwealth is now or may hereafter be authorized by
275	275	248law.
276	276	249 SECTION 8. Notwithstanding any of the provisions of this act or any recitals in any
277	277	250bonds or notes issued under this act, all such bonds and notes shall be deemed to be investment
278	278	251securities under the Uniform Commercial Code. 13 of 28
279	279	252 SECTION 9. The housing bank and all its revenues, income and real and personal
280	280	253property used solely by the housing bank in furtherance of its public purposes shall be exempt
281	281	254from taxation and from betterments and special assessments and the housing bank shall not be
282	282	255required to pay any tax, excise or assessment to or for the commonwealth or any of its political
283	283	256subdivisions. Bonds and notes issued by the housing bank, their transfer and the income
284	284	257therefrom, including any profit made on the sale thereof, shall at all times be exempt from
285	285	258taxation within the commonwealth. The provisions of section 27C of chapter 29 of General Laws
286	286	259shall not apply to this section or any other provisions of this chapter.
287	287	260 SECTION 10. The housing bank shall address the greatest community need as
288	288	261determined from time to time by the commission according to prevailing data, and subject to the
289	289	262provisions of this act. Not less than 75 per cent of the expenditures and funding commitments
290	290	263approved by the commission in any fiscal year shall be allocated to activities or projects on
291	291	264properties previously developed with existing buildings, or to fund infrastructure, including
292	292	265wastewater disposal and utilities, associated with such projects.
293	293	266 The commission shall require that all projects funded in whole or part by the housing
294	294	267bank under section 11 minimize disturbances to the local ecology. New construction funded in
295	295	268whole or part by the housing bank shall: be prohibited from using fossil fuels on site except as
296	296	269needed during construction, renovation, repair, temporary use for maintenance, or vehicle use.
297	297	270All new construction funded in whole or in part by the housing bank shall be required to (i)
298	298	271achieve a home energy rating service rating of zero and (ii), to the maximum extent possible,
299	299	272produce no new net nitrogen pollution. New construction on undeveloped properties of more
300	300	273than five acres funded in whole or part by the housing bank shall be required to (i) preserve a
301	301	274minimum of 40 per cent of the property as open space, and (ii) minimize tree removal. The 14 of 28
302	302	275foregoing requirements shall apply to all units in a project receiving housing bank funding
303	303	276including income-restricted, market-rate, and other units. Satisfaction of each of the provisions
304	304	277of this section shall be as determined by the commission.
305	305	278 SECTION 11. Grants, loans, guarantees, lines of credit, interest subsidies, rental
306	306	279assistance, or any other means of funding provided pursuant to section 4(d) shall be made in
307	307	280accordance with this section. The housing bank shall solicit applications for activities and
308	308	281projects within its member towns through a competitive process, which shall include annual
309	309	282public notice of funding availability. Only activities and projects that create, preserve or support
310	310	283perpetual year-round housing, community housing or housing-related infrastructure that serves
311	311	284perpetual year-round housing or community housing, shall be eligible for funding. Eligible
312	312	285activities and projects shall include:
313	313	286 purchase and rehabilitation of existing structures;
314	314	287 construction of rental and ownership housing, including on-site or off-site infrastructure;
315	315	288 purchase of real property interests, including easements;
316	316	289 down payment assistance, grants, and loans including shared appreciation equity loans,
317	317	290on such terms as the commission may determine from time to time;
318	318	291 rental assistance programs;
319	319	292 modernization and capital improvements of existing rental and ownership housing;
320	320	293 creation of apartments and other ancillary housing; 15 of 28
321	321	294 housing counseling, predevelopment costs and technical assistance associated with
322	322	295creating community housing or housing-related infrastructure; and
323	323	296 mixed-use development projects.
324	324	297 In selecting proposals for funding, the commission shall prioritize proposals that: (i) are
325	325	298close to existing services; (ii) are not in priority habitat areas as defined under the Massachusetts
326	326	299Endangered Species Act, or any successor act; and (iii) mitigate the effects of climate change,
327	327	300such as projects which (a) do not involve acquisition of fossil fuel equipment and (b) have a
328	328	301master plan to delineate a path to fossil-fuel free operation and net-zero annual site energy
329	329	302consumption. In considering projects for funding, the commission shall use as guidelines town or
330	330	303regional master plans, wastewater plans, watershed management plans, open space plans, and
331	331	304climate and energy goals.
332	332	305 SECTION 12. Anti-flipping restrictions shall be imposed on all activities and projects
333	333	306receiving housing bank funding pursuant to section 11, any housing units created, rehabilitated
334	334	307or acquired pursuant to this act, and any sale, lease, exchange, transfer or conveyance of real
335	335	308property by the housing bank, and additional restrictions shall be imposed as set forth in this
336	336	309section. Year-round housing restrictions shall be imposed in connection with the extension of
337	337	310loans or grant of down payment assistance. In all other circumstances in which the housing bank
338	338	311provides funding pursuant to section 11, or sells, leases, exchanges, transfers or conveys real
339	339	312property, or housing units are created, rehabilitated or acquired pursuant to this act, the activity
340	340	313or project, the real property, and any such housing units shall be subject to year-round housing
341	341	314restrictions, community housing restrictions, and transfer price restrictions. 16 of 28
342	342	315 Any community housing restriction, year-round housing restriction, transfer price
343	343	316restriction or anti-flipping restriction held by the commission pursuant to this chapter shall be
344	344	317construed as a restriction held by a governmental body with the benefit of section 26 of chapter
345	345	318184 of the General Laws and shall not be limited in duration by any rule or operation of law, but
346	346	319shall run in perpetuity. Notwithstanding any general or special law to the contrary, any
347	347	320community housing restriction, year-round housing restriction, transfer price restriction or anti-
348	348	321flipping restriction imposed by the commission pursuant to this chapter, whether or not held by
349	349	322the commission, shall be deemed to be an affordable housing restriction within the meaning of
350	350	323section 31 of chapter 184 of the General Laws and shall not be limited in duration by any rule or
351	351	324operation of law, but shall run in perpetuity.
352	352	325 SECTION 13. The commission shall meet its financial obligations by drawing upon a
353	353	326fund, to be set up as a revolving or sinking account within the treasury of the county of Dukes
354	354	327County. Deposits into the fund shall include (a) funds appropriated, borrowed or transferred to be
355	355	328deposited into the fund by vote of the county commissioners of the county of Dukes County or of
356	356	329town meetings of the member towns; (b) voluntary contributions of money and other liquid
357	357	330assets to the fund; (c) revenues from fees imposed upon the transfer or real property interests as
358	358	331set forth in section 15 occurring after the effective date of this act; (d) proceeds from the
359	359	332disposition of personal property, real property interests or other assets of the housing bank; and
360	360	333(e) proceeds of loans made by the housing bank. Grants or gifts of money or other assets to the
361	361	334housing bank shall be expended only for the purposes of the grant or gift and subject to any
362	362	335restrictions or limitations imposed thereon by the grantor or donor thereof, and to all the
363	363	336restrictions, limitations, and guidelines laid out elsewhere in the Act. 17 of 28
364	364	337 All expenses lawfully incurred by the commission in carrying out the provisions of this
365	365	338act shall be evidenced by proper vouchers and shall be paid by the county treasurer of said
366	366	339county only upon submission of warrants duly approved by the commission. The county
367	367	340treasurer of said county shall prudently invest available assets of the fund in accordance with the
368	368	341regulations and procedures adopted by the commission and all income thereon shall accrue to the
369	369	342fund.
370	370	343 SECTION 14. The commission, or its designee, shall keep a full and accurate account of
371	371	344its actions including a record as to when, from or to whom, and on what account money has been
372	372	345paid or received under this act. These records shall be subject to examination by the director of
373	373	346accounts or the director’s agent. There shall be an annual audit conducted by a duly recognized
374	374	347accounting firm and a copy of said audit distributed to the select board of each member town.
375	375	348The Dukes County treasurer shall keep a full and accurate account stating when, from or to
376	376	349whom, and on what account money has been paid or received relative to the activities of the
377	377	350commission and the housing bank.
378	378	351 SECTION 15. There is hereby imposed a fee equal to 2 per cent of the purchase price
379	379	352upon the transfer of any real property interest with respect to any real property located in a
380	380	353member town or towns. Said fee shall be the liability of the purchaser of such real property
381	381	354interest, and any agreement between the purchaser and the seller or any other person with
382	382	355reference to the allocation of the responsibility for bearing said fee shall not affect such liability
383	383	356of the purchaser. Such fee shall be paid to the commission or its designee, and shall be
384	384	357accompanied by a copy of the deed or other instrument evidencing such transfer, if any, and an
385	385	358affidavit signed under oath or under the pains and penalties of perjury by the purchaser or the
386	386	359purchaser’s legal representative, attesting to the true and complete purchase price and the basis, 18 of 28
387	387	360if any, upon which the transfer is claimed to be exempt in whole or in part from the fee imposed
388	388	361hereby. The commission or its designee shall promptly thereafter execute and issue a certificate
389	389	362indicating that the appropriate fee has been paid or that the transfer is exempt from the fee and
390	390	363stating the basis for the exemption. The register of deeds for the county of Dukes County, and
391	391	364the assistant recorder for the registry district of the county of Dukes County, shall not record or
392	392	365register, or receive or accept for recording or registration, any deed, except a mortgage deed,
393	393	366relative to a real property interest in real property situated in any town that is a member of the
394	394	367commission to which has not been affixed such a certificate, executed by the commission or its
395	395	368designee. Failure to comply with this requirement shall not affect the validity of any instrument.
396	396	369The commission or its designee shall deposit all fees received hereunder with the county
397	397	370treasurer of the county of Dukes County as part of the fund established by section 13. The fee
398	398	371imposed hereunder shall be due simultaneously with the time of transfer upon which it is
399	399	372imposed.
400	400	373 SECTION 16. The commission is authorized to enter into one or more agreements with
401	401	374the Martha’s Vineyard land bank commission established by Chapter 736 of the Acts of 1985, as
402	402	375amended, through which the housing bank may delegate to the Martha’s Vineyard land bank
403	403	376commission the record keeping requirements set forth in section 14, collection of fees,
404	404	377processing of applications for exemptions and issuance of certificates and pursuant to section 15,
405	405	378processing of applications for refunds pursuant to section 17, the imposition of interest or
406	406	379penalties pursuant to section 19, sending of notices and conduct of hearings pursuant to section
407	407	38020, providing for compensation or reimbursement of costs incurred by the Martha’s Vineyard
408	408	381land bank commission from fees collected pursuant to this act and any other matter that may be
409	409	382delegated pursuant to section 4A of chapter 40 of the General Laws. Notwithstanding section 4A 19 of 28
410	410	383of chapter 40 or any general or special law to the contrary, such agreement or agreements may be
411	411	384for a term in excess of 25 years.
412	412	385 SECTION 17. At any time within 7 days following the issuance of the certificate of
413	413	386payment of the fee imposed by section 15, the purchaser or the purchaser’s legal representative
414	414	387may return said certificate to the commission or its designee for cancellation, together with an
415	415	388affidavit signed under oath or under the pains and penalties of perjury that the transfer, with
416	416	389respect to which such certificate was issued, has not been consummated, and thereupon the fee
417	417	390paid with respect to such transfer shall be forthwith returned to the purchaser or the purchaser’s
418	418	391legal representative.
419	419	392 SECTION 18. The following transfers of real property interests shall be exempt from the
420	420	393fee established by section 15. Except as otherwise provided, the purchaser shall have the burden
421	421	394of proof that any transfer is exempt hereunder.
422	422	395 Transfers to the government of the United States, the commonwealth, and any of their
423	423	396instrumentalities, agencies or subdivisions;
424	424	397 transfers which, without additional consideration, confirm, correct, modify or supplement
425	425	398a transfer previously made;
426	426	399 transfers made as gifts with consideration of less than $100; in any proceedings to
427	427	400determine the amount of any fee due hereunder, it shall be presumed that any transfer for
428	428	401consideration of less than fair market value of the real property interests transferred was made as
429	429	402a gift without consideration to the extent of the difference between the fair market value of the
430	430	403real property interests transferred and the amount of consideration claimed by the purchaser to
431	431	404have been paid or transferred, if the purchaser shall have been at the time of transfer the spouse, 20 of 28
432	432	405the lineal descendant, the lineal ancestor of the seller, by blood or adoption, and otherwise it
433	433	406shall be presumed that consideration was paid in an amount equal to the fair market value of the
434	434	407real property interests transferred, at the time of transfer;
435	435	408 transfer to the trustees of a trust in exchange for a beneficial interest received by the seller
436	436	409in such trust; distribution by the trustees of a trust to the beneficiaries of such trust;
437	437	410 transfers by operation of law without actual consideration, including but not limited to
438	438	411transfers occurring by virtue of the death or bankruptcy of the owner of a real property interest;
439	439	412 transfers made in partition of the land and improvements thereto, under the provisions of
440	440	413chapter 241 of the General Laws;
441	441	414 transfers to any charitable organization as defined in clause third of section 5 of chapter
442	442	41559 of the General Laws, or any religious organization, provided that the real property interests so
443	443	416transferred shall be held by the charitable or religious organization solely for its public,
444	444	417charitable or religious purposes;
445	445	418 transfers to a mortgagee in foreclosure of the mortgage held by such mortgagee, and
446	446	419transfers of the property subject to a mortgage to the mortgagee in consideration of the
447	447	420forbearance of the mortgagee from foreclosing said mortgage;
448	448	421 transfers made to a corporation, limited liability company or partnership at the time of its
449	449	422formation, pursuant to which transfer no gain or loss is recognized under the provisions of
450	450	423section 351 of the Internal Revenue Code; 21 of 28
451	451	424 transfers made to a stockholder of a corporation in liquidation of the corporation,
452	452	425transfers to a member in liquidation of a limited liability company, and transfers made to a
453	453	426partner of a partnership in liquidation of the partnership;
454	454	427 transfers consisting of the division of marital assets under the provisions of section 34 of
455	455	428chapter 208 of the General Laws or other provisions of law;
456	456	429 transfers of property consisting in part of real property interests situated within a town
457	457	430that is a member of the commission and in part of other property interests, to the extent that the
458	458	431property transferred consists of property other than real property situated within a town that is a
459	459	432member of the commission provided that the purchaser shall furnish the commission with such
460	460	433information as it shall require or request in support of the claim of exemption and manner of
461	461	434allocation of the consideration for such transfers;
462	462	435 the first $1,000,000 of the purchase price of all transfers of real property interests, or a
463	463	436higher exemption as determined annually by the commission;
464	464	437 transfer of a real property interest that is subject to and used consistent with an affordable
465	465	438housing restriction as defined in section 31 of chapter 184 of the General Laws; provided,
466	466	439however, that the affordable housing restriction has a term remaining at the time of the transfer
467	467	440of not less than 5 years; and provided further, that the purchaser shall make the real property with
468	468	441respect to which the real property interest is held and that is the subject of the transfer, the
469	469	442purchaser’s actual domicile within 2 years of the time of transfer and shall remain permanently
470	470	443or for an indefinite time and without any certain purpose to return to a former place of abode for
471	471	444a period lasting not less than the fifth anniversary of the transfer. Notwithstanding this paragraph,
472	472	445if the real property interest is transferred again within 5 years and the later transfer complies with 22 of 28
473	473	446this paragraph, the fee, interest and penalty shall not be due. The fee exempted hereunder shall
474	474	447become due, together with the accumulated interest and penalties calculated from the date of the
475	475	448transfer exempted hereunder, if: (i) the commission or its designee determines that a purchaser
476	476	449has not made the real property with respect to which the real property interest is held and that is
477	477	450the subject of the transfer the purchaser’s actual domicile within 2 years of the time of transfer;
478	478	451(ii) the holder of an affordable housing restriction determines within 5 years of the transfer that
479	479	452the real property interest to which it pertains is not being used consistent with the requirements
480	480	453of the affordable housing restriction; or (iii) a later transfer within 5 years does not comply with
481	481	454this paragraph. The purchaser shall certify as to the foregoing and the commission shall attach to
482	482	455the deed a certificate that shall recite the fact that there is running with the land a lien equal to the
483	483	456amount of the fee exempted plus accumulated interest and penalties until such time as all
484	484	457conditions of this paragraph have been met.
485	485	458 transfer of a real property interest which is limited to any of the following: the dominant
486	486	459estate in any easement or right of way; the right to enforce any restriction; any estate at will or at
487	487	460sufferance; any estate for years having a term of less than thirty years; any reversionary right,
488	488	461condition, or right of entry for condition broken; and the interest of a mortgagee or other secured
489	489	462party in any mortgage or security agreement.
490	490	463 SECTION 19. A purchaser who fails to pay all or any portion of the fee established by
491	491	464section 15 on or before the time when the same is due shall be liable for the following additional
492	492	465payments in addition to said fee:
493	493	466 (a) Interest. The purchaser shall pay interest on the unpaid amount of the fee to be
494	494	467calculated from the time of transfer at a rate equal to 14 per cent per annum. 23 of 28
495	495	468 (b) Penalties. Any person who, without fraud or willful intent to defeat or evade a fee
496	496	469imposed by this act, fails to pay all or a portion of the fee within 30 days after the time of
497	497	470transfer, shall pay a penalty equal to 5 per cent of the outstanding fee as determined by the
498	498	471commission for each month or portion thereof that the fee is not paid in full; provided, however,
499	499	472that in no event shall the amount of any penalty imposed hereunder exceed 25 per cent of the
500	500	473unpaid fee due at the time of transfer. Whenever the commission or its designee determines that
501	501	474all or a portion of a fee due under section 15 was unpaid due to fraud with intent to defeat or
502	502	475evade the fee imposed by this chapter, a penalty equal to the amount of said fee as determined by
503	503	476the commission or its designee shall be paid by the purchaser in addition to said fee.
504	504	477 SECTION 20. (a) The commission or its designee shall notify a purchaser by
505	505	478registered or certified mail of any failure to discharge in full the amount of the fee due under this
506	506	479act and any penalty or interest assessed pursuant to sections 18 or 19. The commission or its
507	507	480designee shall grant a hearing on the matter of the imposition of said fee, interest or penalty if a
508	508	481petition requesting such hearing is received by the commission within 30 days after the mailing
509	509	482of said notice. The commission or its designee shall notify the purchaser in writing by registered
510	510	483or certified mail of its determination concerning the deficiency, penalty or interest within 15 days
511	511	484after said hearing. Any party aggrieved by a determination of the commission or its designee
512	512	485concerning a deficiency, penalty or interest may, after payment of said deficiency, appeal to the
513	513	486district or superior court within 3 months after the mailing of notification of the commission or
514	514	487its designee. Upon the failure to timely petition for a hearing, or appeal to said courts, within the
515	515	488time limits hereby established, the purchaser shall be bound by the terms of the notification,
516	516	489assessment or determination, as the case may be, and shall be barred from contesting the fee, and
517	517	490any interest and penalty, as determined by the commission or its designee. All decisions of said 24 of 28
518	518	491courts shall be appealable. Every notice to be given under this section by the commission or its
519	519	492designee shall be effective if mailed by certified or registered mail to the purchaser at the address
520	520	493stated in a recorded or registered instrument by virtue of which the purchaser holds any real
521	521	494property interest, the transfer of which gives rise to the fee which is the subject of such notice;
522	522	495and if no such address is stated or if such transfer is not evidenced by an instrument recorded or
523	523	496registered in the public records in the county of Dukes County, such notice shall be effective
524	524	497when so mailed to the purchaser in care of any person appearing of record to have a fee interest
525	525	498in the real property in which the real property interest is held, at the address of such person as set
526	526	499forth in an instrument recorded or registered in the county of Dukes County.
527	527	500 (b) All fees, penalties and interest required to be paid pursuant to this act shall constitute
528	528	501a personal debt of the purchaser and may be recovered in an action of contract or in any other
529	529	502appropriate action, suit or proceeding brought by the commission; said action, suit or proceeding
530	530	503shall be subject to chapter 260 of the General Laws.
531	531	504 (c) If any purchaser liable to pay the fee established by this act neglects or refuses to pay
532	532	505the same, the amount, including any interest and penalty thereon, shall be a lien in favor of the
533	533	506commission upon all property and rights to property, whether real or personal, belonging to such
534	534	507purchaser. Said lien shall arise at the time of transfer and shall continue until the liability for such
535	535	508amount is satisfied. Said lien shall in any event terminate not later than 6 years following the
536	536	509time of transfer. Said lien shall not be valid as against any mortgagee, pledgee, purchaser or
537	537	510judgment creditor unless notice thereof has been filed by the commission (i) with respect to real
538	538	511property or fixtures, in the registry of deeds for the county of Dukes County, or (ii) with respect
539	539	512to personal property, in the office in which a security of financing statement or notice with
540	540	513respect to the property would be filed in order to perfect a nonpossessory security interest 25 of 28
541	541	514belonging to the person named in the relevant notice, subject to the same limitations as set forth
542	542	515in section 50 of chapter 62C of the General Laws.
543	543	516 In any case where there has been a refusal or neglect to pay any fee, interest or penalties
544	544	517imposed by this act, whether or not levy has been made, the commission, in addition to other
545	545	518modes of relief, may direct a civil action to be filed in a district or superior court of the
546	546	519commonwealth to enforce the lien of the commission under this section with respect to such
547	547	520liability or to subject any property of whatever nature of the delinquent, or in which he has any
548	548	521right, title or interest, to the payment of such liability.
549	549	522 The commission may issue a waiver or release of any lien imposed by this section with
550	550	523the approval of the town advisory board of the town or towns in which the property subject to the
551	551	524lien is located. Such waiver or release shall be conclusive evidence that the lien upon the
552	552	525property covered by the waiver or release is extinguished.
553	553	526 SECTION 21. This act, being necessary for the welfare of the member towns and the
554	554	527county of Dukes County and their inhabitants, shall be liberally construed to effect the purposes
555	555	528hereof.
556	556	529 SECTION 22. Any town on Martha’s Vineyard that is not a member of the housing bank
557	557	530may become a member by the affirmative vote of a majority of the voters at any regular or
558	558	531special town election at which the question of acceptance has been placed on the ballot. All
559	559	532rights, privileges and obligations applicable to the original members of the housing bank shall be
560	560	533applicable to new members, but a new member town shall not be responsible for funding
561	561	534obligations or debt incurred before it became a member. The initial town-representative
562	562	535commission member of a new member town shall be appointed, and thereafter the town- 26 of 28
563	563	536representative members for such town shall thereafter be elected, as provided in section 3;
564	564	537provided that the initial term of the initial elected town representative member shall be for such
565	565	538period as may be determined by the commission in order to preserve staggered terms as required
566	566	539by section 3.
567	567	540 SECTION 23. Any member town may withdraw from the housing bank by the
568	568	541affirmative vote of a majority of the voters at any regular or special town election. The fee
569	569	542established by section 15 shall continue to be collected in any town that votes to withdraw, but
570	570	543only until satisfaction of such town’s pro rata share of all housing bank debt incurred and all
571	571	544funding commitments approved by the town’s town advisory board prior to the date that such
572	572	545town provides notice to the commission that the town has voted at a regular or special election to
573	573	546withdraw from the housing bank. A town’s pro rata share of housing bank debt shall be
574	574	547determined as the ratio of all fees collected on behalf of such town under section 15 during its
575	575	548membership in the housing bank to all fees collected under section 15 on behalf of all member
576	576	549towns during the same period. Upon receipt of notice that a member town has voted at a regular
577	577	550or special election to withdraw from the housing bank, the commission or its designee shall
578	578	551reserve all transfer fees received on behalf of such withdrawing town, in excess of the amounts
579	579	552necessary to pay current debt service on such town’s pro rata share of housing bank debt and to
580	580	553pay funding commitments approved by such town’s town advisory board prior to receipt of such,
581	581	554which amounts shall be applied solely to the payment of such funding commitments, and to
582	582	555housing bank debt allocable to the withdrawing town at its earliest optional redemption date or
583	583	556dates, as the case may be.
584	584	557 In the event of a town’s withdrawal, the commission may expend funds for activities and
585	585	558projects located within the withdrawing town only to the extent that such expenditures were 27 of 28
586	586	559approved prior to the date that such town provides notice to the commission that the town has
587	587	560voted at a regular or special election to withdraw from the housing bank, and provided that
588	588	561transfer fees continue to be collected in that town.
589	589	562 SECTION 24. This act shall expire 30 years from its date of passage unless specifically
590	590	563extended by vote of the commission and an affirmative vote of a majority of the voters at town
591	591	564meetings of at least 4 member towns; provided that, if extended, this act shall remain in effect
592	592	565only for those towns that vote in the affirmative to extend. The fee established by section 15 shall
593	593	566continue to be collected in any town that does not vote to extend this act until satisfaction of both
594	594	567all funding commitments approved by the withdrawing town’s town advisory board and debt
595	595	568incurred by the housing bank prior to (1) the effective date of the extension of the this act if this
596	596	569act is extended notwithstanding the town’s vote, and (2) the expiration of this act, if this act is
597	597	570allowed to expire.
598	598	571 If the member towns of the housing bank are reduced to fewer than 4, the housing bank
599	599	572shall be dissolved. Upon dissolution of the housing bank, the fee established by section 15 shall
600	600	573continue to be imposed until all funding commitments and debt, including but not limited to
601	601	574repayment of bonds and notes of the housing bank, have been paid in full, and the commission
602	602	575shall continue in existence during such time for the sole purpose of collecting and administering
603	603	576such fees. Title to all funds, personal property and real property interests shall vest in the
604	604	577member towns or their designees as herein provided after provision is made for payment of all
605	605	578bonds, notes and other obligations of the housing bank. Personal property and real property
606	606	579interests held by the housing bank at the time of dissolution shall be transferred to the town or
607	607	580towns in which property is situated, or the designee of such town or towns, who shall maintain,
608	608	581protect, limit the future use of, improve, or otherwise preserve such property for year-round 28 of 28
609	609	582housing and community housing purposes as defined in section 1. Funds held by the housing
610	610	583bank shall be transferred to the towns on Martha’s Vineyard in proportion to the fees collected
611	611	584on behalf of each town over the life of the housing bank under this act, to be held in trust for the
612	612	585purpose of holding and managing the real property interests transferred to the towns pursuant to
613	613	586this paragraph.
614	614	587 SECTION 25. Acceptance of this act shall be by the affirmative vote of a majority of the
615	615	588voters at any regular or special town election at which the question of acceptance has been
616	616	589placed on the ballot. This act shall become effective on the date on which acceptance by four
617	617	590towns located on Martha’s Vineyard has been effected.