Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S626 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. 1720 FILED ON: 1/19/2023
3	3	SENATE . . . . . . . . . . . . . . No. 626
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Lydia Edwards
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 for a right of first refusal for foreclosed property (Foreclosure TOPA).
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Lydia EdwardsThird SuffolkSteven Owens29th Middlesex2/5/2023Joanne M. ComerfordHampshire, Franklin and Worcester2/9/2023Sal N. DiDomenicoMiddlesex and Suffolk2/11/2023James B. EldridgeMiddlesex and Worcester2/11/2023Michael O. MooreSecond Worcester2/15/2023Patricia D. JehlenSecond Middlesex3/2/2023 1 of 20
16	16	SENATE DOCKET, NO. 1720 FILED ON: 1/19/2023
17	17	SENATE . . . . . . . . . . . . . . No. 626
18	18	By Ms. Edwards, a petition (accompanied by bill, Senate, No. 626) of Lydia Edwards, Steven
19	19	Owens, Joanne M. Comerford, Sal N. DiDomenico and other members of the General Court for
20	20	legislation for a right of first refusal for foreclosed property (Foreclosure TOPA). Financial
21	21	Services.
22	22	The Commonwealth of Massachusetts
23	23	_______________
24	24	In the One Hundred and Ninety-Third General Court
25	25	(2023-2024)
26	26	_______________
27	27	An Act for a right of first refusal for foreclosed property (Foreclosure TOPA).
28	28	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
29	29	of the same, as follows:
30	30	1 SECTION 1. Chapter 184 of the General Laws, as appearing in the 2020 Official Edition,
31	31	2is hereby amended by inserting after section 21 the following section:-
32	32	3 Section 21A.community development corporation(a) For the purposes of this section, the
33	33	4following words shall have the following meanings unless the context clearly requires
34	34	5otherwise,:
35	35	6 ''Affiliate'', an entity owned or controlled by an owner or under common control with the
36	36	7owner.
37	37	8 “Auction” or "public auction", the sale of a housing accommodation, under power of sale
38	38	9in a mortgage loan, by public bidding.
39	39	10 “Borrower", a mortgagor of a mortgage loan. 2 of 20
40	40	11 ''Community development corporation'', a nonprofit corporation, as defined in section 2
41	41	12of chapter 40H.
42	42	13 "Deed in lieu", a deed for the collateral property that the mortgagee accepts from the
43	43	14borrower in exchange for the release of the borrower’s obligation under the mortgage loan.
44	44	15 “Department”, the department of housing and community development, or its successor
45	45	16agency.
46	46	17 ''Eligible organization'', a nonprofit corporation established pursuant to section 3 of
47	47	18chapter 180, a controlled nonprofit or for-profit affiliate of a community development
48	48	19corporation or housing authority, or such other entity or organization, including a tenant
49	49	20association, public agency, mixed-income neighborhood trust, and a limited equity cooperative
50	50	21housing corporation organized under or subject to chapter 157B, which the community
51	51	22development corporation serving the neighborhood, municipality, or region of the
52	52	23commonwealth where the housing accommodation is located determines to be engaged primarily
53	53	24in activities intended to contribute to the preservation of existing or the creation of affordable
54	54	25housing and has the requisite experience in developing, owning, and operating residential real
55	55	26estate and with the capacity to secure financing of the purchase transaction; provided, however,
56	56	27that any purchase by an eligible organization under this section shall be for the use of a housing
57	57	28accommodation as long-term affordable housing set out in a recorded restriction.
58	58	29 “Eligible organization list”, a list maintained by a community development corporation of
59	59	30all of eligible organizations within the neighborhoods or municipalities, a region of the
60	60	31commonwealth or a constituency that is economically disadvantaged served by a community
61	61	32development corporation. 3 of 20
62	62	33 "Foreclosure", a proceeding to terminate a borrower’s interest in property instituted by
63	63	34the mortgagee.
64	64	35 "Housing accommodation", a building or buildings, structure or structures, or part
65	65	36thereof, containing not less than 6 units rented or offered for rent for living or dwelling purposes,
66	66	37including, without limitation, houses, apartments, condominium units, cooperative units and
67	67	38other multi-family residential dwellings; provided, however, that a housing accommodation shall
68	68	39not include a group residence, homeless shelter, lodging house, orphanage, temporary dwelling
69	69	40structure or transitional housing, hospital, convent, monastery, skilled nursing facility, health
70	70	41facility, extended care facility, convalescent home, dormitories owned by educational
71	71	42institutions, properties licensed as hotels and motels, residential properties that an owner is
72	72	43refinancing in order to maintain ownership of such properties.
73	73	44 “Housing Authority”, a housing authority created under sections 3 and 3A of chapter
74	74	45121B.
75	75	46 “Immediate Family Member”, the parent, offspring, sibling, or spouse of the owner, or a
76	76	47trust in which the beneficiaries immediately after the creation are the owner and the parent, child,
77	77	48sibling or spouse of the owner.
78	78	49 “Long-term affordable housing”, (i) for rental housing: housing where forty percent of
79	79	50the housing units are affordable to households with incomes at or below 60 per cent of the Area
80	80	51Median Income (AMI) as established by the United States Department of Housing and Urban
81	81	52Development, and where these restrictions shall be in effect for at not less than 30 years and
82	82	53recorded in a deed restriction; (ii) for homeownership housing: housing where all units are both
83	83	54(A) set at prices affordable to, and (B) limited to purchase by, buyers whose incomes are at or 4 of 20
84	84	55below 100 per cent of the AMI, and at not less than 50 per cent of the units are both (1) set at
85	85	56prices affordable to, and (2) limited to purchase by, buyers with incomes at or below 80 per cent
86	86	57of the AMI, and where these restrictions shall be in effect for at least thirty years and recorded in
87	87	58a deed restriction.
88	88	59 "Member", a natural person who is a member of a tenant association.
89	89	60 "Mortgage loan", a loan secured wholly or partially by a mortgage on a housing
90	90	61accommodation.
91	91	62 "Mortgagee", an entity to whom a housing accommodation is mortgaged, the mortgage
92	92	63creditor or lender including, but not limited to, mortgage servicers, lenders in a mortgage
93	93	64agreement and any agent, servant or employee of the mortgagee or any successor in interest or
94	94	65assignee of the mortgagee's rights, interests or obligations under the mortgage agreement.
95	95	66 "Owner", a person, firm, partnership, corporation, trust, organization, limited liability
96	96	67company or other entity, or its successors or assigns, that holds title to a housing
97	97	68accommodation.
98	98	69 "Purchaser", a party who has entered into a purchase contract with an owner and who
99	99	70will, upon performance of the purchase contract, become the new owner of a housing
100	100	71accommodation.
101	101	72 "Purchase contract", a binding written agreement whereby an owner agrees to sell a
102	102	73housing accommodation including, without limitation, a purchase and sale agreement, contract of
103	103	74sale, purchase option or other similar instrument. 5 of 20
104	104	75 "Sale", an act by which an owner conveys, transfers or disposes of a housing
105	105	76accommodation by deed or otherwise, whether through a single transaction or a series of
106	106	77transactions, within 3 years; provided, however, that a disposition of housing by an owner to an
107	107	78affiliate of such owner shall not constitute a sale.
108	108	79 "Short-sale", a sale approved by the mortgagee to a bona fide purchaser at a price that is
109	109	80less than the borrower's existing debt on the housing accommodation.
110	110	81 "Tenant", a person entitled to possession or occupancy of a rental unit within residential
111	111	82housing, including a subtenant, lessee and sublessee.
112	112	83 "Tenant Association", an organization with a membership limited to present tenants of a
113	113	84housing accommodation that: (i) is registered with, or if no registry exists, has provided a letter
114	114	85stating its formation to the municipality that has adopted an ordinance consistent with this
115	115	86section; or (ii) is a non-profit organization incorporated under section 3 of chapter 180.
116	116	87 "Third-party offer", a bona fide offer to purchase the mortgaged housing accommodation
117	117	88for valuable consideration by a purchaser; provided, however, that a third-party offer shall not
118	118	89include an offer by the borrower or the tenants.
119	119	90 "Third-party purchaser", a purchaser that is not a municipality, housing authority,
120	120	91community development corporation, and eligible organization or their designees, successors, or
121	121	92an affiliate.
122	122	93 (b) A municipality may adopt this section in a city having a Plan D or a Plan E charter by
123	123	94majority vote of its city council and approved by the manager; in any other city by majority vote
124	124	95of the city council and approved by the mayor; or in a town by vote of the board of selectmen. 6 of 20
125	125	96The acceptance of this local option by a municipality shall take effect no later than 180 days after
126	126	97such adoption. A municipality may at any time revoke the acceptance of this section in the
127	127	98manner provided in section 4 of chapter 4. The revocation shall not affect agreements relative to
128	128	99the right to purchase of a municipality, housing authority, community development corporation
129	129	100and eligible organization evidenced by the submission of an offer to the owner, an executed
130	130	101purchase contract or other agreement acceptable to both parties, prior to the revocation. A
131	131	102municipality that adopts this section shall establish an ordinance or by-law to enforce this
132	132	103section.
133	133	104 (c) An ordinance or by-law of a municipality accepting this section may contain
134	134	105provisions that establish:
135	135	106 (i) additional penalties, municipal enforcement authority and enforcement mechanisms,
136	136	107in addition to recorded restrictions, for enforcing the ordinance and provisions of this section,
137	137	108and rules and regulations implementing this section; and
138	138	109 (ii) mandated use of a standard purchase contract, prepared or approved by the
139	139	110municipality and consistent with this section, for owners to provide to the municipality, housing
140	140	111authority, community development corporation and an eligible organization under clause (iv) of
141	141	112subsection (e); and
142	142	113 (iii) additional affordability restrictions on the total percentage of affordable units, the
143	143	114level of affordability, and the length of time such restrictions shall be in place; provided,
144	144	115however, that affordability restrictions do not result in the displacement of current tenants.
145	145	116 (d) An ordinance or by-law of a municipality accepting this section shall: 7 of 20
146	146	117 (i) require an owner of a housing accommodation to file annually a written return
147	147	118requested by a board of the assessor under section 38D of chapter 59 to include a current rent roll
148	148	119with names of all tenants; a statement under oath attesting to all operating expenses for the prior
149	149	1202 years, including utilities, insurance premiums and repairs, and to capital improvements;
150	150	121provided, however, that the written return shall be attached to the notice submitted by an owner
151	151	122in clauses (i) through (iii), inclusive, of paragraph (1) of subsection (e); and
152	152	123 (ii) develop and post on the public website of the municipality a document that includes:
153	153	124(A) a summary of the ordinance adopted hereunder by the municipality; (B) a summary of the
154	154	125potential impact on tenants; and (C) resources for tenants who have questions.
155	155	126 (e) (1) In any municipality that adopts this section where an owner intends to offer for
156	156	127sale a housing accommodation, solicits any offer to purchase from or accepts an unsolicited offer
157	157	128to purchase from, any third-party purchaser an owner of a housing accommodation shall: (i)
158	158	129notify the municipality and the housing authority for the municipality within 14 days, by
159	159	130electronic and United States mail, of receiving of an offer for sale of a housing accommodation
160	160	131that an owner intends to consider, of soliciting an offer to purchase from, or of accepting an
161	161	132unsolicited offer from a third-party purchaser to purchase the housing accommodation of the
162	162	133owner; (ii) notify each tenant within 14 days in writing by hand delivery and United States mail,
163	163	134of the intention of the owner to offer for sale a housing accommodation, to solicit an offer to
164	164	135purchase from, or to accept an unsolicited offer from a third-party purchaser to purchase the
165	165	136housing accommodation of the owner, with copy of the document developed by the municipality
166	166	137under clause (ii) of subsection (d); (iii) notify the community development corporation for the
167	167	138region in which a housing accommodation is located within 14 days, in writing by electronic
168	168	139delivery and United States mail, of receiving of an offer for sale of a housing accommodation 8 of 20
169	169	140that an owner intends to consider, of soliciting an offer to purchase from, or of accepting an
170	170	141unsolicited offer from a third-party purchaser to purchase the housing accommodation of the
171	171	142owner; (iv) provide with the notices required in clauses (i) and (iii) the address of the housing
172	172	143accommodation and contact information for the owner of a housing accommodation; and,
173	173	144notwithstanding section 52B of chapter 59, permission for the municipality, housing authority for
174	174	145the municipality, and the community development corporation for the region to receive from the
175	175	146municipality the information filed in accordance with section 38D of chapter 59, and permission
176	176	147to inspect, conduct inspections and tests as provided under subsection (v); (v) allow the
177	177	148municipality, housing authority, community development corporation and eligible organizations
178	178	149to: (A) inspect all common and maintenance service areas of the housing accommodation,
179	179	150including roof, boiler room, electrical and telecommunications rooms, (B) conduct inspections
180	180	151and tests for the presence of lead paint and asbestos (C) conduct small amounts of demolition
181	181	152that will be restored after said inspections and tests are completed; and (d) run tests for regulated
182	182	153environmental toxins on unbuilt areas of a housing accommodation, if required by the
183	183	154municipality, housing authority, the community development corporation, and an eligible
184	184	155organization or their designees or successors; and (vi) provide the municipality, housing
185	185	156authority, community development corporation and eligible organizations an opportunity to
186	186	157purchase the property pursuant to the time periods contained in this section, prior to the owner
187	187	158entering into an agreement with a third-party purchaser; provided, however, that no owner shall
188	188	159be under any obligation to enter into an agreement to sell such property to the municipality,
189	189	160housing authority, community development corporation or eligible organization. 9 of 20
190	190	161 (2) A community development corporation, upon receiving notice under clause (iii) of
191	191	162paragraph (1), shall within 10 days notify the entities on the eligible organization list of receiving
192	192	163a notice and the information in clauses (iii) and (iv) of paragraph (1)
193	193	164 (3) A municipality, housing authority, community development corporation or eligible
194	194	165organization may, within 40 days of receipt of the notices required in clauses (i) and (iii) of
195	195	166paragraph (1) submit an offer to the owner to purchase a housing accommodation. Failure to
196	196	167submit a timely offer shall constitute an irrevocable waiver of the rights of the municipality,
197	197	168housing authority, community development corporation and eligible organization under this
198	198	169paragraph and the owner may enter into a contract to sell a housing accommodation to a third-
199	199	170party, subject to paragraph (4). If the owner and a municipality, housing authority, community
200	200	171development corporation or eligible organization have not entered into an agreement within 40
201	201	172days of receipt of the hand-delivered notices required in clauses(i) and (iii), the owner may enter
202	202	173into an agreement to sell a housing accommodation to a third-party, subject to subsection (4).
203	203	174 (4) Any purchase contract offered to, or proposed by, a municipality, housing authority,
204	204	175community development corporation or eligible organization shall include at least the following
205	205	176terms: (i) the earnest money deposit shall not exceed the lesser of: (A) 5 per cent of the sale
206	206	177price; or (B) $250,000; provided, however, that the owner and the municipality, housing
207	207	178authority, community development corporation and eligible organization, their successors or
208	208	179designee, may agree to modify the terms of the earnest money deposit; provided, further, that the
209	209	180earnest money deposit shall be held under commercially-reasonable terms by an escrow agent
210	210	181selected jointly by the owner and the municipality, housing authority, community development
211	211	182corporation or eligible organization, their successors or designees; (ii) all reasonable
212	212	183contingencies, including financing, marketability of title and appraisal contingencies; (iii) the 10 of 20
213	213	184earnest money deposit shall be refundable for not less than 90 days from the date of execution of
214	214	185the purchase contract or such greater period as agreed upon by the owner and purchaser;
215	215	186provided, however, that if the owner unreasonably delays the ability of the purchaser to conduct
216	216	187due diligence during the 90 day period, the earnest money deposit shall continue to be refundable
217	217	188for an additional period of one day for every day beyond 30 days that the owner has not
218	218	189complied with the subsection (5) (ii) above . After the expiration of the specified time period, the
219	219	190earnest money deposit shall become non-refundable but shall continue to be a deposit toward the
220	220	191full purchase price; and (iv) real estate broker commissions or fees associated with the third-
221	221	192party purchase transaction shall be payable upon the closing of the purchase.
222	222	193 (5) If an offer from a municipality, housing authority, community development
223	223	194corporation and eligible organization is accepted, a purchaser shall have 90 days from the
224	224	195execution of the purchase contract to perform all due diligence, secure financing for and close on
225	225	196the purchase of the housing accommodation. Failure to close on the purchase of a housing
226	226	197accommodation within 90 days shall constitute a default on the right to purchase by the
227	227	198purchaser; provided, however, if, within 30 days after the date of contracting, the purchaser
228	228	199presents the owner with the written decision of a lending institution or agency that states that the
229	229	200institution or agency estimates that a decision with respect to financing or financial assistance
230	230	201will be made within 120 days after the date of the purchase contract, the owner shall afford the
231	231	202tenant or qualified purchaser an extension of time consistent with the written estimate. The
232	232	203period by which the purchase of the housing accommodation shall close may be extended by
233	233	204agreement of owner and purchaser.
234	234	205 (6) If a purchaser does not close on the purchase of a housing accommodation the owner
235	235	206may proceed with a sale to the third party. If the owner and third party fail to close on the 11 of 20
236	236	207purchase of a housing accommodation, the owner shall provide notice to the municipality,
237	237	208housing authority, community development corporation, tenants and eligible organizations that
238	238	209the purchase of a housing accommodation did not close.
239	239	210 (7) Any property acquired under this subsection, that is not subject to a long-term
240	240	211affordable housing requirement under this subsection, shall be used as: (i) long-term affordable
241	241	212housing set out in a recorded restriction; (ii) cooperative housing subject to a covenant,
242	242	213satisfactory to the municipality in form and substance and having a term of not less than twenty
243	243	214years, that a majority of residential units be occupied by tenant-stockholders as their primary
244	244	215residence; or (iii) condominium units subject to a covenant, satisfactory to the municipality in
245	245	216form and substance and having a term of not less than twenty years, that a majority of units be
246	246	217occupied by unit owners as their primary residence. For purposes of this paragraph, an owner of
247	247	218a condominium unit or a tenant-stockholder of a cooperative housing unit shall include: (1) a
248	248	219person in military service on active duty who intends to occupy the residential unit when not on
249	249	220active duty; and (2) a parent or child of an occupant who is a disabled Immediate Family
250	250	221Member.
251	251	222 (8) The department shall enforce this subsection and shall promulgate rules and
252	252	223regulations necessary for enforcement. Upon request, the department shall provide
253	253	224municipalities with sample purchase contracts incorporating the requirements of this section that
254	254	225an owner can provide to a municipality, housing authority, community development corporation
255	255	226or eligible organization, their designees or successors.
256	256	227 (f) (1) In any municipality that adopts this section where an owner intends to offer for
257	257	228sale a housing accommodation by short-sale or to accept a deed in lieu an owner of a housing 12 of 20
258	258	229accommodation shall: (i) notify the municipality and the housing authority for the municipality,
259	259	230by electronic and United States mail, with a copy to the attorney general, of the intention of the
260	260	231owner to offer for sale a housing accommodation by short-sale or to accept a deed in lieu; (ii)
261	261	232notify each tenant, in writing by hand delivery and United States mail, of the intention of the
262	262	233owner to offer for sale a housing accommodation by short-sale or to accept a deed in lieu, with
263	263	234copy of the prepared summary of the ordinance adopted hereunder by the municipality; (iii)
264	264	235notify the community development corporation for the region in which a housing
265	265	236accommodation is located, in writing by electronic and United States mail, of the intention of the
266	266	237owner to offer for sale a housing accommodation by short-sale or to accept a deed in lieu; (iv)
267	267	238provide the notices under (i), (ii), and (iii) within 2 business days of the owner's submission of a
268	268	239request or application to the mortgagee for permission to sell the housing accommodation by
269	269	240way of short-sale or to accept a deed in lieu; (v) provide with the notices required in (i) and (iii),
270	270	241the address of the housing accommodation and contact information for the owner of a housing
271	271	242accommodation; and, notwithstanding section 52B of chapter 59, permission for the
272	272	243municipality, housing authority for the municipality, and the community development
273	273	244corporation for the region to receive from the municipality the information filed in accordance
274	274	245with Section 38D of Chapter 59, and permission to inspect, conduct inspections and tests as
275	275	246provided under subsection (v); and (vi) allow the municipality, housing authority, community
276	276	247development corporation and eligible organizations to inspect all common and maintenance
277	277	248service areas of the a housing accommodation, including roof, boiler room, electrical and
278	278	249telecommunications rooms; conduct inspections and tests for the presence of lead paint and
279	279	250asbestos, and to do small amounts of demolition that will be restored after said inspections and
280	280	251tests are completed; and do tests for regulated environmental toxins on unbuilt areas of a housing 13 of 20
281	281	252accommodation, if required by the municipality, housing authority, the community development
282	282	253corporation and an eligible organization, or their designees or successors.
283	283	254 (2) A mortgagee may not accept any third-party offers or deem an owner's application for
284	284	255short-sale submitted for review unless and until the mortgagee receives documentation in a form
285	285	256approved by the attorney general demonstrating that the tenants of the housing accommodation
286	286	257have been informed of the intent of the owner to seek a short-sale or deed in lieu and that the
287	287	258municipality, housing authority, community development corporation and eligible organization
288	288	259have had the opportunity to express their interest in exercising a right of first refusal within 60
289	289	260days of the owner providing them notice. If a municipality, housing authority, community
290	290	261development corporation or eligible organization has not affirmatively expressed their interest in
291	291	262exercising a right of first refusal or in assigning that right within 60 days or have not
292	292	263affirmatively waived that right within 60 days, the rights of the municipality, housing authority,
293	293	264community development corporation and eligible organization are deemed waived.
294	294	265 (3) Before a housing accommodation may be transferred by short-sale or deed-in-lieu, the
295	295	266owner shall notify the municipality, housing authority, community development corporation and
296	296	267eligible organization with a simultaneous copy to the attorney, by regular and certified mail, of
297	297	268any bona fide offer that the mortgagee intends to accept. Any notice of the offer required to be
298	298	269given under this subsection shall include the price, calculated as a single lump sum amount and
299	299	270of any promissory notes offered in lieu of cash payment.
300	300	271 (4) If a mortgagee has received an offer to purchase the housing accommodation that it
301	301	272indents to accept, a municipality, housing authority, community development corporation and
302	302	273eligible organization entitled to notice under paragraph (3) shall have the right to purchase the 14 of 20
303	303	274housing accommodation and have priority over the third party; provided, however, that it: (i)
304	304	275submits to the owner a proposed purchase contract on substantially equivalent terms and
305	305	276conditions within 60 days of receipt of notice of the offer made under paragraph (3); (ii) obtains
306	306	277a binding commitment for any necessary financing or guarantees within an additional 90 days
307	307	278after execution of the purchase and sale agreement; and (iii) closes on such purchase within an
308	308	279additional 90 days after the end of the 90-day period described in clause (ii).
309	309	280 (5) No owner shall unreasonably refuse to enter into, or unreasonably delay the execution
310	310	281or closing on a purchase contract with a municipality, housing authority, community
311	311	282development corporation or eligible organization that has made a bona fide offer to meet the
312	312	283price and substantially equivalent terms and conditions of an offer for which notice is required to
313	313	284be given pursuant to paragraph (3) of subsection (e). Failure of the municipality, housing
314	314	285authority, community development corporation and eligible organization to submit such a
315	315	286purchase contract within the first 60 days, to obtain a binding commitment for financing within
316	316	287the additional 90 days or to close on the purchase within the second 90 days, shall serve to
317	317	288terminate the rights of the municipality, housing authority, community development corporation
318	318	289and eligible organization to purchase. The time periods herein provided may be extended by
319	319	290agreement. A right to purchase hereunder shall be for the purpose of maintaining the use of the
320	320	291housing accommodation as permanently affordable rental housing.
321	321	292 (6) The right of first refusal under this section shall inure to the municipality, housing
322	322	293authority, community development corporation and eligible organization for the time periods
323	323	294provided in this act, beginning on the date of notice under paragraph(1) of subsection (e). The
324	324	295effective period for such right of first refusal shall begin anew for each different offer to
325	325	296purchase that the mortgagee intends to accept. 15 of 20
326	326	297 (7) In any instance where the municipality, housing authority, community development
327	327	298corporation and eligible organization is not the successful purchaser of the housing
328	328	299accommodation, the mortgagee shall provide evidence of compliance with this section by filing
329	329	300an affidavit of compliance with the attorney general and the registry of deeds for the county and
330	330	301district where a housing accommodation is located within 7 days of the sale.
331	331	302 (8) The attorney general shall enforce this subsection (e) and shall promulgate rules and
332	332	303regulations necessary for enforcement. The attorney general may seek injunctive, declaratory,
333	333	304and compensatory relief on behalf of tenants and the commonwealth in a court of competent
334	334	305jurisdiction. The attorney general shall post a sample intent to sell notice, sample proof of notice
335	335	306to tenants, sample notice of offer, and other necessary documents.
336	336	307 (g)(1) In any municipality that adopts this section where a mortgagee seeks to foreclose
337	337	308on a housing accommodation a mortgagee shall: (i) provide copies of all foreclosure notices
338	338	309required by sections 14 and 35A of chapter 244 or any other applicable foreclosure law by
339	339	310regular and certified mail to the tenants of the housing accommodation, the municipality,
340	340	311housing authority and community development corporation; provided, however, that the
341	341	312mortgagee shall also provide tenants of the housing accommodation, the municipality, housing
342	342	313authority and community development corporation by regular and certified mail, with a copy of
343	343	314any complaint filed in land court and any order of notice issued by the land court, pursuant to the
344	344	315Servicemembers Civil Relief Act if applicable, within 5 days of issuance; and (ii) provide the
345	345	316tenants of the housing accommodation, the municipality, housing authority and community
346	346	317development corporation by regular and certified mail, a copy of any and all notices of sale
347	347	318published pursuant to section 14 of chapter 244. 16 of 20
348	348	319 (2) Not later than 5 business days before the foreclosure auction of a housing
349	349	320accommodation, the municipality, housing authority, community development corporation and
350	350	321eligible organization shall inform the mortgagee, in writing, by electronic and United States mail,
351	351	322if they intend to exercise their right of first refusal at auction and desire to receive information
352	352	323relating to the proposed auction.
353	353	324 (3) A municipality, housing authority, community development corporation and eligible
354	354	325organization may exercise their right to purchase the housing accommodation, if the mortgagee
355	355	326receives an offer from a third party at the auction; provided, however, that the municipality,
356	356	327housing authority, community development corporation or eligible organization: (i) submits to
357	357	328the mortgagee a proposed purchase contract on substantially equivalent terms and conditions to
358	358	329that received by the mortgagee in the third-party offer within 60 days of receipt of notice of the
359	359	330bid made under (f)(3) of this section; (ii) obtains a binding commitment for any necessary
360	360	331financing or guarantees within an additional 90 days after execution of the purchase and sale
361	361	332agreement; and (iii) closes on such purchase within an additional 90 days after the end of the 90
362	362	333days under clause (ii).
363	363	334 (4) No mortgagee shall unreasonably refuse to enter into, or unreasonably delay the
364	364	335execution or closing on a purchase contract with a municipality, housing authority, community
365	365	336development corporation and eligible organization who have made a bona fide offer to meet the
366	366	337price and substantially equivalent terms and conditions of a bid received at auction. Failure of the
367	367	338municipality, housing authority, community development corporation and eligible organization
368	368	339to submit a purchase contract within the first 60 days, to obtain a binding commitment for
369	369	340financing within the additional 90 days or to close on the purchase within the second 90 days,
370	370	341shall serve to terminate the rights of the municipality, housing authority, community 17 of 20
371	371	342development corporation and eligible organization to purchase. The time periods herein provided
372	372	343may be extended by agreement. A right to purchase hereunder shall be for the purpose of
373	373	344maintaining the use of the housing accommodation as permanently affordable rental housing.
374	374	345 If there are no third-party bids at auction for the housing accommodation, the
375	375	346municipality, housing authority, community development corporation and eligible organization
376	376	347shall have a right of first refusal whenever the mortgagee seeks to sell the housing
377	377	348accommodation. The municipality, housing authority, community development corporation and
378	378	349eligible organization shall be notified of any offers the mortgagee intends to accept and shall be
379	379	350given an opportunity to meet the price and substantially equivalent terms of a third-party offer
380	380	351based on the same timeline described in paragraph (4) of subsection (f).
381	381	352 (5) The right of first refusal created herein shall inure to the municipality, housing
382	382	353authority, community development corporation, and eligible organization for the time periods
383	383	354herein before provided, beginning on the date of notice to the tenants under paragraph (1) of
384	384	355subsection (f).
385	385	356 (6) The attorney general shall enforce subsection (f) and shall promulgate rules and
386	386	357regulations necessary for enforcement. The attorney general may seek injunctive, declaratory,
387	387	358and compensatory relief on behalf of tenants and the commonwealth in a court of competent
388	388	359jurisdiction. The attorney general shall post a sample intent to sell notice, sample proof of notice
389	389	360to tenants, sample notice of offer, and other necessary documents.
390	390	361 (7) In any instance where the municipality, housing authority, community development
391	391	362corporation and eligible organization is not the successful purchaser, the seller of such housing
392	392	363accommodation shall provide evidence of compliance with this section by filing an affidavit of 18 of 20
393	393	364compliance with the attorney general, the department, and the official records of the county
394	394	365where a housing accommodation is located within 7 days of the sale.
395	395	366 (h) Any notice required by this section shall be deemed to have been provided when
396	396	367delivered in person or mailed by certified or registered mail, return receipt requested, to the party
397	397	368to whom notice is required; except that with respect to providing notice to tenants, notice shall be
398	398	369deemed to have been provided when either: (i) the notice is delivered in hand to the tenant or an
399	399	370adult member of the tenant's household; or (ii) the notice is sent by first class mail and a copy is
400	400	371left in or under the door of the tenant's dwelling unit. A notice to the affected municipality shall
401	401	372be sent to the chief executive officer.
402	402	373 (i) No tenant in a housing accommodation purchased by a municipality, housing
403	403	374authority, community development corporation and eligible organization shall be evicted, except
404	404	375for good cause .
405	405	376 (j) This section shall not apply to the following:
406	406	377 (1) property that is the subject of a government taking by eminent domain or a negotiated
407	407	378purchase in lieu of eminent domain;
408	408	379 (2) a proposed below-market sale to an organization organized under section 501(c)(3) of
409	409	380the Internal Revenue Code where a housing accommodation shall be used or developed as long-
410	410	381term affordable housing; sale to a purchaser pursuant to terms and conditions that preserve
411	411	382affordability;
412	412	383 (3) any sale of publicly-assisted housing, as defined in section 1 of chapter 40T; 19 of 20
413	413	384 (4) rental units in a nonprofit facility that has the primary purpose of providing short term
414	414	385treatment, assistance or therapy for alcohol, drug, or other substance use; provided, however, that
415	415	386such housing is incidental to the recovery program, and where the resident has been informed in
416	416	387writing of the temporary or transitional nature of the housing;
417	417	388 (5) rental units in a nonprofit facility that provides a structured living environment that
418	418	389has the primary purpose of helping homeless persons obtain the skills necessary for independent
419	419	390living in a permanent housing and where occupancy is restricted to a limited and specific period
420	420	391of time of not more than 24 months and where the client has been informed in writing of the
421	421	392temporary or transitional nature of the housing at its inception;
422	422	393 (6) public housing units owned or managed by or with a ground lease from the local
423	423	394housing authority;
424	424	395 (7) any unit that is held in trust on behalf of a disabled individual who permanently
425	425	396occupies the unit, or a unit that is permanently occupied by a disabled parent, sibling, child, or
426	426	397grandparent of the owner of that unit;
427	427	398 (8) any unit that is transferred to any beneficiary in a trust in which beneficial interests
428	428	399are retained by the owner of the housing accommodation or an immediate family member;
429	429	400 (9) any sale to an immediate family member of the owner for a total purchase price below
430	430	401the current assessed value of a housing accommodation;
431	431	402 (10) a transfer by devise, descent or operation of law upon the death of a natural person;
432	432	403and 20 of 20
433	433	404 (11) a sale of a newly constructed property for which the initial certificate of occupancy
434	434	405was issued no earlier than three years prior to the date of the purchase contract between a buyer
435	435	406and the party to which the certificate of occupancy was issued.
436	436	407 (k) A municipality, housing authority, community development corporation and eligible
437	437	408organization shall not solicit or accept payment or any other consideration for assigning or
438	438	409waiving any rights under this section.
439	439	410 (l) An aggrieved municipality, housing authority, community development corporation
440	440	411and eligible organization may seek damages under chapter 93A, may file a complaint with the
441	441	412attorney general and may file a court complaint for equitable or monetary relief, including, but
442	442	413not limited to, damages of a percentage of the sales price or injunctive relief in the form of
443	443	414specific performance. Nothing in this section shall be construed to limit or constrain in any way
444	444	415the rights tenants currently have under applicable laws, including, but not limited to, chapters
445	445	416186 and 186A.