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