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| 2 | 2 | | SENATE DOCKET, NO. 1842 FILED ON: 1/20/2023 |
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| 3 | 3 | | SENATE . . . . . . . . . . . . . . No. 853 |
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| 4 | 4 | | The Commonwealth of Massachusetts |
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| 5 | 5 | | _________________ |
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| 6 | 6 | | PRESENTED BY: |
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| 7 | 7 | | Cynthia Stone Creem |
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| 8 | 8 | | _________________ |
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| 9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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| 10 | 10 | | Court assembled: |
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| 11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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| 12 | 12 | | An Act financing the transition to fossil fuel-free buildings. |
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| 13 | 13 | | _______________ |
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| 14 | 14 | | PETITION OF: |
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| 15 | 15 | | NAME:DISTRICT/ADDRESS :Cynthia Stone CreemNorfolk and Middlesex 1 of 9 |
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| 16 | 16 | | SENATE DOCKET, NO. 1842 FILED ON: 1/20/2023 |
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| 17 | 17 | | SENATE . . . . . . . . . . . . . . No. 853 |
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| 18 | 18 | | By Ms. Creem, a petition (accompanied by bill, Senate, No. 853) of Cynthia Stone Creem for |
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| 19 | 19 | | legislation to finance the transition to fossil fuel-free buildings. Housing. |
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| 20 | 20 | | The Commonwealth of Massachusetts |
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| 21 | 21 | | _______________ |
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| 22 | 22 | | In the One Hundred and Ninety-Third General Court |
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| 23 | 23 | | (2023-2024) |
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| 24 | 24 | | _______________ |
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| 25 | 25 | | An Act financing the transition to fossil fuel-free buildings. |
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| 26 | 26 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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| 27 | 27 | | of the same, as follows: |
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| 28 | 28 | | 1 SECTION 1. Chapter 23B of the General Laws, as appearing in the 2020 Official |
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| 29 | 29 | | 2Edition, is hereby amended by inserting the following sections:- |
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| 30 | 30 | | 3 Section 31. (a) As used in this section, the following words shall, unless the context |
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| 31 | 31 | | 4clearly requires otherwise, have the following meanings:- |
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| 32 | 32 | | 5 “Income-eligible household,” an individual or family whose income meets the |
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| 33 | 33 | | 6requirements of the Mortgage Revenue Bond program established pursuant to the Internal |
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| 34 | 34 | | 7Revenue Code of 1986, § 143. |
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| 35 | 35 | | 8 “Deferred loan,” a loan secured by a mortgage on real estate or personal property, the |
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| 36 | 36 | | 9repayment of which may be deferred until sale, transfer, or refinancing of the property. |
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| 37 | 37 | | 10 (b) There shall be a fossil fuel-free building loan program in the department of housing |
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| 38 | 38 | | 11and community development. Said program shall assist residential property owners and small |
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| 39 | 39 | | 12businesses throughout the commonwealth in financing any renovations, upgrades, or 2 of 9 |
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| 40 | 40 | | 13improvements, including the purchase and installation of equipment, that are necessary to ensure |
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| 41 | 41 | | 14that their property does not, in support of its operation after renovation, upgrade, or |
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| 42 | 42 | | 15improvement, utilize coal, oil, natural gas, other fuel hydrocarbons, including synthetic |
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| 43 | 43 | | 16equivalents, or other fossil fuels. The department of housing and community development and |
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| 44 | 44 | | 17the Massachusetts housing finance agency shall administer said program and may distribute |
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| 45 | 45 | | 18funds through community action agencies, redevelopment agencies, local nonprofit community |
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| 46 | 46 | | 19and housing agencies, and other appropriate municipal and non-profit agencies and |
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| 47 | 47 | | 20organizations. |
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| 48 | 48 | | 21 Agencies and organizations eligible for loans under this program shall be selected by the |
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| 49 | 49 | | 22department of housing and community development in consultation with the Massachusetts |
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| 50 | 50 | | 23housing finance agency. Not less than one-half of funds allocated for this program shall be |
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| 51 | 51 | | 24distributed to agencies and organizations that predominantly serve communities where the |
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| 52 | 52 | | 25median household income is lower than 80 percent of the commonwealth’s median household |
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| 53 | 53 | | 26income. Each agency or organization wishing to receive funding from the program shall submit |
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| 54 | 54 | | 27to for approval by the department of housing and community development a fossil fuel-free |
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| 55 | 55 | | 28building plan that: (1) describes how the agency or organization will promote the program to |
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| 56 | 56 | | 29contractors, residential property owners, and small businesses; (2) identifies strategic |
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| 57 | 57 | | 30intervention points, including but not limited to the building permit application process, when the |
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| 58 | 58 | | 31agency or organization will share information about the program with residential property |
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| 59 | 59 | | 32owners and small businesses; (3) describes the agency or organization’s plan to ensure equitable |
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| 60 | 60 | | 33access to and utilization of the program; and (4) describes how the agency or organization will |
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| 61 | 61 | | 34ensure that participating residential property owners and small businesses take full advantage of |
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| 62 | 62 | | 35all available state and federal efficiency and electrification incentives before entering into a fossil 3 of 9 |
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| 63 | 63 | | 36fuel-free building loan agreement. The department of housing and community development shall |
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| 64 | 64 | | 37provide grants to assist agencies and organizations in developing fossil fuel-free building plans. |
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| 65 | 65 | | 38 The department of housing and community development shall report to the clerks of the |
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| 66 | 66 | | 39house of representatives and the senate not later than October first of each year concerning the |
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| 67 | 67 | | 40distribution of loan funds under this program. The department of housing and community |
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| 68 | 68 | | 41development, in consultation with the Massachusetts housing finance agency, shall promulgate |
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| 69 | 69 | | 42regulations necessary to administer this program and which establish reasonable terms and |
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| 70 | 70 | | 43conditions of loans provided through the program; provided, that such terms and conditions shall |
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| 71 | 71 | | 44comply with the provisions of subsection (c). |
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| 72 | 72 | | 45 (c) Loans provided under the program established in subsection (b) shall comply with the |
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| 73 | 73 | | 46following requirements: |
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| 74 | 74 | | 47 (1) For owner-occupants that are income-eligible households, deferred loans with 0 |
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| 75 | 75 | | 48percent interest shall be available. |
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| 76 | 76 | | 49 (2) For owner-occupants that are not income-eligible households, 0 percent fully |
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| 77 | 77 | | 50amortizing loans shall be available. |
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| 78 | 78 | | 51 (3) For non-profit organizations, 0 percent fully amortizing loans shall be available. |
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| 79 | 79 | | 52 (4) For non-owner occupant landlords and for-profit entities renovating, upgrading, or |
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| 80 | 80 | | 53improving properties that are being rented predominantly to income-eligible households, fully |
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| 81 | 81 | | 54amortizing loans with an interest rate not to exceed 2 percent shall be available. 4 of 9 |
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| 82 | 82 | | 55 (5) For non-owner occupant landlords and for-profit entities renovating, upgrading, or |
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| 83 | 83 | | 56improving properties that are not being rented predominantly to income-eligible households, |
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| 84 | 84 | | 57fully amortizing loans with an interest rate not to exceed 3 percent shall be available. |
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| 85 | 85 | | 58 Section 32. (a) As used in this section, the following words shall, unless the context |
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| 86 | 86 | | 59clearly requires otherwise, have the following meanings:- |
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| 87 | 87 | | 60 “Income-eligible household,” an individual or family whose income meets the |
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| 88 | 88 | | 61requirements of the Mortgage Revenue Bond program established pursuant to the Internal |
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| 89 | 89 | | 62Revenue Code of 1986, § 143. |
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| 90 | 90 | | 63 (b) There shall be a fossil fuel-free housing betterment program administered jointly by |
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| 91 | 91 | | 64the department of housing and community development and participating municipalities. Not |
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| 92 | 92 | | 65less than one-half of funds allocated for this program shall be distributed to municipalities where |
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| 93 | 93 | | 66the median household income is lower than 80 percent of the commonwealth’s median |
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| 94 | 94 | | 67household income. In order to participate in the fossil fuel-free housing betterment program, a |
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| 95 | 95 | | 68municipality must submit for approval by the department of housing and community |
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| 96 | 96 | | 69development a local fossil fuel-free housing betterment plan that: (1) describes how the |
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| 97 | 97 | | 70municipality will promote the program to contractors and residential property owners; (2) |
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| 98 | 98 | | 71identifies strategic intervention points, including but not limited to the building permit |
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| 99 | 99 | | 72application process, when the municipality will share information about the program with |
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| 100 | 100 | | 73residential property owners; (3) describes the municipality’s plan to ensure equitable access to |
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| 101 | 101 | | 74and utilization of the program; and (4) describes how the municipality will ensure that |
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| 102 | 102 | | 75participating residential property owners take full advantage of all available state and federal |
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| 103 | 103 | | 76efficiency and electrification incentives before entering into a fossil fuel-free building loan 5 of 9 |
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| 104 | 104 | | 77agreement. The department of housing and community development shall provide grants to assist |
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| 105 | 105 | | 78municipalities in developing local fossil fuel-free housing betterment plans. The department of |
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| 106 | 106 | | 79housing and community development shall provide participating municipalities with zero- |
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| 107 | 107 | | 80interest loans to finance the betterment agreements described in subsection (c). A municipality |
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| 108 | 108 | | 81may use up to 2.5 percent of the loan funds it receives through the fossil fuel-free housing |
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| 109 | 109 | | 82betterment program to administer its local fossil fuel-free housing betterment plan and the |
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| 110 | 110 | | 83betterment agreements it enters into pursuant to subsection (c) and may obtain consultant |
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| 111 | 111 | | 84services to administer said plan and agreements. |
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| 112 | 112 | | 85 (c) The owner of a residential structure with 4 or fewer units may enter an agreement |
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| 113 | 113 | | 86with the municipality in which the structure is located to finance its renovation, upgrade, or |
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| 114 | 114 | | 87improvement, including through the purchase and installation of equipment, at the owners |
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| 115 | 115 | | 88expense, so that it does not, in support of its operation after renovation, upgrade, or |
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| 116 | 116 | | 89improvement, utilize coal, oil, natural gas, other fuel hydrocarbons, including synthetic |
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| 117 | 117 | | 90equivalents, or other fossil fuels. An owner who enters into such an agreement shall be |
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| 118 | 118 | | 91responsible for all expenses incurred by the municipality, directly or indirectly, or required by |
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| 119 | 119 | | 92the municipality and incurred by the owner for such renovation, upgrade, or improvement. A |
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| 120 | 120 | | 93notice of such agreement shall be recorded as a betterment and be subject to the provisions of |
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| 121 | 121 | | 94chapter eighty relative to the apportionment, division, reassessment and collection of assessment, |
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| 122 | 122 | | 95abatement and collections of assessments, and to interest; provided, however, that for purposes |
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| 123 | 123 | | 96of this section, such lien shall take effect by operation of law on the day immediately following |
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| 124 | 124 | | 97the due date of such assessment or apportioned part of such assessment and such assessment may |
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| 125 | 125 | | 98bear interest at a rate determined by the city or town treasurer by agreement with the owner at the |
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| 126 | 126 | | 99time such agreement is entered into between the municipality and the property owner. In addition 6 of 9 |
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| 127 | 127 | | 100to remedies available under chapter eighty, the property owner shall be personally liable for the |
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| 128 | 128 | | 101repayment of the total costs incurred by the municipality this section; provided, however, that |
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| 129 | 129 | | 102upon assumption of such personal obligation to a purchaser or other transferee of all of the |
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| 130 | 130 | | 103original owners interest in the property at the time of conveyance and the recording of such |
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| 131 | 131 | | 104assumption, the owner shall be relieved of such personal liability. |
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| 132 | 132 | | 105 Any costs incurred under the provisions of this section may be funded by an |
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| 133 | 133 | | 106appropriation or issuance of debt, provided that any debt incurred shall be subject to the |
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| 134 | 134 | | 107provisions of chapter forty-four and shall not exceed twenty years. |
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| 135 | 135 | | 108 Any appropriation or borrowing by the municipality for purposes contained within this |
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| 136 | 136 | | 109section shall not be included for the purpose of computation of the levy or borrowing limits |
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| 137 | 137 | | 110otherwise imposed upon such municipality by the general laws. |
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| 138 | 138 | | 111 An agreement between an owner and a municipality pursuant to this section shall not be |
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| 139 | 139 | | 112considered a breach of limitation or prohibition contained in a note, mortgage or contract on the |
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| 140 | 140 | | 113transfer of an interest in property. |
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| 141 | 141 | | 114 A municipality town acting pursuant to the provisions of this section shall have the same |
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| 142 | 142 | | 115authority as set forth in section one hundred and twenty-seven B to institute an action for |
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| 143 | 143 | | 116eviction. Any such action by the municipality shall not otherwise impair the rights or obligations |
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| 144 | 144 | | 117of the occupants or owner with respect to each other. |
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| 145 | 145 | | 118 Notwithstanding any provision of chapter 183A to the contrary, the organization of unit |
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| 146 | 146 | | 119owners of a condominium may petition the municipality to enter into a betterment agreement |
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| 147 | 147 | | 120pursuant to this section to finance a renovation, upgrade, or improvement, necessary to ensure |
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| 148 | 148 | | 121that specified condominium units do not, in support of their operation after renovation, upgrade, 7 of 9 |
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| 149 | 149 | | 122or improvement, utilize coal, oil, natural gas, other fuel hydrocarbons, including synthetic |
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| 150 | 150 | | 123equivalents, or other fossil fuels; provided that such renovation, upgrade, or improvement |
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| 151 | 151 | | 124comprises part of the common areas and facilities. Such agreement shall: (i) be approved by a |
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| 152 | 152 | | 125majority of the unit owners benefited by the renovation; (ii) include an identification of the units |
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| 153 | 153 | | 126and unit owners subject to the agreement and the percentages, as set forth in the master deed, of |
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| 154 | 154 | | 127the undivided interests of the respective units in the common area and facilities; and (iii) include |
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| 155 | 155 | | 128a statement by an officer or trustee of the organization of unit owners certifying that the required |
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| 156 | 156 | | 129number of unit owners have approved the agreement. As between the affected unit owners and |
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| 157 | 157 | | 130the city or town, such certification shall be conclusive evidence of the authority of the |
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| 158 | 158 | | 131organization of unit owners to enter into the agreement. A notice of such agreement shall be |
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| 159 | 159 | | 132recorded as a betterment in the registry of deeds or registry district of the land court where the |
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| 160 | 160 | | 133master deed is recorded and shall be otherwise subject to the provisions of chapter 80 as |
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| 161 | 161 | | 134provided for in this section. The assessment under such agreement may be charged or assessed to |
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| 162 | 162 | | 135the organization of units owners but shall not constitute an assessment of common expenses. |
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| 163 | 163 | | 136Instead, the allocable share of the assessment, prorated on the basis of the percentage interests of |
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| 164 | 164 | | 137the benefited units in the common areas and facilities, shall attach as a lien only to the units |
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| 165 | 165 | | 138identified in the recorded notice and benefited by the renovation and the owners of such units |
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| 166 | 166 | | 139shall also be personally liable for their allocable share of the assessment as provided for in this |
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| 167 | 167 | | 140section. Words defined in section 1 of said chapter 183A and used in this paragraph have the |
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| 168 | 168 | | 141same meanings as appearing in said chapter 183A. |
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| 169 | 169 | | 142 (d) Betterment loans provided under the program established in subsections (b) and (c) |
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| 170 | 170 | | 143shall comply with the following requirements: 8 of 9 |
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| 171 | 171 | | 144 (1) For owner-occupants and non-profit organizations, 0 percent fully amortizing loans |
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| 172 | 172 | | 145shall be available. |
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| 173 | 173 | | 146 (4) For non-owner occupant landlords and for-profit entities renovating, upgrading, or |
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| 174 | 174 | | 147improving properties that are being rented predominantly to income-eligible households, fully |
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| 175 | 175 | | 148amortizing loans with an interest rate not to exceed 2 percent shall be available. |
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| 176 | 176 | | 149 (3) For non-owner occupant landlords and for-profit entities renovating, upgrading, or |
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| 177 | 177 | | 150improving properties that are not being rented predominantly to income-eligible households, |
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| 178 | 178 | | 151fully amortizing loans with an interest rate not to exceed 3 percent shall be available. |
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| 179 | 179 | | 152 (e) The department of housing and community development shall promulgate regulations |
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| 180 | 180 | | 153necessary to administer this program. |
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| 181 | 181 | | 154 SECTION 2. Chapter 29 of the General Laws, as appearing in the 2020 Official Edition, |
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| 182 | 182 | | 155is hereby amended by inserting after section 2QQQQQ the following section:- |
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| 183 | 183 | | 156 Section 2RRRRR. There shall be established and set up on the books of the |
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| 184 | 184 | | 157commonwealth a separate revolving fund, to be known as the Massachusetts Fossil fuel-free |
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| 185 | 185 | | 158Building Revolving Fund, to be expended, without further appropriation, by the department of |
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| 186 | 186 | | 159housing and community development for the fossil fuel-free building loan program established in |
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| 187 | 187 | | 160section 31 of chapter 23B and the fossil fuel-free housing betterment program established in |
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| 188 | 188 | | 161section 32 of said chapter 23B. The revolving fund shall be credited with: (i) any appropriations, |
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| 189 | 189 | | 162bond proceeds or other monies authorized by the general court and specifically designated to be |
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| 190 | 190 | | 163credited thereto; (ii) funds from public and private sources and other gifts, grants and donations; |
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| 191 | 191 | | 164(iii) any income derived from the investment of amounts credited to the revolving fund; and (iv) |
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| 192 | 192 | | 165the monies from the repayment of loans from the fund. All amounts credited to the revolving 9 of 9 |
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| 193 | 193 | | 166fund shall be held in trust and used solely for activities and expenditures consistent with the |
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| 194 | 194 | | 167public purpose of the revolving fund and the ordinary and necessary expenses of administration |
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| 195 | 195 | | 168and operation associated with the revolving fund. All available monies in the revolving fund that |
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| 196 | 196 | | 169are unexpended at the end of each fiscal year shall not revert to the General Fund and shall be |
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| 197 | 197 | | 170available for expenditure in the subsequent fiscal year. |
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