1 of 1 HOUSE DOCKET, NO. 4035 FILED ON: 1/17/2025 HOUSE . . . . . . . . . . . . . . . No. 1478 The Commonwealth of Massachusetts _________________ PRESENTED BY: Mike Connolly _________________ 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 advancing the Massachusetts social housing program. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :DATE ADDED:Mike Connolly26th Middlesex1/17/2025 1 of 5 HOUSE DOCKET, NO. 4035 FILED ON: 1/17/2025 HOUSE . . . . . . . . . . . . . . . No. 1478 By Representative Connolly of Cambridge, a petition (accompanied by bill, House, No. 1478) of Mike Connolly relative to the development of mixed income social housing to be administered by the Massachusetts Housing Finance Authority. Housing. [SIMILAR MATTER FILED IN PREVIOUS SESSION SEE HOUSE, NO. 3873 OF 2023-2024.] The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act advancing the Massachusetts social housing program. Whereas, The deferred operation of this act would tend to defeat its purpose, which is to authorize forthwith the further development of mixed income social housing, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience. 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. To provide for the purpose of facilitating the further development of mixed 2income social housing, the sums set forth in section 2 for the several purposes and subject to the 3conditions specified in this act are hereby made available, subject to the laws regulating the 4disbursement of public funds. 5 SECTION 2. 6 EXECUTIVE OFFICE OF HOUSING AND LIVABLE COMMUNITIES 2 of 5 7 7004-XXXX For costs associated with facilitating the further development of mixed 8income social housing to be administered by Massachusetts Housing Finance Authority or other 9designee as provided for in section 5 of this act.........................................................$100,000,000 10 SECTION 3. Chapter 708 of the acts of 1966 is hereby amended by inserting after section 1113B the following section:- 12 Section 13C. (a) There is hereby established within the MHFA a revolving fund, herein 13referred to as the Social Housing Production Revolving Loan Fund, for the purpose of 14facilitating the further development of mixed income social housing. The Fund shall consist of 15amounts credited to the Fund in accordance with this section. 16 (b)(1) The MHFA shall, pursuant to regulations adopted by it, provide financial 17assistance to local and regional housing authorities for the further development of mixed income 18social housing. Housing developments financed under this section shall remain in public 19ownership, which is defined as at least majority ownership or control by a local or regional 20housing authority or other public or quasi-public entity, or in social ownership, which is defined 21as at least majority ownership or control by tenants or mission-driven nonprofits, such as 22cooperatives or community land trusts. 23 (2) (A) The MHFA shall provide for and administer revolving loans, bridge loans and 24other credit instruments from payments from loans disbursed from the Fund and any other 25monies, deposited into the Fund by the commonwealth and local and regional housing 26authorities, including any direct funding or loan repayments pursuant to the Social Housing Pilot 27Program authorized in line 7004-0078 of Chapter 150 of the Acts of 2024. 3 of 5 28 (B) The MHFA may use monies and payments from loans disbursed from the Fund, 29deposited into the Fund by the commonwealth or local and regional housing authorities for the 30purposes of debt service, administration of this section and costs for increased development 31capacity within local and regional housing authorities. 32 (3) Upon lease-up of a development financed under this section, the MHFA may provide 33additional financing pursuant to this act; provided, however, that priority shall be given to 34developments that do not use Low Income Housing Tax Credit equity and tax-exempt volume 35cap. 36 (c)(1) The MHFA shall make the following rental determinations for each housing 37development financed by MHFA: (i) market rate rental units in the development; and (ii) below 38market rate rental units that meet or exceed federal Title 42 affordable set-asides of no less than 3920 per cent at 50 per cent of the area median income or no less than 40 per cent at 60 per cent of 40area median income for the statistical area in which the development is to be constructed. 41 (2) Below market rental units set at the elected levels pursuant to paragraph (1) shall 42remain restricted at elected levels for not less than 99 years. 43 (3) Developments financed by the MHFA pursuant to this section shall, pursuant to 44regulations adopted by the MHFA, adopt rent stabilization guidelines. 45 (4) Developments financed by the MHFA pursuant to this section shall target net zero 46energy performance standards and shall not include any new gas hookups. 47 (5) Developments financed by the MHFA pursuant to this section shall allow for 48community control; for the purposes of this subsection, “community control” shall mean that 4 of 5 49said developments are developed, owned, managed, and operated in a way that is accountable to 50residents, the community, and the public; provided further, that residents of said developments 51shall have a direct role in the management and decision-making relative to their buildings, 52including through recognition of tenant unions or tenant councils. 53 SECTION 4. The commonwealth shall issue a bond or bonds in an amount of 54$100,000,000 to capitalize the Social Housing Production Revolving Loan Fund established in 55section 13C of chapter 708 of the acts of 1966. Any such bond sale shall be for taxable bonds. 56Upon receipt of any bond proceeds the treasurer shall deposit said funds into the Social Housing 57Production Revolving Loan Fund established in section 13C of chapter 708 of the acts of 1966. 58 SECTION 5. Notwithstanding any general or special law to the contrary, the Executive 59Office of Housing and Livable Communities may designate an alternate state agency or state 60authority, as those terms are defined in section 1 of chapter 29 of the General Laws, to 61administer the Social Housing Production Revolving Loan Fund and the social housing program 62pursuant to section 13C of chapter 708 of the acts of 1966. The executive office may promulgate 63regulations to implement this section. 64 SECTION 6. To meet the expenditures necessary in carrying out item 7004-XXXX of 65section 2, the state treasurer shall, upon request of the governor, issue and sell bonds of the 66commonwealth in an amount, in the aggregate of $100,000,000. All such bonds issued by the 67commonwealth shall be designated on their face, Massachusetts Social Housing Program Act of 682025, and shall be issued for a maximum term of years, not exceeding 30 years, as recommended 69by the governor to the general court pursuant to section 3 of Article LXII of the Amendments to 70the Constitution. The bonds shall be payable not later than June 30, 2060. All interest and 5 of 5 71payments on account of principal on these obligations shall be payable from the General Fund. 72Bonds issued under this section and interest thereon shall be general obligations of the 73commonwealth. 74 SECTION 7. Notwithstanding any general or special law to the contrary, MHFA may 75enter into partnerships with (1) other quasi-governmental agencies; (ii) mission-driven non- 76profits; (iii) housing cooperatives; and (iv) community land trusts for the purposes of facilitating 77or assisting with the production of mixed-income social housing and the purposes of this act. 78 SECTION 8. (a) Notwithstanding any general or special law to the contrary, any project 79of construction and development activity pursuant to this act shall be deemed to be a public work 80under section 26 of chapter 149 of the General Laws and shall be subject to all laws, rules and 81regulations related to the payment of wages at rates set by the director of the department of labor 82standards pursuant to said chapter 149. 83 (b) Notwithstanding any general or special law to the contrary, any contract for 84construction, reconstruction, installation, demolition, maintenance or repair of any building for 85the purposes of development of social housing pursuant to this act shall be subject to public 86procurement and bidding laws, including section 44A to section 44J, inclusive, of chapter 149 of 87the General Laws.