Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H1575 Compare Versions

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

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2	2	HOUSE DOCKET, NO. 134 FILED ON: 1/6/2025
3	3	HOUSE . . . . . . . . . . . . . . . No. 1575
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Bud L. Williams
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 relative to reducing damage caused by the current foreclosure crisis in the historic
13	13	districts of Massachusetts.
14	14	_______________
15	15	PETITION OF:
16	16	NAME:DISTRICT/ADDRESS :DATE ADDED:Bud L. Williams11th Hampden1/6/2025 1 of 6
17	17	HOUSE DOCKET, NO. 134 FILED ON: 1/6/2025
18	18	HOUSE . . . . . . . . . . . . . . . No. 1575
19	19	By Representative Williams of Springfield, a petition (accompanied by bill, House, No. 1575) of
20	20	Bud L. Williams relative to reducing damage caused by the current foreclosure crisis in the
21	21	historic districts of the Commonwealth. Housing.
22	22	[SIMILAR MATTER FILED IN PREVIOUS SESSION
23	23	SEE HOUSE, NO. 1382 OF 2023-2024.]
24	24	The Commonwealth of Massachusetts
25	25	_______________
26	26	In the One Hundred and Ninety-Fourth General Court
27	27	(2025-2026)
28	28	_______________
29	29	An Act relative to reducing damage caused by the current foreclosure crisis in the historic
30	30	districts of Massachusetts.
31	31	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
32	32	of the same, as follows:
33	33	1 WHEREAS, the many Massachusetts urban neighborhoods recognized as Historic
34	34	2Districts in Massachusetts were successful middle class communities when they were initially
35	35	3developer; and
36	36	4 WHEREAS, after World War II residents and homeowners in many of these Historic
37	37	5District communities were victimized by red-lining by banking institutions and racial steering by
38	38	6some unscrupulous real estate agents, and real estate values in the community were depressed,
39	39	7causing housing abandonment and demolition of many historic homes; and 2 of 6
40	40	8 WHEREAS, in response to this decline residents worked many years to protect these
41	41	9Historic Districts from destruction and to obtain recognition of the communities value as Historic
42	42	10Districts; and
43	43	11 WHEREAS, since designation as Historic Districts homeowners and citizens in the
44	44	12officially recognized Historic Districts in Massachusetts have worked successfully to encourage
45	45	13families to stay in and move to the community and to invest in restoration of the historic homes
46	46	14there; and
47	47	15 WHEREAS, as a result of the investments and other efforts of many new and old
48	48	16residents and homeowners in the Historic Districts the community’s real estate values stabilized
49	49	17and increased in relation to other communities within cities, and these Districts have come to be
50	50	18seen as assets the their larger urban communities; but then
51	51	19 WHEREAS, since 2007 the increase of foreclosures in the said Historic Districts in
52	52	20Massachusetts have increased as a result of the large number of so-called “Sub-prime” mortgage
53	53	21loans made in the course of the past several years were defaulted on by buyers abused by
54	54	22unscrupulous banks and lending companies; and
55	55	23 WHEREAS, these foreclosures have resulted in a large number of real estate auctions
56	56	24within the said District, while at the same time conditions in the lending market have been
57	57	25disrupted resulting in a reduced number of families being able to access financing for home
58	58	26purchase; and
59	59	27 WHEREAS, credible studies and reports have documented that the large number of
60	60	28foreclosures and auctions in the said Historic Districts have resulted in reduced sales prices and
61	61	29an increase in the number of vacant and vandalized houses, and have undermined the value of all 3 of 6
62	62	30houses in the District and made financing for purchase and restoration of the historic homes in
63	63	31Historic District impossible to access for most families;
64	64	32 WHEREAS, many new foreclosure auctions are planned by banks and their agents and
65	65	33these market conditions show every indication of continuing for the foreseeable future;
66	66	34 THEREFORE, the time has arrived for the Massachusetts Legislature to provide the
67	67	35Historic District Communities and the Cities and Towns of Massachusetts with the tools to
68	68	36protect and build on the many accomplishments of the decades following recognition of these
69	69	37Districts as official Historic Districts, without damaging the legitimate interests of banks and
70	70	38other financial institutions which have invested in mortgages and other financial interests related
71	71	39to real estate within the said Historic District:
72	72	40 SECTION 1. Creation of a Historic District Stabilization Committee shall be authorized
73	73	41by this legislation, such Committee to be made up of residents of the area, homeowners,
74	74	42interested real estate brokers, community - based organizations based in the District including the
75	75	43Historic District Community Development Corporation, if any, construction professionals
76	76	44working in the area, and local banking professionals with interests in the District.
77	77	45 Formation of such Committee shall take place upon petition of any Chapter 40(f)
78	78	46community development corporation active within the said historic district to the Secretary of
79	79	47State of the Commonwealth, or if no such organization exists, petition of any non-profit
80	80	48corporation active within the said Historic District having among its corporate purpose housing
81	81	49development or community improvement. Such organization shall be authorized to initiate
82	82	50formation of a Stabilization Committee as a Chapter 180 non-profit corporation, which shall
83	83	51have board of not less than seven members including representation including real estate brokers 4 of 6
84	84	52with a history or work within the historic district, bankers and mortgage professionals with a
85	85	53history or work within the historic district, homeowner counseling agencies with a history or
86	86	54work within the historic district, homeowners residing in the historic district, non-homeowner
87	87	55residents residing within the historic districts, and contractors with a history or work within the
88	88	56historic district. Subsequent to the initial organization of the committee permanent professional
89	89	57representatives shall be elected by members of the groups they represent who have agreed to
90	90	58work with the Stabilization Committee program. This shall take place within one year after
91	91	59formation of the Committee.
92	92	60 SECTION 2. The said Historic District Stabilization Committee shall be authorized, by
93	93	61this legislation, commencing upon the effective date of the passage of this bill, to acquire by
94	94	62eminent domain any real estate or real estate related property interest including mortgages, tax
95	95	63obligation, assignments of mortgages, or any other interest relating to any real estate mortgage in
96	96	64default within the community in consideration of fair market value as determined by certified
97	97	65Massachusetts Real Estate Appraisers, and shall be authorized to pay for these interests with
98	98	66proceeds of eventual sales of the said property interests.
99	99	67 SECTION 3. The said Historic District Stabilization Committee shall be required to carry
100	100	68out a methodical study of the Historic District Community and real estate market in cooperation
101	101	69with the Planning Department of the City in which the District is situated, the Regional Planning
102	102	70Commission, and certified Massachusetts Real Estate Appraisers, to measure the economic
103	103	71capacity of likely home buyers and the Historic District , and to use the data developed by the
104	104	72said study to establish a Community Appraisal Framework setting forth the probable future value
105	105	73of real estate within the Historic District Community. 5 of 6
106	106	74 SECTION 4. The said Historic District Stabilization Committee shall be required to work
107	107	75with residents on each street within the District and City officials to carry out an inventory of all
108	108	76properties impacted by default of bank or tax obligations, and a.) shall refer all property occupied
109	109	77by homeowners or former homeowners to mortgage counseling agencies to determined whether
110	110	78these families can feasibly service new mortgage financing set at not more than the fair market
111	111	79value of the based on the Community Appraisal Framework at market interest rates, b.) Assume
112	112	80management of all occupied properties and determine if the current tenants can afford to remain
113	113	81in the said properties and whether such continued occupancy is feasible in the context of the
114	114	82condition of the occupied properties, c.) Assume management of all vacant properties and if
115	115	83possible repair these properties so that they can be kept occupied by caretakers or tenants, as
116	116	84determined by the Committee, and not depress or otherwise damage the value or livability of
117	117	85adjoining and nearby houses, and d.) Restore all vacant and damaged houses to livability and
118	118	86marketability at all times carrying out all work in accordance with the Secretary of the Interior’s
119	119	87Standards for Rehabilitation as set by the U.S. Department of the Interior, and e.) Take all other
120	120	88measures as determined by the Committee to best preserve and enhance value of property within
121	121	89the Historic District and the health and welfare of Historic District residents.
122	122	90 SECTION 5. The said Historic District Stabilization Committee shall be required to
123	123	91market all properties and interests acquired in accord with the Community Appraisal Framework
124	124	92created as mandated herein, and shall establish mechanisms to create and maintain a Housing
125	125	93Center to work with all real estate professionals and community agencies to carry out this task so
126	126	94as to best preserve and enhance value of property within the Historic District and the health and
127	127	95welfare of Historic District residents. Proceeds of all sales shall be used to compensate all sellers
128	128	96of real estate interests for their property, less appropriate expenses of sales and management. 6 of 6
129	129	97 SECTION 6. In the event that any community is eligible for designation as an historic
130	130	98district under the criteria set forth in the National Historic Preservation Act of 1966, but is not
131	131	99now so designated officially, that community may be entitled to the protections of this Act upon
132	132	100petition of 51% of the property owners of such community and filing of such signatures with the
133	133	101Historical Commission of their respective municipality, or with the City or Town Clerk if no
134	134	102Historical Commission exists. In the event such an election is made, continuation of all
135	135	103protections provided herein shall be conditional on formal creation of a local historic district as
136	136	104defined by Chapter 40C of the Massachusetts General Laws within 180 days of such election.
137	137	105 SECTION 7. The provisions of this legislation are intended to protect Historic Districts
138	138	106victimized by the present foreclosure crisis. Therefore all protections provided herein shall be
139	139	107restricted to those Historic Districts included within the Stabilization Target Areas as defined by
140	140	108the U.S. Department of Housing and Urban Development based on number/percent of
141	141	109foreclosures, subprime mortgages and mortgage defaults and delinquencies, as adopted in
142	142	110conjunction with the Neighborhood Stabilization Program in 2008 and thereafter.
143	143	111 SECTION 8. The said Historic District Stabilization Committee shall be required to
144	144	112utilize the services of local residents to the maximum degree feasible for all restoration,
145	145	113management, and marketing services.
146	146	114 SECTION 9. The said Historic District Stabilization Committee shall be authorized to
147	147	115hire personnel, make contracts, issue debentures as it deems needed to finance its activities, and
148	148	116take any other action as needed to carry out the above purposes.
149	149	117 GENERAL PROVISIONS: Due to the fact that this Act addresses emergency situations
150	150	118in communities, its provisions shall take effect upon passage.