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