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Massachusetts House Bill H297

Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H297 Compare Versions

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22 HOUSE DOCKET, NO. 3536 FILED ON: 1/17/2025
33 HOUSE . . . . . . . . . . . . . . . No. 297
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 Antonio F. D. Cabral
88 _________________
99 To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
1010 Court assembled:
1111 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
1212 An Act relative to neighborhood stabilization and economic development.
1313 _______________
1414 PETITION OF:
1515 NAME:DISTRICT/ADDRESS :DATE ADDED:Antonio F. D. Cabral13th Bristol1/17/2025Vanna Howard17th Middlesex1/30/2025Rodney M. Elliott16th Middlesex2/4/2025Christopher Hendricks11th Bristol2/5/2025Mary S. Keefe15th Worcester3/5/2025 1 of 11
1616 HOUSE DOCKET, NO. 3536 FILED ON: 1/17/2025
1717 HOUSE . . . . . . . . . . . . . . . No. 297
1818 By Representative Cabral of New Bedford, a petition (accompanied by bill, House, No. 297) of
1919 Antonio F. D. Cabral and others relative to neighborhood stabilization and economic
2020 development. Community Development and Small Businesses.
2121 [SIMILAR MATTER FILED IN PREVIOUS SESSION
2222 SEE HOUSE, NO. 227 OF 2023-2024.]
2323 The Commonwealth of Massachusetts
2424 _______________
2525 In the One Hundred and Ninety-Fourth General Court
2626 (2025-2026)
2727 _______________
2828 An Act relative to neighborhood stabilization and economic development.
2929 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
3030 of the same, as follows:
3131 1 SECTION 1. Section 3 of chapter 70B of the General Laws, as appearing in the 2022
3232 2Official Edition, is hereby amended by inserting after the colon, in line 21, the following words:
3333 3“neighborhood stabilization,”.
3434 4 SECTION 2. Section 1 of chapter 121A, as so appearing, is hereby amended by replacing
3535 5the definitions of “decadent area”, “sub-standard area”, and “project” with the below definitions
3636 6of those terms, and inserting the following additional definitions after the definition of “project”-
3737 7 “Decadent area”, an area, including a spot rehabilitation property, which is detrimental to
3838 8safety, health, morals, welfare or sound growth of a community because of the existence of a
3939 9building or buildings which are out of repair, physically deteriorated, unfit for human habitation, 2 of 11
4040 10or obsolete, or in need of major maintenance or repair, or because much of the real estate in
4141 11recent years has been sold or taken for non-payment of taxes or upon foreclosure of mortgages,
4242 12or because a building or buildings have been torn down and not replaced and in which under
4343 13existing conditions it is improbable that the building or buildings will be replaced, or because of
4444 14a substantial change in business or economic conditions, or because of inadequate light, air, or
4545 15open space, or because of excessive land coverage, or because diversity of ownership, irregular
4646 16lot sizes or obsolete street patterns make it improbable that the area will be redeveloped by the
4747 17ordinary operations of private enterprise, or by reason of any combination of the foregoing
4848 18conditions.
4949 19 “Sub-standard area”, an area, including a spot rehabilitation property, upon which there is
5050 20a dwelling or wherein dwellings predominate which, by reason of dilapidation, overcrowding,
5151 21faulty arrangement or design, lack of ventilation, light, or sanitation facilities, or any
5252 22combination of these factors, are detrimental to safety, health, morals, welfare or sound growth
5353 23of a community.
5454 24 “Project”, any undertaking consisting of the construction in one or more specified
5555 25blighted open, decadent or sub-standard areas of decent, safe and sanitary residential,
5656 26commercial, industrial, institutional, recreational or governmental buildings and such
5757 27appurtenant or incidental facilities as shall be in the public interest, and the operation and
5858 28maintenance of such buildings and facilities after construction. A “project” may include as
5959 29incidental thereto any one or more of the following:— (a) acquisition and assembly of the land
6060 30(and buildings and structures and other improvements thereon, if any) within a blighted open,
6161 31decadent or sub-standard area or areas; (b) clearance of the land within a blighted open, decadent
6262 32or sub-standard area or areas; (c) acquisition, assembly and clearance of land, buildings or 3 of 11
6363 33structures not in themselves blighted, decadent, or sub-standard if their inclusion is necessary for
6464 34the clearance, redevelopment, reconstruction or rehabilitation of a blighted open, decadent or
6565 35sub-standard area or areas; and (d) installation, construction, and reconstruction of public and
6666 36private ways, public utilities and services, and site improvements essential to the preparation of
6767 37blighted open, decadent or sub-standard area or areas for beneficial development or
6868 38redevelopment.
6969 39 “Spot Blight Project Sponsor”, a community development corporation certified under
7070 40chapter 40H; a bona-fide non-profit organization, established under chapter 180 that has, in the
7171 41determination of the housing board, satisfactory and sufficient experience in the construction or
7272 42rehabilitation of residential or non-residential buildings, the creation or provision of affordable
7373 43housing, the restoration of abandoned property, the revitalization and improvement of
7474 44neighborhoods, or a similar purpose; a redevelopment authority established under chapter 121B;
7575 45or a partnership of two or more of any of the foregoing; that is approved under this chapter to
7676 46rehabilitate a spot rehabilitation property.
7777 47 “Spot Rehabilitation Property”, a residential single-family home, a residential building
7878 48with not more than four separate units, a commercial property under 10,000 square feet with a
7979 49building or buildings thereon, or any building under 10,000 square feet with a mix of residential
8080 50and commercial uses that meets the following criteria: (a) the building or buildings on the
8181 51property have been vacant for the last twelve months, (b) construction has not begun pursuant to
8282 52a building permit that has been issued to conduct rehabilitation of the building or buildings on
8383 53the property for the purpose of making the property habitable or useable for commercial
8484 54purposes, and (c) the municipality has made a determination that the building or buildings are
8585 55distressed, upon consideration of the following: the building or buildings are out of repair, 4 of 11
8686 56physically deteriorated, unfit for human habitation, or obsolete, or in need of major maintenance
8787 57or repair, or because the building has been sold or taken for non-payment of taxes or upon
8888 58foreclosure of mortgages.
8989 59 “Spot Rehabilitation Project”, any project, the subject of which consists exclusively of
9090 60spot rehabilitation properties.
9191 61 SECTION 3. Chapter 121A of the General Laws, as so appearing, is hereby further
9292 62amended by deleting section 7A and inserting in its place the following:
9393 63 Section 7A. A corporation organized under section three or an insurance company or a
9494 64group of insurance companies or a savings bank or group of savings banks operating under this
9595 65chapter or a spot blight project sponsor may purchase or lease from a housing authority,
9696 66redevelopment authority, municipality or other public body real estate acquired by such
9797 67authority, municipality or public body for land assembly and redevelopment or urban renewal
9898 68purposes under chapter 121B, upon such terms and conditions, consistent with this chapter, as
9999 69shall be approved by the housing board and may erect and maintain a project upon the land so
100100 70acquired. Such corporation shall not be required to offer its stock to the owners of the real estate
101101 71within the location of the project and such owners have no preferential right to subscribe thereto;
102102 72but in all other respects the provisions of this chapter shall be applicable to corporations acting
103103 73thereunder and their projects.
104104 74 SECTION 4. Section 11 of chapter 121A, as so appearing, is hereby further amended by
105105 75inserting the following paragraph after the third paragraph:
106106 76 A spot blight project sponsor shall have the power, with the approval of the local
107107 77municipality, to sell, exchange, give or otherwise transfer in whole or in part the land or interests 5 of 11
108108 78therein, including air rights, leased or acquired by it under this chapter, with the buildings or
109109 79other structures thereon, constituting a project or portion hereunder to any entity identified in the
110110 80foregoing paragraph, or may sell or lease the spot rehabilitation property to any individual or
111111 81group of individuals intending to use said property for residential use.
112112 82 SECTION 5. Chapter 121A of the General Laws, as so appearing, is hereby further
113113 83amended by inserting after section 18D the following section:
114114 84 Section 18E. A spot blight project sponsor may undertake on land owned or to be
115115 85acquired by it one or more spot rehabilitation projects under this chapter, or acquire spot
116116 86rehabilitation projects or any severable portion thereof from corporations, individuals or entities
117117 87authorized to undertake or acquire spot rehabilitation projects under this chapter, and the
118118 88provisions of this chapter, specifically including the powers granted by sections six A and eleven
119119 89and the procedures set forth in section 18B shall, to the extent applicable, apply to such spot
120120 90blight project sponsor and such spot rehabilitation projects, excepting the following:
121121 91 (a) The term “corporation” as used in section 6A, 7A, section 10, section 11, section 12,
122122 92section 13, section 14, and section 15 shall be deemed to mean spot blight project sponsor with
123123 93respect to spot blight projects.
124124 94 (b) Section 3 shall not be applicable to such spot blight project sponsor; and provided
125125 95further, a spot blight project sponsor may undertake more than one spot rehabilitation project.
126126 96 (c) Section 5 shall not be applicable to a spot blight project; provided, however, that the
127127 97spot blight project sponsor shall submit an application for the approval of a spot rehabilitation
128128 98project, in the form required pursuant to section five to the municipality for its approval. 6 of 11
129129 99 (d) So much of section 6 as relates to the agreement of association shall not be applicable
130130 100to such spot blight project sponsor. The first, eighth, ninth, and tenth paragraphs of section six
131131 101shall not be applicable to a spot blight project. The municipality where the spot blight project is
132132 102located shall have full responsibility for approval of the proposed spot blight project as set forth
133133 103in the second through seventh paragraphs of section 6. The municipality shall transmit its final
134134 104decision to the housing board for record keeping purposes only.
135135 105 (e) The second paragraph of section 6B shall not be applicable to such spot blight project
136136 106sponsor, except that the planning board at least fourteen days before the day of the hearing shall
137137 107mail a notice to each owner of land that is within the proposed spot blight project. If service
138138 108cannot be made, then service shall be made by posting a copy of the notice upon a portion of the
139139 109property facing a public way, by publication of a copy of the notice in one newspaper of general
140140 110circulation, and posting on the municipality’s website.
141141 111 (f) Section 7 shall not be applicable to such spot blight project sponsor.
142142 112 (g) So much of section 8 as provides that “Every such corporation shall be deemed to
143143 113have been organized to serve a public purpose” shall be construed to mean “Every such project
144144 114shall be deemed to have been undertaken to serve a public purpose”. The term “housing board”
145145 115as used in section eight shall be deemed to mean “municipality”.
146146 116 (h) Section 9 shall not be applicable to such spot blight project sponsor.
147147 117 (i) The term “shall” as used in the first and third paragraphs of section 10 shall be deemed
148148 118to mean “may” with respect to a spot blight project sponsor. A spot blight project sponsor that
149149 119elects to forego the tax exemptions provided under section 10 shall not be required to comply 7 of 11
150150 120with the other provisions of that section, and shall not be required to obtain signatures of a
151151 121majority of the assessors under section 6A.
152152 122 (j) So much of section 15 as relates to reducing the indebtedness of a corporation shall
153153 123apply only to indebtedness incurred in connection with a spot rehabilitation project. The term
154154 124“operating and maintenance expenses” shall be deemed to include rehabilitation costs, including
155155 125any principal and interest on loans used for the project, and costs other than direct rehabilitation
156156 126costs, as well as a developer’s fee to the spot blight project sponsor, which fee shall not exceed
157157 12720% of the combined cost of acquisition and rehabilitation of the spot rehabilitation property.
158158 128 (k) The provisions of sections 5, 6A, and 11 shall, as modified by this section 18E, apply
159159 129to a spot rehabilitation project whether said spot rehabilitation project is in Boston, Springfield or
160160 130another municipality.
161161 131 SECTION 6. Section 2 of chapter 21E, as so appearing, is hereby amended by striking
162162 132section (f) within the definition of “Owner,” or “Operator”, and inserting in its place the
163163 133following:
164164 134 (f) A redevelopment authority, redevelopment agency, community development
165165 135corporation, economic development and industrial corporation, or a spot blight project sponsor
166166 136pursuant to chapter 121A shall not be deemed an owner or operator if all of the following
167167 137requirements are met:
168168 138 (1) the redevelopment authority, redevelopment agency, community development
169169 139corporation, economic development and industrial corporation or spot blight project sponsor has
170170 140acquired its portion of the site in accordance with the provisions of chapter 40F, chapter 121A,
171171 141chapter 121B or chapter 121C or any applicable special acts; 8 of 11
172172 142 (2) no act or failure of duty of the redevelopment authority, redevelopment agency,
173173 143community development corporation, economic development and industrial corporation or spot
174174 144blight project sponsor or of any employee or agent thereof, caused or contributed to, or
175175 145exacerbated any release or threat of release of oil or hazardous material at or from the site;
176176 146 (3) the redevelopment authority, redevelopment agency, community development
177177 147corporation, economic development and industrial corporation or spot blight project sponsor
178178 148satisfies all of the following conditions:
179179 149 a) notifies the department in compliance with this chapter and regulations promulgated
180180 150thereto upon obtaining knowledge of a release or threat of release of oil or hazardous material for
181181 151which notification is required pursuant to this chapter and regulations promulgated pursuant
182182 152thereto;
183183 153 b) provides reasonable access to the site or portion of the site under its control to
184184 154employees, agents and contractors of the department for all purposes authorized by this chapter,
185185 155and to other Persons for the purpose of conducting response actions pursuant to this chapter and
186186 156regulations promulgated thereto;
187187 157 c) takes reasonable steps (i) to prevent the exposure of people to oil or hazardous material
188188 158by fencing or otherwise preventing access to the portion of the site under its ownership or
189189 159possession, and (ii) to contain any further release or threat of release of oil or hazardous material
190190 160from a structure or container under its ownership or possession;
191191 161 d) if there is an imminent hazard at or from the portion of the site under its control,
192192 162controls the potential risk to public health, safety, welfare, or the environment at or from the site 9 of 11
193193 163by taking immediate response actions at the portion of the site under its ownership or possession,
194194 164in compliance with this chapter and regulations promulgated thereto;
195195 165 e) conducts any response action undertaken at the site in compliance with this chapter and
196196 166regulations promulgated thereto; and
197197 167 f) acts diligently to sell or otherwise to divest itself of ownership or possession of its
198198 168portion of the site in accordance with the provisions of chapter 40F, chapter 121A½, chapter
199199 169121B or chapter 121C, or any applicable special acts. Whether the redevelopment authority,
200200 170redevelopment agency, community development corporation, economic development and
201201 171industrial corporation or Project Sponsor is acting or has acted diligently to sell or otherwise to
202202 172divest itself of ownership or possession of its portion of the site shall be determined by
203203 173considering the same criteria applicable to secured lenders set forth in subclause (iii) of
204204 174subparagraph (F) of clause (5) of paragraph (c).
205205 175 (4) if the redevelopment authority, redevelopment agency, community development
206206 176corporation, economic development and industrial corporation or spot blight project sponsor
207207 177acquired ownership or possession of a site or portion of a site prior to the effective date of this
208208 178act, the redevelopment authority, redevelopment agency, community development corporation,
209209 179economic development and industrial corporation or spot blight project sponsor notifies the
210210 180department of any releases of oil or hazardous material of which it has knowledge in accordance
211211 181with section 7 and the regulations promulgated thereunder, and shall meet the requirements in
212212 182clause (3) of this paragraph relative to such releases within six months of being notified by the
213213 183department of the requirements in this paragraph. 10 of 11
214214 184 SECTION 7. Chapter 121A of the General Laws, as so appearing, is hereby amended by
215215 185adding the following section:
216216 186 Section 20. There shall be a commission to study strategies to improve the quality of the
217217 187housing stock in weak markets with the goal of making these properties safer, more accessible to
218218 188residents with disabilities, and more resilient to climate change. The commission’s review shall
219219 189include, but not be limited to---the use of guidance documents to consistently grant relief from
220220 190building codes in common circumstances where appropriate; provisions to reduce the time and
221221 191cost associated with obtaining variances in circumstances that are consistent with these guidance
222222 192documents; dissemination of creative strategies to use new technologies to address common
223223 193challenges bringing older structures up to code; the deployment of energy efficiency programs,
224224 194Home Modifications Grants, elevator and sprinkler funds, and other resources to help building
225225 195rehab projects in weak markets meet health and safety standards.
226226 196 The commission shall consist of: 2 members of the Senate, 1 of whom shall represent a
227227 197Gateway Municipality as defined in section 3A of chapter 23A of the General Laws and shall
228228 198serve as co-chair; 2 members of the House of Representatives, 1 of whom shall represent a
229229 199Gateway Municipality and shall serve as co-chair; 2 members appointed by the governor, 1 of
230230 200whom shall represent the Massachusetts Association of Community Development Corporations;
231231 201and 1 of whom shall represent the Rural Policy Advisory Commission; and 6 members appointed
232232 202by the Secretary of Housing and Economic Development: one of the appointive members shall
233233 203be an architect licensed to practice in the commonwealth; one of the appointive members shall be
234234 204a licensed building inspector; one of the appointive members shall be a Gateway Municipality
235235 205housing director; one of the appointive members shall be a fire official from a Gateway
236236 206Municipality; 2 of the appointive members shall be selected after consultation with advocacy 11 of 11
237237 207groups on behalf of persons with disabilities. The commission shall file a report of its findings
238238 208and recommendations, including, but not limited to, legislative, regulatory, and procedural
239239 209changes, with the clerks of the senate and house of representatives, the chairs of the joint
240240 210committee on housing not later than December 31, 2026.