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| 2 | 2 | | SENATE DOCKET, NO. 2169 FILED ON: 1/17/2025 |
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| 3 | 3 | | SENATE . . . . . . . . . . . . . . No. 1947 |
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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 | | John J. Cronin |
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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 relative to neighborhood stabilization and economic development. |
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| 13 | 13 | | _______________ |
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| 14 | 14 | | PETITION OF: |
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| 15 | 15 | | NAME:DISTRICT/ADDRESS :John J. CroninWorcester and Middlesex 1 of 12 |
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| 16 | 16 | | SENATE DOCKET, NO. 2169 FILED ON: 1/17/2025 |
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| 17 | 17 | | SENATE . . . . . . . . . . . . . . No. 1947 |
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| 18 | 18 | | By Mr. Cronin, a petition (accompanied by bill, Senate, No. 1947) of John J. Cronin for |
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| 19 | 19 | | legislation relative to neighborhood stabilization and economic development. Revenue. |
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| 20 | 20 | | [SIMILAR MATTER FILED IN PREVIOUS SESSION |
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| 21 | 21 | | SEE SENATE, NO. 1777 OF 2023-2024.] |
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| 22 | 22 | | The Commonwealth of Massachusetts |
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| 23 | 23 | | _______________ |
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| 24 | 24 | | In the One Hundred and Ninety-Fourth General Court |
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| 25 | 25 | | (2025-2026) |
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| 26 | 26 | | _______________ |
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| 27 | 27 | | An Act relative to neighborhood stabilization and economic development. |
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| 28 | 28 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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| 29 | 29 | | of the same, as follows: |
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| 30 | 30 | | 1 SECTION 1. Paragraph (5) of subsection (q) of section 6 of chapter 62 of the General |
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| 31 | 31 | | 2Laws, as appearing in the 2020 Official Edition, is hereby amended by striking out, in lines 898 |
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| 32 | 32 | | 3and 904, the figures “$10,000,000” and inserting in place thereof the figures “$30,000,000”. |
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| 33 | 33 | | 4 SECTION 2. Subsection (5) of section 38BB of chapter 63 of the General Laws, as so |
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| 34 | 34 | | 5appearing, is hereby amended by striking out, in lines 44 and 50, the figures “$10,000,000” and |
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| 35 | 35 | | 6inserting in place thereof the figures “$30,000,000”. |
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| 36 | 36 | | 7 SECTION 3. Section 3 of chapter 70B of the General Laws, as so appearing, is hereby |
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| 37 | 37 | | 8amended by inserting after the colon, in line 21, the following words:—“neighborhood |
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| 38 | 38 | | 9stabilization,”. 2 of 12 |
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| 39 | 39 | | 10 SECTION 4. Section 1 of chapter 121A of the General Laws, as so appearing, is hereby |
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| 40 | 40 | | 11amended by replacing the definitions of “decadent area”, “sub-standard area”, and “project” with |
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| 41 | 41 | | 12the below definitions of those terms, and inserting the following additional definitions after the |
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| 42 | 42 | | 13definition of “project”- |
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| 43 | 43 | | 14 “Decadent area”, an area, including a spot rehabilitation property, which is detrimental to |
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| 44 | 44 | | 15safety, health, morals, welfare or sound growth of a community because of the existence of a |
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| 45 | 45 | | 16building or buildings which are out of repair, physically deteriorated, unfit for human habitation, |
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| 46 | 46 | | 17or obsolete, or in need of major maintenance or repair, or because much of the real estate in |
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| 47 | 47 | | 18recent years has been sold or taken for non-payment of taxes or upon foreclosure of mortgages, |
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| 48 | 48 | | 19or because a building or buildings have been torn down and not replaced and in which under |
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| 49 | 49 | | 20existing conditions it is improbable that the building or buildings will be replaced, or because of |
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| 50 | 50 | | 21a substantial change in business or economic conditions, or because of inadequate light, air, or |
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| 51 | 51 | | 22open space, or because of excessive land coverage, or because diversity of ownership, irregular |
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| 52 | 52 | | 23lot sizes or obsolete street patterns make it improbable that the area will be redeveloped by the |
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| 53 | 53 | | 24ordinary operations of private enterprise, or by reason of any combination of the foregoing |
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| 54 | 54 | | 25conditions. |
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| 55 | 55 | | 26 “Sub-standard area”, an area, including a spot rehabilitation property, upon which there is |
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| 56 | 56 | | 27a dwelling or wherein dwellings predominate which, by reason of dilapidation, overcrowding, |
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| 57 | 57 | | 28faulty arrangement or design, lack of ventilation, light, or sanitation facilities, or any |
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| 58 | 58 | | 29combination of these factors, are detrimental to safety, health, morals, welfare or sound growth |
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| 59 | 59 | | 30of a community. 3 of 12 |
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| 60 | 60 | | 31 “Project”, any undertaking consisting of the construction in one or more specified |
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| 61 | 61 | | 32blighted open, decadent or sub-standard areas of decent, safe and sanitary residential, |
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| 62 | 62 | | 33commercial, industrial, institutional, recreational or governmental buildings and such |
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| 63 | 63 | | 34appurtenant or incidental facilities as shall be in the public interest, and the operation and |
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| 64 | 64 | | 35maintenance of such buildings and facilities after construction. A “project” may include as |
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| 65 | 65 | | 36incidental thereto any one or more of the following:— (a) acquisition and assembly of the land |
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| 66 | 66 | | 37(and buildings and structures and other improvements thereon, if any) within a blighted open, |
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| 67 | 67 | | 38decadent or sub-standard area or areas; (b) clearance of the land within a blighted open, decadent |
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| 68 | 68 | | 39or sub-standard area or areas; (c) acquisition, assembly and clearance of land, buildings or |
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| 69 | 69 | | 40structures not in themselves blighted, decadent, or sub-standard if their inclusion is necessary for |
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| 70 | 70 | | 41the clearance, redevelopment, reconstruction or rehabilitation of a blighted open, decadent or |
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| 71 | 71 | | 42sub-standard area or areas; and (d) installation, construction, and reconstruction of public and |
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| 72 | 72 | | 43private ways, public utilities and services, and site improvements essential to the preparation of |
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| 73 | 73 | | 44blighted open, decadent or sub-standard area or areas for beneficial development or |
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| 74 | 74 | | 45redevelopment. |
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| 75 | 75 | | 46 “Spot Blight Project Sponsor”, a community development corporation certified under |
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| 76 | 76 | | 47chapter 40H; a bona-fide non-profit organization, established under chapter 180 that has, in the |
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| 77 | 77 | | 48determination of the housing board, satisfactory and sufficient experience in the construction or |
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| 78 | 78 | | 49rehabilitation of residential or non-residential buildings, the creation or provision of affordable |
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| 79 | 79 | | 50housing, the restoration of abandoned property, the revitalization and improvement of |
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| 80 | 80 | | 51neighborhoods, or a similar purpose; a redevelopment authority established under chapter 121B; |
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| 81 | 81 | | 52or a partnership of two or more of any of the foregoing; that is approved under this chapter to |
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| 82 | 82 | | 53rehabilitate a spot rehabilitation property. 4 of 12 |
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| 83 | 83 | | 54 “Spot Rehabilitation Property”, a residential single-family home, a residential building |
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| 84 | 84 | | 55with not more than four separate units, a commercial property under 10,000 square feet with a |
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| 85 | 85 | | 56building or buildings thereon, or any building under 10,000 square feet with a mix of residential |
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| 86 | 86 | | 57and commercial uses that meets the following criteria: (a) the building or buildings on the |
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| 87 | 87 | | 58property have been vacant for the last twelve months, (b) construction has not begun pursuant to |
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| 88 | 88 | | 59a building permit that has been issued to conduct rehabilitation of the building or buildings on |
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| 89 | 89 | | 60the property for the purpose of making the property habitable or useable for commercial |
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| 90 | 90 | | 61purposes, and (c) the municipality has made a determination that the building or buildings are |
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| 91 | 91 | | 62distressed, upon consideration of the following: the building or buildings are out of repair, |
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| 92 | 92 | | 63physically deteriorated, unfit for human habitation, or obsolete, or in need of major maintenance |
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| 93 | 93 | | 64or repair, or because the building has been sold or taken for non-payment of taxes or upon |
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| 94 | 94 | | 65foreclosure of mortgages. |
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| 95 | 95 | | 66 “Spot Rehabilitation Project”, any project, the subject of which consists exclusively of |
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| 96 | 96 | | 67spot rehabilitation properties. |
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| 97 | 97 | | 68 SECTION 5. Chapter 121A of the General Laws, as so appearing, is hereby further |
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| 98 | 98 | | 69amended by deleting section 7A and inserting in its place the following:- |
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| 99 | 99 | | 70 Section 7A. A corporation organized under section three or an insurance company or a |
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| 100 | 100 | | 71group of insurance companies or a savings bank or group of savings banks operating under this |
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| 101 | 101 | | 72chapter or a spot blight project sponsor may purchase or lease from a housing authority, |
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| 102 | 102 | | 73redevelopment authority, municipality or other public body real estate acquired by such |
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| 103 | 103 | | 74authority, municipality or public body for land assembly and redevelopment or urban renewal |
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| 104 | 104 | | 75purposes under chapter one hundred and twenty-one B, upon such terms and conditions, 5 of 12 |
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| 105 | 105 | | 76consistent with this chapter, as shall be approved by the housing board and may erect and |
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| 106 | 106 | | 77maintain a project upon the land so acquired. Such corporation shall not be required to offer its |
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| 107 | 107 | | 78stock to the owners of the real estate within the location of the project and such owners have no |
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| 108 | 108 | | 79preferential right to subscribe thereto; but in all other respects the provisions of this chapter shall |
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| 109 | 109 | | 80be applicable to corporations acting thereunder and their projects. |
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| 110 | 110 | | 81 SECTION 6. Section 11 of chapter 121A of the General Laws, as so appearing, is hereby |
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| 111 | 111 | | 82further amended by inserting the following paragraph after the third paragraph:- |
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| 112 | 112 | | 83 A spot blight project sponsor shall have the power, with the approval of the local |
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| 113 | 113 | | 84municipality, to sell, exchange, give or otherwise transfer in whole or in part the land or interests |
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| 114 | 114 | | 85therein, including air rights, leased or acquired by it under this chapter, with the buildings or |
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| 115 | 115 | | 86other structures thereon, constituting a project or portion hereunder to any entity identified in the |
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| 116 | 116 | | 87foregoing paragraph, or may sell or lease the spot rehabilitation property to any individual or |
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| 117 | 117 | | 88group of individuals intending to use said property for residential use. |
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| 118 | 118 | | 89 SECTION 7. Chapter 121A of the General Laws, as so appearing, is hereby further |
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| 119 | 119 | | 90amended by inserting after section 18D the following section:- |
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| 120 | 120 | | 91 Section 18E. A spot blight project sponsor may undertake on land owned or to be |
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| 121 | 121 | | 92acquired by it one or more spot rehabilitation projects under this chapter, or acquire spot |
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| 122 | 122 | | 93rehabilitation projects or any severable portion thereof from corporations, individuals or entities |
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| 123 | 123 | | 94authorized to undertake or acquire spot rehabilitation projects under this chapter, and the |
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| 124 | 124 | | 95provisions of this chapter, specifically including the powers granted by sections six A and eleven |
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| 125 | 125 | | 96and the procedures set forth in section eighteen B shall, to the extent applicable, apply to such |
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| 126 | 126 | | 97spot blight project sponsor and such spot rehabilitation projects, excepting the following: 6 of 12 |
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| 127 | 127 | | 98 (a)The term “corporation” as used in section six A, seven A, section ten, section |
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| 128 | 128 | | 99eleven, section twelve, section thirteen, section fourteen, and section fifteen shall be deemed to |
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| 129 | 129 | | 100mean spot blight project sponsor with respect to spot blight projects. |
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| 130 | 130 | | 101 (b)Section three shall not be applicable to such spot blight project sponsor; and |
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| 131 | 131 | | 102provided further, a spot blight project sponsor may undertake more than one spot rehabilitation |
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| 132 | 132 | | 103project. |
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| 133 | 133 | | 104 (c)Section five shall not be applicable to a spot blight project; provided, however, |
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| 134 | 134 | | 105that the spot blight project sponsor shall submit an application for the approval of a spot |
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| 135 | 135 | | 106rehabilitation project, in the form required pursuant to section five to the municipality for its |
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| 136 | 136 | | 107approval. |
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| 137 | 137 | | 108 (d)So much of section six as relates to the agreement of association shall not be |
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| 138 | 138 | | 109applicable to such spot blight project sponsor. The first, eighth, ninth, and tenth paragraphs of |
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| 139 | 139 | | 110section six shall not be applicable to a spot blight project. The municipality where the spot blight |
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| 140 | 140 | | 111project is located shall have full responsibility for approval of the proposed spot blight project as |
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| 141 | 141 | | 112set forth in the second through seventh paragraphs of section six. The municipality shall transmit |
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| 142 | 142 | | 113its final decision to the housing board for record keeping purposes only. |
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| 143 | 143 | | 114 (e)The second paragraph of section six B shall not be applicable to such spot blight |
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| 144 | 144 | | 115project sponsor, except that the planning board at least fourteen days before the day of the |
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| 145 | 145 | | 116hearing shall mail a notice to each owner of land that is within the proposed spot blight project. |
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| 146 | 146 | | 117If service cannot be made, then service shall be made by posting a copy of the notice upon a |
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| 147 | 147 | | 118portion of the property facing a public way, by publication of a copy of the notice in one |
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| 148 | 148 | | 119newspaper of general circulation, and posting on the municipality’s website. 7 of 12 |
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| 149 | 149 | | 120 (f)Section seven shall not be applicable to such spot blight project sponsor. |
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| 150 | 150 | | 121 (g)So much of section eight as provides that “Every such corporation shall be |
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| 151 | 151 | | 122deemed to have been organized to serve a public purpose” shall be construed to mean “Every |
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| 152 | 152 | | 123such project shall be deemed to have been undertaken to serve a public purpose”. The term |
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| 153 | 153 | | 124“housing board” as used in section eight shall be deemed to mean “municipality”. |
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| 154 | 154 | | 125 (h)Section nine shall not be applicable to such spot blight project sponsor. |
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| 155 | 155 | | 126 (i)The term “shall” as used in the first and third paragraphs of section ten shall be |
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| 156 | 156 | | 127deemed to mean “may” with respect to a spot blight project sponsor. A spot blight project |
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| 157 | 157 | | 128sponsor that elects to forego the tax exemptions provided under section ten shall not be required |
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| 158 | 158 | | 129to comply with the other provisions of that section, and shall not be required to obtain signatures |
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| 159 | 159 | | 130of a majority of the assessors under section six A. |
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| 160 | 160 | | 131 (j)So much of section fifteen as relates to reducing the indebtedness of a corporation |
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| 161 | 161 | | 132shall apply only to indebtedness incurred in connection with a spot rehabilitation project. The |
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| 162 | 162 | | 133term “operating and maintenance expenses” shall be deemed to include rehabilitation costs, |
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| 163 | 163 | | 134including any principal and interest on loans used for the project, and costs other than direct |
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| 164 | 164 | | 135rehabilitation costs, as well as a developer’s fee to the spot blight project sponsor, which fee shall |
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| 165 | 165 | | 136not exceed 20% of the combined cost of acquisition and rehabilitation of the spot rehabilitation |
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| 166 | 166 | | 137property. |
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| 167 | 167 | | 138 (k)The provisions of sections five, six A, and eleven shall, as modified by this |
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| 168 | 168 | | 139section 18E, apply to a spot rehabilitation project whether said spot rehabilitation project is in |
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| 169 | 169 | | 140Boston, Springfield or another municipality. 8 of 12 |
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| 170 | 170 | | 141 SECTION 8. Section 2 of chapter 21E of the General Laws, as so appearing, is hereby |
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| 171 | 171 | | 142amended by striking section (f) within the definition of “Owner,” or “Operator”, and inserting in |
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| 172 | 172 | | 143its place the following: |
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| 173 | 173 | | 144 (f) A redevelopment authority, redevelopment agency, community development |
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| 174 | 174 | | 145corporation, economic development and industrial corporation, or a spot blight project sponsor |
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| 175 | 175 | | 146pursuant to chapter 121A shall not be deemed an owner or operator if all of the following |
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| 176 | 176 | | 147requirements are met: |
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| 177 | 177 | | 148 (1)the redevelopment authority, redevelopment agency, community development |
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| 178 | 178 | | 149corporation, economic development and industrial corporation or spot blight project sponsor has |
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| 179 | 179 | | 150acquired its portion of the site in accordance with the provisions of chapter 40F, chapter 121A, |
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| 180 | 180 | | 151chapter 121B or chapter 121C or any applicable special acts; |
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| 181 | 181 | | 152 (2)no act or failure of duty of the redevelopment authority, redevelopment agency, |
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| 182 | 182 | | 153community development corporation, economic development and industrial corporation or spot |
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| 183 | 183 | | 154blight project sponsor or of any employee or agent thereof, caused or contributed to, or |
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| 184 | 184 | | 155exacerbated any release or threat of release of oil or hazardous material at or from the site; |
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| 185 | 185 | | 156 (3)the redevelopment authority, redevelopment agency, community development |
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| 186 | 186 | | 157corporation, economic development and industrial corporation or spot blight project sponsor |
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| 187 | 187 | | 158satisfies all of the following conditions: |
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| 188 | 188 | | 159 a) notifies the department in compliance with this chapter and regulations |
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| 189 | 189 | | 160promulgated thereto upon obtaining knowledge of a release or threat of release of oil or |
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| 190 | 190 | | 161hazardous material for which notification is required pursuant to this chapter and regulations |
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| 191 | 191 | | 162promulgated pursuant thereto; 9 of 12 |
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| 192 | 192 | | 163 b) provides reasonable access to the site or portion of the site under its control to |
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| 193 | 193 | | 164employees, agents and contractors of the department for all purposes authorized by this chapter, |
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| 194 | 194 | | 165and to other Persons for the purpose of conducting response actions pursuant to this chapter and |
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| 195 | 195 | | 166regulations promulgated thereto; |
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| 196 | 196 | | 167 c) takes reasonable steps (i) to prevent the exposure of people to oil or hazardous |
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| 197 | 197 | | 168material by fencing or otherwise preventing access to the portion of the site under its ownership |
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| 198 | 198 | | 169or possession, and (ii) to contain any further release or threat of release of oil or hazardous |
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| 199 | 199 | | 170material from a structure or container under its ownership or possession; |
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| 200 | 200 | | 171 d) if there is an imminent hazard at or from the portion of the site under its control, |
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| 201 | 201 | | 172controls the potential risk to public health, safety, welfare, or the environment at or from the site |
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| 202 | 202 | | 173by taking immediate response actions at the portion of the site under its ownership or possession, |
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| 203 | 203 | | 174in compliance with this chapter and regulations promulgated thereto; |
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| 204 | 204 | | 175 e) conducts any response action undertaken at the site in compliance with this |
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| 205 | 205 | | 176chapter and regulations promulgated thereto; and |
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| 206 | 206 | | 177 f) acts diligently to sell or otherwise to divest itself of ownership or possession of its |
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| 207 | 207 | | 178portion of the site in accordance with the provisions of chapter 40F, chapter 121A½, chapter |
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| 208 | 208 | | 179121B or chapter 121C, or any applicable special acts. Whether the redevelopment authority, |
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| 209 | 209 | | 180redevelopment agency, community development corporation, economic development and |
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| 210 | 210 | | 181industrial corporation or Project Sponsor is acting or has acted diligently to sell or otherwise to |
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| 211 | 211 | | 182divest itself of ownership or possession of its portion of the site shall be determined by |
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| 212 | 212 | | 183considering the same criteria applicable to secured lenders set forth in subclause (iii) of |
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| 213 | 213 | | 184subparagraph (F) of clause (5) of paragraph (c). 10 of 12 |
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| 214 | 214 | | 185 (4)if the redevelopment authority, redevelopment agency, community development |
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| 215 | 215 | | 186corporation, economic development and industrial corporation or spot blight project sponsor |
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| 216 | 216 | | 187acquired ownership or possession of a site or portion of a site prior to the effective date of this |
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| 217 | 217 | | 188act, the redevelopment authority, redevelopment agency, community development corporation, |
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| 218 | 218 | | 189economic development and industrial corporation or spot blight project sponsor notifies the |
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| 219 | 219 | | 190department of any releases of oil or hazardous material of which it has knowledge in accordance |
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| 220 | 220 | | 191with section 7 and the regulations promulgated thereunder, and shall meet the requirements in |
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| 221 | 221 | | 192clause (3) of this paragraph relative to such releases within six months of being notified by the |
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| 222 | 222 | | 193department of the requirements in this paragraph. |
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| 223 | 223 | | 194 SECTION 9. Chapter 121A of the General Laws, as so appearing, is hereby amended by |
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| 224 | 224 | | 195adding the following sections: |
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| 225 | 225 | | 196 Section 20. There shall be a commission to study strategies to improve the quality of the |
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| 226 | 226 | | 197housing stock in weak markets with the goal of making these properties safer, more accessible to |
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| 227 | 227 | | 198residents with disabilities, and more resilient to climate change. The commission’s review shall |
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| 228 | 228 | | 199include, but not be limited to---the use of guidance documents to consistently grant relief from |
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| 229 | 229 | | 200building codes in common circumstances where appropriate; provisions to reduce the time and |
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| 230 | 230 | | 201cost associated with obtaining variances in circumstances that are consistent with these guidance |
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| 231 | 231 | | 202documents; dissemination of creative strategies to use new technologies to address common |
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| 232 | 232 | | 203challenges bringing older structures up to code; the deployment of energy efficiency programs, |
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| 233 | 233 | | 204Home Modifications Grants, elevator and sprinkler funds, and other resources to help building |
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| 234 | 234 | | 205rehab projects in weak markets meet health and safety standards. 11 of 12 |
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| 235 | 235 | | 206 The commission shall consist of: 2 members of the Senate, 1 of whom shall represent a |
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| 236 | 236 | | 207Gateway Municipality as defined in section 3A of chapter 23A of the General Laws and shall |
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| 237 | 237 | | 208serve as co-chair; 2 members of the House of Representatives, 1 of whom shall represent a |
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| 238 | 238 | | 209Gateway Municipality and shall serve as co-chair; 2 members appointed by the governor, 1 of |
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| 239 | 239 | | 210whom shall represent the Massachusetts Association of Community Development Corporations; |
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| 240 | 240 | | 211and 1 of whom shall represent the Rural Policy Advisory Commission; and 6 members appointed |
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| 241 | 241 | | 212by the Secretary of Housing and Economic Development: one of the appointive members shall |
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| 242 | 242 | | 213be an architect licensed to practice in the commonwealth; one of the appointive members shall be |
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| 243 | 243 | | 214a licensed building inspector; one of the appointive members shall be a Gateway Municipality |
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| 244 | 244 | | 215housing director; one of the appointive members shall be a fire official from a Gateway |
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| 245 | 245 | | 216Municipality; 2 of the appointive members shall be selected after consultation with advocacy |
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| 246 | 246 | | 217groups on behalf of persons with disabilities. The commission shall file a report of its findings |
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| 247 | 247 | | 218and recommendations, including, but not limited to, legislative, regulatory, and procedural |
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| 248 | 248 | | 219changes, with the clerks of the senate and house of representatives, the chairs of the joint |
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| 249 | 249 | | 220committee on housing not later than December 31, 2021. |
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| 250 | 250 | | 221 SECTION 10. Section 4 of chapter 40V, as so appearing, is hereby amended by inserting |
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| 251 | 251 | | 222the following paragraph: |
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| 252 | 252 | | 223 The report shall include, but is not limited to: identification of municipalities with |
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| 253 | 253 | | 224approved HD zones, identification of each housing development project that has received |
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| 254 | 254 | | 225certification, provide information about each project such as: site address, project sponsor, |
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| 255 | 255 | | 226certification level (preliminary, conditional, or final), the range of rents for the residential units, |
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| 256 | 256 | | 227the type of residential units and number of each type of residential unit, the total amount of 12 of 12 |
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| 257 | 257 | | 228qualified project expenditures, the tax credit amount issued or reserved, the completion or |
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| 258 | 258 | | 229estimated completion year, and the year the credit was issue. |
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