1 of 1 SENATE DOCKET, NO. 1806 FILED ON: 1/16/2025 SENATE . . . . . . . . . . . . . . No. 969 The Commonwealth of Massachusetts _________________ PRESENTED BY: Sal N. DiDomenico _________________ 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 establishing an accessory dwelling unit trust fund. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :Sal N. DiDomenicoMiddlesex and SuffolkPatricia D. JehlenSecond Middlesex2/19/2025Mike Connolly26th Middlesex2/19/2025Manny Cruz7th Essex3/3/2025 1 of 3 SENATE DOCKET, NO. 1806 FILED ON: 1/16/2025 SENATE . . . . . . . . . . . . . . No. 969 By Mr. DiDomenico, a petition (accompanied by bill, Senate, No. 969) of Sal N. DiDomenico, Patricia D. Jehlen, Mike Connolly and Manny Cruz for legislation to establish an accessory dwelling unit trust fund. Housing. The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act establishing an accessory dwelling unit trust fund. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 The General Laws are hereby amended by inserting after Chapter 121G the following 2chapter: Chapter 121H Accessory Dwelling Unit Fund 3 Section 1. Definitions 4 "Accessory Dwelling Unit," as defined in MGL Chapter 40a Section 1a 5 "Eligible Participant," property owner who has an income of up to 110% of the area 6median income, as defined by the United States Department of Housing and Urban Development 7 "Fund," the Accessory Dwelling Unit Fund established in section 2 8 Section 2. There shall be an Accessory Dwelling Unit Trust Fund to support low- and 9moderate-income property owners whose incomes are not more than 110 per cent of median 10income as determined by the federal Department of Housing and Urban Development build an 11Accessory Dwelling Unit. The fund shall be administered by the Executive Office of Housing 2 of 3 12and Livable Communities or through contracts with 1 or more of the following administering 13agencies: (i) the Community Economic Development Assistance Corporation, established in 14chapter 40H; (ii) the Massachusetts Housing Partnership Fund, established in section 35 of 15chapter 405 of the acts of 1985; or (iii) the Massachusetts Housing Finance Agency, established 16in chapter 708 of the acts of 1966; provided, that an administering agency may directly offer 17financial assistance for the purposes pursuant to this section or may enter into subcontracts with 18non-profit organizations established pursuant to chapter 180 for those purposes; and provided 19further, that the administering agency may establish additional program requirements through 20regulations or policy guidelines. 21 Section 3. There shall be credited to the fund: (i) revenue from appropriations or other 22money authorized by the general court and specifically designated for the fund; (ii) any gifts, 23grants, private contributions, repayment of loans, fees and charges imposed relative to the 24making of loans, grants, subsidies, credit enhancements and other financial assistance; (iii) any 25investment income earned on the fund’s assets; and (iv) any other sources. Money remaining in 26the fund at the end of a fiscal year shall not revert to the General Fund. 27 Section 4. Funds expended pursuant to this chapter may be in the form of grants, loans or 28other financial assistance to eligible participants to build an accessory dwelling unit by providing 29reimbursement or an initial outlay of funds to cover pre-development and non-recurring closing 30costs associated with building an Accessory Dwelling Unit, which may include, but shall not be 31limited to, architectural and design costs, site preparation, such as clearance or landscaping, 32utility connection fees, impact fees, permitting fees, or other services and activities determined 33by the administering agency to be a pre-development or non-recurring closing costs; provided, 34however, that assistance shall be the minimum amount necessary to make a project feasible. 3 of 3 35 Funds expended pursuant to this chapter may finance low and no interest loans, grants, 36subsidies, credit enhancements and other financial assistance as determined by the administering 37agency for the purpose of supporting the construction and development of Accessory Dwelling 38Units; provided, however, that assistance shall be the minimum amount necessary to make a 39project feasible. 40 Section 5. The Executive Office of Housing and Livable Communities may promulgate 41regulations for the implementation, administration and enforcement of this chapter and may, in 42consultation with the Executive Office of Economic Development, issue guidelines for the fund.