PETITION OF:

Whereas , The deferred operation of this act would tend to defeat its purpose, which is forthwith to ensure safe, decent and sanitary state-aided public housing, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.

SECTION 1. Section 2 of chapter 23B, as appearing in the 2004 Official Edition, is hereby amended, at the end thereof, by adding the following new subsection:-

(c) There shall also be within the department, a bureau of housing for people with disabilities. The bureau shall consist of an associate director, and other such persons as shall be necessary to conduct the work of the department. The associate director shall be selected by the director after consultation with representative consumer groups, with preference given to a qualified person with a disability, or to an individual who has expertise in the area of the housing needs of persons with disabilities.

The functions of the bureau shall include but not be limited to the following activities: to coordinate within the office the several program elements relative to housing and services for persons with disabilities of low income; to assist local housing authorities in planning, developing and implementing appropriate housing, management and service programs for persons with disabilities of low income; to issue guidelines and directives and to promulgate rules and regulations relative to adequately housing the handicapped; to promulgate regulations and guidelines relative to contracts entered into for the provisions of services to residents of housing for persons with disabilities, including the management and maintenance of the premises; to approve such contracts; to serve as a focus in developing local and statewide planning to assist handicapped persons obtain the housing and services that will increase their ability to live independently; to seek, accept and otherwise take full advantage of all federal and state aid available to the office to assist in developing housing and related services for persons with disabilities; to assist other agencies to take full advantage of all federal, state and local assistance for housing, rehabilitation, and the provision of services to assist persons with disabilities to live with greater independence; and to work in close cooperation with consumers, including representatives from the various organizations of physically disabled, deaf or blind, and advocates for persons with mental retardation, emotional deficiencies, and other mental disabilities and for other socially disadvantaged and disabled persons, and also all federal, state and local organizations and agencies concerned with developing rational planning and effective implementation of housing and related services for persons with disabilities of low income and to increase their independence, productivity and self-satisfaction.

SECTION 2. Subsection (r) of section 3 of said chapter 23B, as so appearing, is amended by striking out, in lines 103 to 108 inclusive, the words:-

provided, however, that no regulation promulgated by the department of housing and community development which concerns tenant selection in state aided housing shall supercede the tenant selection requirements outlined in sections thirty-two and thirty-four of chapter one hundred and twenty-one B as they relate to local preference, emergency cases, or veterans preference;

SECTION 3. Said section 3 of said chapter 23B, as so appearing, is hereby amended by striking subsection (u) and inserting in place thereof the following subsection:-

(u) shall provide assistance to and any and all documents, reports, electronic data to the Public Housing Operating and Maintenance Authority regarding state aided public housing.

SECTION 4. Section 9 of said chapter 23B, as so appearing, is hereby amended by inserting, at the end thereof the following sentence:- The provisions of this section shall apply to bonds or notes issued prior to November 1, 2008. After November 1, 2008 the Public Housing Operating and Modernization Authority shall undertake all duties and responsibilities under this section and the department shall transfer any and all documents to such authority regarding the provisions of this section.

SECTION 5. Section 10A of said chapter 23B, as so appearing, is hereby repealed.

SECTION 6. Section 1 of chapter 121B of the General Laws, as appearing in the 2004 Official Edition, is hereby amended, in line 147, by inserting the following definition:- “PHOMA”, public housing operating and modernization authority

SECTION 7. Said section 1 of said chapter 121B, as so appearing, is hereby further amended by striking out, in line 70, the word "department" and inserting in place thereof the following word:- PHOMA

SECTION 8. Said section 1 of said chapter 121B, as so appearing, is hereby further amended by striking out, in lines 94 to 95 inclusive, the words "director of housing and community development" and inserting in place thereof the following words:- PHOMA

SECTION 9. Section 3 of said chapter 121B, as so appearing, is hereby amended by striking out, in line 27, the word "department" and inserting in place thereof, the following word:- PHOMA

SECTION 10. Section 3A of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 2, 3 and 10, the word "department" and inserting in place thereof, in each instance, the following word:- PHOMA

SECTION 11. Section 5 of said chapter 121B, as so appearing, is hereby amended by striking out, in line 67, the word "department" and inserting in place thereof, the following word:- PHOMA

SECTION 12. Section 6 of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 14 and 15, the word "department" and inserting in place thereof, in each instance, the following word:- PHOMA

SECTION 13. Section 7 of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 18 to 31 inclusive, the following words:-

A housing authority may compensate its members for each day spent in the performance of their duties and for such other services as they may render to the authority in connection with projects commenced prior to July first, nineteen hundred and sixty-five. Such compensation shall not exceed fifty dollars a day for the chairman and forty dollars a day for a member other than the chairman, provided that the total sum paid to all the members in any one month or year shall not exceed two per centum of the gross income of the housing authority during such month or year, respectively, nor shall the total sum paid in any year exceed twelve thousand five hundred dollars in the case of the chairman or ten thousand dollars in the case of a member other than the chairman. Such compensation shall be allocated by the housing authority among its various projects commenced prior to July first, nineteen hundred and sixty-five, in such manner and amounts as it deems proper.

SECTION 14. Said section 7 of said chapter 121B, as so appearing, is hereby further amended by striking out, in lines 47 to 52 inclusive, the words:- Any compensation paid to a tenant member of a housing authority for services as a member shall be included as income in determining rent, and the tenant shall be subject to appropriate rent increases, as provided for in authority policy and as regulated by the department; provided, however, that such compensation shall not be considered income for purposes of determining continued occupancy.

SECTION 15. Section 11 of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 48, 53, 60 and 61, the word "department" and inserting in place thereof, in each instance, the following word:- PHOMA

SECTION 16. Said chapter 121B, as so appearing, is hereby amended by striking section 17 and inserting in place thereof the following section:-

Section 17. No bond, note or other evidence of indebtedness executed or obligation or liability incurred by an operating agency shall be a debt or charge against, the commonwealth, any political subdivision thereof, or the PHOMA, other than such agency. Nothing in this chapter shall be construed to obligate the commonwealth, any political subdivision thereof, or the PHOMA, other than the applicable operating agency, or to pledge its credit, to any payment whatsoever to any operating agency or to any creditor or bondholder thereof, nor shall anything therein contained be construed as granting to any operating agency any exemption from taxation except as expressly provided therein or to render the commonwealth, any political subdivision thereof, or the PHOMA, other than such agency liable for any indebtedness or liability incurred, acts done, or any omissions or failures to act, of any such agency.

SECTION 17. Section 26 of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 213 to 214, 217, 219, 222 to 223, 227 and 230, the words "department of housing and community development” and inserting in place thereof, in each instance, the following words:- PHOMA

SECTION 18. Said section 26 of said chapter 121B, as so appearing, is hereby further amended by striking out, in lines 46 to 47, 53, 82, 102, 107, 115, 118, 124, 149, 167, 168, 183, 205, and 213 the word “department” and inserting in place thereof, in each instance, the following word:- PHOMA

SECTION 19. Section 26A of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 1, 8, 9, 10 to 11, 20, 35, 40, 42, 42 to 43, 51, 53, 63 and 66, the word "department" and inserting in place thereof, in each instance, the following word:- PHOMA

SECTION 20. Said section 26A of said chapter 121B, as so appearing, is hereby further amended by striking out, in lines 68 and 69 the words "joint committee on urban affairs" and inserting in place thereof the following words:- joint committee on housing

SECTION 21. Section 27 of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 27, 32, 34, 51 and 56, the word "department" and inserting in place thereof, in each instance, the following word:- PHOMA

SECTION 22. Section 28 of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 6 and 27, the word "department" and inserting in place thereof, in each instance, the following word:- PHOMA

SECTION 23. Section 29 of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 3, 6, 12 to 13 and 50, the word "department" and inserting in place thereof, in each instance, the following word:- PHOMA

SECTION 24. Section 30 of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 1 to 2 inclusive, the word "department" and inserting in place thereof, the following word:- PHOMA

SECTION 25. Section 31 of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 2, 5, 13, 20, 22, 24, 29, 41, 49, 58, 60, 65, 67 and 70, the word "department" and inserting in place thereof, in each instance, the following word:- PHOMA

SECTION 26. Section 32 of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 8, 17 to 18, 39, 49, 66, 232 and 264, the word "department" and inserting in place thereof, in each instance, the following word:- PHOMA

SECTION 27. Said section 32 of said chapter 121B, as so appearing, is hereby amended by inserting, in line 67, following the word "approve." the following sentence:- Under this section, any surplus in the budget of a housing authority shall be revenue payable to the Public Housing Operating and Modernization Authority. Said surplus shall be paid by any such housing authority to the Public Housing Operating and Modernization Authority no later than 30 days after the end of the housing authority’s fiscal year.

SECTION 28. Section 33 of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 13 to 14 inclusive, the word "department" and inserting in place thereof the following word:- PHOMA

SECTION 29. Section 34 of said chapter 121B, as so appearing, is hereby repealed.

SECTION 30. Section 34A of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 1 to 2, 13, 16, 31, 33 to 34, and 42, the word "department" and inserting in place thereof, in each instance, the following word:- PHOMA

SECTION 31. Sections 34B, 35 and 37 of said chapter 121B, as so appearing, are hereby repealed.

SECTION 32. Section 38A of said chapter 121B, as so appearing, is hereby repealed.

SECTION 33. Section 38B of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 1 and 7, the word "department" and inserting in place thereof, in each instance, the following word:- PHOMA

SECTION 34. Section 39 of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 14, 55 and 86, the word "department" and inserting in place thereof, in each instance, the following word:- PHOMA

SECTION 35. Section 40 of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 19 to 20 inclusive, 55 and 69, the word "department" and inserting in place thereof, in each instance, the following word:- PHOMA

SECTION 36. Section 41 of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 1 to 2 inclusive, and 20, the word "department" and inserting in place thereof, in each instance, the following word:- PHOMA

SECTION 37. Section 41A of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 1 and 2 and 24 and 25, the word "department" and inserting in place thereof, in each instance, the following word:- PHOMA

SECTION 38. Section 43 of said chapter 121B, as so appearing, is hereby amended by striking out, in lines 5, 24 to 25, 45, and lines 71 to 72, the words "department of community affairs" and inserting in place thereof the following words:- department of housing and community development

SECTION 39. Section 44A of said chapter 121B, as so appearing, is hereby amended by striking out, in line 4, the words "department of community affairs" and inserting in place thereof the following words:- department of housing and community development

SECTION 40. The General Laws are hereby amended by inserting after chapter 121D the following chapter:-

Chapter 121E.

Section 1. As used in this chapter, the following terms shall have the following meanings:-

“Authority”, the Public Housing Operating and Modernization Authority.

“Committee”, the advisory committee established by section 8.

“Department”, the department of housing and community development.

“Housing authority”, any local housing authority, regional housing authority, housing authority of the Public Housing Operating and Modernization Authority or any public housing agency as defined by 42 U.S.C. section 1437a.

“State aided public housing”, housing constructed, maintained or financially assisted by the commonwealth through funds provided under this chapter, chapter 121B, chapter 200 of the acts of 1948, chapter 667 of the acts of 1956, chapter 705 of the acts of 1966, chapter 167 of the acts of 1987 and chapter 689 of the acts of 1974.

Section 2. (a) There is hereby created a body politic and corporate and a public instrumentality to be known as the Public Housing Operating and Modernization Authority, which shall be an independent public authority not subject to the supervision and control of any executive office, department, commission, board, bureau, agency or political subdivision of the commonwealth except as specifically provided in any general or special law. The exercise by the authority of the powers conferred by this chapter shall be considered to be the performance of an essential public function.

(b) The authority shall consist of the executive director of the Massachusetts Housing Finance Agency established by chapter 708 of the acts of 1966, who shall serve as chairperson, the chairman of the Massachusetts Housing Finance Agency, the vice-chairman of the Massachusetts Housing Finance Agency, and 4 additional members appointed by the executive director, 2 of whom shall have extensive practical experience in the management and maintenance of multi-family housing, 1 of whom shall have experience in multi-family housing construction, architecture and design, and 1 of whom shall have experience in long-term debt financing, each of whom shall serve a term of 2 years; but, a person appointed to fill a vacancy shall serve only for the unexpired term. An appointed member of the authority shall be eligible for reappointment. The authority shall annually elect 1 of its members to serve as vice-chairperson.

(c) 4 members of the authority shall constitute a quorum, and the affirmative vote of 4 members of the authority shall be necessary and sufficient for any action taken by the authority. No vacancy in the membership of the authority shall impair the right of a quorum to exercise all the rights and duties of the authority. Members shall serve without pay but shall be reimbursed for actual expenses necessarily incurred in the performance of their duties. The chairperson of the authority shall report to the governor and to the general court no less than annually, to assist the executive and legislative branches in coordinating state-aided public housing policies, housing authority policies and affordable housing for the indigent policies of the commonwealth.

(d) Any action of the authority may take effect immediately and need not be published or posted unless otherwise provided by law. Meetings of the authority shall be subject to section 11A 1/2 of chapter 30A. The authority shall be subject to all other provisions of said chapter 30A, and records pertaining to the administration of the authority shall be subject to section 42 of chapter 30 and section 10 of chapter 66. All moneys of the authority shall be considered to be public funds for purposes of chapter 12A. The operations of the authority shall be subject to chapter 268A and chapter 268B.

Section 3. The authority shall finance the operation and maintenance of state aided public housing in the commonwealth constructed, operated and maintained pursuant to this chapter, chapter 121B, chapter 200 of the acts of 1948, chapter 667 of the acts of 1956, chapter 705 of the acts of 1966, chapter 167 of the acts of 1987 and chapter 689 of the acts of 1974. To accomplish the objectives set forth above, the specific powers of the authority shall include, but not be limited to, the following:-

(a) to administer any and all contracts for financial assistance to housing authorities entered into before or after the effective date of this chapter;

(b) be the successor in interest to the department of housing and community development to all state-aided public housing;

(c) establish rules, promulgate regulations, guidelines and manuals as may be necessary to carry out the purposes of this chapter for the management, operation, repair and modernization of state aided public housing provided, that no regulation promulgated by the authority which concerns tenant selection in state aided public housing shall supercede the tenant selection requirements outlined in sections 32 and 34 of chapter 121B as they relate to local preference, emergency cases, or veterans preference;

(d) adopt and amend rules, regulations and procedures for the conduct of the business of the authority as the authority shall deem necessary to carry out the provisions of this chapter;

(e) receive funds or financing from the commonwealth, any political subdivision thereof, any state agency, any authority, any fund or any other source either public or private;

(f) review, approve or deny operating, management, maintenance, repair and construction subsidy or grant requests from any housing authority in the commonwealth;

(g) review, approve or deny grant or loan applications from housing authorities, waivers and other requests submitted to the authority;

(h) provide architectural or other technical advice and assistance, training and education to housing authorities, project managers and to architects, general contractors, subcontractors, construction or project managers, designers and others regarding the operation, management, maintenance, repair and construction of state-aided public housing;

(i) to apply for, receive, administer and comply with the conditions and requirements respecting any grant, gift or appropriation of property, services or moneys;

(j) develop a long term capital plan in accordance with needs and projected funding;

(k) develop a capital repair and modernization priority system;

(l) develop or commission a needs assessment system or survey for the management, maintenance, repair, modernization and other capital needs of state-aided public housing;

(m) prepare an annual budget for the administration of the authority;

(n) collect and maintain data on all state aided public housing;

(o) establish and maintain both operating and capital reserves;

(p) disburse amounts due housing authorities pursuant to grants approved by the board to operate, manage, maintain, repair, construct and modernize approved state-aided public housing projects and, in conjunction therewith, finance or refinance these projects, through revenue, the purchase of bonds, notes or other evidences of indebtedness, at the rates and on the terms that the authority may in its discretion determine, and provide for the payment of all costs of the authority, including professional and financial services incident to the conduct of its operations;

(q) invest the funds or revenue of the authority in such investments as may be legal investments for funds of the commonwealth or any fiduciary in the commonwealth;

(r) obtain insurance and enter into agreements of indemnification necessary or convenient to the exercise of the powers of the trust;

(s) sue and be sued and to prosecute and defend actions relating to the authority; but the authority shall not be authorized to become a debtor under the United States Bankruptcy Code;

(t) establish and maintain a program of pet ownership by elderly residents of state-aided public housing for the elderly;

(u) engage accounting, management, legal, financial, consulting and other professional services necessary to the operations of the authority;

(v) recommend to the general court such legislation as it may deem desirable or necessary to further the purposes of this chapter; and

(w) do all things necessary or convenient to carry out the purposes of this chapter.

Section 3. The chairperson of the authority shall appoint an executive director, who shall supervise the administrative affairs and general management and operations of the authority and who shall also serve as secretary of the authority, ex officio. The executive director shall receive a salary commensurate with the duties of the office, and may be removed by the board for cause. The executive director may appoint other officers of the authority necessary to the functioning of the authority. Sections 9A, 45, 46, and 46C of chapter 30, chapter 31 and chapter 150E shall not apply to the executive director or any other employees of the authority. The executive director shall, with the approval of the authority: (i) plan, direct, coordinate and execute administrative functions in conformity with the policies and directives of the authority; (ii) employ professional and clerical staff as necessary; (iii) report to the authority on all operations under his control and supervision; (iv) prepare an annual budget and manage the administrative expenses of the authority; and (v) undertake any other activities necessary to implement the powers and duties set forth in this chapter.

Section 4. (a) The authority may provide by resolution for the issuance from time to time of bonds for any purpose of the authority, which bonds may be issued as general obligations of the authority or as special obligations payable solely from particular revenues or moneys of the authority. Bonds of the authority shall not be considered to be a debt of the commonwealth or of any of its political subdivisions. The bonds of each issue may be dated, may bear interest at such rate or rates, including rates variable from time to time, and may mature or otherwise be payable or redeemable at such times as the authority may determine. The authority shall determine the denominations of bonds, the details of their execution and authentication and their places of payment within or without the commonwealth. Before initial issuance of each series of bonds the authority shall advise the advisory board of the terms of the bonds and the timing of their issuance. In case any member or officer of the authority whose signature appears on any bonds shall cease to be such officer before their delivery, the signature shall nevertheless be valid and sufficient as if the officer had remained in office until delivery. Bonds may be issued in certificated or un-certificated form, payable to bearer or registered owners, and, if notes, may be made payable to bearer or to order. The authority may sell the bonds of the authority at public or private sale, at par or for such premium or discount price as it may determine. The authority may by resolution delegate to any member or officer of the authority the power to determine any of the matters set forth in this section. The aggregate principal amount of all bonds issued under this chapter shall not exceed $2,000,000,000 outstanding at any time. The principal amount of bonds for the payment or redemption of which, either at or before maturity, refunding bonds shall have been issued, shall be excluded from the aggregate principal amount of bonds issued under this chapter for purposes of computing the limit on outstanding bonds under this section.

(b) Bonds of the authority may be secured by a trust agreement between the authority and the bond owners or a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the commonwealth. A trust agreement may pledge or assign, in whole or in part, any receipts, fees, revenues or other payments received or to be received by the authority, including without limitation amounts provided to the trust in accordance with section of this chapter, chapter 708 of the acts of 1966 as amended, grants, appropriations or other assistance from the commonwealth or the United States or any political subdivision or instrumentality of either, investment earnings on its funds and accounts and any other fees, charges or other income received or receivable by the authority and any contract or other rights to receive the same, whether then existing or thereafter coming into existence, and whether then held or thereafter acquired by the trust, and the proceeds thereof. A trust agreement may contain, without limitation, provisions for protecting and enforcing the rights, security and remedies of the bondholders, provisions defining defaults and establishing remedies, which may include acceleration and may also contain restrictions on remedies by individual bondholders. A trust agreement may also contain covenants of the trust concerning the custody, investment and application of moneys, the issuance of additional or refunding bonds, the use of any surplus bond proceeds, the establishment of reserves and the regulation of other matters customarily treated in trust agreements.

(c) Bonds may be issued by the authority in the form of lines of credit or other banking arrangements under terms and conditions determined by the authority. In addition to other lawful security, bonds may be secured, in whole or in part, by financial guaranties, by insurance, by letters or lines of credit or by other credit enhancement issued to the authority or to a trustee or other person, by any bank, trust company, insurance or surety company or other financial institution, within or without the commonwealth. The authority may pledge or assign, in whole or in part, revenues, funds or other assets or property held or to be received by the authority, and any contract or other rights to receive the same, whether then existing or thereafter coming into existence and whether then held or thereafter acquired by the authority, and the proceeds thereof, as security for any such guaranties or insurance or for the reimbursement to any issuer of a line or letter of credit.

(d) The authority may by resolution provide for the issuance by the authority of interim receipts or temporary bonds, exchangeable for definitive bonds when the bonds are executed and are available for delivery. The authority may also provide for replacement of mutilated, destroyed or lost bonds. The authority may purchase and invite offers to tender for purchase any outstanding bonds; provided, however, that no purchase by the authority shall be made at a price, exclusive of accrued interest, if any, exceeding the principal amount of the bond or, if greater, the redemption price of the bond when next redeemable at the option of the authority. The authority may resell any bonds it purchases in such manner and for such price as it may determine.

(e) The authority may also provide for issuance by the authority of temporary notes in anticipation of bonds, grants, revenues or appropriations. The issuance of the notes shall be governed by this chapter relating to the issuance of bonds. The authority may also issue refunding bonds of the authority for the purpose of paying any bonds at or before maturity. Refunding bonds may be issued at any time at or before the maturity or redemption or purchase of the refunded bonds. Refunding bonds may be issued in sufficient amounts to pay or provide for payment of the principal of the bonds being refunded, together with any redemption premium thereon, any interest or discount accrued or to accrue to the date of payment, costs of issuance and other expenses and reserves reasonably necessary to achieve the refunding.

(f) Bonds of the authority are securities in which public officers and agencies, insurance companies, financial institutions, investment companies, executors, administrators, trustees and others may properly invest funds including capital within their control and securities which may be deposited with any public officer or any agency for any purpose for which the deposit of bonds is authorized by law.

(g) Bonds of the authority shall be considered to be investment securities under chapter 106. Bonds, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be exempt from taxation by and within the commonwealth. The authority shall not be required to pay any taxes, assessments or excises upon its income, existence, operation, assets, moneys or revenues.

(h) It shall be lawful for any bank or trust company to act as a depository or trustee under a trust agreement, provided it furnishes such indemnification and reasonable security as the authority may require. Any assignment or pledge of revenues, funds or other assets or property made by the authority shall be valid and binding and shall be deemed continuously perfected for the purposes of chapter 106 and other laws when made. The revenues, funds and other assets and property, rights therein and thereto and proceeds so pledged and then held or thereafter acquired or received by the authority shall immediately be subject to the lien of the pledge without any physical delivery or segregation or further act, and the lien of the pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the authority, whether or not the parties have notice thereof. The trust agreement by which a pledge is created need not be filed or recorded to perfect the pledge except in the records of the trustees and no filing need be made pursuant to said chapter 106. Any pledge or assignment made by the authority is an exercise of its political and governmental powers, and revenues, funds, assets, property and contract or other rights to receive the same and the proceeds thereof which are subject to the lien of a pledge or assignment created under this chapter shall not be applied to any purposes not permitted by the pledge or assignment. Any holder of a bond and any trustee under a trust agreement, except to the extent its rights may be restricted by the trust agreement, may bring suit upon the bonds and may pursue any other legal action to protect and enforce its rights and compel performance of all duties required to be performed by the trust and the authority.

Section 5. The authority and its existence shall continue until terminated by law, but no such law shall take effect so long as the authority shall have bonds outstanding unless adequate provision has been made for the payment or satisfaction thereof. Upon termination of the authority, the title to all properties of the authority that remain after provision for the payment or satisfaction of all bonds of the authority shall vest in the commonwealth. The obligations, debts and liabilities of the authority shall be assumed by and imposed upon the commonwealth and shall be transferred to any such other successor as may be provided by law.

Section 6. The authority shall at all times keep accounts of all receipts, expenditures and disbursements and all assets and liabilities of the authority, which shall be open to inspection by any officer or duly appointed agent of the commonwealth. The authority shall submit an annual report, in writing, to the governor and the clerks of the house of representatives and the senate, who shall forward the same to the president of the senate, the speaker of the house of representatives, the chairpersons of the house and senate committees on ways and means and the house and senate chairpersons of the joint committee on housing. The report shall include financial statements relating to the operations, assets and expenditures of the authority maintained in accordance with generally accepted accounting principles so far as applicable and audited by an independent certified public accountant firm.

Section 7. The authority may enter into a contract with a housing authority for the purpose of assisting housing development by expending such monies for the purpose of making non-interest bearing advances to housing authorities organized under the provisions of chapter 121B and this chapter to enable them to construct low rent housing projects, as defined in said chapter 121B and this chapter, provided the authority shall, pursuant to regulations made by it, make the following findings: (1) there is a reasonable anticipation that financing arrangements satisfying the requirements of chapter 121B and this chapter will be obtained for said project, and, (2) the project site is suitable, the need for housing of the type proposed in the area to be served is demonstrated, and the likelihood that the project will provide low-income housing is great. The proceeds of such advances may be used only to defray the development costs of such project incurred prior to initial advance funds in accordance with the provisions of said chapter 121B and this chapter. Such costs may include, but shall not be limited to (a) payments for options to purchase properties on the proposed housing project site, deposits on contracts of purchase, or with prior approval, payment for the purchase of such properties; (b) legal and organizational expenses including payment of attorney’s fees, project manager and clerical staff salaries, office rent and other incidental studies; advances for planning, engineering and architectural work; and, (c) such other expenses incurred by the authority as the department may deem appropriate to effectuate the purposes of this section. The housing authority shall reimburse the PHOMA for all monies advanced under this section from the proceeds of any bonds or notes issued under section 41 of said 121B or this chapter. Any monies so reimbursed shall be credited to the PHOMA.

Section 8. To assist the PHOMA in the discharge of its duties, there shall be a state aided public housing advisory board comprised of the state auditor or his designee, the executive director of the authority, who shall serve as the secretary to the advisory board and shall be a nonvoting member of the board, and 8 members to represent the following, to be appointed by those entities: the Massachusetts Union of Public Housing tenants, the Massachusetts Chapter of the National Association of Housing and Redevelopment Officials, a Massachusetts member of the Council of Large Public Housing Authorities, the Citizens Housing and Planning Association, the Massachusetts AFL-CIO, the Massachusetts Law Reform Institute, and the house and senate chairs of the General Court’s joint committee on housing. The advisory board shall assist the authority in the development of general policy regarding state-aided public housing management, maintenance, repair and construction modernization, cost management and long-term debt financing and shall provide technical advice and input to the authority. The advisory board shall meet at least quarterly.

Section 9. To the extent that funds paid by or to the authority, either by the commonwealth, Massachusetts Housing Finance Agency, the Massachusetts Housing Partnership Fund or pursuant to chapter 121B and this chapter are insufficient in any year to meet the operating costs, debt service or other payment obligations of the authority in connection with statutory, debt or other financing obligations of the authority, including, without limitation, contracts for financial assistance with housing authorities, including those entered into with the department of housing and community development, its predecessor agency or the authority, reimbursement obligations, or otherwise issued or entered into in respect of which the commonwealth has pledged its credit or is otherwise liable, the commonwealth shall be liable for the payment of such obligations; provided, that the amount of any such support provided by the commonwealth to the authority pursuant to this section shall be in the form of a no-interest loan repayable within 20 years from the revenues of the authority. Notwithstanding the provisions of this section, the commonwealth may, subject to appropriation and the provisions of article 62 of the Constitution of the Commonwealth, pledge its credit, guaranty, or support for the funding of commitments made by the commonwealth or the authority authorized by chapter 121B or chapter 121E. If at any time any principal or interest is due or about to come due on any bond or note issued or assumed by the authority, other than any principal or interest on any bond anticipation note guaranteed by the commonwealth, or any payment is due or about to come due under any other financing obligation undertaken or assumed by the authority either prior to November 1, 2008 or after such time, and funds to pay the same are not available, the executive director shall certify to the state treasurer the amount required to meet such obligations, and the commonwealth shall thereupon pay over to the authority the amount so certified. If the commonwealth shall not make such payment within a reasonable time or shall not pay when required under any applicable contract assistance, the authority or any holder of an unpaid bond or note issued or assumed by the authority as aforesaid, or any obligee in respect of any other such financing obligation, acting in the name and on behalf of the authority as aforesaid, shall have the right to require the commonwealth to pay the authority the amount remaining unpaid, which right shall be enforceable as a claim against the commonwealth. The authority or any such holder or obligee may file a petition in the superior court for Suffolk county to enforce such claim or intervene in any such proceeding already commenced, and the provisions of chapter 258 shall apply to such petition insofar as it relates to the enforcement of a claim against the commonwealth. Any such holder or obligee who shall have filed such a petition may apply for an order of said court requiring the authority to apply funds received by the authority on its claim against the commonwealth to the payment of the petitioner’s unpaid obligation, and said court, if it finds such amount to be due to such holder or obligee, shall issue such an order.

Section 10. On November 1, 2008 the authority shall succeed to all powers theretofore granted to the department of housing and community development with respect to state-aided public housing developed under chapter 23B, chapter 121B, this chapter, chapter 200 of the acts of 1948, chapter 667 of the acts of 1956, chapter 705 of the acts of 1966, chapter 167 of the acts of 1987 and chapter 689 of the acts of 1974. On or before November 1, 2008 the director of the department of housing and community development shall transfer to the authority all records and documents, or copies thereof, which immediately prior to such date are in the custody of the department of housing and community development and which relate to or are maintained for the purpose of state-aided public housing.

Section 11. On or before November 1, 2008 the Massachusetts Housing Partnership Fund shall provide to the authority mortgages, notes or letters of credit for the repair, modernization or operation of state-aided public housing in the amount of $100,000,000 for the purposes of financial assistance in the form of grants for state-aided public housing projects undertaken pursuant to chapter 23B, chapter 121B, chapter 200 of the acts of 1948, chapter 667 of the acts of 1956, chapter 705 of the acts of 1966, chapter 167 of the acts of 1987 and chapter 689 of the acts of 1974.

SECTION 41. Section 4 of chapter 708 of the acts of 1966 is hereby amended by striking subsection (i) and inserting in place thereof the following subsection:-

(i) Invest any funds held in reserves or sinking funds, or any funds not required for immediate disbursement, in such investments as may be lawful for fiduciaries in the commonwealth, provided that the greater of 10 percent or $10,000,000 of any such funds shall be revenue to the Public Housing Operating and Modernization Authority, as established by chapter 121E, and shall be paid by the MHFA annually to the Public Housing Operating and Modernization Authority established by chapter 121E of the General Laws, on or before June 30 of each year, provided further that notwithstanding the provisions of section 16A or any other general law to the contrary, the failure of the MHFA to make any such payments shall create a lien in favor of the Public Housing Operating and Modernization Authority on any property, rights to property, real or personal, held directly or indirectly, or collateral owned or held directly or indirectly by the MHFA in the amount of such funds owed to the commonwealth. The lien imposed by this subsection may be filed by the Public Housing Operating and Modernization Authority: (1) with respect to real property or fixtures held directly or indirectly by the MHFA, in the registry of deeds of the county where the property is situated, and (2) with respect to personal property other than fixtures held either directly or indirectly by the MHFA, in the filing office in which the filing of a financing statement would perfect under Article 9 of chapter 106 of the general laws. The filing of a notice of any such lien or release of any such lien shall be received and registered or recorded without payment of any fee. Upon the filing of such lien, the Public Housing Operating and Modernization Authority, in addition to other modes of relief, may direct a civil action to be filed in superior court of the commonwealth to enforce such lien of the commonwealth under this subsection with respect to such liability or to subject any property of whatever nature, of the MHFA, or in which the MHFA has any right, title or interest, either direct or indirect, to the payment of such lien.

SECTION 42. Section 14 of said chapter 708 of the acts of 1966 is hereby amended by inserting after the words “status of reserve” the following words:- payments to the Public Housing Operating and Modernization Authority,

SECTION 43. Said chapter 708 of the acts of 1966 is hereby amended by inserting after section 4 the following new section:-

Section 4A. The executive director, chairman and vice-chairman of the MHFA shall also serve on the board of the Public Housing and Modernization Authority pursuant to chapter 121E of the General Laws.

SECTION 44. Section 35 of chapter 405 of the acts of 1985, as amended by section 34 of chapter 102 of the acts of 1990 is hereby amended by striking out the second sentence and inserting in place thereof the following sentence:- It shall be the sole purpose of the fund to provide funds within the limits and in the manner hereinafter described to provide programs designed to: (a) produce housing for low and moderate income households; (b) provide financial assistance to the Public Housing Operating Modernization Authority pursuant to chapter 121E of the General Laws; (c) broaden opportunities for home ownership for low and moderate income persons and families which shall include tenant management programs and tenant unit acquisition or ownership programs in state funded public housing developments; and (c) aid in the reclamation of abandoned property for use as housing.

SECTION 45. Subject to appropriation, housing authorities receiving reimbursement pursuant to section 32 of chapter 121B of the General Laws in fiscal year 2008 shall be reimbursed in state fiscal year 2008 in accordance with said section 32 of said chapter 121B, in such amount as provided for in section 2 of chapter 139 of the acts of 2006, provided that any such additional housing authorities qualifying for such reimbursement shall request such reimbursement from the Public Housing Operating and Modernization Authority.

SECTION 47. Sections 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 15, 16, 17, 18, 19, 21, 22, 23, 24, 25, 26, 28, 30, 31, 32, 33, 34, 35, 36 and 37 shall take effect on November 1, 2008.