PETITION OF:

SECTION 1. The following words or phrases as used in this act shall have the following meaning:

(A) "governmentally-involved housing," means any residential housing project constructed, rehabilitated, or assisted pursuant to any one or more of the following governmental programs:

(1) section 202 of the Housing Act of 1959, 12 U.S.C. section 1701q;

(2) the Below Market Interest Rate Program under section 221(d)(3) of the National Housing Act, 12 U.S.C. section 1715l (d)(3) or (5);

(3) section 221(d)(4) of the National Housing Act, 12 U.S.C. section 1715l (d)(4) to the extent the project’s rents are regulated by the U.S. Department of Housing and Urban Development pursuant to a regulatory agreement;

(4) section 236 of the National Housing Act, 12 U.S.C. section 1715z-1;

(5) any project-based program for low-income persons under section 8 of the United States Housing Act of 1937, 42 U.S.C. section 1437f;

(6) the Rent Supplement Program under section 101 of the Housing and Urban Development Act of 1965, 12 U.S.C. section 1701s;

(7) the U.S. Department of Agriculture’s Rural Rental Housing Program under section 515 of the Housing Act of 1949, 42 U.S.C. section 1485;

(8) the U.S. Department of Agriculture’s Rural Rental Assistance Program under section 521 of the Housing Act of 1949, 42 U.S.C. section 1490a;

(9) the Urban Development Action Grant, hereinafter referred to as UDAG, 42 U.S.C. section 5318, or the Housing Development Action Grant, hereinafter referred to as HoDAG, 42 U.S.C. section 1437o, in either case to the extent the project’s rents are restricted or regulated pursuant to a grant agreement with the U.S. Department of Housing and Urban Development or otherwise;

(10) the federal low-income housing tax credit program under section 42 of the U.S. Internal Revenue Code, 26 U.S.C. section 42;

(11) chapter 121A of the General Laws to the extent the chapter 121A approvals restrict the affordability of the project’s dwelling units; or

(12) section 13A of chapter 708 of the Acts of 1966, as amended.

(B) "Formerly governmentally-involved housing," housing which was governmentally-involved as of November 1, 2004, or which becomes governmentally-involved housing after November 1, 2004, but which is no longer governmentally-involved.

(C) "Low-income," an annual income which is eighty percent or less of the median income for the area as determined by the United States Department of Housing and Urban Development, with adjustments for smaller and larger families.

SECTION 2. (A) Notwithstanding the provisions of any general or special law to the contrary, including, without limitation, the provisions of chapter 282 of the acts of 1994, a municipality accepting the provisions of this act shall regulate the rent for use or occupancy of governmentally-involved or formerly governmentally-involved housing to the extent such regulation is not pre-empted by federal law or by section 6 of chapter 708 of the acts of 1966, as amended, once the basis for federal or Massachusetts Housing Finance Agency rent preemption no longer exists.

(B) Said municipality shall establish as the maximum rent for governmentally-involved and formerly governmentally-involved housing accommodations the rent in effect therefor on November 1, 2004 or six months before the basis for federal or Massachusetts Housing Finance Agency rent preemption lapsed, whichever is later, adjusted to insure such rent provides a fair net operating income as of the date of the loss of rent preemption.

SECTION 3. (A) A municipality accepting the provisions of this act shall provide, by ordinance or by-law, that no person shall bring an action to recover possession of a governmentally-involved or formerly governmentally-involved housing accommodation to the extent that such regulation is not otherwise preempted by federal law or section 6 of chapter 708 of the acts of 1966, unless:

(1) the tenant has failed to pay the rent to which the owner is entitled;

(2) the tenant has violated an obligation or covenant of tenancy not inconsistent with chapter ninety-three A of the General Laws or this act other than the obligation to surrender possession upon proper notice, and has failed to cure the violation after having received written notice thereof;

(3) the tenant is causing, committing, or permitting a nuisance in, or substantial damage to, the housing accommodation, or is creating substantial interference with the comfort, safety, or enjoyment of the owner or other occupants of the same or any adjacent accommodation;

(4) the tenant has used or permitted use of a housing accommodation for illegal purposes;

(5) the tenant, who had a written lease or rental agreement which has terminated, has refused, after written requests or demand by the owner, to execute a written extension or renewal thereof for a further term of like duration on terms not inconsistent with or violative of any provision of this act;

(6) the tenant has refused the owner reasonable access to the housing accommodation for the purpose of making necessary repairs or improvements required by law, or for the purpose of inspection as permitted or required by the lease or by law, or for the purpose of showing the housing accommodations to any prospective purchaser or mortgagee;

(7) the tenant holding at the end of a lease term is a subtenant not approved by the owner;

(8) the owner seeks to recover possession in good faith of a unit for the owner's own use and occupancy or for use and occupancy by the owner's spouse, children, grandchildren, great grandchildren, parents, grandparents, brother, sister, father-in-law, mother-in-law, son-in-law, or daughter-in-law; or

(9) the owner seeks to recover possession for any other just cause not in conflict with the provisions and purposes of this act or chapter ninety-three A of the General Laws.

(B) The provisions of this section shall be construed as additional restrictions on the right to recover possession of such housing accommodations.

SECTION 4. A municipality accepting the provisions of this act shall provide, by ordinance or by-law, that no person shall remove any governmentally-involved or formerly governmentally-involved housing accommodation from low-income rental housing use, without first obtaining permission for that purpose from the municipality or its designee, to the extent that such provision is not preempted by federal law or section 6 of chapter 708 of the acts of 1966. Such permission may be subject to terms and conditions not inconsistent with the purposes and provisions of this act, including, without limitation, (a) incentives to continue in effect the low-income use restrictions previously in place for the property and (b) where sale, lease, or disposition of the property may result in the loss of all or a portion of the property for low-income rental housing use, the right of an incorporated tenant association in such housing, the municipality, the local housing authority, or non-profit community development corporations to negotiate for, acquire and operate such property on substantially equivalent terms and conditions as offered or available to a bona fide third party purchaser.

SECTION 5. To the extent not preempted by federal law or section 6 of chapter 708 of the acts of nineteen hundred and sixty-six, a municipality accepting the provisions of this act shall require an owner of governmentally-involved housing or formerly governmentally-involved housing, to affirmatively seek and accept any prospective government housing resources, whether tenant-based or project-based, which maximize affordability of the housing accommodations consistent with the income character of the property and the owner's right to obtain a fair net operating income for the housing accommodations. The appropriate state and municipal agencies shall assist owners by identifying government housing resources.

SECTION 6. To the extent not preempted by federal law or section 6 of chapter 708 of the acts of 1966, and, so long as such regulation is consistent with the owner's right to obtain a fair net operating income and the municipality's housing policy, a municipality accepting the provisions of this act shall establish local preferences, priorities, and income limits for admission to governmentally-involved housing or formerly governmentally-involved housing upon unit turnover. No ordinance, by-law, or regulation shall require an owner to create a tenancy involving any person with a history of conduct which would, if repeated, be grounds for eviction from such housing.

SECTION 7. A municipality accepting the provisions of this act may promulgate such by-laws, ordinances, rules, regulations, and orders as it may deem necessary to effectuate the purposes hereof and may grant exemptions and exceptions thereto when such action would tend to maintain or increase the supply of affordable housing in the municipality, including, without limitation, to promote the sale of the property to a bona fide tenant organization or non-profit community development corporation under terms and conditions which would tend to maintain the income character of the property.

SECTION 8. Any hearings regarding matters related to regulation of rents or removal permits for governmentally-involved housing or formerly governmentally-involved housing or regarding compliance with other provisions of this act, or any ordinance, by-law, rule, or regulation adopted hereunder, shall be conducted by the municipality or its designee in accordance with the provisions of section 11 of chapter 30A of the General Laws except that the requirements of paragraphs (7) and (8) of said section 11 shall not apply to such hearings.

SECTION 9. All decisions of the municipality or its designee may be appealed to the Housing Court if available, the District Court, or the Superior Court in the jurisdiction or county where the municipality is located by any person aggrieved thereby, whether or not previously a party in the matter, within thirty calendar days after receipt of notice of such decision. Judicial review of adjudicatory decisions shall be conducted in accordance with section 14 of chapter 30A of the General Laws. Judicial review of regulations shall be conducted in accordance with section 7 of chapter 30A of the General Laws. The housing, district, and superior courts shall have jurisdiction to enforce the provisions hereof and any ordinance, by-law, rule, or regulation adopted hereunder and, on application of the municipality or its designee or any aggrieved person, may restrain or enjoin violations of any such ordinance, by-law, rule, or regulation. In the interests of justice, the court may allow any necessary parties to be joined in or to intervene in any action brought hereunder and may in its discretion allow or require an action to proceed as a class action.

SECTION 10 It shall be unlawful for any person to do or omit to do any action in violation of this act or any order, ordinance, by-law, rule or regulation adopted or promulgated hereunder. Whoever willfully violates any provision of this act or any order, ordinance, by-law, rule, or regulation adopted or promulgated hereunder or whoever makes a false statement in any testimony before the municipality or its designee, or whoever knowingly supplies the municipality or its designee with false information, in connection with a proceeding under this act, shall be punished by a fine of not more than four hundred dollars or by imprisonment for not more than ninety days, or both; provided, however, that in the case of a second or subsequent offense, or where the violation continues after notice thereof, such person shall be punished by a fine of not more than two thousand dollars, or imprisonment for not more than one year, or both.

SECTION 11. The provisions of this act are severable, and if any of its provisions shall be held unconstitutional or otherwise invalid by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions.

SECTION 12. This act shall be submitted to the voters of a city or town by a vote of the city council, town council or board of selectman in the form of the following question which shall be placed upon the official ballot of a regular election “Shall an act passed by the general court, entitled ‘An Act authorizing localities to adopt protections for low and moderate income tenants and units of governmentally-involved housing,’ be accepted?” If a majority of the votes in answer to said question is in the affirmative, this act shall take full effect in such city or town.