SENATE, No. 2375

Senate, October 22, 2007

The committee on Ways and Means to whom was referred the Senate bill providing for homeownership opportunities in weak markets. (Senate, No., 2162), reported, recommending that the pending new draft recommended by the committee on Bonding, Capital Expenditures & State Assets (substituting a new draft witht he ssame title (Senate, No., 2325) be amended by striking out all after the enactin g clause and inserting in place thereof the text of Senate document numbered 2375. .

Steven C. Panagiotakos,
For the committee.

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The Commonwealth of Massachusetts

Seal of the Commonwealth of Massachusetts

In the Year Two Thousand and Seven.


SECTION 1.   Section 3 of chapter 23B of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by adding the following clause:-(w) stabilize and promote reinvestment by increasing homeownership in neighborhoods that the department has determined to be weak markets. The director may waive housing production program requirements found to be inconsistent with promoting homeownership in weak markets and take other steps necessary to promote homeownership in the weak markets including, but not limited to, reducing the length of time for which housing must be affordable to not less than 10 years and permitting the funded property to be purchased by a household, the income of which at the time of purchase does not exceed 135 per cent of the area median income, adjusted for family size, or both, if the purchaser owns and occupies the property as the purchaser’s primary residence.  The department shall develop criteria to identify weak markets, including the nature of the geographic area which defines a market and characteristics such as a high concentration of rental housing occupied by low income households, a median household income that is significantly less than the area median household income, low average sales prices, high levels of unpaid property taxes, or vacant or abandoned buildings.

SECTION 2.  Section 7 of chapter 53 of the acts of 2005 is hereby amended by adding the following paragraph:-

Notwithstanding the restrictions described in this section, not more than $5,000,000 from the housing stabilization and investment program shall be expended to stabilize and promote reinvestment, through homeownership, in areas determined by the department to be weak markets pursuant to clause (w) of chapter 23B of the General Laws.  Upon determination of any such weak markets, the director may waive requirements of this section found to be inconsistent with promoting homeownership in weak markets and take other steps necessary to promote homeownership in the weak markets including, but not limited to, reducing the length of required affordability to not less than 10 years and permitting the funded property to be purchased by a household, the income of which at the time of purchase does not exceed 135 per cent of the area median income, adjusted for family size, or both, if the purchaser owns and occupies the property as the purchaser’s primary residence.