Whereas, an acute shortage of housing exists in many cities and towns of the commonwealth, and on account of such shortage elderly citizens, returning veterans, reservists and national guard from the war in Afghanistan and Iraq and families are unable to obtain appropriate affordable housing for themselves and their families and there exists a shortage of  access to programs for workforce development for public housing tenants, and this shortage is likely to continue for a substantial period of time, and this condition has created a public exigency making the provision, as provided by this act, of financial assistance by the commonwealth to providers of affordable housing and providers of workforce development training, in order to alleviate such shortage an immediate public necessity; therefore this act is declared to be an emergency law, necessary for the public health, welfare and convenience.

To provide funding to finance the new construction of low rent housing projects for families of low income, handicapped persons of low income, elderly persons of low income and veterans,  as established by chapter 121B of the General Laws, and to provide for workforce development opportunities to residents of such housing.  The sums set forth in section 2, for the purposes set forth in this act and in chapter 121B of the General Laws and subject to the conditions specified under the provisions of this act, are hereby authorized for expenditure from the General Capital Projects Fund unless specifically designated otherwise, subject to the provisions of law regulating the disbursement of public funds and approval thereof.

SECTION 2.

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

7004-XXXX    For the purposes of state financial assistance in the form of grants for  new public housing construction of housing projects, low rent housing and low-rent housing projects to house families of low-income, handicapped persons of low-income, elderly persons of low income and veterans, as established and defined by chapter 121B of the General Laws; provided further that the department shall give first priority for such grants to housing authorities with underutilized or surplus property, such property shall not include current or formerly occupied dwelling units but may include real property adjacent or contiguous to such units and the department shall promulgate regulations regarding the new construction of  public housing on such underutilized or surplus real property; provided further that not less than $20,000,000 of such grants shall be expended for the provision of vocational and job training to residents of such public housing in the commonwealth; provided, that said grants shall be administered by the department of labor and workforce development, through the commonwealth corporation, and shall be available to public or non-profit agencies that provide training to recipients of temporary assistance to needy families or who are authorized by the department of labor and workforce development to accept individual training accounts pursuant to the Workforce Investment Act and that serve a majority of unemployed adults, adults with limited English proficiency or low-wage workers, as that term is used in section 2RR(b)(1)(i) of chapter 29; provided further, that the agencies receiving grants will be selected competitively by the department of labor and workforce development; provided further, that not less than 20 percent of the grants awarded shall be to agencies that provide training programs which combine adult basic education or English proficiency training with vocational training; provided further, that preference shall be given to agencies that have demonstrated satisfactory levels of performance as defined and determined by the department of labor and workforce development, including the placement of workers in living wage jobs, and applications that demonstrate the likelihood of an adequate return on the commonwealth’s investment; provided further that,  any such public housing tenant who participates in such vocational or job training such tenant family’s rent payable pursuant to chapter121B may not be increased as a result of increased income due to employment during the 12-month period beginning on the date on which the employment is commenced and upon the expiration of such 12-month period the rent payable by such tenant family may be increased due to the continued employment of the family member who participated in such program except that during the 12-month period beginning upon such expiration the amount of the increase may not be greater than 50 percent of the amount of the total rent increase that would be applicable but for this provision; and provided further, that not less than $1,000,000 shall be expended for affordable housing development within cities and towns with less than 10 percent of year round housing units as low or moderate income housing pursuant to sections 20 through 23 of chapter 40B, provided that grants shall be awarded to public housing authorities and qualified community based not-for-profit developers and that such grants shall be awarded through a competitive application process pursuant to criteria created by the department; provided further, that the grants shall be for the support of early projects tasks prerequisite to the development or preservation of affordable housing, including but not limited to research, planning, site identification, property inspection and review and project design.............................................................$271,000,000.

SECTION 3.  To meet the expenditures necessary in carrying out the provisions of section 2, the state treasurer shall, upon request of the governor, issue and sell bonds of the commonwealth in an amount to be specified by the governor from time to time but not exceeding, in the aggregate, $271,000,000.  All bonds issued by the commonwealth, as aforesaid, shall be designated on their face, Housing and Workforce Opportunities Bond Act of 2005, and shall be issued for a maximum term of years, not exceeding twenty years, as the governor may recommend to the general court pursuant to Section 3 of Amended Article LXII of the Constitution of the Commonwealth; provided, however, that all such bonds shall be payable not later than June 30, 2030.  All interest and payments on account of principal on such obligations shall be payable from the General Fund.  Bonds and interest thereon issued under the authority of this section shall, notwithstanding any other provisions of this act, be general obligations of the commonwealth.  An amount not to exceed two per cent of said authorizations may be expended by the department of housing and community development for administrative costs directly attributable to the purposes of this act, including costs of clerical and support personnel.  The director of said department shall file an annual spending plan with the fiscal affairs division and the house and senate committees on ways and means which details, by subsidiary, all personnel costs and administrative costs charged to expenditures made pursuant to this act.

SECTION 4. The state treasurer may borrow from time to time on the credit of the commonwealth such sums as may be necessary for the purpose of meeting payments authorized by section 2 and may issue and renew from time to time notes of the commonwealth therefor, bearing interest payable at such times and at such rates as shall be fixed by the state treasurer. The notes shall be issued and may be renewed one or more times for such terms, not exceeding one year, as the governor may recommend to the general court in accordance with Section 3 of Article LXII of the Amendments to the Constitution, but the final maturities of such notes, whether original or renewal, shall not be later than June 30, 2012.  Notes and interest thereon issued under the authority of this section shall be general obligations of the commonwealth.