Commonwealth of Massachusetts
Fiscal Year 1999 Budget
Department of Housing and Community
Development
Department of Housing and Community Development.
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7004-0001
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For the Indian affairs commission
- ...............................................................$95,967
-
7004-0002
- N.B. - The Acting Governor has struck the italicized language and reduced
the appropriation for this item by $10,000 to $490,000
-
For the urban initiative fund, a loan and grant program for inner-city neighborhoods, for the
purposes of education, job training, business development, health care, day care, youth activities,
including athletic and recreation programs, violence and crime prevention, and housing;
provided, that not less than $10,000 of the amount appropriated herein shall be expended as a
grant to the planned learned achievement for youth program; and provided further, that said
urban initiative fund shall be administered by the community development finance corporation
pursuant to section 137 of chapter 133 of the acts of 1992
- ...............................................................$500,000
-
Local Aid Fund........................................................... 100.0%
-
7004-0003
- N.B. - The Acting Governor has reduced the appropriation for this item by
$49,000 to $76,000
-
For the West Broadway task force, so-called, to provide certain tenant services
- ...............................................................$125,000
-
Local Aid Fund........................................................... 100.0%
-
7004-0099
- N.B. - The Acting Governor has struck the italicized language and reduced
the appropriation for this item by $24,865 to $5,864,276
-
For the administration of the department; provided that, notwithstanding the provisions of any
general or special law to the contrary, the department of housing and community development is
hereby authorized to make expenditures for the purposes of said department against federal
grants for certain direct and indirect costs pursuant to an overhead cost allocation plan approved
by the comptroller; provided further, that the comptroller shall establish and designate an
account on the Massachusetts management accounting and reporting system for the purpose of
making such expenditures; provided further, that expenditures made against said account shall
not be subject to appropriation and may include the cost of personnel; provided further, that said
department shall submit quarterly reports to the house and senate committees on ways and means
on object code expenditures made against said account; provided further, that $24,865 shall
be transferred from this item to the University of Massachusetts for the purposes of the Native
American Resource Center, so-called; and provided further, that not less than $10,000 be
expended for the expenses of the manufactured home commission as established by chapter 145
of the acts of 1993, including, but not limited to travel, postage, advertising and printing
- ...............................................................$5,889,141
-
7004-0200
-
For the municipal assistance program to provide management incentive grants, technical
assistance and training for municipal governments to provide cost effective and efficient delivery
of local services, including regionalization of services; provided, that said incentive grants may
be utilized
-
For the purchase of computer hardware and equipment; provided further, that funds appropriated
herein may be provided in advance; provided further, that no funds shall be expended from this
item in the AA subsidiary, so-called, for the compensation of state employees; and provided
further, that not less than $31,500 shall be allocated as a management incentive grant to the
Franklin Regional Council of Governments for costs associated with the Regional Public Health
Agent pilot project in Franklin county
- ...............................................................$800,000
-
Local Aid Fund........................................................... 100.0%
-
7004-1966
- N.B. - The Acting Governor has reduced the appropriation for this item by
$1,300,000 to $4,500,000
-
For the loan program established pursuant to section 197E of chapter 111 of the General Laws,
as amended, for lead abatement throughout the commonwealth; provided, that the terms and
conditions of such loans will be based on income eligibility criteria and include terms and plans
that allow low- and moderate- income individuals to defer loan repayment until transfer of the
property; provided further, that funds made available herein shall be administered by the
department of housing and community development in consultation with the department of
public health; provided further, that funds shall be disbursed from this item on a quarterly basis
subject to a disbursement plan which shall be filed in advance with the house and senate
committees on ways and means; provided further, that such disbursements shall be made upon
demonstration of need by the entity selected by the department to implement the program funded
herein; and provided further, that funds received for the repayment of loans made under the
provisions of this item may be retained and expended without further appropriation for the loan
program established pursuant to said section 197E of said chapter 111
- ...............................................................$5,800,000
-
7004-2025
-
For the Massachusetts neighborhood crime watch commission to provide training and
publications in support of a statewide program of crime prevention
- ...............................................................$118,000
-
7004-2027
-
For community economic development; provided, that contracts may be awarded to
community-based organizations; and provided further, that no funds shall be expended from the
AA subsidiary, so-called, of this item for the compensation of state employees
- ...............................................................$1,900,000
-
Local Aid Fund........................................................... 100.0%
-
7004-2475
-
For the home ownership opportunity affordable housing program; provided, that all sums
appropriated herein shall be used to write down interest rates on soft second mortgage loans,
so-called, for low and moderate income first-time home buyers
- ...............................................................$3,000,000
-
7004-3036
-
For housing services to provide assistance through community-based organizations to
low-income tenants in privately-owned housing, and to landlords to maintain such housing;
provided, that no funds shall be expended from the AA subsidiary, so-called, of this item for the
compensation of state employees
- ...............................................................$265,000
-
7004-4314
-
For the expenses of a service coordinators program established by the department to assist
tenants residing in housing developed pursuant to sections 39 and 40 of chapter 121B of the
General Laws to meet tenancy requirements in order to maintain and enhance the quality of life
in said housing
- ...............................................................$650,000
-
7004-8878
-
For the private rental housing development action loan program; provided, that notwithstanding
the provisions of any general or special law to the contrary, no new commitments, contracts, or
renegotiations of existing contracts shall be entered into during fiscal year 1999 or any
subsequent fiscal year
- ...............................................................$2,366,653
-
7004-9004
- N.B. - The Acting Governor has reduced the appropriation for this item by
$550,000 to $200,000
-
For a pilot program to enable households in state-assisted public housing to transition to
unsubsidized housing options in the private market; provided, that up to 5,000 qualified
households residing in chapter 200 or chapter 705 state-assisted housing developments shall be
allowed to participate in a voluntary program that allows a portion of a household's rental
payments to a housing authority to be placed in escrow accounts for the purpose of making said
transition affordable, including, down payment costs, closing costs, first and last month's rent,
security deposit, moving costs, and appliances necessary for occupancy; provided further, that
the department, subject to appropriation, shall contribute one dollar for every two dollars of
rental payment placed by a household in such an escrow account which shall inure to the benefit
of the household; provided further, that the amount of said rental payments eligible to be placed
in said escrow accounts shall consist of the savings in rent payments derived by allowing an
adjustment to a household's income for purposes of computing rent for the amounts withheld
from a household's earned income for (1) state and federal income tax withholding payments and
(2) payments for Social Security, FICA, or other retirement deductions and (3) other deductions
as may be allowed by law or regulation consistent with the provisions of this item; provided
further, that in promulgating regulations that allow a household's income to be so adjusted for
the calculation of rental payments, the department of housing and community development shall
establish a uniform method for calculating the amount of rent adjustments allowable under said
pilot program; provided further, that said regulations shall not include in said calculation the
amounts withheld from a dependent's income nor shall the income of any such dependent be
subject to escrow; provided further, that a household participating in said program shall agree in
writing to the minimum amount needed to be held in escrow in order to provide for said
affordable transition and to a maximum amount to be held in said escrow account; provided
further, that in no event, shall the amount of any escrow account exceed $10,000; provided
further, that rental payments held in escrow for a household that elects not to make said
transition pursuant to the written agreement or which is evicted by a housing authority for any
reason shall be repaid to the housing authority and the commonwealth for the value of any rent
subsidy provided to said household and the matching contribution paid by the department;
provided further, that a household that loses eligibility for state-assisted public housing due to
increased income earnings shall use the amount held in escrow for the purposes of transition
housing costs; provided further, that the use of escrowed rental payments by a household for said
transition costs shall be verified by the household and any funds not used for transition costs
shall be recovered by the housing authority; provided further, that upon making said transition,
households which subsequently apply for tenancy in public housing may not be granted
preference based solely upon their participation in said transition program; provided further, that
said department shall select not more than five housing authorities that demonstrate a willingness
and capability to participate as demonstration sites for said pilot program; provided further, that
said authorities may, for the purposes of administrative efficiency, maintain a centralized escrow
account in lieu of separate accounts for each participating household; provided further, that
detailed accounting records shall be maintained for each participating household by a housing
authority that establishes such a centralized escrow account; provided further, that said housing
authorities shall take all steps to invest said escrow accounts in investment vehicles that
maximize the interest earned on said escrow accounts; provided further, that said housing
authorities may retain not more than 20 per cent of any such interest earned on rental payments
held in escrow to offset the costs of administering said program; provided further, that the
remaining interest earnings shall be credited to the escrow account of a household; provided
further, that the department shall require said housing authorities to obtain the social security
numbers of households participating in said program to verify household income and deductions
with the department of revenue and other parties; provided further, that rental payments held in
escrow shall be treated as deductible rent for purposes of calculating Massachusetts personal
income taxes pursuant to subparagraph (9) of paragraph (a) of part B of section 3 of chapter 62
of the General Laws; provided further, that, notwithstanding the provisions of any general or
special laws to the contrary, the release of escrow payments to a household, including interest
earned thereon and the value of the matching contribution, shall not create any tax liability for
such a household; provided further, that a tax liability shall be created in the event that a
household does not elect to make said transition pursuant to said written agreement; provided
further, that said department shall promulgate regulations for the administration of said program
not later than October 15, 1998; and provided further, that said department is hereby authorized
to transfer funds provided herein to item 7004-9005 in section 2 of this act for the purposes of
supplementing rental funds directed toward said pilot program
- ...............................................................$750,000
-
7004-9005
-
For subsidies to housing authorities and nonprofit organizations for deficiencies caused by
certain reduced rentals in housing for the elderly, handicapped, veterans and relocated persons
pursuant to sections 32 and 40 of chapter 121B of the General Laws; provided, that
notwithstanding the provisions of any general or special law to the contrary, all housing
authorities operating elderly public housing are authorized and directed to offer first preference
for elderly public housing units which are vacant as of the effective date of this act, and
thereafter, to those persons 60 years of age or older on June 30, 1995, then receiving rental
assistance from the Massachusetts rental voucher program; provided further, that the department
of housing and community development shall enforce compliance by local housing authorities
with said provisions, and is hereby authorized to take such actions as it deems necessary,
including requiring regular, current reports by housing authorities and non-profit organizations
operating such public housing, to insure compliance in a timely and equitable manner; provided
further, that said department may expend funds appropriated herein for deficiencies caused by
certain reduced rentals which may be anticipated in the operation of housing authorities for the
first quarter of the subsequent fiscal year; provided further, that no monies shall be expended
from this item for the purpose of reimbursing the debt service reserve and capital reserve
included in the budgets of housing authorities; provided further, that no funds shall be expended
from this item for the compensation of state employees; provided further, that the amount
appropriated herein shall be deemed to meet any and all obligations pursuant to said sections 32
and 40 of said chapter 121B; and provided further, that any new reduced rental units developed
in fiscal year 1999 eligible for subsidies pursuant to this item, shall not cause any annualization
that results in an amount exceeding the amount appropriated herein
- ...............................................................$30,503,770
-
Local Aid Fund........................................................... 100.0%
-
7004-9024
-
For a program of rental assistance for families and elderly persons of low income through
mobile and project based vouchers; provided, that notwithstanding the provisions of any general
or special law to the contrary, said rental assistance in the form of mobile vouchers, so-called,
shall be paid only to those eligible households, currently holding mobile vouchers, so-called, that
held, or were lawfully entitled to hold, chapter 707 certificates, so-called, as of October 31,
1992, pursuant to the chapter 707 program, so-called, and to those households currently holding
mobile vouchers, so-called, that held, or were lawfully entitled to hold state housing vouchers,
so-called, as of October 31, 1992, pursuant to a program of housing assistance consistent with
the program requirements established by the federal government for the program authorized by
Public Law 98-181, Section 207; provided further, in emergency situations, subject to the
approval of the director of the department, for the purpose of providing housing vouchers to
eligible households currently occupying project-based units, so-called, the leases of which have
expired due to the non-renewal of project-based rental assistance contracts; provided further, that
at the discretion of the director, on a case by case basis, the department shall utilize all otherwise
available funds, appropriated herein, to increase the rental subsidy at eligible project-based
developments, so-called; provided further, that the department shall submit a report to the house
and senate ways and means committees, not later than September 1, 1998, detailing the
department's guidelines for assessing emergency situations involving the conversion of
project-based vouchers, so-called, to mobile vouchers, so-called, and the eligibility of a
project-based development to receive a rental subsidy increase in fiscal year 1999; provided
further, that the department shall submit quarterly reports to the house and senate ways and
means committees detailing the number of project-based vouchers, so-called, which have been
converted to mobile vouchers, so-called, and the number of project-based developments that
have elected or are at risk of non-renewal of the rental assistance contract; provided further, that
there shall be no further, payments made under said chapter 707 program, so-called, or under
said program of housing assistance consistent with the requirements established by the federal
government for the program authorized by Public Law 98-181, Section 207, which state
program was known as the state housing voucher program, so-called; provided further, that
rental assistance shall only be paid pursuant to a program to be known as the Massachusetts
rental voucher program, as such program may hereafter be amended by the department of
housing and community development; provided further, that the income of said households shall
in no event exceed 200 per cent of the federally-established poverty level; provided further, that
any household, in which a participant or member of a participant's household in the
Massachusetts rental voucher program shall fail to provide their social security number for use in
verifying the household's income and eligibility, shall no longer be eligible for a voucher or to
receive benefits pursuant to the Massachusetts rental voucher program; provided further, that the
director of said department as a condition of continued eligibility for a voucher and voucher
payments, may require disclosure of social security numbers by participants and members of
participants' households in the Massachusetts rental voucher program for use in verification of
income with other agencies, departments and executive offices in the commonwealth; provided
further, that said vouchers shall be in varying dollar amounts and set by the director based on
considerations, including, but not limited to, family size and composition, family income levels,
and geographic location; provided further, that notwithstanding the provisions of any general or
special law to the contrary, the use of rent surveys shall not be required in determining the
amounts of such mobile vouchers, so-called, or such project-based vouchers, so-called; provided
further, that any household which is proven to have caused intentional damages to their rental
unit in an amount exceeding two month's rent during any one year lease period shall be
terminated from the program; provided further, that notwithstanding the provisions of any
general or special law to the contrary, a mobile voucher whose use is or has been discontinued
shall not be reassigned at any time; provided further, that an allowance not to exceed $25 per
voucher per month shall be determined and paid by said department for administration of the
rental assistance program; provided further, that said costs of administration shall not exceed 6
per cent of the appropriation provided herein; provided further, that said 6 per cent shall include,
but not be limited to, all expenditures which may be made by the director to conduct or
otherwise contract for rental voucher program inspections; provided further, that under no
circumstances shall subsidies be reduced for the cost of accommodating the cost of said
inspections; provided further, that notwithstanding any provision of law to the contrary, there
shall be no maximum percentage applicable to the amount of income paid for rent by each
household holding a mobile voucher, so-called, or project-based voucher, so-called, but each
household shall pay at least 30 per cent of income as rent; provided further, that said department
shall establish the amounts of the mobile vouchers, so-called, and the project-based vouchers,
so-called, so that the appropriation herein is not exceeded by payments for rental assistance and
administration; provided further, that said department shall not enter into commitments which
will cause it to exceed the appropriation set forth herein; provided further, that the amount of a
rental assistance voucher payment for an eligible household shall not exceed the rent less the
household's minimum rent obligation; provided further, that the word "rent" as used in this item
shall mean payments to the landlord or owner of a dwelling unit pursuant to a lease or other
agreement for a tenant's occupancy of the dwelling unit, but shall not include payments made by
the tenant separately for the cost of heat, cooking fuel, and electricity; provided further, that
upon vacancy of a project-based dwelling unit, households holding mobile vouchers, so-called,
shall have priority for occupancy of said project-based dwelling units; provided further, that said
department may impose certain obligations for each participant in the Massachusetts rental
voucher program through a 12 month contract which shall be executed by the participant and the
department; provided further, that such obligations may include, but need not be limited to, job
training, counseling, household budgeting, and education, to the extent that appropriate
programs, as defined in regulations promulgated by the department of housing and community
development, are available; provided further, that each participant shall be required to undertake
and meet any such obligation as a condition for continued eligibility in the program; provided
further, that for continued eligibility each participant shall execute any such 12 month contract
on or before September 1, 1998 if his or her annual eligibility recertification date occurs between
June 30, 1998 and September 1, 1998 and otherwise on or before his or her annual eligibility
recertification date; provided further, that any participant who is over the age of 60 years or who
is handicapped may be exempted from any obligations unsuitable under his or her particular
circumstances; provided further, that the department of housing and community development
shall submit an annual report to the secretary of administration and finance and the house and
senate committees on ways and means detailing expenditures, the number of outstanding rental
vouchers, and the number and types of units leased; and provided further, that no funds shall be
expended from the AA subsidiary, so-called, of this item for the compensation of state
employees
- ...............................................................$36,131,919
-
7004-9027
-
For state housing assistance for rental production (SHARP) contracts with sponsors of rental
housing projects financed through the Massachusetts housing finance agency, established
pursuant to chapter 708 of the acts of 1966, in the form of a loan by the commonwealth to
facilitate the construction or rehabilitation of rental housing projects; provided, that
notwithstanding the provisions of section 27 of chapter 23B or sections 26 and 27 of chapter 29
of the General Laws to the contrary, the department is hereby authorized to enter into such
contracts for terms not exceeding 15 years with annual payment obligations not to exceed
$28,672,450; provided further, that notwithstanding the provisions of any general or special law
to the contrary, no new commitments shall be entered into during fiscal year 1999 for said fiscal
year or any subsequent fiscal years; provided further, that the director of said department is
hereby authorized and directed to review all amounts disbursed through this program in the five
fiscal years previous to the effective date of this act and to recover all excess funds disbursed;
and provided further, that the director shall file a report with the house and senate committees on
ways and means, detailing the recovery of said overpayments and recommending alternative
uses for said amounts
- ...............................................................$28,672,450
-
7004-9030
- N.B. - The Acting Governor has reduced the appropriation for this item by
$259,303 TO $3,740,697
-
For the transitional rental assistance program established pursuant to chapter 179 of the acts of
1995; provided, that notwithstanding the provisions of any general or special law to the contrary,
said transitional rental assistance shall be in the form of mobile vouchers, so-called; provided
further, that said vouchers shall be in varying dollar amounts and set by the director on
considerations including, but not limited to, household size and composition, ranges of
household income and geographic location; provided further, that any household which is
proven to have caused intentional damages to their rental unit in an amount exceeding two
month's rent during any one year shall be terminated from the program; provided further, that
said department shall pay local housing agencies administering said program an allowance not to
exceed $25 per voucher per month to cover the costs of administration; provided further, that
notwithstanding any provision of law to the contrary, there shall be no maximum percentage
applicable to the amount of income paid for rent by each household holding a mobile voucher,
so-called, but each household shall be required to pay not less than 25 per cent of their net
income, as defined in regulations promulgated by said department, for units if utilities are not
provided by the unit owner, or not less than 30 per cent of their income for units if utilities are
provided by the unit owner; provided further, that payments for said transitional rental assistance
may be provided in advance; provided further, that said department shall establish the amounts
of the mobile vouchers, so-called, so that the appropriation herein is not exceeded by payments
for rental assistance and administration; provided further, that said department shall not enter
into commitments which will cause it to exceed the appropriation set forth herein; provided
further, that the amount of a rental assistance voucher payment for an eligible household shall
not exceed the rent less the household's minimum rent obligation; provided further, that the word
"rent" as used in this item shall mean payments to the landlord or owner of a dwelling unit
pursuant to a lease or other agreement for a tenant's occupancy of the dwelling unit, but shall not
include payments made by the tenant separately for the cost of heat, cooking fuel, and
electricity; provided further, that said department shall submit an annual report to the state
budget director, the secretary of administration and finance, and the house and senate
committees on ways and means detailing expenditures, the number of outstanding rental
vouchers, and the number and types of units leased; provided further, that nothing herein shall
give rise to enforceable legal rights in any party or an enforceable entitlement to any form of
housing; provided further, that nothing herein shall be construed as giving rise to such
enforceable legal rights or such enforceable entitlement; provided further, that consistent with
chapter 179 of the acts of 1995 the amount appropriated herein shall not annualize to more than
$4,000,000 in fiscal year 2000; and provided further, that said program shall provide funding for
not more than 800 mobile vouchers, so-called
- ...............................................................$4,000,000
-
7004-9101
-
For federally aided urban renewal community development; provided, that no new contracts
shall be entered into during fiscal year 1999
- ...............................................................$95,954
-
Local Aid Fund........................................................... 100.0%
-
7004-9102
-
For non-federally aided urban renewal community development; provided, that no new contracts
shall be entered into during fiscal year 1999
- ...............................................................$138,450
-
Local Aid Fund........................................................... 100.0%
-
7004-9108
-
For urban revitalization and development projects authorized pursuant to section 54 of chapter
121B of the General Laws; provided, that notwithstanding the provisions of sections 53 or 57 of
said chapter 121B to the contrary, such funds may be provided to any agency of a city or town
designated by the chief executive officer to act on behalf of the city or town; provided further,
that no new commitments shall be entered into during fiscal year 1999; and provided further,
that not less than $118,000 and not more than $200,000 shall be expended for grants to the city
of Pittsfield
- ...............................................................$2,441,500
-
Local Aid Fund........................................................... 100.0%
-
7004-9201
-
For interest subsidies for the private development of affordable housing; provided, that
notwithstanding the provisions of any general or special law to the contrary, no new
commitments shall be entered into during fiscal year 1999 for said fiscal year or any subsequent
fiscal years
- ...............................................................$8,166,571
-
7004-9315
-
For the low income housing tax credit program; provided, that the department may expend an
amount not to exceed $801,000 accrued from fees collected for the regulation of TELLER,
so-called, projects undertaken pursuant to paragraph (m) of section 26 of chapter 121B of the
General Laws, from fees collected pursuant to Executive Order No. 291, pertaining to
low-income housing tax credits, and from fees collected pursuant to the rental housing
development action loan program, for the costs of administering and monitoring said programs,
including the costs of personnel, subject to the approval of the director of said department; and
provided further, that notwithstanding the provisions of any general or special law to the
contrary, for the purpose of accommodating timing discrepancies between the receipt of retained
revenues and related expenditures, the department may incur expenses and the comptroller may
certify for payment amounts not to exceed the lower of this authorization or the most recent
revenue estimate therefor as reported in the state accounting system, prior appropriation
continued
- ...............................................................$801,000
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