Commonwealth of Massachusetts

Fiscal Year 1999 Budget

Department of Housing and Community Development


Department of Housing and Community Development.


7004-0001
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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