Bill would fund loans for mixed-income social housing development

The bill would make $100 million available for mixed-income social housing and establish a revolving loan fund. The Massachusetts Housing Finance Authority would run the fund, unless the state housing office designates another state agency or authority. The fund could provide revolving loans, bridge loans, and other credit, and could pay debt service, administration, and added development capacity for housing authorities. The bill directs the state to issue $100 million in bonds to capitalize the fund; it also allows bonds for the spending item upon the governor's request. The bill says it is intended to take effect immediately if enacted.

The Massachusetts Housing Finance Authority would set market and below-market rents for each development it finances. These requirements apply to developments financed by the Massachusetts Housing Finance Authority under the bill. At least 20 percent of units would have to rent at no more than 50 percent of area median income, or at least 40 percent at no more than 60 percent. The chosen below-market rent limits would last at least 99 years, and developments would have to adopt rent stabilization guidelines.

Developments financed under the bill would have to target net-zero energy performance, have no new gas hookups, and allow residents a direct role in decisions. These requirements apply to developments financed by the Massachusetts Housing Finance Authority under the bill. Community control means development, ownership, management, and operation must answer to residents, the community, and the public. Residents could take part through tenant unions or tenant councils.

Covered construction work would have to follow state wage rules and public bidding laws. These rules apply to projects and building contracts for social housing development under the bill. Covered contracts include construction, reconstruction, installation, demolition, maintenance, and repair of buildings. Workers would have to be paid rates set by the state labor standards director.