CAPITAL IMPROVEMENT AND PRESERVATION TRUST FUND

M.G.L. pt. Part I, tit. Title XVII, ch. c. 121G

in effect

M.G.L. c. 121G, § 1 Definitions

c. 121G, § 1. Definitions Section 1. As used in this chapter the following words shall, unless the context clearly requires otherwise, have the following meanings:- ''Area median income'', income as determined by the United States Department of Housing and Urban Development. ''Department'', the executive office of housing and livable communities. ''Fund'', the Capital Improvement and Preservation Trust Fund established in section 2.

M.G.L. c. 121G, § 2 Capital Improvement and Preservation Trust Fund; administration; eligible property; projects

c. 121G, § 2. Capital Improvement and Preservation Trust Fund; administration; eligible property; projects Section 2. (a) There shall be within the department a separate fund to be known as the Capital Improvement and Preservation Trust Fund. The department shall administer the fund for the purpose of preserving and improving existing privately-owned, state or federally-assisted housing. Property eligible for assistance shall include housing where the prepayment or payment of a state or federally-assisted mortgage or the expiration of federal or state low-income housing tax credits or other federal or state subsidies would lead or has led to the termination of a use agreement for low-income housing or in which a project-based rental assistance contract is expiring or has expired. Preference for the loans or grants from the fund shall be given to nonprofit organizations and housing authorities seeking to purchase eligible property. The fund shall be an expendable trust fund and shall not be subject to appropriation. An eligible property that has been acquired for the purpose of preserving or improving the property shall not lose eligibility due to actions by the purchaser to renew or extend state or federal contracts or subsidies. (b) There shall be credited to the fund, revenue from appropriations or other monies authorized by the general court and specifically designated for the fund and any gifts, grants, private contributions, repayment of loans, fees and charges imposed relative to the making of loans or grants, subsidies, credit enhancements and other financial assistance, investment income earned on the fund's assets and any other sources. Money remaining in the fund at the end of a fiscal year shall not revert to the General Fund. (c) The department shall provide assistance from the fund using only the criteria established in this chapter for projects owned or sponsored by nonprofit or for-profit organizations including, but not limited to, projects that involve complex multiple-source financing or the preservation of existing affordable housing; provided, however, that no assistance shall be authorized unless the sponsor thereof is current on all existing mortgage obligations with the commonwealth or any political subdivision thereof. The department shall enter into agreements with the Community Economic Development Assistance Corporation established in chapter 40H to provide assistance from the fund for projects owned or sponsored by nonprofit organizations.

M.G.L. c. 121G, § 3 Preference in allocation of funds

c. 121G, § 3. Preference in allocation of funds Section 3. The department, in consultation with nonprofit organizations, the Community Economic Development Assistance Corporation established in chapter 40H, the Massachusetts Housing Finance Agency established in chapter 708 of the acts of 1966 and the Massachusetts Housing Partnership Fund established in section 35 of chapter 405 of the acts of 1985 shall identify those projects at greatest risk of prepayment or nonrenewal of rental assistance and shall grant preference in allocating funds pursuant to this chapter to those projects. The department shall enter into agreements to ensure that not less than 50 per cent of the units in such housing shall be occupied and affordable to persons of income of 80 per cent or less of the area median income and that not less than 10 per cent of such affordable units is available and affordable to households with income of 50 per cent or less of the area median income or such greater percentage of units as required by the Massachusetts Housing Finance Agency or the United States Department of Housing and Urban Development regulations. The department may enter into subcontracts with community development corporations, for-profit organizations or nonprofit organizations to carry out the purposes of the grants and loans and shall enter into contracts with the Community Economic Development Assistance Corporation, the Massachusetts Housing Finance agency and the Massachusetts Housing Partnership Fund. A portion of the funds may be allocated in the form of predevelopment grants or loans from the Community Economic Development Assistance Corporation and the Massachusetts Housing Partnership Fund to nonprofit purchasers of the housing. The housing shall remain affordable for not less than 40 years or for such longer period, based upon the useful life of the housing as determined by the department, as may be specified in the applicable recorded restriction at the registry of deeds or the registry district of the land court of the county in which the affected real property is located.

M.G.L. c. 121G, § 4 Regulations

c. 121G, § 4. Regulations Section 4. The department shall promulgate regulations for the implementation, administration and enforcement of this chapter.

M.G.L. c. 121G, § 5 Annual report; contents

c. 121G, § 5. Annual report; contents Section 5. The department shall annually file a report with the house and senate committees on ways and means, the joint committee on housing and the joint committee on bonding, capital expenditures and state assets detailing all expenditures from the fund, including, but not limited to, the recipient of the funds, the cost of administration, and the number of units constructed, acquired and rehabilitated.

Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXVII/Chapter121GFetched: 10/20/2026