Governor Deval Patrick's Budget Recommendation - House 1 Fiscal Year 2014

Outside Section 13

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Construction and Disposition of Certain Public Housing Units

SECTION 13.   (A) Section 26 of chapter 121B of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by adding the following clause:
(p) Notwithstanding anything to the contrary in this section or section 34, to dispose of or demolish any part or all of an existing housing project assisted by the commonwealth pursuant to chapter 689 of the acts of 1974, chapter 167 of the acts of 1987 or chapter 705 of the acts of 1966, if:
(1) the department and the housing authority have determined that it is not financially feasible to bring the units up to a reasonable program standard for occupancy or permissible to convert the units to another low rent housing program; and
(2) for units financed pursuant to chapter 705 of the acts of 1966, the units were vacant as of November 1, 2012, or, for units financed by the chapter 689 of the acts of 1974 or chapter 167 of the acts of 1987, the department has received written confirmation from both the department of developmental services and the department of mental health that those units are obsolete and inappropriate for housing their respective clients.
Upon approval by the department, the housing authority may dispose of the property by sale, ground lease or other transfer of its interest in the property, but the department must review and approve of any appraisal and request for proposals related to the disposition, as well as the selection of the selected bidder. The request for proposals shall provide that:
(i) in reviewing responses to the request for proposals, first priority for selecting from among the responsive and responsible bidders shall be those bidders that offer a feasible plan to provide housing on the site that is permanently affordable to households under 80 per cent of area median income as defined by the department. Those bidders shall obtain the property for one dollar, subject to an enforceable agreement to meet the requirements of its proposal; and,
(ii) if no responsive and responsible bidder meets the above standard, the property shall be sold to the bidder offering the highest price for the property.
Notwithstanding anything to the contrary in this chapter, proceeds from the disposition, after paying for the costs of the disposition, shall be deposited in an expendable trust controlled by the department, the purpose of which shall be to fund capital improvements that the department determines are necessary and appropriate at existing housing developments that serve households that would have been eligible for occupancy of the units that had been sited on the property.

(B) Subsection (b) of section 31 of said chapter 121B, as so appearing, is hereby amended by repealing the language appearing at lines 25 through 35 and inserting in place thereof the following words:- approve such a project only if it makes the following determinations: (i) the design and layout of the proposed project is appropriate to the neighborhood in which it is to be located; and (ii) an.

This section: (A) provides a very narrow exception to the present replacement housing requirements and will affect approximately 75 units of state-assisted public housing. The language permits the demolition or sale of (a) "chapter 705" scattered site family units that are vacant as of November 1, 2012 and for which rehab is not a feasible alternative, and (b) "chapter 167 and chapter 667" units that are dedicated to DDS and DMH clients if those agencies determine that the units are obsolete and inappropriate for their clients. DHCD will oversee disposition of any real estate interest and the dedication of any net sales proceeds to the capital needs of similar housing; and (B) eliminates the ban on creating new public housing on sites with 100 units or more than 100 units within an eighth of a mile of each other.

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