Low-income Tax Credits
Legislation extending the life of Massachusetts low-income housing tax credits (LIHTC) was enacted by both branches before the session concluded. The Governor returned the legislation with an amendment to improve the programs efficiency. The Legislature did not concur. Subsequently the Governor vetoed the legislation, and the Legislature overrode the veto, making it law.

Source: GBREB, Government Affairs, 12/04

Legislation relative to storage of the property of evicted tenants
Legislation which enhances the rights of tenants relative to the storage of tenant property by a warehouser upon eviction was enacted on Friday, July 30th by the House and Senate, and was later signed into law by the Governor. This Legislation appears to have been the result of one individual who endured an ordeal at the hands of a warehouser, and their story happened to be captured by the press and gained considerable sympathy. It appears unlikely that this bill will have any significant operating effect on the majority of RHA members, however, any bill degrading our rights is problematic.

Source: GBREB, Government Affairs, 12/04

Housing Bond Bill
This legislation authorized new affordable housing funds through a housing bond issue. This legislation was successful and is now law.

Water Sub-metering
Legislation that would permit the sub-metering of water and sewer to residential tenants passed both the House and Senate. This is an historic achievement, as both branches of the General Court have never embraced legislation supporting this issue. This would be a great benefit economically to property owners, but ultimately our environment in the form of water conservation. The legislation awaits final enactment before going to the Governor.

Source: GBREB, Government Affairs, 12/04

Mandatory Sprinkler Legislation
There was a brief discussion and update on the status of H. 4550, a bill that would require the installation of automatic sprinkler systems under certain circumstances in existing buildings. The bill is still pending in the House Committee on Rules and many administrative aspects of the bill are of concern to BOMA leadership.

Source: GBREB, Government Affairs, 6/2004

Mandatory Rent Escrow/Water Sub-metering sub-committee
The committee was advised that no action will likely be taken relative to passing a mandatory rent escrow bill during the current session. It was also reported that discussions continue with Sub-Committee Chairman Representative Paul Demakis relative to finalizing an acceptable compromise bill authorizing sub-metering of water/sewer usage in residential properties. At this juncture, any proposed legislation has a long way to go before enactment, but discussions/negotiations are continuing.

Source: GBREB, Government Affairs, 6/2004

Zoning Law Reform (Chapter 40A)
It was reported that the Local Affairs and Regional Government Committee had reported favorably 4 bills that would negatively amend Chapter 40A, while sending the most onerous to a study committee. H. 1175, a bill filed by Senator Pam Resor that would completely rewrite the Zoning Act, is now in a study and effectively dead for this session. However, there were four bills favorably acted upon by the Committee, and sent to the House Committee on Steering, Policy & Scheduling. They are: H.4039, which would reduce subdivision freeze protection from the current eight years to three; H.1902, which would extend the number of days granted an aggrieved abutter to file an appeal; H.961, which would allow an abutting city or town to file an appeal with the Superior Court; and H.191, which would require additional notices advising opponents of planning board decisions how much time remains for the filing of appeals continuing.

Source: GBREB, Government Affairs, 6/2004

e-Signatures to be accepted at state's Registries of Deeds
As one of the surest signs of progress in the area technology improvements, required a part of the fee increases of 2003 and mandated along with the new $5 surcharge on all documents filed in the registries, the Registries of Deeds will begin accepting e-signatures effective February 26.

Source: GBREB, Government Affairs, 4/2004

Property Tax changes signed into law by Romney
Governor Mitt Romney on January 16, signed into law Chapter 3 of the Acts of 2004, an emergency measure that provides relief to residential owners by revamping the way in which property is classified for real estate tax assessment purposes. The state constitution, since 1978, has allowed cities and towns, within certain limits, to decide what portion of the total tax levy would be borne by each of four categories of property (residential, commercial, open-space and industrial). The "residential factor", the minimum amount of the total tax levy that the residential property class may be responsible for, was previously capped at 50%, but under the provisions of Chapter 3, may now be adjusted as follows:

With respect to the following fiscal year: The minium residential factor is: Subject to upward adjustment so that no other class pays more than the following percentage of its fair share:
2004 45% 200%
2005 47% 197%
2006 49% 190%
2007 50% 183%
2008 50% 175%
2009 and thereafter 50% 170%
For those communities that choose to require a particular class of property to pay greater than 175% of the total levy, the top percentage for 2009 and thereafter will be 170%. The new law also requires studies on a number of different related issues and requires that the study results are reported back to the legislature within specific timeframes.

Source: GBREB, Government Affairs, 4/2004

Boston Groundwater Trust Provides Information on website
The web site of the Boston Groundwater Trust, www.bostongroundwater.org, is a valuable resource for Realtors® who sell residential properties. It can also be a valuable information source for homeowners, homebuyers, and investors with an interest in commercial and residential properties in Boston. Fluctuating groundwater levels in the Back Bay, South End, Fenway, and other Boston neighborhoods are a growing concern. Many residential and commercial buildings, constructed years ago on filled land, sit on wood pilings that need to be submerged.

Exposure to air dries out the pilings and causes them to rot, resulting in significant and very costly damage. The Boston Groundwater Trust oversees the collection of data to identify the geographic areas of concern and recommend solutions. Funding for additional monitoring of groundwater has been provided by the state. Data collected by the Trust is organized to show the locations of the monitoring wells and is posted on the web site. GBREB member Paul Chan of the Massachusetts Housing Investment Corporation (MHIC) represents our organization as a member of the Trust.

Source: GBREB, Gov Affairs, 4/2004

HUD Budget funds home ownership, rental vouchers, homeless initiatives

President Bush's proposed 2005 budget includes $31 billion for a U.S. Department of Housing and Urban Development spending plan that emphasizes affordable housing, community revitalization and home ownership, the agency said in a statement today.

Alphonso Jackson, HUD acting secretary, said the budget blueprint will provide "historically high levels" of funding for thousands of local housing programs.

" These are times for hard choices, yet this budget shows just how committed this Administration is to the people and places who need help," Jackson said.

The spending plan includes $200 million for the American Dream Downpayment Initiative set up to help low-income families become first-time homeowners. It also includes millions of dollars for "sweat equity" home ownership program grants, and fair housing education, outreach and enforcement.

The Administration will propose again a tax credit of up to 50 percent of the cost of new construction or rehabilitation to "stimulate the production of affordable homes in distressed communities where such housing is scare," according to HUD. This tax credit would target households earning less than 80 percent of an area's median income.

The $2 billion in the budget for the HOME Investment Partnerships Program will be allocated to 630 state and local governments. HOME funds encourage construction of affordable housing by financing the cost of land acquisition, new construction, rehabilitation, down payment assistance and rental subsidies.
The spending plan includes a record $45 million to provide home purchase and home ownership counseling to 550,000 families and provide rental counseling to 250,000 families.

HUD also has proposed a sweeping reform of the nation's rental assistance voucher program that would allow public housing authorities to set rents using local rental market data. The agency said this approach would "stop the spiraling cost" of the program and "provide performance-based incentives for public housing authorities to serve more families presently waiting for rental assistance."

HUD is also encouraging local housing agencies to use rental assistance vouchers toward moving low-income families into home ownership. The housing agencies may either provide mortgage assistance in lieu of a rental subsidy or offer families a one-time down payment grant equaling up to one-year's worth of their rental assistance.

The budget proposal also contains $3.6 billion to fund daily operations of local public housing authorities, plus $2.7 billion to help local public housing authorities fund major repairs and modernizations of housing units.

Source: Inman News, February 2004

Real estate construction spending increases
Annualized rate hit $933 billion in December

Construction spending on housing put in place during December was estimated at a seasonally adjusted annual rate of $933 billion, approximately 0.4 percent above the revised November estimate of $930 billion, according to the U.S. Commerce Department's Census Bureau.

The December figure is approximately 7 percent above the December 2002 estimate of $872 billion.
The value of construction spending in 2003 was $898 billion, approximately 4.3 percent above the $861 billion spent in 2002.

Spending on private construction was at a rate of $712 billion, approximately 0.3 percent above the revised November estimate of $710 billion. Residential construction was at a seasonally adjusted annual rate of $502 billion in December, approximately 0.9 percent above the revised November estimate of $498 billion.

The value of private construction in 2003 was $682 billion, approximately 4.8 percent above the $650 billion in 2002.

Residential construction in 2003 was $466 billion, approximately 10.5 percent above the 2002 figure of $422 billion.

Source: Inman News, February/ 2004