Code of Massachusetts Regulations
760 CMR - HOUSING AND LIVABLE COMMUNITIES, EXECUTIVE OFFICE OF
Title 760 CMR 60.00 - Community-based housing fund program
Section 60.02 - Definitions
The following definitions will apply to the CBH Program:
Application. An application for a loan, in the format specified by the CBH Guidelines, including a description of a proposed Eligible Project, all financing sources, and all other matters required by 760 CMR 60.00 and the CBH Guidelines.
CBH Guidelines. Guidelines issued by DHCD setting out, clarifying and further explaining 760 CMR 60.00 program policy and procedure, as such guidelines may be amended, supplemented or replaced. The CBH Guidelines shall apply to all CBH financing programs (subject always to 760 CMR 60.01(2)) .
CBH Legislation. Collectively the CBH 1 Legislation, the CBH 2 Legislation, and the CBH 3 Legislation, and the CBH 4 Legislation, or where the context so requires, the specific legislation applicable, respectively, to CBH 1, CBH 2, or CBH 3, or CHB 4 loans, as appropriate. With respect to any CBH Loan, references to the CBH Legislation shall mean those provisions of the CBH 3 Legislation or CBH 4 Legislation that apply to the CBH Program generally and any special provisions of the CBH Legislation that apply to the funding phase under which such CBH Loan is made.
CBH Loan. The loan made by DHCD or its Financial Intermediary to a Developer for an Eligible Project/Use under the CBH Program.
CBH Units. The housing units of an Eligible Project that are supported by the CBH Loan or grant and reserved for PCEs.
Community-based Housing. Housing reserved for Persons Certified Eligible (PCEs) that is:
(a) Integrated Housing. A non-institutional Residential Housing Development, or housing units therein, either on a single site or multiple sites, in which no more than a of the housing units are reserved for PCEs and which complies with any additional requirements that may be specified in the CBH Guidelines, as approved by DHCD; or
(b) any other non-institutional Residential Housing Development, or one or more housing units therein, that is reserved for PCEs, as approved by DHCD.
Creation of Housing. New construction, rehabilitation of an existing building, or the conversion of an existing non-Eligible Project to an Eligible Project.
DDS. The Department of Developmental Services.
Deferred Payment Loan (DPL). A loan secured by a mortgage on an Eligible Project which defers the repayment of principal and interest (if any) for a defined or undefined period of time.
Developer. The Developer of an Eligible Project satisfying the requirements of 760 CMR 60.03(1), and its permitted successors and assigns. The Developer may also be the owner of the Eligible Project, but need not be the owner, so long as:
(a) such Developer has control of the site pursuant to a ground lease or other instrument acceptable to DHCD, in its discretion, for a period at least equal to the term of the applicable CBH Loan; and
(b) the owner assents to the Developer's execution and the recording of the Land Use Restriction, and executes and accepts the Land Use Restriction and such additional documentation as DHCD and/or any Financial Intermediary may require, in its discretion, regarding the rights of DHCD and/or any Financial Intermediary with respect to the site.
DHCD. The Department of Housing and Community Development.
DMH. The Department of Mental Health.
Eligible Project/Use. The acquisition, construction, renovation and/or rehabilitation and operation of Community-based Housing for PCEs that meets the requirements of 760 CMR 60.00. An Eligible Project supported by a CBH Loan is sometimes referred to as a "Project".
EOHHS. The Executive Office of Health and Human Services.
EOHHS Services Plan. The Enhancing Community-based Services Plan dated August 2002, prepared by the Secretary of EOHHS, which has been reviewed and approved by DHCD and filed with the Secretary of Administration and Finance of the Commonwealth and the House and Senate Ways and Means Committees.
Expiring Use Restriction Housing. A Residential Housing Development that is acquired by one or more Nonprofit Corporations (or an entity or entities in which one or more Nonprofit Corporations have a controlling financial or managerial interest, as approved by DHCD) under Title II of the National Emergency Low Income Housing Preservation Act of 1987 or Title VI of the National Affordable Housing Act of 1990.
Financial Intermediary. An entity or entities selected by DHCD in accordance with the applicable CBH Legislation.
Financially Feasible Project. An Eligible Project that is likely to secure binding financial commitments from other funding sources which, together with the CBH Loan described in the Firm Financing Commitment, total the amount reflected in the estimated budget necessary to develop and operate the Eligible Project (as approved by DHCD and/or the Financial Intermediary).
For-profit Organization. An entity, including a corporation, partnership or trust organized under the laws of the Commonwealth or another state. The For-profit Organization must also demonstrate to the satisfaction of DHCD, the capability of managing all of its responsibilities to the Eligible Project.
Gross Cash Expenditures. All expenses paid out by the Project, including: all payments of principal and interest (if any) and any other debt service on outstanding loans, all operating and maintenance expenses, and reasonable payments into capital and operating reserves for the Project.
Gross Cash Receipts. All cash collections received by the Project from all sources, with the exception of documented contributions, donations and grant proceeds.
Land Use Restriction. An agreement by the Developer (and, as required by DHCD, by the owner of the site on which the Project is located, if other than the Developer), running with the land for the benefit of DHCD, EOHHS and MRC, and restricting the Project to use as Community-based Housing, or if funded under the CBH 3 Legislation or CBH 4 Legislation, as Community-based Housing or Supportive Housing, for PCEs, with the CBH Units reserved for PCEs who are Low-income Persons or Families. Such agreement, as further described in 760 CMR 60.03(4) and 760 CMR 60.04(2)(f), shall include such terms and conditions as are imposed under the CBH Legislation and/or CBH Guidelines or are otherwise required by DHCD. The Land Use Restriction shall be recorded and/or registered in the Registry of Deeds and/or Registry District of the Land Court where the Project is located.
Low-income Person or Family. A single person or family whose adjusted income is less than or equal to 80% of the median gross income for the area in which the Project is located, adjusted for family size and region, as determined by the United States Department of Housing and Urban Development, or any successor department or agency thereto, pursuant to Section 8 of the United States Housing Act of 1937.
MRC. The Massachusetts Rehabilitation Commission.
Nonprofit Corporation. A corporation organized under M.G.L. c. 180, which may also be required to be a 501(c)(3) organization under the Internal Revenue Code at the time of application or loan closing. To qualify as a Nonprofit Corporation for purposes of the CBH Program, no member, shareholder, director, officer or employee of the corporation or its board of directors can profit, in any way, from the CBH assistance or from the Eligible Project. The Nonprofit Corporation must also demonstrate, to the satisfaction of DHCD, the capability of managing all of its responsibilities to the Eligible Project.
Person Certified Eligible (PCE). A Low-income Person or Family with disabilities who is institutionalized or at risk of being institutionalized, but who is not eligible for housing developed pursuant to the FCF program, authorized by the FCF 3 Legislation, as modified and continued by the FCF 4 Legislation, the FCF 5 Legislation, and the FCF 6 Legislation, and who has been certified as an eligible PCE by MRC or any other agency of EOHHS in accordance with the procedure described in the CBH Guidelines.
Preservation of Housing. New capital financing for an Eligible Project that is already used for an Eligible Use. A proposed Eligible Project will qualify as Preservation of Housing that may be supported by CBH funding only if such Eligible Project involves:
(a)
1. a transfer of ownership to a Nonprofit Corporation, or if funded pursuant to CHB 2, CBH 3, or CBH 4 Legislation, For-profit Organizations, subject to 760 CMR 60.01(2);
2. physical improvements to the real estate; and/or
3. improved forms of management and social services;
(b) an Expiring Use Restriction Housing project; or
(c) the preservation of Community-based Housing, as determined by DHCD.
Residential Housing Development. Property that is predominantly used for housing and is in compliance with applicable laws and ordinances.
Single-purpose Owner Entity. A Nonprofit Corporation or any other single-purpose entity in which one or more Nonprofit Corporations have a controlling financial or managerial interest, or a For-profit Organization, whose business and operations relate solely to the Eligible Project, as approved by DHCD.
Supportive Housing. Community-based Housing that provides residents with supports and services linked to their housing.
Total Development Costs. Total hard and soft costs of developing an Eligible Project, including the costs to acquire, design, construct, renovate and/or rehabilitate and finance the Eligible Project.
