Current through Register 1531, September 27, 2024
760 CMR 64.06 contains standards and procedures for the Sale by the
Owner of Publicly-assisted Housing to a Designee or Third Party, in accordance with
M.G.L. c. 40T, § 4, so long as the Owner complies with all other requirements
of M.G.L. c. 40T and
760 CMR 64.00.
(1)
Sale to Third Party.
If any of the following events occur, the Owner may complete a Sale of the
Publicly-assisted Housing to a Third Party within two years from the applicable date
specified in M.G.L. c. 40T, so long as the Owner complies with all other
requirements of M.G.L. c. 40T and
760 CMR 64.00:
(a) the Department and its Designee irrevocably
waive their rights of offer, for the two-year period from the applicable date
specified in M.G.L. c. 40T, by failing to submit a timely offer to the Owner, as set
forth in M.G.L. c. 40T, § 3(c);
(b)
the Department and its designee waive their rights of offer as set forth in M.G.L.
c. 40T, § 3, by prior written communication to the Owner;
(c) the Department or its Designee fails to enter
into a Purchase Contract with the Owner following the Owner's acceptance of an offer
from the Department or its Designee, as set forth in M.G.L. c. 40T, §
3(c);
(d) the Department or its Designee
fails to execute a proposed Purchase Contract offered by the Owner, as set forth in
M.G.L. c. 40T, § 4(b);
(e) the
Department or its Designee executes a Purchase Contract, but fails to perform in
accordance with such Purchase Contract, as set forth in M.G.L. c. 40T,
4(d);
(f) the Department or its Designee
fails to make a timely counteroffer, or the Owner rejects such counteroffer, in
either case as set forth in M.G.L. c. 40T, § 4(e); or
(g) the Department and its Designee waive their
rights of first refusal and counteroffer as set forth in M.G.L. c. 40T, § 4, by
prior written communication to the Owner.
(2)
Failure of Performance by
Department or Designee. For the purposes of M.G.L. c. 40T, § 4(d),
failure of performance shall be deemed to occur on the Time For Performance set
forth in the Purchase Contract, if the Department or its Designee fails to satisfy
the terms and conditions of the Purchase Contract.
(3)
Terms and Conditions of Third
Party Purchase Contract. In making a determination under M.G.L. c. 40T,
§ 4(e), and the procedures set forth in
760 CMR
64.08 as to whether the economic terms and
conditions of a Purchase Contract are the same as or materially more favorable than
the terms of the Third Party Contract, giving rise to the Department's rights
pursuant to M.G.L. c. 40T, § 4(b), the Department will consider, in its
reasonable discretion, such factors, as the Department may determine to be relevant
in guidance, including, but not limited to, changes to the purchase price, property
description, transaction structure, deposit amount, or Time for
Performance.
(4)
Submission
of Documents to Department.
(a)
Submission of Purchase Contract. The Owner shall, not later
than seven days after the execution or amendment of a Purchase Contract with a Third
Party, provide the Department with a copy of such document. The Owner shall
accompany the submission with written confirmation demonstrating that the Purchase
Contract was executed within the applicable two-year period set forth in M.G.L. c.
40T, § 4. The submission shall include a certification by the Owner that the
document is accurate and complete and there are no other agreements between the
Owner and the Third Party, or an affiliate of either, with respect to the Sale of
the Publicly-assisted Housing. Together with this submission, the Owner and the
Third Party may seek a Preliminary Certificate of Compliance from the Department,
pursuant to
760 CMR
64.08.
(b)
Submission of Transfer
Document. A new Owner shall provide the Department with a copy of any
deed or other document transferring the previous Owner's interest in
Publicly-assisted Housing, not later than seven days after the recording or filing
of the deed or other document with the registry of deeds or the registry district of
the land court of the county in which the affected real property is located.
Together with this submission, the new Owner may seek a Final Certificate of
Compliance from the Department, pursuant to
760 CMR
64.08.
