Code of Massachusetts Regulations
761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY
Title 761 CMR 21.00 - Seller's Guide
Section 21.06 - Rent Increases

Universal Citation: 761 MA Code of Regs 761.21
Current through Register 1531, September 27, 2024

MHMFA Legislation (St. 1974 c. 846 § 5, subsection 8) requires that MHMFA loans minimize residential displacement of existing tenants in 2-4 unit structures due to rehabilitation. Therefore, any loan which includes amounts for rehabilitation of a 2-4 unit structure in which a Loan Participation is purchased by MHMFA will require execution by both the existing tenants and the Borrower of an agreement that (a) establishes a base rent resulting from the cost of rehabilitation and (b) restricts any further increases in rent for a period of two years to a pro-rata share of increases in expenses (limited to increases in property taxes, operating or maintenance expenses or additional capital improvements). This agreement shall run between the tenant and the Borrower, and shall not be required when no rehabilitation costs are included in the Mortgage Loan or when the proposed rehabilitation is to alleviate conditions which violate the state sanitary code or applicable building or housing codes or to carry out other essential maintenance.

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