Code of Massachusetts Regulations
761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY
Title 761 CMR 9.00 - Neighborhood Preservation Area Program
Section 9.06 - MHMFA Evaluation of Applications

(1) the degree of blight, decay or deterioration of housing accommodations, or the imminent threat of such blight, decay or deterioration within the area;*

MHMFA will require that sufficient resources be committed to an NPA program to stabilize and preserve the area. Unless there are specific proposals for reversing serious blight, decay or deterioration, the NPA should be characterized by a preponderance of basically sound housing which may be beginning to show signs of lack of maintenance.

(2) the degree to which conventional financing or refinancing of the purchase, repair, remodeling or rehabilitation of housing within the NPA is available;*

The designation of an area as a NPA should increase the ability of current residents to obtain financing.

(3) the proportion of residential structures within the area which are owner-occupied;*

Since only owner-occupants are eligible for mortgages financed through MHMFA, a majority of the structures should be owner-occupied or at least appropriate for owner occupancy (i.e. 1 to 4 unit structures).

(4) the degree to which the income and the financial resources of current residents of the NPA provide reasonable assurances of the economic feasibility of the financing of the purchase, repairs, remodeling or rehabilitation of the housing within the NPA;*

In order to avoid displacement of current residents, a general guideline of a median income within the NPA equal to at least 80% of the median of the municipality will be utilized. NPA's with lower than 80% of the municipality median income will be considered if it can be demonstrated that residents of the NPA will be able to afford loans for the purchase and rehabilitation of housing within the area.

(5) the proportion of residential structures in the area where rehabilitation work can be done with financing as provided through the NPA without necessitating a substantial increase in carrying costs and rental charges to any owner-occupant or tenant beyond their capacity to absorb, and the extent of suitable vacant housing in such an area.*

The NPA should contain structures whose typical repair costs will not exceed the ability of current owner-occupants to meet MHMFA loan obligations and present tenants to meet increased rents.

* St. 1974 c. 846 §5 ¶ 10 (enabling legislation creating MHMFA).