Remember to sign up for fall trust training
Posted on August 17, 2016
"...to provide for the creation and preservation of affordable housing in municipalities for the benefit of low and moderate income households." Municipal Affordable Housing Trust (MGL Ch.44, Sec 55c)
BOSTON --- Given the limited mission of Municipal Affordable Housing Trusts (MAHT) as defined in the excerpt above, MAHTs that use Community Preservation Act (CPA) funds for all allowable CPA community housing uses have been in a quandary. Some may not even realize it.
The reason for the confusion is MAHT and CPA statues have not been aligned. This has been a growing concern among municipalities, town attorneys and the state as local funds are increasingly being spent on CPA uses not allowed by the MAHT statute.
MHP estimates that almost 90 communities in the Commonwealth have a MAHT and 76 percent also have CPA as a potential funding source. Given the significant interest in trusts, MHP has put increased focus on helping communities run their local trusts effectively and legally. Discrepancies between MAHT and CPA statutes arose as a key issue.
Last week, the Commonwealth took a big step in resolving this issue when Gov. Charlie Baker signed into law An Act Modernizing Finance and Government (H. 4565). Included in the 125-page, 253-section bill were changes to the MAHT statute, MGL Chapter 44, Section 55c.
Governor Baker signing H. 4565.
The new law makes the following changes to how housing trusts function with CPA funding:
- Expands allowable activities of the MAHT to match all allowable CPA community housing activities.
- Clarifies that all rules and restrictions of Chapter 44b, the Community Preservation Act, remain in force after CPA funds are transferred to a MAHT.
- Requires that trusts track CPA funds separately from other sources and annually account for uses of the funds in the municipality's CP-3 report to the Department of Revenue.
- Authorizes MAHTs to execute grant agreements. Best practice suggests that communities use grant agreements to outline conditions when allocating public funds. With this law, trusts have explicit ability to engage in grant agreements.
These changes - sponsored by Rep. Stephen Kulik and Sen. Barbara L'Italien - will better coordinate interaction between local community preservation committees and trusts. The law will go into effect on about Nov. 9 and apply to all funds in trust accounts on that day, as well as all future funds transferred from the CPA.
Please contact MHP Program Manager Shelly Goehring at 857-317-8525 or sgoehring@mhp.net if you have additional questions about these changes.
FALL TRUST TRAINING SET, REGISTER BY 9/12
Geared toward trust staff and anyone involved in trusts, this daylong training will cover:
- Eligible activities for trusts.
- Why Fair Housing is important to the work of trusts.
- Legal and operational considerations.
- Strategies for building support for affordable housing.
- Impact of new law on MAHTs using CPA funds.
Date: Friday, Sept. 16
Time: 9: 30 a.m. to 3:30 p.m.
Location: Holiday Inn Taunton, 700 Myles Standish Blvd., Taunton
Cost: $25/person (includes coffee/tea and lunch)
Click here to register.