Bill > S606

This bill amends Chapter 40B of the General Laws, which governs affordable housing development in Massachusetts, by replacing sections 20 through 23 with new provisions that clarify and strengthen the "cost certification" process for developers. Key changes include defining terms like "Allowable Acquisition Cost" (the fair market value of land without considering zoning relief), "Allowable Development Related Expenses" (documented costs for building and selling/renting), and "Certified Cost and Income Statement" (an audited financial report of a development's expenditures and income). The bill designates the Department of Housing and Community Development (DHCD) as the administrator and enforcer of these regulations, empowering it to create rules, review financial statements, qualify oversight entities like "Monitoring Agents" (organizations that oversee development costs), and impose sanctions for violations. It also clarifies the role of local boards and the Housing Appeals Committee in reviewing development applications and appeals, emphasizing that decisions must be consistent with local needs and not make housing uneconomic. A significant addition is the requirement for developers to submit a detailed, audited "Certified Cost and Income Statement" within 180 days of substantial completion or 120 days of selling the last unit, which must identify all "Related Party Transactions" (transactions between a developer and entities they have a financial interest in) and document if costs or income from these transactions exceed industry standards. Profits exceeding a "Reasonable Return" (a defined profit margin for developers) must be deposited with the municipality for affordable housing or local needs. The bill also introduces penalties for late submissions, misrepresentation of profits, and failure to identify related party transactions, including personal liability for developers and potential permanent barring from future projects for intentional or reckless violations.