Bill > H1141

This bill establishes a Historic District Stabilization Committee, comprised of local residents, homeowners, real estate professionals, community organizations, construction experts, and banking professionals, to address the foreclosure crisis in Massachusetts' historic districts. This committee can be formed through a petition by a Chapter 40(f) community development corporation or a non-profit organization focused on housing or community improvement within the historic district. The committee is authorized to acquire, through eminent domain (the power of the government to take private property for public use), properties and related interests like mortgages or tax obligations that are in default within the community, paying fair market value and using proceeds from future sales to cover these costs. The committee must conduct a study of the local real estate market and economic capacity of potential buyers to create a "Community Appraisal Framework," which will guide future property valuations. This framework will be used to help homeowners facing foreclosure by offering mortgage counseling and potentially new financing, to manage occupied properties to ensure tenants can remain if feasible, and to manage and repair vacant and damaged properties to maintain neighborhood value and livability, all while adhering to federal rehabilitation standards. The bill also allows communities eligible for historic district designation but not yet officially recognized to petition for these protections, provided they formally establish a local historic district within 180 days. Importantly, the protections offered by this bill are limited to historic districts identified as "Stabilization Target Areas" by the U.S. Department of Housing and Urban Development (HUD), based on foreclosure rates and mortgage issues, as part of the Neighborhood Stabilization Program. The committee is also mandated to prioritize the use of local residents for restoration, management, and marketing services and is empowered to hire staff, enter contracts, and issue debentures (a type of bond) to finance its operations, with the bill taking effect immediately due to the emergency nature of the situation.