Bill > S705

This bill, titled "Requiring 40B cost certification," amends Chapter 40B of the General Laws to establish a more rigorous process for certifying the costs and income of housing developments built under this chapter, which aims to increase the supply of low and moderate-income housing. Key provisions include defining terms like "Allowable Acquisition Cost" (the fair market value of land), "Allowable Development Related Expenses" (all documented costs of building and selling/renting the housing), and "Certified Cost and Income Statement" (a detailed financial report audited by an independent accounting firm). The bill mandates that developers submit this certified statement after a development is completed or substantially completed, detailing all expenses over $100 and all income, including sales of units. It also requires the disclosure of any "Related Party Transactions" (deals between the developer, their immediate family, or entities they have a significant financial interest in) and scrutinizes these for fairness. If profits exceed a "Reasonable Return" (a legally defined profit margin), the excess must be deposited with the municipality for affordable housing or local needs. The bill also outlines penalties for late submissions, misrepresentation of profits, and intentional violations, including potential personal liability for developers and even permanent barring from future projects. The Department of Housing and Community Development (DHCD) is given oversight to promulgate regulations, qualify auditors and monitoring agents, and enforce these new requirements.