Chap. 561. An Act amending the Massachusetts housing REHABILITATION AND NEIGHBORHOOD PRESERVATION PROGRAM. Be it enacted, etc., as follows: Section 1. The fourth paragraph of section 2 of chapter 846 of the acts of 1974 is hereby amended by striking out the third sentence. Section 2. Section 3 of said chapter 846 is hereby amended by striking out the second to the sixth paragraphs, inclusive, and inserting in place thereof the following four paragraphs:- The MHMFA shall consist of the secretary of communities and development or his designee, the commissioner of corporations and taxation, or his designee, the commissioner of banking or his designee and the chairman or the executive director of the Massachusetts Housing Finance Agency, as that agency shall determine, and five persons to be appointed by the governor, of whom one shall be experienced in banking, one shall be experienced in real estate transactions and one shall be a representative of a community action agency or other recognized low income or neighborhood organization, Each appointive member shall be appointed for a term of seven years. Any person appointed to fill a vacancy shall serve only for the unexpired term. Any member shall be eligible for reappointment. The governor shall designate one of the members as chairman. The MHMFA shall annually elect one of its members as vice-chairman and shall also annually elect a secretary, a treasurer Acts, 1977. — Chap. 561. and such other officers as it may determine, none of whom need be members of the MHMFA. The secretary shall keep a record of the proceedings of the MHMFA and shall be custodian of all books, documents and papers filed with the MHMFA and of its minute book and seal. He shall have authority to cause to be made copies of all minutes and other records and documents of the MHMFA and to give certificates under the seal of the MHMFA to the effect that such copies are true copies and all persons dealing with the MHMFA may rely upon such certificates. The treasurer shall be the chief financial and accounting officer of the MHMFA and shall be in charge of its funds, books of account and accounting records. Five members of the MHMFA shall constitute a quorum and the affirmative vote of five members shall be necessary for any action taken by the MHMFA. No vacancy in the membership of the MHMFA shall impair the right of a quorum to exercise all the rights and perform all the duties of the MHMFA. The members of the MHMFA shall serve without compensation, but shall be reimbursed for their necessary expenses incurred in the discharge of their official duties. Notwithstanding the provisions of any other law, no officer or employee of the commonwealth or of any public instrumentality thereof shall be deemed to have forfeited or shall forfeit his office or employment by reason of his acceptance of compensation from MHMFA or employment therewith. Section 3.. Clause (o) of section 4 of said chapter 846 is hereby amended by inserting, after the word "compensation", in line 3, the words:- ; provided, however, that the chief executive officer shall receive a salary of not more than thirty-five thousand dollars. Section 4. Said section 4 of said chapter 846 is hereby further amended by striking out clause (q) and inserting in place thereof the following clause :- (q) Accept gifts or grants or loans of, or act as an agent or conduit in administering the disbursement of funds or property or financial or other aid from any federal or state agency or private fund. Section 5. Said section 4 of said chapter 846 is hereby further amended by striking out clause {t) and inserting in place thereof the following five clauses:- (t) Establish in areas covered by a neighborhood preservation program approved by the MHMFA under section five a program to encourage mortgage lenders to make loans within such areas to 706 Acts, 1977. — Chap. 561. persons or families of low and moderate income who are, or intend to be, owner-occupants. (u) Act as an agent or principal for the purchase or sale of mortgage loans by mortgage lenders at such times as the availability of mortgage funds for homeowners in any area of the commonwealth becomes constricted. (v) Engage in or assist in the rehabilitation of housing or the development of home ownership under any federal program providing assistance for low or moderate-income housing as from time to time may be established and funded by the federal government. (w) Enter into contribution contracts with any federal or state agency or private fund, and contracts with owners or tenants of dwelling units, with respect to the making of federal or state rent subsidy payments. (x) Do any and all things necessary or convenient to carry out its purposes and exercise the powers expressly given and granted in this act. Section 6. Section 5 of said chapter 846 is hereby amended by striking out the seventh paragraph and inserting in place thereof the following paragraph :- The MHMFA shall from time to time adopt, modify, amend or repeal rules and regulations governing the making of new residential mortgage loans for the purpose of rehabilitation of dwellings of two or more units so as to afford protection to existing tenants. Such rules and regulations shall be designed to effectuate the general purposes of this act and the following specific objectives: (i) insuring that tenants residing in such dwellings have income reasonably sufficient to pay any increase in rent resulting from such rehabilitation so that residential mortgage loans made with MHMFA loan funds minimize residential displacement, unless the proceeds of such mortgage loans are to be used to alleviate conditions which violate the state sanitary code or applicable building or housing codes or to carry out essential maintenance; (ii) notification of tenants residing in such dwellings as to the repairs or improvements to be undertaken with the proceeds of such mortgage loans and the estimated increase in rent, if any, attributable to such repairs or improvements; and (Hi) agreements between borrowers and tenants residing in such dwelling which limit rent increases during such reasonable periods as the MHMFA may prescribe to those properly resulting from such mortgage loans or those necessitated by increases in property taxes, operating or maintenance expenses or Acts, 1977. — Chap. 561. additional capital improvement. Nothing in this act shall authorize a rent increase not otherwise authorized by law. Section 7. Said section 5 of said chapter 846 is hereby further amended by inserting after the twelfth paragraph the following paragraph:- Before authorizing an applicant to proceed with a final application for a neighborhood preservation program, the MHMFA shall submit the preliminary application to the secretary of communities and development for review. The secretary shall review the appropriateness of the proposed program with regard to overall state and local growth and housing policy. If the secretary does not disapprove the application within thirty days the application shall be deemed to be approved for processing by the MHMFA. In the event of a major change in the proposed neighborhood preservation program, including but not limited to significant changes in the proposed boundaries of the neighborhood area, the loan amount, or the state or federal subsidies requested, after the initial review by the secretary, the MHMFA shall submit each proposed change to the secretary for his review. If the secretary does not disapprove the revision within thirty days, the revised application shall be deemed to be approved for processing by the MHMFA. Section 8. Said chapter 846 is hereby further amended by striking out section 14 and inserting in place thereof the following section:- Section 14. Advisory Committee. The governor shall appoint an advisory committee of fifteen persons to assist the MHMFA and its staff in formulating policies and procedures to accomplish the purposes of this act. Members of said advisory committee shall receive no compensation. They shall not be subject to the provisions of chapter thirty-one or chapter two hundred and sixty-eight A of the General Laws. Section 9. The term of any members of the MHMFA appointed prior to the enactment of this act shall not be affected by the provisions of this act. Approved September 28, 1977. EMERGENCY LETTER — September 28, 1977 @ 4:56 P. M.