Eligible Projects (Projects)

(1) The Department may make CIPF loans and grants: (a) to acquire, preserve, and improve affordable rental and ownership housing 1. where the prepayment of a state or federally-assisted MassHousing mortgage would lead or has led to the termination of a use agreement for low income housing; or 2. if funded pursuant to the CIPF I Legislation, for which the United States Department of Housing and Urban Development has approved but not fully funded a plan of action to transfer the housing to a qualified tenant or tenant endorsed purchaser pursuant to 12 U.S.C. §§ 4010 through 4147; or 3. if funded pursuant to the CIPF II Legislation or M.G.L. c. 121G, where a contract for project-based rental assistance is expiring or has expired, or where the expiration of any state or federally-assisted mortgage, or the expiration of federal or state low-income housing tax credits, would lead or has led to the termination of a use agreement for low- income housing. 18.04: continued (b) for a predevelopment loan to a nonprofit organization that has purchased, or has a valid agreement to purchase, a housing project described in 760 CMR 18.04(1)(a)1. where such housing project has been identified by the Department, in consultation with nonprofit organizations and MassHousing, as being among those at greatest risk of mortgage prepayment; if funded pursuant to the CIPF II Legislation or M.G.L. c. 121G, such predevelopment loan shall be administered through CEDAC or MHP. (c) for any other purpose permissible under the CIPF Legislation. (2) In allocating CIPF funds: (a) if funded pursuant to the CIPF I Legislation, the Department may give preference to nonprofit organizations seeking to purchase a housing project that is or was subject to prepayment of a state or federally assisted MassHousing mortgage. If the Department gives such preference, then, in consultation with nonprofit organizations and MassHousing, it shall identify the projects at greatest risk of prepayment of a state or federally assisted MassHousing mortgage and give such projects equal preference in the allocation of CIPF funds. (b) if funded pursuant to the CIPF II Legislation or M.G. L. c. 121G, the Department shall give preference to nonprofit organizations or LHAs seeking to purchase a housing project that is or was subject to prepayment of a state- or federally-assisted mortgage or the termination of a project-based rental assistance contract, or subject to the expiration of federal or state low-income housing tax credits. In giving such preference, the Department, in consultation with MassHousing, CEDAC, and MHP, shall identify projects at greatest risk of prepayment or nonrenewal of a rental assistance contract or expiration of tax credits and give preference to such projects in the allocation of funds. (3) An eligible property that has been acquired for the purpose of preserving or improving the property shall not lose eligibility due to actions by the purchaser to renew or extend state or federal contracts or subsidies.