Definitions

The following definitions will apply to HIF I, HIF II, HIF III, HIF IV, HIF V, HIF VI, HIF VII, and M.G.L. c. 121E: Alternative Form of Housing. A Residential Housing Development that involves an unusual or specialized type of management or social services, an innovative financing or ownership structure, or other innovative features as determined by DHCD. Application. An application for a loan or, for M.G.L. c. 121E, other form of financial assistance, in the format specified by the HIF Program Guidelines, including a description of a proposed project, all financing sources, and all other matters required by the applicable HIF Program Guidelines. Creation of Housing. New construction, rehabilitation of an existing building, or the conversion of an existing non-eligible Project to an Eligible Project. DHCD. The Department of Housing and Community Development (including, where applicable, its predecessor, the Executive Office of Communities Development). Deferred Payment Loan (DPL). A loan secured by a mortgage on an Eligible Project which defers the repayment of principal and interest (if any) for a defined or undefined period of time. Developer. The developer of an Eligible Project and its permitted successors and assigns. The Developer may also be the owner of the Eligible Project, but need not be the owner, so long as such Developer has control of the site pursuant to a ground lease or other instrument acceptable to DHCD, in its discretion, for a period at least equal to the term of the applicable HIF loan or, if applicable, other financial assistance and the owner assents to the Developer’s execution, delivery and recording of the Land Use Restriction, and executes and delivers the Land Use Restriction and such additional documentation as DHCD may require, in its discretion, regarding the rights of DHCD and/or any Financial Intermediary with respect to the site. Eligible Project/Use (Project). The acquisition, construction, renovation and/or rehabilitation and the operation of an Alternative Form of Housing that meets the requirements of 760 CMR 23.03. Such housing may include any of the following types of housing owned and operated by a Nonprofit Corporation: Single Room Occupancy Housing, Limited Equity Cooperative Housing, Transitional Housing, permanent or Transitional Housing for the homeless, shelters for survivors of domestic abuse, Special Needs Housing, Mutual Housing, Expiring Use Restriction Housing, and other forms of housing as determined by DHCD. For HIF IV and M.G.L. c. 121E, such housing may also include any of the following types of housing owned and operated by a Nonprofit Corporation: Employer Assisted Housing, Housing in Receivership, Lease-to-purchase Housing, and Housing in College Communities. For M.G.L. c. 121E, such housing may also include Projects making Alternative Forms of Housing more accessible to senior citizens and persons with disabilities, and Municipally Sponsored Housing. For M.G.L. c. 121E, an Eligible Project may also be owned and operated by a Local Housing Authority. For housing assisted under HIF IV, HIF V, or M.G.L. c. 121E, preference shall be given to Projects that provide transitional or permanent housing for homeless individuals and families and disabled persons. For housing assisted under HIF VII, such housing also may include projects for people in recovery from substance use disorder. Employer Assisted Housing. An Eligible Project undertaken jointly with a local employer that has agreed to devote private resources to the Project, in connection with which the participating employer may obtain dedicated housing units for Low-income or Extremely Low-income employees. If funded under M.G.L. c. 121E, financial assistance for such housing may include matching funds, in a ratio to be determined by DHCD, associated with the capital costs of an employer-based program to assist employees who qualify as Low-income Persons or Families in meeting their rental or homeownership housing costs, where the details of buyer or tenant eligibility, form of assistance, limits on property value, and other requirements meet the criteria set forth in the HIF Program Guidelines for such a program. Expiring Use Restriction Housing. A Residential Housing Development that is acquired by a Nonprofit Corporation or a Limited Equity Cooperative Housing Corporation under Title II of the National Emergency Low Income Housing Preservation Act of 1987 or Title VI of the National Affordable Housing Act of 1990. Extremely Low-income Person or Family. A single person or family whose adjusted income is less than or equal to 30% of the median gross income for the area in which the Project is located, adjusted for family size and region, as determined by the United States Department of Housing and Urban Development, or any successor department or agency thereto, pursuant to § 8 of the United States Housing Act of 1937. Financial Intermediary. The Community Economic Development Assistance Corporation, the Massachusetts Housing Finance Agency, the Massachusetts Development Finance Agency (formerly the Massachusetts Government Land Bank), a Local Housing Authority, a redevelopment authority, a community development corporation, or, in the case of HIF IV, HIF V, or M.G.L. c. 121E, a Nonprofit Corporation that has been certified by the United States Department of Housing and Urban Development as a “community development housing organization” as defined in 24 CFR § 92.2, which entity serves as the conduit for HIF loan funds and is not a member of the development team. Financially Feasible Project. An Eligible Project that is likely to secure binding financial commitments from other funding sources which, together with HIF funds, total the budgeted amount necessary to develop and operate the Project. Gross Cash Expenditures. All expenses paid out by the Project, including: all payments of principal and interest (if any) and any other debt service on outstanding loans, all operating and maintenance expenses, and reasonable payments into capital and operating reserves for the Project. Gross Cash Receipts. All cash collections received by the Project from all sources, with the exception of documented contributions, donations and grant proceeds. HIF Legislation. Collectively, the HIF I Legislation, the HIF II Legislation, the HIF III Legislation, the HIF IV Legislation, the HIF V Legislation, the HIF VI Legislation, the HIF VII Legislation, and M.G.L. c. 121E or, where the context so requires, the specific legislation applicable, respectively, to HIF I, HIF II, HIF III, HIF IV, HIF V, HIF VI, HIF VII, and M.G.L. c. 121E loans or, as applicable, other financial assistance. HIF Program Guidelines. Guidelines issued by DHCD setting out, clarifying and further explaining 760 CMR 23.00 (and/or the prior regulations appearing at 760 CMR 40.00 [HIF I] and 760 CMR 52.00 [HIF II], as applicable), program policy and procedure. The HIF Program Guidelines shall apply to all HIF financing programs (subject to 760 CMR 23.01(6)). Housing Development Agencies. Any of the authorities through which DHCD is authorized to administer the HIF program pursuant to the HIF IV Legislation, the HIF V Legislation, or M.G.L. c. 121E. Housing in College Communities. Residential Housing intended to address the need for housing for Low-income Persons and Families and Extremely Low-income Persons and Families in communities that have experienced a particular shortage of such housing due to the demand for housing by students and faculty of institutions of higher learning; the housing may involve Eligible Projects undertaken jointly by municipalities or Housing Development Agencies and institutions of higher learning where a Non-profit Corporation or, if funded under M.G.L. c. 121E, a Local Housing Authority, has been designated to develop and manage the Project(s). Housing in Receivership. Residential Housing for which a receiver has been appointed by a court pursuant to M.G.L. c. 111, § 127I. Land Use Restriction. An agreement by the Developer (and, as required by DHCD, by the owner of the site on which the Eligible Project is located, if other than the Developer), running with the land and restricting a Project to use as an Alternative Form of Housing for Low-income Persons or Families and, as required under the applicable HIF Legislation, Very Low-income Persons or Families or Extremely Low-income Persons or Families. Such agreement, as further described in 760 CMR 23.03(1) and 760 CMR 23.04(2)(f), shall include such terms and conditions as are imposed under the applicable HIF Legislation and/or HIF Program Guidelines or are otherwise required by DHCD, and may also include provisions relating to the Purchase Option and/or First Refusal Option (as described in 760 CMR 23.04(5)), if applicable. Lease-to-purchase Housing. Residential Housing that may be purchased by a tenant of such housing pursuant to a lease-purchase agreement between the tenant and the owner; the housing must be purchased within 36 months of entering into the lease-purchase agreement, and the homebuyer must qualify as a Low-income Person or Family at the time of entering into the lease- purchase agreement. Limited Equity Cooperative Housing. A Residential Housing Development that is owned by a Limited Equity Cooperative Housing Corporation. Limited Equity Cooperative Housing Corporation. A corporation established in accordance with M.G.L. c. 157B or a corporation which has added an amendment to its articles to comply with M.G.L. c. 157B; the corporation must be organized and operated primarily for the benefit of low- and moderate-income persons, and its equity, after allowance for maximum transfer value of its stock, must be permanently dedicated to providing housing to persons of low- and moderate- income or to charitable purposes. Local Housing Authority (LHA). A local housing authority created pursuant to M.G.L. c. 121B, § 3, prior statute or special act. Low-income Person or Family. A single person or family whose adjusted income is less than or equal to 80% of the median gross income for the area in which the Project is located, adjusted for family size and region, as determined from time to time by the United States Department of Housing and Urban Development, or any successor department or agency thereto, pursuant to § 8 of the United States Housing Act of 1937. Municipally Sponsored Housing. An Eligible Project receiving financial assistance from the municipality in which the Project is located in a minimum amount as specified in the HIF Program Guidelines. HIF financial assistance for such housing may include matching funds, in a ratio to be determined by DHCD, associated with the costs of such a Project, provided that the amount of the HIF loan (or grant in the case of M.G.L. c. 121E) shall not exceed the percentage of Total Development Cost specified by the applicable HIF Legislation as set forth in 760 CMR 23.04(2). Mutual Housing. (a) a group of cooperative housing corporations which provide support services to their members, including: housing development assistance, property management assistance and training for cooperative boards; or (b) a Residential Housing Development, developed, owned and managed by a non-profit, tax-exempt mutual housing association in which current and future residents hold the majority membership. Non-profit Corporation. A corporation organized under M.G.L. c. 180 which may also be required to be a 501(c)(3) organization under the Internal Revenue Code at the time of Application or Loan closing. To qualify as a Non-profit Corporation for purposes of the or HIF program, no member, shareholder, officer or employee of the corporation or its board of directors can profit, in any way, from the HIF assistance or from the Project. The Non-profit Corporation must also demonstrate, to the satisfaction of DHCD, the capability of managing all of its responsibilities to the Project. Preservation of Housing. New capital financing for an Eligible Project that is already used for an Eligible Use. In this case, the Project can be funded through the HIF Legislation only if the Project involves: (a) a transfer of ownership to a Non-profit Corporation, or in the case of M.G.L. c. 121E a Local Housing Authority; (b) physical improvements to the real estate; and (c) improved forms of management and social services; (d) an Expiring Use Restriction Housing project; or (e) the preservation of an Alternative Form of Housing, as determined by DHCD. Residential Housing Development/Residential Housing. Property that is predominantly used for housing and is in compliance with applicable laws and ordinances. Single Room Occupancy Housing. A Residential Housing Development that contains single rooms to be leased to individuals, which is not a student dormitory, a religious order residence, or a private club, and which is subject to such other specific requirements as may be imposed by DHCD. Special Needs Housing. A Residential Housing Development that provides special design features or support services for residents with special needs. Special needs residents may include, but are not limited to: persons with AIDS/HIV, battered women, and consumers of the services of the Massachusetts Department of Mental Health or Department of Mental Retardation. Total Development Costs. Total hard and soft costs of developing an Eligible Project, including the costs to purchase, design, construct and finance the Project. Transitional Housing. A Residential Housing Development that provides shelter and social services to homeless persons or persons in need of a supportive housing environment. This type of housing has as its purpose transition of its residents to independent living within a reasonable period of time. Very Low-income Person or Family. A person or family whose adjusted income is less than or equal to 50% of the median gross income for the area in which the Project is located, adjusted for family size and region, as determined by the United States Department of Housing and Urban Development, or any successor department or agency thereto, pursuant to § 8 of the United States Housing Act of 1937.