Due Diligence Process

750 CMR 64.05 contains standards and procedures for the Owner's cooperation with the due diligence activities to be undertaken by a Designee as a potential Purchaser of Publicly-assisted Housing. (1) Due Diligence Materials. (a) The Owner shall make available to the Department and/or its Designee the documents listed in M.G.L. c. 40T, § 3(d), in accordance with the time period set forth in M.G.L. c. 40T, § 3(d). (b) The Owner and any agent or broker employed by or on behalf of the Owner shall cooperate in good faith with the Designee in promptly providing or facilitating the provision of full due diligence materials and inspections. (c) The Department may issue written guidelines that identify additional due diligence materials to be made available by the Owner. Collectively, the documents listed in M.G.L. c. 40T and any additional materials identified in the Department's guidelines are referred to as the “Due Diligence Materials”. The Owner shall promptly notify the Department and its Designee of any Due Diligence Materials that are not in its possession, and it shall use reasonable and diligent efforts to locate and obtain such Materials. (2) Property Inspections. The Owner shall, upon three business days’ written notice, permit Inspection of the property by the Department and/or the Designee and their agents, consultants, and representatives, subject to the terms and conditions of an access and confidentiality agreement in a form approved by the Department. (3) Breach of Due Diligence Requirements. If the Owner fails in a material way to comply with any provision of the due diligence requirements of M.G.L. c. 40T or 760 CMR 64.00 following three business days' written notice and opportunity to cure from the Department, such breach shall be considered grounds by the Department to extend the applicable time period(s) under M.G.L. c. 40T, to require the extension of the Termination date of an Affordability Restriction or the imposition of an Equivalent Affordability Restriction for an equivalent time period, to condition or deny issuance of a Certificate of Compliance, and/or issue a Notice of Noncompliance.