Beacon Hill Update

Here’s a look at what Medford’s state legislators have been up to in the past few weeks. The following announcements were provided to InsideMedford.com from State Senator Pat Jehlen and State Representative Paul Donato.

Legislature Approves Bill Protecting Against Foreclosures and Mortgage Fraud

With home foreclosures continuing to rise in the Commonwealth in spite of the improving economy, the Senate and House today sent final consumer protection legislation to the Governor that protects both homeowners and tenants from mortgage fraud and arbitrary evictions.

This bill is the culmination of months of work on several separate bills. “I am happy to see this legislation finally passed,” Senator Jehlen said. “I think this legislation will go a long way toward protecting Massachusetts residents from foreclosure and eviction.”

The bill requires that tenants in foreclosed buildings can only be evicted for just cause. A lender cannot evict a tenant for failure to pay rent unless a written notice with proper contact information has been posted and delivered. It does not prohibit a lender from evicting tenants for valid reasons, such as using a unit for illegal purposes or not allowing the lender to enter the unit to make repairs.

Representative Carl Sciortino (D-Medford) said, “This legislation is a crucial step in providing support to our neighbors facing foreclosure. It is critical for the health of our communities to protect our residents against predatory lending practices and do everything we can to keep families in their homes.”

For homeowners, the legislation temporarily extends the 90-day right-to-cure period, enacted by the legislature in 2007, to 150 days and expands the content of the notice of right-to-cure that banks must send to homeowners. The 2007 law gave homeowners 90 days to come up with past due payments on their mortgage before the lender could require full payment of the unpaid balance. This was intended as a cooling off period for the lender and homeowner to work out a new payment plan to avoid foreclosure.
“This bill will allow more people to stay in their homes,” said Representative Donato (D-Medford). “The bill will also help prevent properties from being abandoned and becoming a blight on the community.”

The right-to-cure period can be reduced from 150 days to 90 days if the lender makes a good-faith effort to negotiate a commercially reasonable alternative to foreclosure.

These new provisions require at least one meeting or telephone conversation between the homeowner and the lender to discuss a commercially-reasonable alternative to foreclosure. The lender’s representative must have the authority to agree to the revised terms.

Further protecting homeowners, the legislation requires those who want to obtain a reverse mortgage on their home to meet with a counselor approved by the Executive Office of Elder Affairs.

In addition, the bill would criminalize residential mortgage fraud.

The bill also establishes a new local option property tax exemption that permits a charitable organization that acquires a foreclosed property, and plans to create low and moderate income affordable housing there, to be exempt from property taxes until it rents or leases that property, but not for more than seven years after purchase.

This bill now goes to the Governor for his signature.

House Passes Bill to Instate Silver Alert Program

Coordinates Approach to Find Missing Persons with Alzheimer’s or Other Forms of Dementia

State Representative Paul J. Donato (D-Medford, Malden) joined his colleagues in the Massachusetts House of Representatives in passing legislation to establish a Silver Alert program to assist in locating seniors with Alzheimer’s or other forms of dementia who have gone missing.

“With the establishment of the Silver Alert program, we hope to give the families of those with Alzheimer’s or other types of dementia peace of mind while facilitating an efficient, effective method for finding their loved ones,” House Speaker Robert A. DeLeo said.

“The Silver Alert will give comfort to families that are taking care, at home, of a loved one who suffers from Alzheimer’s disease or other form of dementia,” said Representative Alice Wolf, House Chair of the Joint Committee on Elder Affairs. “People with these diseases often wander away. The bill sets up a coordinated, community system by trained first responders – EMTs, police, firefighters – to find wanderers quickly and thus keep them from harm.”

“Families dealing with loved ones who have this debilitating disease can have some comfort in knowing that this program is in place should the need arise,” said Representative Donato.

The Silver Alert program would provide for a coordinated approach to locating an individual with dementia. The bill directs law enforcement and other key response resources to focus in a geographic area consistent with the missing person’s last know location.

The legislation requires training for law enforcement and key responders. This training will be incorporated into emergency personnel training that is currently in practice.

Some 120,000 people in Massachusetts have Alzheimer’s disease with the number expected to increase by 17 percent by the year 2025.