HOUSE PASSES LEGISLATION TO RESOLVE TIDELANDS RULING

Bill will maintain exemption for landlocked tidelands and create public benefit review

Boston – Representative Barbara L’Italien (D-Andover) today announced that the House of Representatives overwhelmingly passed legislation to ensure a new, public-driven review process for large-scale projects being built on the Commonwealth’s many tidelands.

The bill resolves a ruling by the state Supreme Judicial Court that found the Department of Environmental Protection had improperly exempted landlocked tidelands from waterfront licensing. The legislation is the result of a conference committee report developed over a series of months by members of the House of Representatives and the Senate.

The case began when a neighborhood group brought suit against developers of the North Point project in East Cambridge. The SJC issued a stay to give the Legislature the opportunity to resolve the issue. The conference committee resolved their remaining differences last week, prompting the action in the House and expected vote next week in the Senate.

“The public will benefit from provisions of the bill that give them greater input into the development process and gives assurance to homeowners that they will not be subjected to rigorous licensing procedures,” said Representative L’Italien.

“I am very pleased that we have been able to reach a successful resolution between the House and Senate. This bill offers greater protection to the public with regard to public benefits that a developer must give to the community in exchange for building on tidelands. It also offers greater protection to real estate developers and investors who have relied on this exemption for the past seventeen years,” said Representative Frank Smizik (D-Brookline), who served as the House Chair of the conference committee. “This bill protects the public trust interests associated with tidelands without requiring Chapter 91 licensing.”

The legislation validates the regulatory exemption created by the Department of Environmental Protection in 1990. It grandfathers all projects built since that time and ensures that future projects on landlocked tidelands will also have the exemption.

Instead of licensing, tidelands projects must now go through an enhanced review under the Massachusetts Environmental Policy Act (MEPA) and a public benefit review by the Secretary of Energy and Environmental Affairs. The bill further amends the MEPA act to include groundwater among the environmental issues that the Secretary must consider before passing on a project.

HOUSE PASSES BILL CREATING COMMONWEALTH CORPS

Will help promote public service and community engagement

BOSTON – Representative Barbara L’Italien (D-Andover) announced today that the House of Representatives passed Governor Deval Patrick’s legislation to establish the Commonwealth Corps, a statewide volunteer and service organization aimed at encouraging residents of Massachusetts to lend their time and service to communities in need.

“This legislation stands to foster the values of volunteerism and encourage individuals to give back to their communities. This is not just a bill to promote civil service but to improve the quality of life and community in Massachusetts,” said Representative L’Italien.

“The House voted to promote public service and provide aid to the many deserving communities of the Commonwealth. The Commonwealth Corps will serve to strengthen our neighborhoods and renew a commitment to volunteerism in our state,” said Speaker Salvatore F. DiMasi.

“Civic engagement is fundamental to the well-being of our communities,” Governor Patrick said. “By seeing our stake in each other, we become a stronger Commonwealth. Thanks to the help of our partners in the House and Senate, the Commonwealth Corps will soon be a reality. I want to particularly thank Speaker DiMasi and Chairman DeLeo for their efforts in moving this bill forward. Through mentoring, staffing soup kitchens and shelters, cleaning up parks and beaches, we can help transform communities and inspire others to take action to promote the common good.”

The Commonwealth Corps will consist of a broad network of volunteers. Individuals 18 years or older, from all educational and career backgrounds are encouraged to volunteer part-time or full-time for the Corps. Members will devote no less than one year to serving a non-profit organization, civic program, or public agency, supplying services to individuals or areas in immediate need.

The legislation emphasizes the volunteerism of college students by creating a Commonwealth Student Corps pilot program at up to five public colleges or universities. Students will be encouraged to reinvest in their communities through service relevant to their field of study.

The program is envisioned as a private-public partnership with involvement from various entities such as public colleges and universities, private businesses, community groups, foundations, public agencies and individuals. Commonwealth Corps will be supported by a $3 million appropriation approved by the Legislature in the Fiscal Year 2008 budget.

Representative Holds November Office Hours

State Representative Barbara L’Italien announces that she will be holding constituent office hours on the following dates:

Andover – Friday, November 2nd from 10:00-11:00 at the Senior Center.
Boxford – Monday, November 5th from 10:00-11:00 at Town Hall in the Glass Room.
Georgetown – Monday, November 5th from 11:30-12:30 at Town Hall in the 2nd Floor Conference Room.
Haverhill – Friday, November 9th from 10:00-11:00 at City Hall in Room 4.
Methuen – Friday, November 9th from 11:30-12:30 at Nevins Library in the Trustees Room.
North Andover – Friday, November 2nd from 11:30-12:30 at the Senior Center.

Office hours may also be made by appointment by calling (617) 722-2080. L’Italien represents the 18th Essex District which includes precincts 1, 7 & 8 in Andover, precinct 2 in Boxford, precinct 2 in Georgetown, ward 2, precincts 1 & 2; ward 5, precinct 2; and ward 7 precinct 2 in Haverhill, precinct 7 in Methuen and precincts 7 & 8 in North Andover. All are welcome to attend.

House Brings Relief to Homeowners Facing Mortgage Foreclosure

Legislation Offers 90-day Right to Cure, Licenses Mortgage Lenders and Creates Incentives for Lenders to Help Borrowers on the Cusp of Foreclosure

BOSTON – Representative Barbara L’Italien (D-Andover) today announced that the House of Representatives passed bold new legislation to help stem the rising tide of mortgage foreclosures by encouraging banks to help borrowers, providing a new three-month window to cure defaults and mandating tough new licensing standards for mortgage loan originators.

The new legislation comes as foreclosure rates continue to rise nationwide and in Massachusetts, causing thousands of families to lose their homes.

In Massachusetts, the foreclosure rate is up 76 percent in the past year, with 1,000 foreclosures in Boston in the past six months. The wave of foreclosures is not expected to crest until 2008, when many variable-rate mortgages readjust.

“As mortgage foreclosures are sweeping across the country, the House acted to provide relief to residents of the Commonwealth who are confronting the effects of foreclosure, and to prevent future borrowers from facing foreclosure. This legislation is critical to the prosperity of so many communities in Massachusetts and to the economy of our state,” said Representative L’Italien.

“The problem of mortgage foreclosures is only going to worsen so acting now with bold measures is critically important,” said House Speaker Salvatore F. DiMasi. “In passing this legislation, the House of Representatives voted to protect future home-buyers from predatory lending and bring meaningful help to those facing foreclosure.”

“While we clearly had some unscrupulous actors working in the mortgage industry, the real problem was that homebuyers were not financially astute to see through the double talk,” said Representative Ronald Mariano (D-Quincy), chairman of the Joint Committee on Financial Services and sponsor of the bill. “This legislation takes an important step to help level the playing field and give consumers the financial information they need to make educated decisions.”

Under this legislation, homeowners would be protected from foreclosure by the 90 day right-to-cure provision, which would require lenders to give homeowners 90 days to repay the interest and payment balance accumulated, before starting foreclosure proceedings.

If the borrower successfully completes this payment, their mortgage would be reinstated without penalty or foreclosure. This clause insures that consumers are not saddled with the weight of enormous legal fees associated with a foreclosure filing for simply falling behind on payments for a short period.

This bill will also encourage mortgage lenders to work with borrowers to avoid foreclosures in the coming months and years. Under this legislation, mortgage lenders will be motivated to shift adjustable rate mortgages to fixed rates. Borrowers can request to extend the length of their loan or increase their interest rate to achieve a fixed rate if they pay lenders a 1 percent fee on the cost of their mortgage. This one-time fee would enable mortgage holders to secure a fixed rate and encourage lenders to provide this security to homeowners.

Hoping to guard against future problems, the bill would require licensure of 20,000 loan originators with an annual license fee of $750, allocating $3 million to employ regulators under the Division of Banking to more aggressively regulate mortgage lending practices across the Commonwealth.

The bill also mandates that the Division of Banks keep a record of the mortgage practices of each loan originator in Massachusetts. The DOB will evaluate this information and rate lenders performance in the market. Poor performance may result in loss of license. By giving the commissioner the authority to hold these lenders accountable, questionable lending practices will be sharply curtailed.

Unique to this bill is the creation of counseling requirements for first-time homebuyers entering into subprime loans to insure they fully understand the financial commitment of their home loan.

The bill also:
• Adds reporting requirements for non-bank lenders of more than 50 loans.
• Protects renters as tenants-at-will, post-foreclosure.
• Creates a pilot program for impacted communities provides $2 million for foreclosure and mortgage counseling centers.