A communication transmitted from Yi-An Huang, City Manager, relative to Awaiting Report #23-39, regarding the legal opinion for issuing bonds for affordable housing

Nancy E. Glowa Assistant City Solicitors City Solicitor Paul S. Kawai Sean M. McKendry Diane O. Pires Megan B. Bayer COR Deputy City Solicitor Kate M. Kleimola Sydney M. Wright Elliott J. Veloso Evan C. Bjorklund First Assistant City Solicitor Franziskus Lepionka Andrea Carrillo-Rhoads CITY OF CAMBRIDGE Public Records Access Officer Office of the City Solicitor 795 Massachusetts Avenue Seah Levy Cambridge, Massachusetts 02139 June 26, 2023 Yi-An Huang City Manager City Hall Cambridge, MA 02139 Re: Awaiting Report No. 21-31; Order No. O-8 of 5/22/23 Re: Request that the City Manager work with the Law Department to provide a legal opinion on whether the City could fund affordable housing construction through a bond issue Dear Mr. Huang: This is in response to Awaiting Report No. 21-31; Order No. O-8 of 5/22/23, which requests that the City Manager work with the Law Department to develop a legal opinion on whether the City of Cambridge ("City") could fund affordable housing construction through a bond issue. We have asked the City's bond counsel at Locke, Lord LLP (the "Firm") to provide a legal opinion on the question asked by the Council in this order. The Firm opined as follows: 1. In Massachusetts, cities and towns have specific authority to issue bonds for the purpose of affordable housing under the two Massachusetts General Law statutes shown below. There is no general authority to borrow for such purpose under Chapter 44. • Chapter 44B Community Preservation • Chapter 121B Housing and Urban Development 2. As a threshold matter, there is settled Massachusetts case law establishing rules of statutory construction, or analysis governing the interpretation of statutory authority. The general rule is that specific statutory authority controls over general statutory authority. For example, in Commonwealth v. Houston, 430 Mass. 616, 722 N.E.2d. 942 (2000): .... However, to the extent a conflict between the two statutes exists, "the more specific statute controls over the more general one." See 2B Singer, Sutherland Statutory Construction § 51.02 (5th ed. 1992)." If the City were to issue bonds for the purpose of affordable housing pursuant to the Community Preservation Act ("CPA"), any projects financed by the proceeds of such bonds would be subject to certain limitations contained in the CPA, Chapter 44B of the Massachusetts General Laws. For instance, in Chapter 44B, there are restrictions with respect to the percentage Telephone [phone removed] Facsimile [phone removed] T1Y/TTD [phone removed]

of funds to be spent on different initiatives, and the use of funds may be subject to the recommendations and directives of the City's Community Preservation Act Committee. While Chapter 121B of the Massachusetts General Laws provides authority more broadly to borrow for the purpose of affordable housing, that statute provides authority only for a housing or redevelopment authority to borrow for the purpose of affordable housing and is not directly available to the City. Therefore, given that there is no general statutory authority to borrow for the purpose of affordable housing, if the City wishes to borrow for such purpose and does not want to do so under the specific statutory authority available under Chapter 44B, the City would be required to seek special legislation. Very Truly Yours, XXX Nancy E. Glowa City Solicitor 2