Not really complicated, just takes some effort and initiative from those in charge.
Reading emails involving funding for the new school shows that the selectmen can and did got to extraordinary lengths to make something happen, so why not do the same for some residents?
from the link posted by justsmartenough;
Deferred Payment Loans: Most programs place conditions on grants or offer them as
forgivable or “deferred-payment” loans (DPLs). A property lien in the amount of the DPL
is placed on the property for a specified number of years (15 year minimum.) However, a
DPL becomes a grant if it is not sold or transferred within a specified period of time and if
all other program requirements are met (e.g., rental agreement). If the lien conditions are
violated, the borrower (i.e., the property owner) is subject to specified penalties -- generally,
foreclosure on the loan amount. DPLs may take the form of interest subsidies or principle
reduction grants to leverage other funds, or they may provide the full amount of
rehabilitation costs up to a program’s established maximum limit. A property owner
receiving a DPL would not have to make any loan repayments and the full amount of the
loan would be forgiven if he/she still lived in the assisted property at the end of a specified
number of years. If the property was sold before the end of this specified lien period, then
the full amount or a portion of the amount would have to be repaid. This is the program
design most widely used in the Mass. CDBG Program.
How can assisted properties be protected from speculation? CDBG-assisted housing
rehabilitation programs must include in their design an anti-speculation / recapture /
forgiveness policy to protect against real estate speculation. (This is a required component of
the program application. Refer to Mass. CDF/ME Application Guidance, page 25 for
instructions.) Most communities impose a time limit in the form of a lien (15 year minimum is
required) on the property that restricts the sale or transfer of ownership. Full or partial funds are
recaptured (i.e., recovered) by the community if a property is sold or transferred before the
expiration of the lien. All contractual agreements executed between communities and
individual property owners must include anti-speculation and recapture provisions that are
triggered in the event of (a) sale or transfer of the assisted property, (b) noncompliance by the
property owner with the terms of the rental agreement, and (c) noncompliance with other
provisions of the contract.
a. Mass. CDBG recommends that the time limitations in a recapture policy be appropriate to
the level of investment of public funds, the financial condition of participating property
owners, and the nature of the rehabilitation work. Many municipalities waive the recapture
of funds if the transfer of property is from one family member to another (e.g., parent to
child or sibling to sibling) and the new occupant family (a) resides in the property, (b) is
income eligible, and (c) assumes the balance of the years remaining on the lien. However,
Mass. CDBG requires that assisted units be made affordable to low- and moderate-income
households for a minimum of fifteen (15) years.
b. The recapture policy must include a description of the community’s procedures for
compliance monitoring and the corrective action(s) that will be required of violators. Liens
and mortgages are two legal means employed by housing rehabilitation programs to enforce
and protect the terms of recapture policies. Mortgages are generally used with funding
mechanisms that require monthly payments by owner. In such instances, the banking
institution and/or the municipality assume responsibility for filing, tracking, and clearing the
mortgage. Consequently, the community must establish a system for filing, tracking, and
discharging the liens and for filing, tracking, and clearing the mortgages.
Perhaps justsmartenough can provide the link to the Town's policy on this issue?
The issue that was before the selectmen could have been dealt with in a way to aid the two people that were before them (BOS), if the selectmen wished to help.