An Act relative to excess profits resulting from 40B developments

This bill amends Massachusetts law to penalize public agencies, limited dividend organizations, or nonprofits that fraudulently withhold excess profits from affordable housing developments. Specifically, if such an entity is convicted of this fraud, it will be banned from building any new projects under the 40B affordable housing program or the related 40R program for five years. The measure directly targets organizations involved in low-income housing development to ensure they comply with profit-sharing requirements. By adding this specific penalty, the legislation aims to enforce financial transparency without changing the core rules for how profits are calculated or distributed.