MA H3040

Creates a new Chapter 80B establishing a voluntary Property Assessed Clean Energy (PACE)-style financing program allowing municipalities to finance qualifying improvements on residential properties (4 or fewer units) through betterment assessments collected with property taxes

Qualifying improvements include sewerage system upgrades, roof repairs and wind-resistant improvements, flood mitigation measures, energy-efficient windows/doors/HVAC/insulation/water heaters, permanent generators, renewable energy systems (solar, geothermal, wind), EV charging equipment, and water conservation measures

Limits betterment assessments to 20% of property fair market value, with annual payments capped at 10% of household income; financing terms cannot exceed 30 years or the useful life of improvements, with a minimum project cost of $5,000

Requires extensive consumer protections including mandatory written disclosures, recorded telephone confirmation calls, 3-day cancellation period, 5-day advance notice to mortgage holders, prohibition on negative amortization and balloon payments, and restrictions on contractor marketing practices

Establishes lien priority for betterment assessments (subordinate only to municipal property taxes), contractor registration requirements, third-party administrator oversight, and mandatory annual reporting by program administrators