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CITY OF BOSTON CODE OF ORDINANCES
THE CHARTER OF THE CITY OF BOSTON
CHAPTER I: GENERAL PROVISIONS
CHAPTER II: FORM OF GOVERNMENT
CHAPTER III: ACQUISITION AND DISPOSITION OF PROPERTY
CHAPTER IV: CONTRACTS
CHAPTER V: ADMINISTRATION
CHAPTER VI: GENERAL SERVICES
CHAPTER VII: ENVIRONMENTAL PROTECTION
CHAPTER VIII: DEVELOPMENT
CHAPTER IX: BUILDING REGULATIONS
CHAPTER X: HOUSING SERVICES
CHAPTER XI: PUBLIC SERVICES
CHAPTER XII: PUBLIC HEALTH AND WELFARE
CHAPTER XIII: NATURAL GAS
CHAPTER XIV: LICENSING AND CONSUMER BOARDS, COMMITTEES AND OFFICERS
CHAPTER XV: DIVISIONS OF THE MAYOR’S OFFICE
CHAPTER XVI: PROHIBITIONS, PENALTIES AND PERMITS
CHAPTER XVII: LICENSES AND REGULATIONS AFFECTING CERTAIN TRADES
CHAPTER XVIII: FEES AND CHARGES
CHAPTER XIX: SCHOOLS
CHAPTER XX: CHARITABLE INSTITUTIONS
CHAPTER XXI: MISCELLANEOUS PUBLIC BUILDINGS
CHAPTER XXII: SUFFOLK COUNTY
CHAPTER XXIII: TRASH AND REFUSE DISPOSAL
CHAPTER XXIV: BOSTON JOBS, LIVING WAGE AND PREVAILING WAGE ORDINANCE
PARALLEL REFERENCES
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6-7.4   Revocation of Designated Parking Space.
   Whenever the Transportation Department shall have designated a particular parking space as reserved for handicapped persons as a result of a request made by a qualified resident applicant residing nearby and two years have elapsed since designation, the person who filed the request shall be notified in writing that unless an affidavit of continued need (in a form to be provided by the Department) is filed within 60 days, the designation will be revoked. Where no such affidavit is timely filed, the designation shall be deemed revoked and marking signs removed forthwith.
(CBC 1985 6-7.4; Ord. 1996 c. 13)
6-8   MUNICIPAL DEPOSITORIES AND CONTRACTS FOR BANKING SERVICES.
6-8.1   Definitions.
   For the purpose of this Section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
   APPLICANT. Any person who applies for a mortgage loan, commercial loan, home equity, consumer, home improvement or student loan as defined in this Section, whether or not the loan is granted.
   BANKING SERVICES. Products and services provided by a financial institution to the city including, but not limited to, checking and deposit accounts, lockbox services, balance retrieval and online banking, electronic or direct deposit, electronic stop payment systems, credit or debit or wire transfer systems, ACH payments, credit or debit or purchase cards and direct banking services.
   BOSTON SMSA. The Standard Metropolitan Statistical Area of the Greater Boston Region as defined by the United States Bureau of Census.
   CENSUS TRACT. A standard statistical area as established by the United States Bureau of Census.
   COLLECTOR-TREASURER. The Collector- Treasurer of the city.
   COMMERCIAL LOAN. A loan that is secured by commercial property.
   COMMUNITY DEVELOPMENT LOAN. A loan that is secured for the purposes of constructing or rehabilitating commercial or residential property.
   COMMUNITY REINVESTMENT. Residential and mortgage lending services and also meet the definition of “community development” as defined in the Federal Community Reinvestment Act of 1977 regulations, being promulgated under 12 U.S.C. § 2901 and 12 C.F.R. pts. 25, 228 and 345.
   COMMUNITY REINVESTMENT SCORE. A financial institution’s award of points, on a scale of zero to 100 total points, pursuant to Subsection 6-8.7 as determined by the Municipal Banking and Community Reinvestment Commission.
   CONSUMER FINANCIAL PRODUCT. Any product sold by a financial institution to facilitate personal consumption and include, but are not limited to, checking accounts, credit and debit cards or other unsecured revolving accounts, online bill pay services or balance transfer services.
   CONSUMER LOAN. A loan which is secured by an individual or families to finance personal consumption.
   DISTRESSED PROPERTY STATUS. The type of property which would be listed on the Real Estate Multiple Listing Service as a “distressed property sale”, due to it being sale of a bank owned property or a short sale made subject to approval by the mortgage lender.
   ELIGIBLE FINANCIAL INSTITUTION. A financial institution that scores in the top 75% of the community reinvestment rankings, as described by Subsections 6-8.9(C)(1) and 6-8.9(C)(2), and may contract with the city for banking services and serve as a designated city depository.
   FINANCIAL INSTITUTION. Any commercial bank, savings bank, savings and loan association, credit union, cooperative bank, mutual bank, trust company or other entity which makes commercial, community development, consumer, home improvement, residential, small business, student loans or which is the subsidiary, parent, servicer, trustee or Agent of any of the types of entities listed in this Subsection.
   FINANCIAL INSTITUTION EMPLOYEE. Any person employed by a financial institution or its subsidiaries or other affiliated or related entities.
   HOME IMPROVEMENT OR REHABILITATION LOAN. A loan, the proceeds of which are to be used for the purpose of repairing, rehabilitating or remodeling an existing residential dwelling.
   INELIGIBLE FINANCIAL INSTITUTION. A financial institution that scores within the bottom 25% of the community reinvestment rankings, as described in Subsection 6-8.9(C)(3) and may not contract with the city for banking services or serve as a city depository.
   JUST CAUSE. As defined in M.G.L. Chapter 186A. It shall be applied to any occupants of such property, whether those occupants are the former owners of the property or tenants of the former owners.
   MORTGAGE LOAN and HOME EQUITY LOAN. A loan which is secured by residential property.
   PREFERRED FINANCIAL INSTITUTION. A financial institution that scores in the top 25% of the community reinvestment rankings, as described in Subsection 6-8.9(C)(1).
   REDLINING. The practice of systematically denying credit on the basis of the geographic location of the borrower or property to be borrowed against.
   RESIDENTIAL LOAN. A mortgage or home equity loan which is secured by residential property.
   SMALL BUSINESS LOAN. A loan or extension of credit to a new or established business with an annual gross profit totaling not more than $1,000,000.
   STUDENT LOAN. A loan which is secured for the purposes of financing or refinancing a student’s attendance at any degree-granting educational institution authorized by law to provide a program of education beyond the high school level, made by, or on behalf of, such an institution or a financial institution.
   WHISTLEBLOWER PROTECTIONS. Procedural safeguards established both by a financial institution and the Municipal Banking Commission that provide financial institution employees with a confidential, reprisal free mechanism for reporting actions involving city funds held in custody by a financial institution holding city funds that constitute fraud, abuse or waste.
(CBC 1985 6-8.1; Ord. 2013 c. 9)
6-8.2   Disclosure of Lending Information and Banking Practices.
   Any institution desiring a contract for banking services with the city or to become a city depository, as designated by the Collector-Treasurer in accordance with the City’s Linked Deposit Program, and for which disclosure is required by the Federal Home Mortgage Disclosure Act of 1975 (being Pub. Law No. 94-200, codified at 12 U.S.C. §§ 1801 et seq. and 461 et seq., “HMDA”), the Community Reinvestment Act of 1977 (being 12 U.S.C. §§ 2901 et seq., “CRA”) and the Dodd-Frank Wall Street Reform and Consumer Protection Act (being Pub. Law No. 111-203, see 12 U.S.C. §§ 5301 et seq., “Dodd-Frank”) or related laws, shall be required to annually disclose, on forms approved by the Collector-Treasurer, for the entire city, for each census tract within the city, for each census tract outside the city that is within the Boston SMSA and for Boston residents, the financial institution’s:
   (A)   Loan activity. The number of loans and total dollar amount, the median effective interest rate, the median down payment, the median amortization and the percentage of such applicants whose applications were denied for Boston residents, including, but not limited to, low and moderate income, minority and female applicants for the following types of loans:
      (1)   Residential lending information:
         (a)   Data shall be reported separately for property containing one to four dwelling units, five to eight dwelling units and more than eight dwelling units applied for and originated during the previous calendar year in each of the following categories:
            1.   Conventional mortgage loans;
            2.   Mortgage loans which are insured under Title II of the Housing Act of 1949, being 42 U.S.C. §§ 1471 et seq., or which are guaranteed under 38 U.S.C. Chapter 37 (FHA or FMHA loans) or 38 U.S.C. Chapter 20 (VA loans);
            3.   Mortgage loans which are insured or financed by the Massachusetts Housing Finance Agency (“MHFA”); and
            4.   Mortgage loans offered through the Mass Housing Partnership SoftSecond mortgage program or other comparable affordable mortgage products.
         (b)   The financial institution shall also include separate information and data on loans to households with incomes below 80% of area median income, to households with incomes between 80% and 120% of area median income and to demographics as reported under the Federal Home Mortgage Disclosure Act of 1975 (being Pub. Law No. 94-200, codified at 12 U.S.C. §§ 1801 et seq. and 461 et seq.
      (2)   Refinancing of home purchase loans. The financial institution shall also include separate information and data on loans to households with incomes below 80% of area median income, to households with incomes between 80% and 120% of area median income and to demographics as reported under the Federal Home Mortgage Disclosure Act;
      (3)   Home improvement loans or rehabilitation loans made on residential properties;
      (4)   Home equity loans;
      (5)   Multi-family loans;
      (6)   Loans to non-occupant owners of single family housing;
      (7)   Modifications of distressed loans and type of modification, including interest rate reductions, principal reduction or repayment plans in which the outstanding loan amount increases, and an indication of whether the modification was executed under the federal Home Affordable Modification Program (“HAMP”) or another federal program, Massachusetts’ Home Modification Loan Program (“HMLP”) or another commonwealth program, or the institution’s own modification program;
      (8)   Defaults and delinquencies on home loans, the number of resulting foreclosures, the number of eviction actions filed and the financial institution’s policies around foreclosure activities, including interactions with the occupants of the property and any actions taken to evict or otherwise displace them;
      (9)   (a)   The financial institution shall also provide information on the total number of foreclosed (REO) property in the city of which the financial institution, or its parent or subsidiary, is the owner, in addition to the number of such properties owned by an entity for which the financial institution is the servicer, trustee or Agent and the length of time each REO property has remained on the market.
         (b)   For each of the above categories, fixed rate loans shall be reported separately from adjustable rate loans. For residential loans and home equity loans, financial institutions shall disclose, as applicable: age and credit scores of applicants and borrowers; points and fees at origination; rate spread (the difference between the APR for the loan and the benchmark for all loans); terms of prepayment penalties; property value; actual or proposed term of any introductory period after which rate may change; presence or any contractual terms that would allow a borrower to make other than fully amortizing payments during the term of the loan; actual or proposed term of loan; mortgage channel through which application is made (e.g., retail, broker or other category).
      (10)   Small business lending information. Data should include resident owned business enterprises in the entire city and in each census tract. Loans to small businesses with revenues above $1,000,000 shall be reported separately from loans to small businesses with revenues under $1,000,000. The financial institution may use the data reporting procedures mandated by the Federal Community Reinvestment Act of 1977 (being 12 U.S.C. §§ 2901 et seq.) for reporting small business loans;
      (11)   Community development loans and investments. For each loan and investment, the institution shall indicate if the loan or investment was for affordable housing, small business development, community facilities and other such categories requested by the Collector-Treasurer or Municipal Banking Commission;
      (12)   Consumer loans and other lines of credit. Data shall including the minimum, median and maximum nominal and effective interest rates applied; the number and dollar amount of all credit card loans charged above an 18% rate of interest;
      (13)   Student loans;
      (14)   For consumer loans, home improvement loans or student loans, financial institutions shall also disclose information which includes the rate spread and the terms of any prepayment penalties; and
      (15)   Any additional information requested by the Collector-Treasurer.
   (B)   Participation and services.
      (1)   Branches and deposits. The number of branches, ATMs and number and dollar amount of deposits for the entire city and for each census tract; deposit information, including, but not limited to, the number of savings and checking accounts and the total aggregate dollar balances in savings and checking accounts; the percentage of accounts held by city residents assessed with overdraft fees; and the value of such fees;
      (2)   Workforce composition. Compliance information with the Boston Jobs and Living Wage Ordinance, Chapter 24;
      (3)   The most recent annual report or SEC 10-K report with quarterly financial updates;
      (4)   The most recent “Community Reinvestment Act Evaluation” issued by the commonwealth and federal regulatory Agency authorized to conduct such evaluations; and
      (5)   A copy of the financial institution’s branch closing policy. It shall be the policy of the city to require that financial institutions give written notice to the Mayor, Boston City Council and Collector-Treasurer 120 days prior to the closing of any branch of such financial institution located within the city. The notice shall identify the location of the branch, the date on which the branch is expected to close and the reason for the closing of the branch.
(CBC 1985 6-8.2; Ord. 2013 c. 9)
6-8.2A   Financial Strength.
   Any institution desiring a contract for banking services or designation as a city depository with the city shall be required by the Collector-Treasurer in the process for request for proposals to provide evidence of its financial strength. At minimum, the financial institution shall provide an audited balance sheet and income statement for its two most recent fiscal years. If the financial institution is a subsidiary of a larger organization, this information should be included for both the parent and offering entities.
(CBC 1985 6-8.2A; Ord. 2013 c. 9)
6-8.3   Pledge.
   Beginning in January of 2015, any institution desiring a contract for banking services with the city shall be required in the process for request for proposals, or prior to the deposit of any city monies in a financial institution, the Collector-Treasurer shall obtain the following pledges from an authorized official of the institution:
   (A)   Community reinvestment. To develop lending and financing opportunities and make best efforts to undertake a defined lending program in support of residential and commercial development in Boston’s neighborhoods, to cooperate and support non-profit neighborhood development organizations through financing programs and investments, to offer banking products and services that would work with qualified borrowers who become unemployed to be eligible for loan modifications to avoid foreclosure and cooperate and support non-profit neighborhood development organizations in their purchase of occupied properties in foreclosure or owned or serviced by the financial institution;
   (B)   Just cause evictions. To refrain from taking any steps to evict from foreclosed or otherwise distressed residential property in the city owned or serviced by the institution, other than for “just cause” as that term is defined in Subsection 6-8.1, any occupants of such property, whether those occupants are the former owners of the property or tenants of the former owners;
   (C)   Non-retaliatory practices. To establish whistle blowing mechanisms that protect employees if they bring forth any evidence of acts that they reasonably believe constitute a fraud, abuse, misuse or waste of city funds on deposit by a financial institution selected under this Section, and to provide information obtained through these procedures to the Collector-Treasurer;
   (D)   Usury laws. To make best efforts to abide by commonwealth usury laws, M.G.L. Chapter 140, Section 114B, which sets a maximum interest rate on consumer credit cards at 18%;
   (E)   Predatory lending. Not to engage in predatory lending activities, including marketing consumer financial products, consumer loans, commercial loans and residential loans to residents of the city that cannot reasonably repay those loans without undue hardship;
   (F)   Discrimination. Not to discriminate against any individual or group seeking a commercial, community development, consumer, home improvement, residential, small business or student loan in the fixing of the amount, interest rate, duration, down payment, modification or other terms or conditions of the loan, because of race, color, religion, sex, disability or handicap, gender identity or expression or national origin of the individual or group or of any individual or group associated with, him or her in connection with the loan or other financial assistance for the purposes of the loan or other financial assistance, or the dwelling or dwellings, if any, in relation to which the loan or other financial assistance is to be made or given; or
   (G)   Redlining. Not to engage in redlining activities against any city neighborhood, including arbitrarily rejecting mortgage loans for residential properties within a specific geographic area in the city because of the location or age of the property; and to make and affirmatively market loans available to low and moderate income individuals in all the neighborhoods of the city within the limits of legal restrictions and prudent financial practices.
(CBC 1985 6-8.3; Ord. 2013 C. 9)
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