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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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6-8.4   Statement of Community Investment Goals.
   Beginning January of 2015, any institution desiring a contract for banking services with the city or designation as a city depository shall submit annually to the Mayor, Boston City Council and Collector-Treasurer a plan and statement of community reinvestment goals. The plan shall describe goals in terms of loans, investments and services. The statement shall describe the financial institution’s current and proposed policies and initiatives to address the credit needs of the city’s residents and businesses, including, but not limited to low and moderate income, minority and female residents, in each of the following categories:
   (A)   Home mortgage and home improvement loans;
   (B)   Affordable home mortgage loans, including commitments to the commonwealth’s Housing Partnership SoftSecond program;
   (C)   Mortgage loans to non-occupant borrowers for small rental properties;
   (D)   Commercial and small business loans for small business enterprises and minority women business enterprises;
   (E)   Participation in city-sponsored neighborhood development programs and consortiums;
   (F)   Equitable contributions to community based non-profit organizations in the city;
   (G)   Full service banking in city neighborhoods;
   (H)   Products and services, including programs for loan modifications, principal reductions for borrowers and foreclosure prevention programs;
   (I)   Goals established for production and service levels for demographic targets as described in the first paragraph of Subsection 6-8.2;
   (J)    Reasonable account fees and maximum and minimum interest rates; and
   (K)   The statement shall also contain a description of and declaration that the financial institution has or shall pursue:
      (1)   A program that allows borrowers who become unemployed to qualify for loan modifications based on unemployment insurance and forbearance for six months to one year;
      (2)   Programs that allow borrowers whose personal financial circumstances change during the life of a loan, or for other reasons are at risk of defaulting on their loans, to qualify for loan modifications in order to avoid default and otherwise continue their relationship with the financial institution;
      (3)   A policy that allows an occupant to remain in the property after foreclosure at the same rental or for a reasonable use and occupancy throughout the period of time that the property is owned by the institution, its parent or subsidiary, or owned by an entity for which the institution is the servicer, trustee or Agent; and
      (4)   Programs that allow local non-profit organizations to purchase occupied one four-unit residential properties, through short sale or post foreclosure bid, at fair market value reflecting the distressed status of the property.
(CBC 1985 6-8.4; Ord. 2013 c. 9)
6-8.5   Failure to Provide Information.
   If any financial institution refuses or fails to provide any of the information described in Subsections 6-8.2 through 6-8.4, inclusive, the Collector-Treasurer shall report the refusal or failure to the Mayor and the City Council. If such institution has previously been designated by the Collector-Treasurer as an eligible financial institution, the City may, upon recommendation of the Mayor and City Council, withdraw such designation. The Collector-Treasurer shall also maintain a list of all financial institutions that refuse or fail to provide information and that list shall be a public record.
(CBC 1985 6-8.5; Ord. 2013 c. 9)
6-8.6   Municipal Banking and Community Reinvestment Commission.
   There shall be, in the city, a Commission known as the Municipal Banking and Community Reinvestment Commission for the purposes of analyzing data and information submitted to the Collector-Treasurer by financial institutions wishing to accept city deposits and contracts for banking services.
   (A)   The Commission shall consist of six members appointed by the Mayor, one member appointed by the Boston City Council President and three ex officio members. The Commission shall consist of the following persons:
      (1)   The Collector-Treasurer of the city ex officio or his or her designee;
      (2)   Two Boston City Council members ex officio appointed by the Boston City Council President and approved by the City Council;
      (3)   One individual from an organization that seeks to address community reinvestment needs;
      (4)   One individual from a nonprofit organization which seeks to address the housing needs in the city;
      (5)   One individual residing in the neighborhoods of the city most affected by redlining activities or underserved by traditional financial institutions;
      (6)   One individual representing a public or quasi-public Agency that has experience in providing loans in city neighborhoods;
      (7)   One individual representing the business community; provided that if an appointed individual is an employee of a financial institution then that institution is disqualified from contracting with the city for banking services or designation as a city depository;
      (8)   One individual representing a labor organization or union; and
      (9)   One interested member of the public appointed by the Boston City Council President and approved by the City Council.
   (B)   The term for each member shall be three years; provided, however, that of the members first appointed to the Commission, two shall serve for two years and two shall serve for one year. Thereafter, the Mayor or, if applicable, the Boston City Council President with approval by the Boston City Council shall appoint each successor to a term of three years. Any vacancy occurring otherwise than by expiration of term shall be filled by an appointment of the Mayor or, if applicable, the Boston City Council President with approval by the Boston City Council for the unexpired term. The Chair shall be elected by the members of the Commission from among the non-ex officio members of the Commission.
   (C)   The Commission shall meet at least twice annually.
   (D)   All members of the Commission shall be residents of the city at the time of their appointment and throughout their tenure. The members may not otherwise be employees of the city or on its payroll, but shall be special municipal employees for the purposes of M.G.L. Chapter 268A. The members shall serve without compensation; provided, however, that each member may be reimbursed by the Commission for all expenses reasonably incurred by them in the performance of their duties.
   (E)   The Commission shall submit an annual report to the Mayor and the Boston City Council evaluating financial institutions that seek contracts for banking services with the city, or that seek to be designated as city depositories, and recommend to the Collector-Treasurer those institutions whose performances best reflect the city’s goal of community reinvestment. The report shall contain a description of the scoring and ranking system and the criteria and methodology by which points in each category, pursuant to Subsection 6-8.7, are awarded to or deducted from a financial institution.
   (F)   In anticipation of this annual report, the Commission shall hold a hearing for public testimony and receive written comments tor 30 days prior to the hearing. At the hearing, the public may testify concerning the efforts and extent to which the deposit banks are meeting the banking needs of the city’s low and moderate income individuals as well as comment on any data collected and posted online pursuant to Subsection 6-8.8. A summary of comments collected and any role played by such comments in the annual report shall be included in the annual report.
   (G)   The Commission shall be authorized to receive information from whistleblowers regarding fraud, abuse, waste or misuse of city funds by a financial institution holding such funds, and to ensure that no reprisal is taken against any such employee. The Commission shall establish whistle blowing procedures to further the purposes of this Subsection.
   (H)   The Commission shall be authorized to investigate the accuracy of any information it receives pursuant to any whistleblower procedures, and to make its findings public within 14 days of determining that city funds are being subject to fraud, waste, abuse or misuse by the financial institution.
(CBC 1985 6-8.6; Ord. 2013 c. 9)
6-8.7   Evaluation of Data; Community Reinvestment Performance.
   (A)   Consistent with Subsection 6-8.6(E), the Commission’s report and recommendations shall be based on review of the information submitted required by Subsections 6-3.2 through 6-8.4, inclusive.
   (B)   The Commission shall devise a scoring and ranking system that will evaluate the lending and banking practices of each financial institution that desires a contract for banking services with the city or wishes to begin or maintain a business relationship with the city as a city depository. Each such financial institution shall be ranked against its peers and be scored on a scale of zero to 100 total points, which shall then be known as the financial institution’s Community Reinvestment Score.
      (1)   Each financial institution will be evaluated in five categories, each earning 20 points towards its total point score, which shall include the following:
         (a)   Residential and mortgage lending performance, which shall be determined utilizing information submitted pursuant to Subsection 6-8.2(A)(l) through (9) and (15);
         (b)   Small business lending performance, which shall be determined utilizing information submitted pursuant Subsection 6-8.2(A)(10) and (15);
         (c)   Community reinvestment performance, which shall be determined utilizing information submitted pursuant to Subsections 6-8.2(A)(11) and (15);
         (d)   Personal lending performance, which shall be determined utilizing information submitted pursuant to Subsection 6-8.2(A)(12), (13) and (15), and Subsection 6-8.2(B)(4) and (5); and
         (e)   Boston resident lending and hiring performance, which shall be determined utilizing information submitted pursuant to Subsection 6-8.2 as a whole, Subsection 6-8.2(B)(2) specifically and Subsection 6-8.2(A)(15).
      (2)   Each financial institution may be awarded additional points for the following:
         (a)   Compliance with commonwealth usury laws, M.G.L. Chapter 140, Section 114B;
         (b)   Confirmation that no steps were taken in the prior year to evict from residential property in the city obtained via foreclosure, other than for “just cause” as that term is defined in M.G.L. Chapter 186A, any occupants of such property, whether those occupants are the former owners of the property or tenants of the former owners; and
         (c)   Other factors as may be determined by the Commission.
      (3)   Each financial institution may be deducted points for the following:
         (a)   Unreasonable percentage of default in any of the five categories identified in division (A) above;
         (b)   Excessive charge of overdraft fees, as determined by the Commission;
         (c)   Use of unfair marketing practices targeted at financially vulnerable populations, as determined by the Commission;
         (d)   Unfair discrimination or retaliation against employees who bring forth evidence of acts that they reasonably believe constitute a fraud, abuse, misuse or waste of city funds on deposit by a financial institution contracted with for banking services with the city or designated as a city depository under this Section;
         (e)   Eviction from foreclosed or otherwise distressed residential property in the city of which the institution, or its parent or subsidiary, is the owner, or such property owned by an entity for which the institution is the servicer, trustee or Agent other than for “just cause”, any occupants of such property, whether those occupants are the former owners of the property or tenants of the former owners; and
         (f)   Other factors as may be determined by the Commission.
   (C)   Each financial institution’s rank and score shall be disclosed publicly pursuant to Subsection 6-8.8.
(CBC 1985 6-8.7; Ord. 2013 c. 9)
6-8.8   Public Disclosure.
   The disclosures made by a financial institution pursuant to Subsections 6-8.2 through 6-8.4 shall be posted on the city’s website for public viewing within 30 days of submission to the Collector-Treasurer and shall be available for public inspection and copying.
(CBC 1985 6-8.8; Ord. 2013 c. 9)
6-8.9   Eligibility and Bid Preference.
   (A)   The Collector-Treasurer shall include in each of the city’s request for proposals for banking services a provision that describes additional bid preference, consistent with commonwealth and federal law, for those financial institutions that maintain the best performance scores, as described in this Section.
   (B)   The Collector-Treasurer shall describe, within the city’s request for proposals, banking services for which the city seeks to utilize local banks and financial institutions for account services and shall make best efforts to reach out to eligible local banks and financial institutions, as described in M.G.L. Chapter 44, Section 55, who may submit proposals for banking services.
   (C)   Upon making such evaluation and ranking, the Collector-Treasurer may:
      (1)   Maintain or increase the value of city banking services contracts or city deposits held by a preferred financial institution, which is an eligible financial institution that scores in the top 25% of local reinvestment performance;
      (2)   Maintain or decrease the value of city banking services contracts or city deposits held by an eligible financial institution that scores between the twenty-fifth and seventy-fifth percentiles of local reinvestment performance, not inclusive of the classifications described in division (C)(1) above; provided that the Collector Treasurer may increase the level of city banking services contracts or city deposits held by an eligible financial institution that scores between the twenty-fifth and seventy-fifth percentiles of local reinvestment performance when it has been determined by the Collector-Treasurer that preferred financial institutions’ capacities to maintain city deposits are at their maximum;
      (3)   Terminate city banking services contracts or city deposits from an ineligible financial institution, which is a financial institution that scores in the bottom 25% of local reinvestment performance;
      (4)   Commence and negotiate business relationships with a financial institution that does not presently do any banking business with the city; provided that the financial institution scores within the top 75% of local reinvestment performance;
      (5)   Enter into negotiations with a financial institution aimed at promoting institutional programs and behavior that are consistent with the public policy goals heretofore stated; and
      (6)   Take other such steps, consistent with sound fiscal practice and applicable law, as may be necessary or desirable.
   (D)   No contract for banking services shall be awarded to and no city deposits shall be made in a financial institution that has exhibited a pattern of discriminatory or other illegal credit practices or has committed past criminal or civil violations that have resulted in significant harm to the city’s financial interests.
   (E)   The Collector-Treasurer shall submit the names of all eligible or ineligible financial institutions to the Mayor and to the Boston City Council at the time of their designation by the Collector-Treasurer. The Mayor, with the majority vote of the City Council, shall have 30 days from the date of submission of the names by the Collector-Treasurer to approve the designation of each financial institution as an eligible or ineligible financial institution.
   (F)   A financial institution that fails to disclose the required information pursuant to Sections 6-8.2 and 6-8.4 or scores in the bottom 25% of local reinvestment performance shall not be eligible to receive city deposits or conduct any other banking transaction with the city until such financial institution submits the required forms and has been reviewed by the Boston City Council and approved by the Mayor.
(CBC 1985 6-8.9; Ord. 2013 c. 9)
6-8.10   Severability Clause.
   Each of the provisions and Subsections of this Section are severable. If any of its provisions, Sections or Subsections shall be held unconstitutional or otherwise invalid by any court of competent jurisdiction, the decisions of such court shall not affect or impair any of the remaining provisions, Sections or Subsections.
(CBC 1985 6-8.10; Ord. 2013 c. 9)
6-9   DEPARTMENTAL REVOLVING FUNDS.
6-9.1   Purpose.
   This Section establishes and authorizes revolving funds for use by City Departments, Boards, Committees, Agencies or Officers in connection with the operation of programs or activities that generate fees, charges or other receipts to support all or some of the expenses of those programs or activities. These revolving funds are established under and governed by M.G.L. Chapter 44, Section 53E½.
(CBC 1985 6-9.1; Ord. 2017 c. 2)
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