Cal. Civ. Code § 8
Regulatory agreements
Operative Text
Section 8. A purchase by the department or by its designee pursuant to this chapter shall be subject to a regulatory agreement. A regulatory agreement shall not contain any terms that would preclude an owner or buyer from participating in, or diminishing the benefits that an owner would otherwise receive by participating in the United States Department of Housing and Urban Development's Mark Up to Market Program.
Under Mass. Gen. Laws c. 40T § 8, any purchase made by the department or its designee under Chapter 40T must be accompanied by a regulatory agreement governing the property. Importantly, that regulatory agreement is prohibited from including terms that would block an owner or buyer from joining HUD's Mark Up to Market Program or that would reduce the financial benefits an owner would otherwise gain from participating in it. The provision effectively sets a floor on what a regulatory agreement may restrict, carving out federal affordability incentive programs from its reach.
Plain English — not legal advice.
Property owners and buyers involved in a Chapter 40T transaction under Mass. Gen. Laws c. 40T § 8 should be aware that any regulatory agreement attached to such a purchase cannot lawfully cut off access to HUD's Mark Up to Market Program. Compliant operators generally review the terms of any proposed regulatory agreement to confirm that no clause limits their ability to participate in or receive the full benefits of that federal program. Keeping documentation of the regulatory agreement's terms and any correspondence with the department about HUD program participation is a practice commonly associated with maintaining compliance.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Mass. Gen. Laws c. 40T § 8 is relevant to tenants because regulatory agreements tied to Chapter 40T purchases are part of the framework that governs affordability obligations at a property. If a property is subject to such a purchase, tenants may have an interest in understanding whether the associated regulatory agreement is consistent with the requirements of this provision, including its protections around HUD program participation. Tenant-rights organizations and local rent boards can be useful resources for learning how regulatory agreements under c. 40T § 8 may affect housing conditions or affordability protections at a specific property.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.