Will the trust’s activities (including potential borrowing or property purchase) have the potential to negatively affect the Town, the Towns financial stability, bond rating or borrowing capacity?

This question was forwarded to Town Counsel and his written opinion in part stated “On general, ‘trust principles’, the trust is a separate legal entity from the person or persons creating it.  Therefore, in a legal sense, an Affordable Housing Trust created by a Municipality under C. 44, section 55C of the Mass. General Laws is a separate legal entity from the town or city, which chooses to create it.”  Thus it was his opinion that the financial actions of the Trust would not impact the Town’s financial options.

 

Close window