Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. The town of Provincetown may establish a separate fund to be known as the Affordable Housing Trust Fund for the purpose of creating or preserving affordable housing by: (a) the town of Provincetown or the Provincetown Housing Authority; (b) a housing trust or community development corporation created under the laws of the commonwealth; or (c) an applicant for affordable housing program funds to the United States Department of Housing and Urban Development, the Massachusetts department of housing and community development, or the Barnstable county home consortium subject to the subsequent approval of funding by that agency. Expenditures from the Affordable Housing Trust Fund shall be authorized by a majority vote of said housing authority, in consultation with the Provincetown housing partnership. Such expenditures shall be used for the creation, preservation, and support of affordable housing, and for rehabilitation or restoration of such land for affordable housing that is acquired or created by said town, including the reuse of existing buildings or construction of new buildings on previously developed sites, and shall include funds to defray the cost of hiring of an affordable housing specialist by said town.

SECTION 2. The town of Provincetown shall establish said fund as a separate account to be maintained by the town treasurer. The following monies shall be deposited in said account: (i) 25 per cent of the proceeds generated by the sale of any land acquired by the town through tax title foreclosure, and (ii) any gifts made to the town for the express purpose of the creation, preservation or support of affordable housing. The treasurer may invest the funds in such separate account in the manner authorized by sections 55 and 55A of chapter 44 of the General Laws. Any interest earned on the fund shall be credited and become part of such separate account.

SECTION 3. This act shall take effect upon its passage.