Islanders testify for housing legislation

Updated, Jan. 26

More than a dozen Island housing advocates traveled to the State House last week to support the passage of sweeping legislation that calls for investing $4 billion statewide into affordable housing. 

The legislation is seen by many on the Island as a potential boon for the development of much-needed affordable housing, with existing homes falling out of reach for locals in a sky-high real estate market. 

The passage of the Healey Administration’s Affordable Homes Act would allow Island towns the ability to impose a small tax on high-end real estate transactions to finance the development of affordable housing, which Island voters have supported overwhelmingly at prior town meetings. 

Called a transfer fee, the Island community — along with Nantucket and some Cape towns — have long lobbied state lawmakers for its passage; in March, over 100 advocates from the Vineyard traveled to the state house in support of the transfer fee, and Governor Maura Healey’s legislation — filed at the end of last year — signifies strong her support for providing towns with the option to impose a fee.

But the Homes Act has been met with stiff opposition from real estate lobbies. 

The contingent of Vineyarders traveling to the State House Thursday included a broad spectrum of Island life — including the county sheriff, assistant school superintendent, and healthcare officials. And among them were local real estate agents, who say they recognized housing as a critical issue for the future of the Island.

Island realtor Candace daRosa submitted her written testimony during a lengthy hearing  in front of the Joint Committee on Housing in Boston.

DaRosa said that it’s becoming harder and harder for locals to sustain a living on the Island, with real estate prices and the cost of living getting so high. A transfer fee could help.

“I want consistency of a community,” she told The Times following Thursday’s hearing. “I want the next generation of children to be able to stay here. Because of the cost of living, it’s become exponentially more difficult for that to happen.” 

Thursday’s hearing began at 11 am and was still going when daRosa and the rest of the contingent had to leave to make the last ferry home to the Vineyard. 

Also testifying was Dukes County Sheriff Robert Ogden, Island schools assistant superintendent John Stevens, and representatives of the coalition to Create the Martha’s Vineyard Housing Bank. 

Among the testimony given on Thursday, the vast majority was in support of the Homes Act, with officials from around the state testifying. Aside from the transfer fee, the legislation would give homeowners in cities and towns the ability to build accessory dwelling units — commonly known as in-law apartments — with fewer permitting that is currently required on the Island. It includes nearly 30 policy changes that Gov. Maura Healey said at Thursday’s hearing would provide better access to affordable homes.

“Everywhere we go, Lieutenant Governor Driscoll and I hear from families, seniors, recent graduates, workers, and businesses alike that they are being held back by the high cost of housing in our state,” Healey said. “That’s why we’re going big by proposing the most ambitious housing bill in state history. The Affordable Homes Act will make it easier for people of all income levels to find affordable places to live in Massachusetts, create good jobs, and grow our economy.” 

But it wasn’t all supportive on Thursday. The Greater Boston Real Estate Board, like other realtor associations, has pushed against the legislation, specifically the transfer fee option. The board filed testimony saying that the fee would do the opposite of producing more affordable housing, and would instead shift the tax onto tenants and homebuyers and raise housing costs more.

“This tax, which also captures the commercial office sector, adds a new burden to owners,” the board’s testimony reads. “The cost of debt/borrowing remains high, and this is crippling the investment sales market. Unlike a mortgage, a tax cannot be financed and will simply be passed on to the tenant or buyer.”

But daRosa, in her filed testimony, said that the real estate board did not represent her opinion. 

She doesn’t think that the 2 percent fee would have an impact on the market. She referenced the 1980s when the Vineyard instituted a transfer fee for the Martha’s Vineyard Land Bank, which provides funding for land conservation. She said that legislation went into effect in 1986. In 1987, there were a significant amount of real estate transactions, more so than the years just prior to the Land Bank going into effect. In other words, the fee didn’t make a difference on the market. 

More importantly, daRosa says that revenue from the fee could help keep families on the Island. She said it’s becoming harder and harder for locals to sustain a living. That’s ultimately also having an impact on summer visitors who are having more difficulty finding someone to maintain their lawns or who can’t get a reservation at their favorite restaurants. That, daRosa believes, will have a bigger impact on the economy of the Vineyard.

She is hardly the only realtor on the Island to support the transfer fee. Prior to town meeting when Island towns voted in support of the creation of the Vineyard housing bank in 2022, some 50 agents signed a letter in support of the housing bank passage, saying that the Island community was in desperate need of stable, attainable year-round housing.

In his testimony, Sheriff Ogden supported the Homes Act, saying that public safety is being impacted by the lack of housing.

“The ramifications of this housing crisis extend way beyond mere inconvenience,” he testified. “It is affecting our ability in law enforcement and public safety to retain qualified personnel, as they struggle to afford living in our community, accessible only by air and sea.

“The time to act is now,” the sheriff testified. “We cannot afford to stand idly by as Martha’s Vineyard, Massachusetts, grapples with the detrimental and erosive effects of this housing crisis. It is an imperative this committee support the proposed real estate transfer fee legislation, as it holds the key to alleviating the burden of unaffordable housing and ensures the vitality of our precious community. We cannot wait any longer to ensure the men and women who protect our communities can afford to live where they work.”