Updated, Aug. 7
On Tuesday Gov. Maura Healey signed into law what her office calls the single largest housing bond bill ever filed in Massachusetts. Called the Affordable Homes Act, the law will authorize $5.16 billion in spending over the next five years, and rehabilitate more than 65,000 homes statewide, Healey’s office reported.
Noticeably absent from the legislation is the option for municipalities to enact a real estate transfer fee. Housing advocates on the Island and across the commonwealth have called for the fee that would enact a small percentage tax on high end real estate transactions, with funding going towards housing. All six Island towns passed support for the measure at town meetings. The governor originally included it in her housing package, but it was stripped from state house and senate versions with the real estate lobby pushing hard against the option.
Local state lawmakers and Island officials are frustrated that the option was not included in this legislation session, but they say they are optimistic with the rest of the Affordable Homes Act.
“The housing crisis has caused Cape Cod, Martha’s Vineyard, and Nantucket to become profoundly unaffordable,” state Senator Julian Cyr, who represents the Island, said. “The Affordable Homes Act is a huge step forward in our long-sought efforts to provide relief to Cape Codders and Islanders struggling to afford year-round housing. The realization of a seasonal communities designation and the accompanying tools are a game changer in our efforts to salvage our year-round economy and community in the face of a daunting housing market.”
Part of the homes act includes a provision called the Seasonal Communities designation. The designation is reserved for communities like the Vineyard and provides tools for communities with changing housing needs due to seasonal employment.
Among the new opportunities outlined in the section of the law, Island towns can place year-round housing occupancy restrictions for projects in order to keep housing out of the short-term rental market and from second-home owners. As Cyr’s office said, it provides a tool to maintain a year-round housing market within a seasonal community.
The designation also allows towns to build housing specifically for municipal staff, without going through an extensive state review currently required. Many towns have struggled to find housing for staff including on the Island.
The housing act also allows towns to Increase a property tax exemption for year-round residents up to 50 percent. Currently state law does not allow towns to provide an exemption over 35 percent. The towns of Oak Bluffs and Tisbury currently provide exemptions for year-round residents, and West Tisbury is exploring the idea as well. According to the assessors office in West Tisbury, a residential exemption at 35 percent could save the average year-round taxpayer $2,000 a year.
According to the governor’s office, the recently passed law also requires seasonal communities to adopt bylaws or ordinances that enable the “construction of tiny houses and allow units to be built upon undersized lots, so long as all of the resulting units are designated as year-round housing,” Cyr’s office reported in a press release. All towns in Martha’s Vineyard and Nantucket, according to the office of Sen Cyr, are automatically designated as a seasonal community with the passage of the act.
The head of the Martha’s Vineyard Commission says he’s optimistic with the bill’s passage.
“Towns here will now have more tools to utilize in addressing their needs,” said Adam Turner, Executive Director of the Martha’s Vineyard Commission. “We thank Senator Cyr for his leadership in moving the Seasonal Communities Designation forward this session.”
Among the other parts, the housing law includes allowing accessory-dwelling units — or in-law apartments — by right on single-family lots as long as the apartments are 900-square feet. There is also a $2 billion investment to repair and modernize state public housing. Healey’s office says that Massachusetts has the largest public housing portfolio in the U.S. with more than 43,000 units. And there is funding that is going directly to developing affordable housing.
Huge win for the island that has been plagued by towns stalling the approval of accessory units.
Per the law, these units will not need local zoning approval as long as the units are the smaller of either 900 square feet or half the square footage of the primary home.
This law allows accessory dwelling units by right in every community in the state in single-family zones.
Thankfully the transfer tax did not pass which would have had a terrible impact on our environment. Keep Our Island Green
It’s a double edge sword. Yes, we need more affordable housing, no doubt. But Islanders that are here now are not weighing what another 25,000 in year round population will cause. Increased taxes for school, fire, or other town amenity expansions, waiting in lines everywhere including grocery stores and the hospital, waiting in traffic congestion, more crime, harder boat reservations, etc. Higher real estate prices because of less land. The solution might be high speed commuter boats for workers. Be careful what you wish for.
Mark, the solution is a bridge.
I wonder if the same people who are complaining about the Trump tax cuts will complain about a 50 percent tax cut for qualifying home owners. This is proof that everyone is taxed too much. Typical liberal hypocrites complaining about others not paying their fair share but don’t want to pay their own. How about just cutting spending.
How much should our taxes be?
What should be cut?
I am happy to see I am not alone in understanding that local state and national governments all have a spending problem and not a taxing problem. They never find an issue that they cannot throw more money at which results and more taxes. Or create more public employees to deal with an issue That could be handled by existing employees or left to businesses to sort out and not create permanent lifetime government jobs. We have a spending problem, not a taxing problem.
Ho9w should taxes be cut?
Where should spending be cut?
Military?
Police?
Fire?
Courts?
Highways?
Parades
Fireworks?
There is so much to be cut.
Life guards?
Local state and national governments are elected by we the people.
Should that be changed, along with taxes and spending?
Please expound.
Mr Kelly, Dems have an insatiable appetite for spending and are unable to curb it. Their answer is always to raise taxes and blame Repubs for deficits however they never show us the math that squares tax cuts viz spending and always blame tax cuts for deficits. They always talk about fair share but never want to change the tax code so that smart people cant use what is allowed to their advantage. To be fair Repubs over spend also but generally are better.
Could not agree more sir.
Bob, taxes are the dues we pay to live in a civilized world.
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