The Massachusetts House took a step to advance a bill Thursday that would allow the Vineyard to create a housing bank, though the bill still seems unlikely to pass in the current legislative session.
State House lawmakers gave an initial approval to the bill that would allow the Island to apply a 2 percent transfer tax on real estate transactions over $1 million; State House News reported Thursday evening that one more favorable House vote would send the bill to the Senate.
There was some confusion from state lawmakers Thursday evening that the chamber gave the initial approval on such a hot-button issue, but the movement signifies to some that there is hope for the bill advancing fully next session.
The bill, sponsored by Island Rep. Dylan Fernandes, would create a Vineyard housing bank to fund the acquisition of year-round affordable and community housing. Proponents have argued that this bill would take advantage of luxury sales in order to help alleviate the Island’s affordable housing crisis. The bill’s $1 million-per-sale threshold is also below the median price of a house sold on-Island.
Local housing officials say that while the housing bank may not pass this session, Thursday’s move is still a good sign. Laura Silber, Island housing planner at the Martha’s Vineyard Commission, told The Times that the step signals good things to come.
“The House was under no obligation to move anything forward in informal session, so It is a positive sign that they are keeping the transfer alive for the Island towns,” Silber said. “We fully intend to continue to work for passage of a transfer fee for both Nantucket and Martha’s Vineyard, as it would provide the necessary revenue for utilizing the new tools provided to the Islands in the Seasonal Communities designation.”
While legislation to help Nantucket create a transfer fee did not advance on Thursday, Nantucket filed a home-rule petition, and would likely not have to refile that petition for the next session.
The housing bank has enjoyed official support on the Vineyard, with the Martha’s Vineyard Commission in 2021 unanimously approving a letter to the state legislature supporting a transfer fee.
