It is very important to say NO to a Housing Bank. However, I say that with the conviction that no person is more passionate than I when it comes to our very desperate need for affordable housing for working people. We hear so many tragic stories of folks that leave the Island, businesses struggling to retain employees, young adults living with parents — all due to our lack of affordable housing. Our teachers, police officers, firefighters, restaurant employees, retail personnel, trade professionals, and many others we depend upon cannot afford or obtain housing.
The working people of our community are who serve us and keep our businesses alive. They need and deserve the security of home ownership. Our housing crisis impacts our businesses and our way of life. Take, for example, the recent extensive boat cancellations by the Steamship Authority during our busy summer months, due to lack of housing for employees. Communities are stronger with homeownership
“There is proof that homeownership can promote civic engagement, triggering neighborhood revitalization efforts, which result in stronger communities overall,” as published by Habitat for Humanity. The federal Department of Housing and Urban Development (HUD) states, “The critical lack of affordable housing impacts all aspects of community life. It is borne of the well-accepted axiom that homeownership is often the critical criteria of the well-being of a community.” And HUD further says, “Studies have shown that homeowners accumulate wealth as the investment in their homes grows, enjoy better living conditions, are often more involved in their communities, and have children who tend on average to do better in school and are less likely to become involved with crime. Communities benefit from real estate taxes
homeowners pay, and from stable neighborhoods homeowners create.”
But let’s examine the pros and cons of a Housing Bank. Why would anyone think that we can solve our crisis of lack of affordable housing by raising the costs of home ownership, which is what the Housing Bank will do? It is already very expensive to buy a home on the Vineyard, with about 10 percent of the sales price to others, such as brokerage commissions of 5 percent, 2 percent Land Bank fee, legal costs, title insurance, mortgage loan costs, and closing costs, and that does not include the mortgage lender’s typical requirement for a real estate tax reserve. We have a housing crisis, and raising the cost of housing is not a solution. The other factor is, Why create another expensive bureaucracy? The Land Bank’s administrative costs are about $750,000, and that does not include about $2,750,000 in land management costs. And there is no valid expectation that a Housing Bank will cost less.
On the other hand, if you ask any Housing Bank proponent why they support a Housing Bank, there can be only one answer, and that is to generate funds for housing. But where is the logic to generate housing funds by raising the cost of housing, and creating another bureaucratic entity? It is with great certainty that we can generate significant funds for housing without a Housing Bank, and without adding to housing costs.
Our housing crisis is not new, it is just much worse. In an Op-Ed I wrote in November 2016, I said, “The shortage of affordable housing on Martha’s Vineyard is clearly a major crisis and requires some creative ideas. However, most developers and builders are frustrated by the expenses and hearings and limitations placed in front of them by the communities.”
The Martha’s Vineyard Commission must reach out as a partner with responsible developers, and not be seen as an obstacle. To comply with guidelines, the question ought to be, “How can we assist and make this project happen?”
Our housing crisis is hardly new, and the track record to address this crisis by our select boards, planning boards, and the Martha’s Vineyard Commission is clearly dismal.
Perhaps the most significant improvement to our housing crisis is Gov. Healey’s new housing bill, which now provides all homes to have a guesthouse or adjacent dwelling unit up to 900 square feet by right. “By right” means no need for a special permit, variance, zoning amendment, waiver, or other discretionary zoning approval. This alone could provide hundreds of dwelling units for seniors and working people, with no additional cost of housing and no additional bureaucracy.
Robert Sawyer, Vineyard Haven, is the author of “Massachusetts Real Estate Principles, Practice and Law,” a real estate/finance instructor, former advisor to the Massachusetts Real Estate Board, and a former county commissioner.
According to the recent census the island’s year round population has grown over 25% in the last ten years. Somehow all these new residents found year-round housing. I don’t know why that is not considered a housing success story. New projects are entering the pipeline everyday, without the new taxes and housing bureaucracy that will compete with first-time home buyers for what is available. The Vineyard may have a housing problem, but it also has a population growth issue that continues to strain our fragile ecosystem. Mr. Sawyer is absolutely corrrect that the proposed tax and bureaucracy will not solve our housing issues, it will only make them worse. Keep Our Island Green
I’m guessing most of the people responsible for population growth on MV are people who already owned a home here and/or are people with healthy financial resources allowing them to purchase a home. I don’t think there is anything to indicate that the increased population are members of the “working class” needed to provide services to those same people who just moved here.
On the other hand, the Housing Authority provided a $20K subsidy over three years to help a senior citizen retire to MV from New Jersey . . . the people meant to solve housing issues seem to be perpetuating the problem.
Mr. Sawyer states that a Housing Bank will “raise the cost of home ownership” but does not give any facts or data to show how or why that is the case. How will a Housing Bank increase the cost of housing? It certainly won’t raise the costs for first-time homebuyers — just as the Land Bank fee does not raise the cost. I’m not at all sure what Mr. Sawyer is referring to.
Now, Governor Healy’s housing bill allowing guesthouses “by right” WILL raise the cost of housing IF those dwellings are not dedicated for year-round occupation and the rents kept within affordability guidelines. We certainly don’t need more seasonal rentals which is what her housing bill will provide if there aren’t commonsense restrictions.
Whether or not the buyer writes the check they pay all the expenses of a real estate transaction. The seller knows the costs and builds it into their price. Thus a 2 percent tax will be built into the price. As far as the Land Bank fee the exemption covers about half the median sales price. The buyer is still on the hook for coming up with the rest. As mentioned already our population is growing. It’s amazing how people from other countries who didn’t have the benefit of our excellent school system and often don’t even speak English can come here, work their butts off, and figure out a way to buy a house while native islanders whine about how tough it is to purchase a home.
Should the government really be solving the housing problems? I’m reminded of a story of some Chinese people who came to the US and saw a regular grocery store, exclaimed the it was beyond wonderful, and then wondered where the regular people shopped. They couldn’t imagine how a grocery store system could work without a government official calculating how much bread should be baked every day (or how many cans of tuna fish should be stocked).
If there are industries missing workers, will the salaries will rise until the need is met?
I’m sensitive to people struggling to make ends meet.
At the same time, should we (the people) solve every problem from a governmental level?
Should we axe wall street’s ability to buy family homes? Is adding a 2% tax on home purchases going to prevent people from buying a home?
Will accessory dwelling units solve the housing problems?
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