Housing Bank Campaign Heats Up on All Sides

<p>As voters in four towns prepare to weigh in next week on a wide range of issues at annual town meetings, one issue has dominated Island discourse: the proposal to create a housing bank.</p>

As voters in four towns prepare to weigh in next week on warrant articles as wide ranging as school funding, zoning bylaw changes and a helium balloon ban, one issue has dominated Islandwide discourse ahead of annual town meetings.

“The housing bank. That’s the big one,” Edgartown town administrator James Hagerty said. “I mean, that’s what we’re all thinking about.”

Ever since proponents of a Martha’s Vineyard housing bank successfully petitioned to have two articles appear on every town meeting warrant earlier this winter, the issue of how to solve the year-round housing crisis has stirred passion, controversy and activism. Down-Island selectmen promptly came out in vocal opposition to the housing bank, raising questions about how the plan was developed and who belongs in the broader conversation.

The proposal would create a new housing bank modeled after the Martha’s Vineyard Land Bank and funded with 50 per cent of the revenue from a newly created tax on short-term rentals.

On one side, proponents have mounted a vigorous, well-funded campaign that includes pamphleteering, electronic calls and public stumping, to pass what they believe is a “once-in-a-generation opportunity” to both enact and fund an entity fully devoted to preserving and creating year-round housing on the Island. Among the donors is the Cape Cod and Islands Realtors Association. The opposition view, articulated most fully by elected town officials, argues that the towns already have infrastructure to deal with the need for affordable housing and that the housing bank plan is an end run around a well-established process for budgeting and spending. In between are the voters. And come Tuesday, those who show up to town meeting are the ones who will decide what happens next.

The idea of a housing bank isn’t new. State legislators rejected a 2006 proposal that would fund a housing bank from an additional tax on real estate transactions. In 2017, voters overwhelmingly supported a nonbinding housing bank proposal that appeared on five of the six town meeting warrants.

What is new is the proposed funding mechanism.

The proposal is divided into two warrant articles. The first is a home rule petition that would ask the state legislature to create a housing bank made up of an elected, seven-member commission, with one member from every town and a seventh appointed by the Dukes County regional housing authority. The commission would then act as a grantor organization, with the power to fund year-round housing infrastructure developments that range from new construction, to remodels, to wastewater and nitrogen improvements.

The second article would create a mechanism for funding the bank.

“What we want to do is try to not make it complex,” said housing bank advocate Dan Seidman said. “Form the housing bank. Commit to funding.”

The Island’s legislative delegation, Sen. Julian Cyr and Rep. Dylan Fernandes pre-emptively filed identical bills in January that mirror the first article to create the housing bank. Both have said they will push the legislation on Beacon Hill if the proposal gets Island support.

While selectmen have concerns with the new bureaucracy that would arise from the first warrant article — and questions about its nuts and bolts — it’s the second proposed warrant article that they have taken primary issue with in the lead-up to town meeting.

In late December, Gov. Charlie Baker signed midnight legislation to expand the hotel and rooms tax to include short-term rentals. Although the tax was geared toward curtailing the Airbnb industry in Boston, it had the consequence of adding millions of dollars in potential revenue to Island towns with seasonal economies built atop vacation rentals. “The short-term rental tax was the spark,” said Makenzie Brookes, a paid employee with the housing bank campaign who has served as the organization’s primary spokesperson and organizer. “When the governor signed the bill, it was like, ta-da!” Now, housing bank advocates are asking voters to allocate 50 per cent of the expanded hotel, rooms and short-term rental tax to fund the bank. In towns like Edgartown, where the Martha’s Vineyard Commission has estimated the town could bring in over $3 million from the expanded tax, that could equate to $1.5 million for the bank. Islandwide, the number could be as high as $5 million per year, according to commission estimates.

For down-Island selectmen with already cash-strapped budgets, that’s a big part of the problem.

“With all due respect to the commission, that estimate is plucked out of the air,” Edgartown selectman Arthur Smadbeck said at a meeting this spring. Mr. Smadbeck has continually asserted that his town relies on revenue from the hotel and rooms tax to fund regular town business, including affordable housing initiatives, and can’t risk earmarking it in perpetuity. Edgartown selectmen, as well as Oak Bluffs and Tisbury, have sent letters to state representatives outlining their opposition to the warrant articles.

“It’s a gamble,” Mr. Smadbeck said.

The Edgartown, Oak Bluffs, Tisbury and Chilmark financial advisory committees all voted unanimously to not recommend both the housing bank and funding legislation. West Tisbury voted 3-2 to recommend both proposals.

For those in favor of the housing bank, the gamble is an opportunity to attack a problem with money from those who helped cause it.

“Probably the major cause of the worsening of the housing situation over the last five years is Airbnb and other entities like that,” said advocate Doug Ruskin. “This revenue comes directly from the source of the problem. I would say it’s the height of fiscal responsibility to use a portion of it to alleviate the problem.”

This is the narrative that the housing bank campaign, a group of about 20 ad-hoc Island volunteers, has tirelessly disseminated throughout the Island since January. They include Island Housing Trust board members, architects, civic planners, and activists who hired Ms. Brookes, a former immigration reform advocate, as their central organizer and spokesperson earlier this year.

Ms. Brookes is their only paid employee.

According to Ms. Brookes, they have collected over 500 signatures, held presentations at various clubs and organizations throughout the Island, as well as a public listening session at the Performing Arts Center on March 22. She said they have spoken with nearly all the Island selectmen, planning board, and affordable housing committee members. In the run-up to town meeting, they have organized a get-out-the-vote team with volunteers in every town.

The campaign has spent between $20,000 and $25,000 on printed materials, rented space, graphic design, a website and salary for Ms. Brookes. Peter Temple has been in charge of collecting donations. Mr. Temple said he has received checks from approximately 15 to 20 individual donors, mainly from volunteers involved with the campaign, as well as a larger donation from the Island Housing Trust.

“Because this is lobbying activity, you can only spend so much as a nonprofit,” Mr. Temple said. “I’m tapped out.”

Ryan Castle, chief executive officer for the Cape Cod and Island Realtors Association, said the organization has paid for phone calls that have gone out to Island residents on the voter rolls, along with a mailer that will go out next week. He estimates they have spent $12,000 on the campaign.

“As an organization, we’re really concerned about making sure there is available and affordable housing for everybody that needs it,” Mr. Castle said.

Come Tuesday evening, the campaigning ends and the voting begins. Islanders hold the future in their (show of) hands.

“If there’s one thing this campaign has succeeded in no matter what happens on Tuesday night, it’s that everybody is talking about this issue again. And it’s something we all need to be talking about,” Ms. Brookes said.

Comments

Submitted by Anonymous (not verified) on Thu, 04/04/2019 - 18:39

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Bob Calder Tisbury

Vote NO !

This is ill conceived concept that was hatched in a sleazy attempt to take revenue from the short term rental tax. The proponents of this goofy plan don't have their act together and are making it up as they go along.

The rental tax is already starting to affect summer bookings at our rental company. Less people are coming to visit the Vineyard and the ones that do will spend less money in stores, restaurants etc...

The rental tax should be used to offset property taxes for the already over-burdened taxpayers on the Island.

If you can make a go of living on the Island that's great - if not - you can commute. Please don't expect the taxpayers to provide housing for you.

Submitted by Anonymous (not verified) on Fri, 04/05/2019 - 08:26

In reply to by Anonymous (not verified)

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John West Tisbury

I agree that these articles are "a sleazy" approach to tap a new revenue source, in my opinion intended to ease the property tax burden. We need to work together to continue the affordable housing adopted nearly unamiously in the towns. This scheme doesn't pass muster. Please vote NO!

Submitted by Anonymous (not verified) on Fri, 04/05/2019 - 04:24

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John Edgartown

Vote YES! For the 25+ years I've been visiting MV, I have heard Islanders talk about affordable housing. They haven't done much about it. This is a step in the right direction. However, just like like Island-wide County government is more effective AND efficient than the current, EVERY TOWN FOR THEMSELVES, it probably won't pass. Just another good thing for Islanders to shoot down. You will take the off island money, but don't spread it around to the Island poor.

MikeD WT

Actually, quite a bit has been done
https://vineyardgazette.com/news/2019/04/04/housing-bank-too-rushed-ful…
But I am one of the ones that say vote no to the Housing Bank.
Just because someone moves here seeking a better life does not mean that the taxpayers owe them a living
I read a good point - who will pay for all of the children of these families to go to school - more tax payer dollars I would assume.
Looks like a bad cycle.
Place gets built up - taxes go up - Nobody wants or can afford to live there anymore - tax base goes elsewhere - no more money to pay for the affordable programs - things get rundown - Is this what we have all strived for - I think not.
I agree with Michael - read his opinion

Submitted by Anonymous (not verified) on Fri, 04/05/2019 - 07:50

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VH Villager Spring Street

The challenge is that the “island poor” don’t always receive the benefit. I know people who are able to work and earn a good wage but don’t due to laziness who have won that BS Affirdable Housing lottery. They need a real official group managing it, not a bunch of inexperienced island folk. Currently the program is a sham and the last thing we want is their coffers in or official tax pockets.

Submitted by Anonymous (not verified) on Fri, 04/05/2019 - 08:48

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Carol Holderness NH

I learned this week that I have to pay 100 percent more to join the Museum because I am not fortunate enough to live year round on Island. I must pay over and over for the "Island Poor". I can not afford to live so well as the "Island Poor" - free tennis, sailing, community services, horse back riding, pristine beaches, food sources and other subsidies - now housing?

Scarlet Oak Bluffs

Everything is not FREE for the so called “Island Poor”... Summer camps and daycare are out of reach for the majority of Islanders..!!

Submitted by Anonymous (not verified) on Fri, 04/05/2019 - 08:52

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Tiskid VH

It might be a great thing if less people came to visit the island due to this tax. If that happened island business might actually.....omg....stay open! Like maybe even in the winter. No more going to the Caribbean from October through April and then complaining about how bad the Vineyard economy is and how business has it so terrible here. In the mean time families can't afford to live here, and even if they could almost nothing is ever open, because businesses can afford to close.

Mark Edgartown

More likely it would lead to economic hardship. Please explain to me how a year round population of ~16,000 is supposed to supplant the ~100,000 that come during the summer and drive the economy. MV has no sustainable economy when you strip out tourism. If you don't like the economic prospects and want more year round businesses open, feel free to move. Nobody is entitled to or has an ordained right to live on MV.

TisKid VH

It's simply not true that MV has no economy without tourism. There were people living here before airbnb. There were people living here before the presidents put us on the map, and even before Jaws. Speaking of our small population will that population go down or up without affordable housing? You are right nobody has a right to live here. People also don't have a right to live in a town with one of the lowest tax rates in the state without ever having those taxes go up for quality of life reasons. Who has a right to age in place here without having to pay what it will cost for health aide? Who has a right to expect that we will always have all the J1 visa people we need to sustain the economy at an affordable rate for employers? I keep hearing that people can commute to work here. Why would people take the time and pay what it costs to commute a place that pays less than the state average. Go ahead and kill the year round population of MV. See what happens.

Mark Edgartown

This is a simple history lesson. They island ex whaling and tourism has no sustainable long term economy. Please cite me the sources of economic production ex tourism in the current age that can support schools, police, courts, etc.

Mark Edgartown

One off examples don’t equate to a sustainable economy when you remove the engine that keeps the Vineyard running. Without tourism and seasonal residents there would be no economy; no housing industry, no hospitality industry. There can’t be 16k teachers and police officers.

John Aldeborgh Edgartown, MA

If the summer population declines the shops who don’t stay open are gone, they won’t “stay open”. The Vineyard economy has been built on tourism and the towns have become used to the living high on the hog. My family have been land owners since the 1930’s we’ve seen significant ups and downs. The insane real estate prices of today have driven increasingly insane tax bills. I know, I’ve seen my taxes climb 500% in the last 25 years. That’s simply not sustainable, it will kill the tourism and the island. It’s a zero sum game, every dollar I spend on taxes is a dollar I don’t spend on the island economy. Governments don’t create prosperity, booming economies do.

J. Graham MV

Booming economies create a desire for people to make investments in order to increase their wealth. On this Island, it’s real estate. Your taxes went up primarily because valuations went up, not because rates increased. Blame it on the hedge fund managers, not those who manage the hedges.

TisKid VH

What's not sustainable is thinking you can live in a prosperous and safe town with one of the lowest tax rates in the state indefinitely, and expect it to stay that way. For all your tax increases you still live in a town with one of the lowest rates in the state. We all do. A big part of the reason your taxes went up is because the value of your house went up. Most people are happy when that happens. It's generally considered a good thing. I know it's all the fashion to say "Who has a right to live here" but who has a right to live here without their taxes going up? There is nothing wrong with cashing out and moving to a place where property values are lower and where you can get more for your money. I'm pretty sure MV was never featured in Where to Retire magazine or AARP magazine. There's a reason.

Submitted by Anonymous (not verified) on Fri, 04/05/2019 - 09:36

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Mark Edgartown

VOTE NO. This is a gross money grab that will be terribly mismanaged with no oversight. Let's use any tax revenue to offset the property tax burden that already exists/

Submitted by Anonymous (not verified) on Fri, 04/05/2019 - 10:28

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Nicole Brisson Edgartown

I just read this article and am on the fence about the issue. While I believe in the concept, I think changes need to be made in the proposal to satisfy all parties.

That said, the comments are appalling. The effort is described as “sleazy” and benefitting the “Island poor.” Shame on the people who wrote that. We’re talking about your teachers, police, fire,and municipal workers, and workers in other businesses who cannot afford the rents and purchasing prices of an inflated housing market. People who were raised here and want to continue to live here and participate in their hometown communities can’t afford it. People who come here to live cannot afford to relocate. I don’t hear criticism of people who build huge houses here only to spend a week or two a year here so that they can rent their places weekly during the season - for as much as $25,000 A WEEK! Let’s get our priorities straight, and if Island Selectmen are opposed to the housing bank, may I suggest they realize that affordable housing is a real crisis here and do more to deal with it than forming committees who move at a snail’s pace to address it.

nonsense mvy

Who do you think can afford to eat at the pricey restaurants here? You're going to be critical of those who rent their expensive homes out? The seasonal homeowners and their renters are the ones who cheerfully whip out the wallet and get gouged here by Island businesses.

Ann Marie Oak Bluffs

Yea whip out your wallet for a whole 3 months of the year - thanks for investing so much here.... Year round residents are what make the island so special in the first place. And they keep it going through the winter, so that once again you can enjoy the island. If we can’t better support these people what’s left?

What?

The inflated prices at restaurants are reflections of the inflated property, rent, and housing prices which are due to the gentrification of the island by the wealthy seasonal residents in the first place. Not to mention the fact that they have to make all their money in two months but have a 12 month operating budget (even if they close in the winter). It’s a never ending cycle that started with the wealthiest elites choice to make the island their playground for a couple months a year, it certainly isn’t being solved by them.

Nicole Brisson Edgartown

Nonsense, you obviously do not own one of the island businesses who you claim “gouge” people, because if you did you would realize the true expense of running a business, paying employees (who also are impacted by the housing crisis), and making enough to earn a 12-month living in, ostensibly, 16 weeks of business. With a real understanding of those economics I believe you would might change your thinking about your comment. I am merely pointing out that the people with enough money to build in order to make more money are impacting the lack of affordable homes by driving up housing rates.

BS Oak Bluffs

The average teacher salary on island is $98,802. Most police who do details have a similar wage. Firemen are volunteers. Our school population over the last 20 years has fluctuated no more than 1 or 2 percent per year. We're not losing population. Immigrants whom haven't had the benefit of our terrific school system seem to thrive here yet native islanders can't seem to grow up here and be successful. There's a big disconnect in this perceived crisis. If you don't have the skills and will to make island living a reality then there are boundless opportunities elsewhere.

nonsense edg

I agree with your post 100 percent. The above who think the summer residents 'owe' them something are delusional. Let me add something else. Despite the same or slight higher number of summer visitors, there has been a dramatic increase in the number of restaurants, for example, that are vying for the SAME amount of tourist dollars. There used to be 2 delis in Edg (barbershop, edg deli, and dock street) to get a sandwich for lunch. Now you can get a sandwich at many dozens of places. Same for dinner. Used to be marthas, shanty, navigator, Kelly house, harborview, chez pierre, and colonial inn. Now there must be a 100, all vying for the same tourist dollars, and all who think they 'deserve' to make a years income in 3 months. Its not economically possible when you have more businesses trying to split up the same 'pie'. And if these businesses paid their employees a living wage, they wouldn't be trying to tax the rest of us to subsidize them. And YES Ann Marie..Don't bite the hand that feeds you. Believe me most of us come here for the ambiance NOT the people. And its our discretionary dollars willingly spent here for inflated prices for average goods and services the keeps the island economy humming. If we weren't here subsidizing the schools etc that we do not use, your property taxes would be a lot higher. And before the presidents and Hollywood elitists put this place on the map, there were no opportunities other than digging clams, shucking scallops, cutting grass, cleaning houses or doing some painting. There is no sustainable economic model that allows this place to survive. the biggest economy is building houses for wealthy people, maintaining those houses, and feeding those people. remove that from the equation and you better hope and pray the price of quahogs increases. * and with regard to the teacher salary...lets not forget that's for 9 months of work...summers are at the beach!*

TisKid VH

I'm seeing at least one web site with a number a lot lower than 98. More like 67. I am curious if the 98 number includes benefits. I'd like to see that and then see the state average. When it's hard to keep a teacher here I have to suspect 98 is unlikely. Further, teachers on a career path often get master's degrees and more than masters degrees. When you have a masters you're supposed to get paid more. Also the idea that a teacher just gets summers off is a little unrealistic. If a teacher is asked to take on a new curriculum they can have to spend the entire summer building it and it is all unpaid. I think the teachers have a fine deal, but the idea that they're all getting rich doing nothing is ignorance. Especially on this island. Nantucket had to build an entire affordable housing village or they just wouldn't have had any teachers at all. We're headed in that direction at this rate.

Submitted by Anonymous (not verified) on Fri, 04/05/2019 - 11:18

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David VH

Vote YES! It's time to create a Housing Bank with some teeth so we can start addressing this issue. For those who believe your tax burden will be alleviated if the towns get to keep 100% of the tax revenue, you're mistaken. I'd like someone to present proof that taxes have decreased when new revenue has been created. Our community is eroding and NOW is the time to work towards preserving what's left.

Submitted by Anonymous (not verified) on Fri, 04/05/2019 - 11:33

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Vineyard Mack Vineyard Haven

I just saw an online paid advertisement urging voters to vote for the housing bank - it stated that the ad was being paid for by the Cape and Islands Real Estate association. When you click on the ad it takes you directly to the IHT website and all their propaganda. It goes to show who is really behind this money grab. Sleazy or disingenuous ? You decide.

Christopher West Tisbury

Vineyard Mack, the ad you mention redirects to the Housing Bank MV campaign website, https://www.housingbankmv.org/. The ad does not take you directly to the IHT website.

The Housing Bank website is transparent in listing its supporters, which include the Island Housing Trust, Cape Cod & Islands Association of Realtors, and individual supporters dedicated to creating and preserving year-round housing on Martha's Vineyard in order to retain our workforce and seniors. Please see https://www.housingbankmv.org/who-we-are for more information.

Vineyard Mack Vineyard Haven

Your clarification is a difference without a distinction - the ad was funded by the real estate industry and it all leads back to the founders of the housing bank. As Woodward and Bernstein reported in All the Presidents men "Follow the Money".

Submitted by Anonymous (not verified) on Fri, 04/05/2019 - 13:55

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Al Reis Tisbury

There’s about a 3 to 1 ratio of NO to YES in these posts, this does not look good for the Measure at the ballot box. I think there’s a general sense of cynicism and skepticism by people who’ve seen well-meaning proposals veer off course into unintended consequences.

Submitted by Anonymous (not verified) on Fri, 04/05/2019 - 17:15

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Marie

The Vineyard has become too expensive, even for those with modest vacay homes. I bring wine and freeze meats from Whole Foods to bring up. I get great quality at a reasonable price.

We have cut back on dinners out, no inexpensive restaurants in Edgartown anymore. Never did enjoy shopping. We have learned to keep it simple. Years ago we would come up and take the kids to Oak Bluffs and Vineyard Haven. Now we skip those visits, go to the beach and enjoy our walks/bikes.

Mark Edgartown

Glad you have found a way to make it work for you, but this is a gross generalization. The gross reality is that a money grab by this so called housing bank will be unregulated and unaccountable, any rental tax proceeds should be used to reduce the property tax burden on island residents.

Submitted by Anonymous (not verified) on Sat, 04/06/2019 - 12:41

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Don Edgar Oak Bluffs

If this Housing Bank is approved,and the housing that is made available from that fund,is it accessible by anyone in the state or only for island residents?

Submitted by Anonymous (not verified) on Sun, 04/07/2019 - 10:21

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Jane Edgartown

Vineyard Gazette: you need to do your research. This has NOTHING at all to do with "Affordable Housing". NOTHING!

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