The visible public campaign for the housing bank is now relegated to a cohort of devoted activists in working groups.
Proponents hailed it as a generational opportunity; a grass roots, once-in-a-lifetime solution to a historically unsolvable — and rapidly-worsening — problem.
Opponents cast it as a gamble, a money grab and a wolf in sheep’s clothing, describing it as a rushed, bureaucratic approach to a crisis they already had plans to fix.
Everyone called it the housing bank — a novel proposal to permanently dedicate a portion of funding from the recently-enacted short-term rental tax to stem the Island housing crisis. This time last year, the housing bank issue dominated Island discourse — from the moment an ad-hoc committee of about 20 Island housing activists proposed it in January, to the moment it was brought to town meeting floor three months later. Attracting both strong support and vocal opposition, it thrust the issue of housing affordability squarely in the center of the Vineyard’s social and economic consciousness, in a way that few proposals had ever done before.
Then it was shelved in favor of more study.
A year later, the visible public campaign for the housing bank has largely disappeared — relegated to a cohort of devoted activists in working groups trying to hash out proposals in subcommittees and town hall meeting rooms.
“A lot of people forget it,” said Doug Finn, who is serving on a West Tisbury housing committee formed following the town meeting votes last year. There is a similar committee in Edgartown. On the town meeting floor, the committees were framed as a compromise for voters who understood that the initiative wouldn’t pass — but didn’t want discussion to die.
While not dead, the discussion looks and sounds quite different.
A year ago this month, pamphlets describing the housing bank proposal in urgent terms blanketed grocery stores, libraries, coffee tables and pages of newspapers. There was fundraising and phone banking and door-knocking, listening sessions, forums, dueling op-eds, public debates and social media spats — all highlighting the Island housing crisis in the lead up to town meeting.
Many selectmen argued that the idea was flawed, hastily conceived and risky. For one thing, Island towns didn’t even know yet how much revenue the short-term rental tax would bring in since its had only been enacted a few months earlier and would not take effect until July. In the end they fought against it, and the proposal was postponed, with four of the six Island towns agreeing to form working groups to address the problem.
Today, as housing construction, rent and real estate prices continue to skyrocket, the need to address the housing crisis appears more acute than ever.
But many of the same divisions that drew battle lines on the town meeting floor remain.
“There are some . . . who feel the proposal was a good one,” Mr. Finn said, referring to the working group. “There are some on the committee who feel the proposal was too much, too fast, too rushed, that not enough questions were answered at the time. But everyone on the committee, including myself, still feels the urgency of the need. And the need to do something.”
What that something is has become the question. The working groups in West Tisbury and Edgartown say the theory of a housing bank is still alive, but the funding concept has shifted from use of the short-term rental tax to a possible transfer tax on home sales.
No proposal will be brought before voters this year. The West Tisbury and Edgartown working groups plan to provide an update for voters at their annual town meetings.
Edgartown selectman Michael Donaroma, who led the compromise ef
fort last year and serves on the town working group, reflected this week on lessons learned.
“The biggest problem was the housing bank was trying to pick the town’s pocket somehow, for lack of a better term,” he said. “And nobody wants to give up what we’re already using. And the numbers going forward haven’t really been established as of yet.”
Mr. Donaroma said his group, which includes other town officials and housing bank advocates, has met multiple times, with another meeting scheduled in March. He said a new proposal to impose a 0.5 per cent transfer tax on home sales above $1 million is promising. He said the transfer tax proposal has the backing of state Rep. Dylan Fernandes, and he is cautiously optimistic that it will receive less pushback on the Island than the use of the short-term rental tax as a revenue stream.
In fact the transfer tax idea is where housing bank advocates began over a decade ago. In 2005, a similar proposal was presented, but swiftly derailed by real estate industry interests.
Mr. Donaroma said he thinks the climate is different this time around.
“That one never really got to the floor, because of the huge real estate lobby,” he said. “But I think the state is realizing that housing is a really serious issue now. This is something we can do, and we’re really hopeful that we could push something like this through. It would be a home run.”
Housing bank advocates also express enthusiasm for the idea, but said the sting of rejection from last year lingers nevertheless.
“We felt we got beat up a bit on a personal level, and it was disheartening, and that’s life,” said Derrill Bazzy, a staunch housing bank proponent. “But I would say, in general, this is an effort that has been going on for years, and will continue going on because the need is so great.” He concluded:
“People understand the issue. They know it is a problem. So in the end we’re going to be able to find a solution. It may just take a longer time.”

Comments
The problem is that all these
Island Liberal MVThe problem is that all these affordable housing schemes are based on reported income. This Island is full of tax cheats: people who trade work for work, people who claim unemployment and work for cash in the off season. Gamers of the system. I would gladly support discounted housing for honest people, public sector or private. But I will never support programs that enrich tax cheats because they pass the County income test. Let’s make housing affordable for critical workers! But let’s not hand out free money (our tax dollars) to people who have realized nobody at the IRS or DOR can afford to come investigate them. Until then, I will be the rare Liberal who defies any handouts based on phony tax returns.
Believe it or not I totally
Island Conservative Vineyard HavenBelieve it or not I totally agree with I.L. as far as Island gamers of the system. tax and benefits cheats that is exactly why we do not give to the food pantry or the Red Stocking anymore. Driving by and seeing all the people driving up in brand new SUV's, New work trucks etc etc changed my mind really quick and also because proof of need is non-existent and advertised as such.
I sure this island native Conservative's honest view will only make the shredder. Lets see!
Here is a novel idea, taxing
Mark EdgartownHere is a novel idea, taxing anything and everything does not fix the world’s problems. Promoting a friendly business environment will foster more jobs and increased wages which will lift the entire community versus shifting the burden on a minority of the islands population.
How does fostering more jobs
Also a LiberalHow does fostering more jobs increase wages? It just makes even more people in need of affordable housing while they work. "shifting the burden on a minority of the island's population" The burden? Pardon me but if you are selling a home over a million dollars and the proposed transfer tax is a burden I'm afraid I don't have an awful lot of sympathy for you when people have no place to live.
You missed the point, more
Mark EdgartownYou missed the point, more jobs and increased wages are not exclusive. Less reliance on seasonal jobs and more sustainable year round jobs will increase wages and QOL. Real estate is all relative, many homes valued at $1mm have been in families for generations and would be worth far less off island. I'm glad you have a perfect barometer to gain your sympathy, but housing is a complex problem and taxing is not the solution.
Government has no right to
William EdgGovernment has no right to tax people for affordable housing (especially the MVC and their ridiculous policy of "volunteering" to pay an extortion) when the problem could be solved by the government by changing zoning density regulations in certain areas. BTW two teachers, cops, etc. that are married with no kids won't qualify for affordable housing under the existing rules. Who are we saving here?
I agree with the Island
Brian Vineyard HavenI agree with the Island liberal... the cleaning lady gets cash....the landscaper gets cash... many of craftsmen get cash... the caddies get cash .... in the summer cash is king... and then there are many of us who pay taxes and make less than those who claim no income... welcome to MV
I disagree. When you rent
Ken Edg.I disagree. When you rent your home all expenses are written off. The names of the individuals and their business are on your tax return. If they dont report their income they are liable for prosecution by the irs. I sure wouldnt want to be investigated by the irs you rarely win. It is true alot of work exchanges go on but getting cash and not reporting it can get you in trouble.
I am pleasantly surprised by
Carol EdgartownI am pleasantly surprised by the comments so far, even heartened. Thank you for speaking plainly and effectively about how this system is really "rigged" - and how those who work all year, and report their income, get mugged by the proposed plan. I am weary of paying for so many who don't work and/or don't report what they earn.
Carol, indeed. You work here
Lorraine EdgartownCarol, indeed. You work here, pay taxes. Period.
We cannot tax the homeowner
Christine VHWe cannot tax the homeowner coming and going. The land bank fees are one thing, they keep us from messing up this island, but to then tax someone selling a home, which is often a retirement or downsizing move is criminal. Plus we then have the realtor fee with a sale. It would never occur to me to be subsidized for housing just because I want to live here, if this the route we are taking I've got my eye on a place on Central Park West maybe you could help?
Born on the Island. Cannot
OldtimerBorn on the Island. Cannot afford to buy.
I have to suck it up.
I would never access "free" money for housing on the Island. I care too much about the place to start down that slippery slope.
Earlier Vineyard values preserved the essence of the Vineyard and made it a magnet for thousands.
The hospital, schools etc. must start to think in terms of supplying housing to needed staff.
Instead of taxing rich folks, or any folks, so that their employees and others can enjoy the Island life style, why not insist that rich folks include housing for employees and retainers *on their properties.* They have plenty of space.
I am actually kind of tired of rich people donating money to "solve" the housing crisis anywhere but on their own property. This folks are creating a new class of nonprofit employees who draw paychecks from the housing issue.
why don't we tax the real
Joanne Chilmarkwhy don't we tax the real estate agents on their commissions, which often seem excessive. For all sales over a million, they get 5.5% and .5% goes to affordable housing. Seems fair. They are benefiting from inflated home prices in a way not reflective of the number of hours spent on the sale.
Looks like this issue really
Roger Thompson FalmouthLooks like this issue really failed to get traction with the community.
So we're going to make
BS OBSo we're going to make housing more affordable by tacking on another tax ? All closing costs are paid by buyers, regardless of who cuts the check. It starts at a million and soon enough it will apply to all sales with most of the revenue going to administration costs, not those who need the help.
You hit the nail on the head.
Mark EdgartownYou hit the nail on the head. This will just end up funding administration costs and not making a difference. Taxing is not the solution.
I agree as well. Who says
Vineyard Haven Villager VHI agree as well. Who says everyone who works here needs to live here. There is plenty of affordable housing off island and the ferry is a lovely commute. Most people in this country commute to work every day for an average of 1 hour each way. So if you can’t afford to live in NYC, you live in Jersey and commute in. Why not live in Falmouth and commute in?
Still think 1 percent from
Tisbury voter TisburyStill think 1 percent from Land Bank would work out for both sides.1 percent for conservation and 1 for housing.Or Land Bank could set a small section of land for housing.When Land Bank was formed that proposal didn't go to far but think 1 and 1 would work.
I wish it could be as simple.
J ThoughtsI wish it could be as simple. I"ve bee to affordable housimngf meetings. We should go.
The Land Bank aquires land
Vasha Brunelle VHThe Land Bank aquires land for everyone to use. They don't judge who can or cannot use it, and we all benefit. Also, undeveloped land uses virtually no town services.
Land Bank properties are
Gina MVLand Bank properties are exempt from taxes.
Perhaps the reality of the
gina Menemsha/ NYCPerhaps the reality of the assumed "cash cow" of the short term rental tax sunk in.. While the estimates were lofty for an early phased in tax it was counted as a sure thing for a funding vehicle.. Not sure those original MVC estimates came close..
& each town is still trying to get a handle of enforcing the tax..
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