Snowy egrets on Sengekontacket Pond. There are currently no year-round rentals available on the Vineyard, according to information from the coalition created to form a housing bank.
Tim Johnson

Housing Bank Bills Get Hearings on Beacon Hill

Speakers from Somerville, Hadley and Martha’s Vineyard were united in their call for legislation to address a statewide problem: lack of affordable housing.

Speakers from Massachusetts communities as diverse as Somerville, Hadley and Martha’s Vineyard were among a chorus of people at a hearing Tuesday united in their call for legislation to address a statewide problem: lack of affordable housing.

Convening online, the Joint House-Senate Committee on Housing heard two and a half hours of testimony on two dozen bills that would address the issue in different ways. The committee took no action on any of the bills during the hearing.

But the majority of comments were in support of a pair of identical bills, H. 1377 and S. 868, that would give cities and towns the option of imposing a transfer tax of up to two per cent on certain home sales to support affordable housing.

The bills were co-sponsored by the Island’s state legislators, Sen. Julian Cyr and Rep. Dylan Fernandes, and have the support of the Coalition to Create the Martha’s Vineyard Housing Bank. Testifying Tuesday, coalition coordinator Laura Silber told housing committee members that while the Island has a reputation as a playground for the wealthy, 40 per cent of its workforce makes less than 80 per cent of area median income.

“Islandwide, we have a $781,000 affordability gap between the median home price and what median income Island families can afford. In Chilmark, that affordability gap is a staggering $1.3 million,” she said.

On Monday, the Edgartown select board agreed unanimously to submit a letter of support for the transfer fee legislation at the request of Ms. Silber. The coalition is also drafting town meeting warrant articles to create an Island housing bank, but the select board declined to endorse the concept before seeing the actual articles.

“Before I vote to support something, I’d like to know what it is,” select board member Art Smadbeck said. “So since that’s not critical at this point in time, if that’s okay with you guys we will leave that to getting worked out before we can offer any support to it.”

The bills on Beacon Hill are similar to proposals filed in past legislative sessions that died in committee, but the sponsor of the House bill, Rep. Michael Connolly, said the issue of affordable housing has grown more widespread in recent years.

Mr. Connolly, who represents parts of Cambridge and Somerville, said some 12 cities and towns have already filed so-called home rule petitions this year, seeking legislative permission to deal with the affordable housing issue in their own way, and more such petitions are expected.

“It speaks to how important it would be for us to work on enabling legislation to help meet this extraordinary demand for resources that will allow us to pursue affordable housing projects,” he said.

Unlike the home rule approach, H.1377 and S. 868 would create a statewide framework that any town could adapt to its own needs and adopt by majority vote at town meeting.

For example, the bill would allow towns to impose a transfer tax on property purchases of anywhere between 0.5 per cent and 2 per cent of the sale price on either the buyer or the seller or a combination of the two. Properties that sell for less than the state median sale price, now about $530,000 would be exempt, but towns could also set a higher threshold. Property transfers within families would also be exempt. The bill also allows municipalities to impose a higher transfer tax to discourage “speculative sales,” that is, sales of certain higher-priced properties within one year of their purchase.

“In the big picture, this is a really flexible proposal that is really aimed at allowing cities and towns to capture some of the wealth that is being generated in this very hot real estate market,” Mr. Connolly said.

Currently, 38 states and various local governments, including Washington, D.C., levy some kind of real estate transfer fee, ranging from 0.01 per cent in Colorado to 6.1 per cent on certain sales in New Jersey, according to Abhidnya Kurve, a policy associate with Boston-based Citizens’ Housing and Planning Association.

“Massachusetts will not be an outlier if we do implement this legislation,” she said.

Rorie Woods of Hadley testified that much of the new development in her rural community in the five-college area has been “trophy homes” that are unaffordable for local workers.

“Lifelong members of my town, many of whose families have been in Hadley for generations, are being priced out of it,” she said.

Addressing the lack of affordable housing on the Vineyard, Ms. Silber offered a litany of statistics illustrating the scope of the issue:

• The median home price on the Vineyard is now more than $1.2 million.

• Only 38 per cent of the housing stock on the Island is available for year-round occupancy.

• As of last week, there were no year-round rentals available, according to the Dukes County Regional Housing Authority, and more than 700 people are on a waiting list for affordable rentals.

• Some 450 people are on a waiting list for affordable home purchases.

“As an Island with seven miles of ocean between us and the mainland, commuting is not a realistic solution, especially when we have weather like this,” Ms. Silber said.

Comments

Submitted by Anonymous (not verified) on Thu, 10/28/2021 - 21:34

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mike Somewhere

The State needs to step up and provide affordable housing for the residents that cant afford it. Prove you have a job and your eligible. Contribution of resident is proportional to the AMI of the area the resident wishes or needs to live in and their pay. Requiring an additional Tax/Fee to be paid by the seller is wrong.

Submitted by Anonymous (not verified) on Fri, 10/29/2021 - 17:29

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John Aldeborgh Katama

When I started out after college I lived in Brockton, MA, not because I wanted to live in Brockton but because that was all I could afford. It would have been great to have lived in Wellesley, MA, where I had gone to school but I couldn’t afford to live there. It never once occurred to me that somehow the government should enable me to live where I wanted to live. The underlying problems with affordable housing fall into two basic categories, controllable and market. There is little that can be done to directly control market pressures but the controllable factors are many and are frankly out of control. It’s become almost impossible to build on the island for a number of reasons; that both limits supply and dramatically increases building costs, which intern drives up all housing costs. This is simply the law of supply and demand at work. The so called “Vineyard Tax” (the incremental difference in the cost of living between the mainland and the island) is huge, I’d estimate anywhere between 30% and 50%. My adult children are 4th generation island people, my parents summered and then retired to the island years ago (since passed away) as have my wife and I. We’ve seen building costs go from reasonable to nothing short of insane. I finely gave up putting a 600 square foot addition on my home last year because it would have cost 5X what I paid to build the entire house 25 years ago, the town imposed regulation and requirements are staggering versus 25 years ago. Common sense is gone, you need a team of engineers, lawyers and a year or two just to get a permit. When it comes to affordable housing we need to start with reform right here on the island and not just tax people in creative new ways. We (the towns) are a huge part of the problem, please look in the mirror and focus on the controllable first. Adding new taxes doesn’t make housing more affordable, it simply and wrongly puts power into the hands of a few officials, nothing more.

Submitted by Anonymous (not verified) on Sat, 10/30/2021 - 07:44

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Marie West Tisbury

What about the land owners who are willing to sell undersized properties at a discount ?
Affordable housing wants it for almost nothing!

Submitted by Anonymous (not verified) on Sat, 10/30/2021 - 09:58

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mike Somewhere

All towns need to zone higher density areas for affordable housing in the town centers. Maybe even at the Airport, where higher density housing belongs. Not out on County Rd, WT ET Rd, VH ET Rd, Lamberts Cove Rd, State Rd, where these projects are currently being proposed. Think about walk score. Why aren't the towns discussing Town run, State funded housing? Like most other municipalities? Mind blowing incompetence and shortsightedness.

Submitted by Anonymous (not verified) on Sun, 10/31/2021 - 07:52

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get with it mvy

Nobody wants to talk about it.. but a prompt cheap solution with maximum density is a trailer park on the old closed landfills. If you want a 3 bedroom house on a 1/2 acre, its not going to happen.

Submitted by Anonymous (not verified) on Sun, 10/31/2021 - 10:29

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Mark Edgartown

Why punish homeowners with a transfer tax. This is most folks’ retirement nest egg.

Submitted by Anonymous (not verified) on Mon, 11/01/2021 - 06:49

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Timothy Not on Island

I can't afford to live on Marthas vineyard, how do I get on a list to buy an affordable house for my wife and I to live?

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