One of the state’s highest elected officials signaled that he is open to legislation involving the creation of a real estate transfer fee — a mechanism that would collect revenue to develop affordable housing — bringing renewed optimism for housing advocates on the Island who have long pushed for the law.
In front of Boston business leaders last week, Massachusetts House Speaker Ron Mariano stopped short of fully endorsing a transfer fee.
Island officials say it is the clearest signal he’s given publicly to support the initiative, signifying that the bill could be progressing through the legislative process. After six town meetings endorsed the option to impose a transfer fee in 2022, some 250 Islanders took to the State House a year ago to lobby for the option to impose a fee.
Gov. Maura Healey has also supported the option, but Mariano has been mostly quiet on the issue.
“Now, I understand that the idea of a transfer fee is a cause for concern for some of you, but if you believe that the issue of housing affordability is a genuine crisis, then we must explore all options that have the potential to make a real difference,” Mariano said during the Greater Boston Chamber of Commerce forum on Thursday, according to the State House News Service. “I look forward to having continued conversations with members, and with the business community, on how we can bolster the development of more affordable housing, while ensuring that Massachusetts remains competitive.”
Mariano later told reporters that he is unsure if he has the votes in the House to pass the legislation; he also discussed some of the finer details of possible legislation.
His comments have created a buzz for Island housing advocates.
“I’m more optimistic than ever that the legislature will realize a local-option transfer fee on real estate this session,” state Senator Julian Cyr told The Times in a statement. “I feel buoyed by the speaker’s comments that endorse the policy, and I’ll continue to work to advance a transfer fee in the Senate. The revenue from a transfer fee will be a lifeline to Islanders struggling to afford to live on Martha’s Vineyard. It is my highest priority to get a local-option transfer fee passed into law.”
Adam Turner, executive director of the Martha’s Vineyard Commission, reached on Friday, also expressed optimism, noting that the speaker had recognized the idea of bringing the legislation forward. Turner says there’s been broad support on the Islands for the transfer fee, and that the tool could be a benefit to developing much-needed housing on the Island.
Tucker Holland, an advocate for housing on Nantucket, said he’s encouraged by Mariano commenting, noting that the speaker has yet to speak publicly about the transfer fee.
“It was so encouraging that he not only spoke publicly about it for the first time, but he shared these thoughts with the people that he did,” Holland said, noting that there has been opposition to the idea with builders and real estate lobbies present at the chamber meeting. “I applaud him for bringing up this critical issue and tool with a group that hasn’t necessarily been in favor of it.”
Holland also noted that Mariano did not come right out and endorse the effort. According to State House News, when asked whether he supports the tax, Mariano said that there were some nuances that would have to be worked out. He said that Governor Maura Healey’s proposal would allow municipalities to impose a fee of 0.5 to 2 percent of a property sale above $1 million, which he said could be too much.
But he also noted that the structure of the fee could be different from community to community, explicitly pointing out that Nantucket may have different needs from other Massachusetts communities.
Holland notes that Gov. Healey’s proposal would also set aside $4 billion for housing initiatives, aside from allowing communities to enact a transfer fee. But Holland says that much of that $4 billion would go to funding residents in lower-income levels. He noted that this was needed across the state. “But the need goes so much further on the Islands,” he said.
“On Nantucket, you need to be earning 5 times the [area median income] to be able to afford a home,” Holland added. “We need to be able to have a reliable and significant revenue stream that can support the work we need to do, serving a variety of income levels on the Islands.”
On the political front, the housing legislation has been a talking point for both candidates vying for the State House seat to represent Falmouth, Martha’s Vineyard, and Nantucket.
Both candidates who have announced a campaign — Thomas Moakley from Falmouth and Arielle Faria from West Tisbury — have been supportive of the transfer fee.
With new legislation set to begin in July requiring buyers to pay a commission of at approx 2.25% to their broker versus having the commission paid by the sellers, dealing with extremely inflated prices since Covid etc, high interest rates etc is it reasonable to THEN expect them to absorb yet another 2% fee to go towards the Housing Bank? Why can’t the Landbank which is buying multi million dollar properties with multiple houses etc start directing some of their money towards housing? Or requiring the housing fee be split between both parties?
Why can’t we we all get what we want?
I totally agree Jean. Adding yet another “TAX” is absolutely the wrong thing to do here. The Landbank and Housing Bank should merge and use the monies generated by the Landbank tax to pay for affordable housing and conservation.
All hail Don Mariano deigns to consider the transfer fee.
The Land Bank conserves land for the good of the flowers, trees, birds and animals. There is an undeniable need for continuing environmental conservation if we are to preserve the Vineyard’s quality of life. The Land Bank serves that common good providing equal access to all (subject to any deed restrictions).
The Vineyard is undeniably and substantially a better place for the environmental conservation funded by the Land Bank fee. The Land Bank should remain focused on this successful mission, and funds should not be diverted to encourage housing development and population growth.
There is no need for a housing tax. The Vineyard has grown 25 percent over the last ten years, the second fastest growing region in Massachusetts (after Nantucket). But somehow all these new people found housing. How is that a crisis? It sounds more like a success story that a tiny island with limited resources was able to accommodate such robust population growth.
On the supply side, every month there is another article in the paper that new affordable housing is in various stages of the pipeline. These are good programs funded by public and private money that are already meeting the specific needs of the community.
The increase in development funded by the new proposed tax will cause overdevelopment and environmentally unsustainable population growth. This bill is being pushed through with the backing and support of the residential construction industry, without any environmental impact reports.
The Housing Bank Bill is a bad solution to a problem that doesn’t even exist. Keep Our Island Green