The Massachusetts House has moved forward with a bill sponsored by Rep. Dylan A. Fernandes, D-Barnstable/Dukes/Nantucket, allowing Martha’s Vineyard to impose a transfer tax on real estate transactions over $1 million. The bill would create a housing bank to fund year-round affordable and community housing by taxing real estate sales at 2 percent above $1 million. Martha’s Vineyard residents have expressed the urgent need for affordable housing due to the high cost of living as a vacation destination.
The bill has gained traction amidst a statewide housing crisis, with Gov. Maura Healey and lawmakers advocating for transfer fees on luxury real estate transactions to fund affordable housing initiatives. The legislation has faced opposition from real estate groups, citing increased costs of homeownership. Advocates argue that a transfer fee on high-value properties is crucial in addressing the unique housing challenges faced by Martha’s Vineyard and Nantucket.
Fernandes’ bill has garnered local support, with all six towns on Martha’s Vineyard approving the measure. The proposal has received favorable reports and now awaits approval in the Senate. Advocates believe that implementing a transfer fee policy is essential in preserving affordable housing and addressing displacement issues on the islands.
Fernandes, who is running for an open Senate seat, has been a leading voice in advocating for the housing bank bill. The legislation has the potential to provide much-needed relief to residents struggling to find affordable housing in a region where high property values and second home ownership have limited housing opportunities for low-income residents.
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