The Local Option for Housing Affordability (“LOHA”) Coalition is working to create and support affordable housing with a Real Estate Transfer Fee
LOHA is a diverse group of community organizations, housing and planning agencies, municipalities and other groups that support legislation enabling municipalities to levy a transfer fee on high end real estate sales and use this money to create affordable housing in their communities. We support State-wide enabling legislation, as well as home rule petitions that would enable implementation of a transfer fee in those municipalities that have already approved this innovative source of funding for affordable housing.
The Fight Continues
This legislation would allow Massachusetts cities and towns to enact a small fee on high-value real estate sales, in order to create and support affordable housing.
Communities across Massachusetts are facing a crisis of housing affordability
Across our state, cities and towns are grappling with the adverse effects of escalating home prices on their communities’ economy, workforce, quality of life, and social identity. In many communities, longtime residents are being displaced as housing prices soar out of reach.
Revenue from a transfer fee would have a significant positive impact
Transfer fees are proven to be an effective, efficient, and equitable tool for raising revenue to create and support affordable housing. Studies show that a small real estate transfer fee would generate millions of dollars each year for local affordable housing programs. This revenue would make a major positive impact on the lives of Massachusetts residents struggling to find affordable housing, without hurting the real estate market.
Municipalities across Massachusetts support a real estate transfer fee
Nine municipalities——-Boston, Somerville, Nantucket, Provincetown, Concord, Cambridge, Arlington, Brookline and Chatham——-have already passed local home rule petitions, each of which now requires approval by the State House. Other municipalities are actively considering such policies.
A growing coalition of grassroots organizations, non-profits, and elected officials is working to pass a “local option” bill that would allow cities and towns to enact a small real estate transfer fee to address their own housing needs.
A flexible, local-option policy that communities can customize to meet their local needs.
Every community faces its own specific housing challenges, and the real estate transfer fee local option legislation allows for flexibility. The Transfer Fee legislation would allow cities and towns to decide for themselves whether to enact this policy, and how to customize it.
For example, Somerville’s policy would exempt all owner-occupants from the fee, while Boston’s policy exempts all property sales under $2M.
Support from local leaders
“Housing is a public good and common responsibility, and those who generate wealth in our communities must be part of ensuring residents can remain in the neighborhoods they love.”
Lydia Edwards, Boston City Councilor
“It is absolutely imperative that we enact policies that will ensure our residents will have a safe and affordable home to live in for many generations,”
Kim Janey, Acting Mayor, City of Boston
"Big real estate speculators are extracting millions of dollars in profits from our communities on a weekly basis. A local option transfer fee will provide our municipal officials with the ability to capture a small portion of this extracted wealth for the sake of funding local affordable housing programs.”
Mike Connolly, State Representative (Somerville and Cambridge)
“The housing crisis is eroding our communities at an unsustainable rate - teachers, police officers, nurses, and longtime residents are being driven out of the communities they work in and love. A two cent transfer fee on high cost home sales will allow cities and towns to equitably raise the revenue needed to support workforce and affordable housing.”
Dylan Fernandes, State Representative (Falmouth, Martha’s Vineyard & Nantucket)
“It’s no secret that Greater Boston is in the midst of a housing crisis. A transfer fee would create a sustainable source of revenue to pursue new affordable housing units, and to preserve the character of our neighborhoods by helping people remain in their homes.”
Joe Curtatone, former Mayor of Somerville
“MACDC supports legislative efforts that will allow municipalities to pass local real estate transfer fees. This additional tool to raise revenue empowers communities to meet local needs for affordable housing.”
Massachusetts Association of Community Development Corporations
“We need to expand the pie of housing resources well beyond what is available now. A transfer fee on high-end real estate can be an important part of helping us to create homes that are affordable to families with modest income.”
Massachusetts Affordable Housing Alliance
"Massachusetts needs to take steps to address the housing crisis, and to give towns and city the authority to have more tools to provide homes for all and make housing a human right. Housing affordability affects all of us and we all have the responsibility to ensure everyone have safe, healthy and affordable home.”
Chinese Progressive Association
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