Bill > S966

This bill establishes a mechanism for cities and towns designated as seasonal communities to impose a transfer fee on real estate transactions to fund affordable and year-round housing initiatives. The bill allows municipalities or regional affordable housing commissions to levy a transfer fee between 0.5% and 2% on property sales over a specified threshold (initially set at $1,000,000, but adjustable), with several important exemptions. These exemptions include transfers between family members, government transfers, transfers involving affordable housing units, and transfers to certain charitable or religious organizations. The collected fees must be deposited into municipal affordable housing trust funds or regional affordable housing commission funds and used specifically for acquiring, constructing, rehabilitating, and preserving affordable housing for low and moderate-income households. The bill provides detailed definitions for key terms like "affordable housing," "year-round housing," and "settlement agent," and establishes procedural requirements for fee collection, including mandatory reporting to state housing authorities, a mechanism for fee appeals, and regulations to ensure the funds are used appropriately for housing purposes within a reasonable timeframe. Additionally, the bill allows municipalities within the same county to create regional affordable housing commissions to collaborate on housing initiatives, with specific guidelines for establishing and managing such commissions.

Housing and Urban Affairs

https://malegislature.gov/Bills/194/S966