Bill > H4410

This bill establishes a mechanism for seasonal communities to impose a transfer fee on real estate transactions to fund affordable housing initiatives. The bill allows cities and towns designated as seasonal communities 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 by municipalities). The collected fees must be deposited into a municipal affordable housing trust fund or year-round housing trust fund and can be used for acquiring, constructing, rehabilitating, and preserving affordable housing for low- and moderate-income households. The bill provides numerous exemptions to the transfer fee, including transfers between family members, government transfers, properties with existing affordable housing units, and transfers below the established price threshold. Municipalities must adopt the fee through a majority vote of their legislative body and are required to submit annual reports detailing the fees collected and their use. The bill also allows municipalities to form regional affordable housing commissions to administer the transfer fee and coordinate affordable housing efforts across multiple communities, with provisions for creating intermunicipal contracts that define the commission's structure, powers, and operational details.

Housing and Urban Affairs

https://malegislature.gov/Bills/194/H4410