A wave of disappointment is crashing here on the Island in reaction to this week’s news that hopes are fading in this legislative session for state lawmakers to pass a way for cities and towns to levy a relatively small fee on high-end real estate. Without the so-called “transfer fee” option, the creation of a Vineyard housing bank — and the steady revenue stream to boost affordable housing efforts that comes with it — faces little chance of passing as well. Vineyarders have every right to be disappointed.
Following on the heels of Massachusetts House lawmakers at the state capital, commonwealth Senate leaders unveiled their own version of a massive housing package this week, and noticeably absent was a commitment to the transfer fee.
For the Vineyard, the idea is to impose a 2 percent tax on the sale of properties over $1 million. Revenue from the tax could go to building homes, rental assistance, and transferring seasonal homes to year-round housing. These projects need money, and a transfer fee would be a big help. Estimates put the proceeds from the fee at $8 million a year.
But state lawmakers need to give it the stamp of approval, and while there has been growing support and even momentum for its passage — Gov. Maura Healey has been an advocate — the transfer fee is something they’ve been unwilling to back so far. And this week’s news only highlights that unwillingness.
Islanders have been some of the loudest voices calling for the option to introduce the tax, even with big cities recently joining the chorus calling for the option as well. The Boston Globe is running photos of Vineyarders holding a rally at the State House steps from last year, as news came out this week about the Senate’s bill. And lawmakers have reportedly been receiving hundreds of letters of support from Islanders in recent months. Hence the disappointment on the Island.
But looking deeper at the Senate’s housing bill that came out this week, beyond the knee-jerk reaction, there is reason to be optimistic.
The Senate — expanding on Gov. Healey’s massive housing proposal, pitched earlier this year — has laid out a number of initiatives that are geared to the Islands and other seasonal communities.
Among the highlights, the bill would set aside $50 million that would go to the production and redevelopment of housing in seasonal communities. Funding would need the governor’s approval, and it’s far from a done deal, but $50 million would be a significant boost. There are also provisions that would make it easier for municipalities to provide housing for their workforces, and one to impose deed restrictions that would preserve houses for year-round Islanders, rather than as seasonal properties. Overall, the Senate bill is flooded with references to seasonal communities — as well as specific mentions of the Vineyard and Nantucket. There is an understanding that the Islands face a unique challenge when it comes to affordable housing. And the bill would also create a method for the state to test the proposed transfer fee through a pilot program. In other words, the constant barrage of Vineyard voices has had an impact.
Those voices shouldn’t let up over the recent setback with the transfer fee. Quite the opposite. Now is the time to lean in, to raise our voices even louder, and let state lawmakers know that these special designations for the Island are urgently needed. And there is still time for the transfer fee.
It goes without saying that there is a clear need. Our recent reporting finds that the average home price was $2.3 million last year, with the median home price at $1.55 million. Both were up from the year before. The Martha’s Vineyard Commission estimates that a family would need a $650,00 income to buy the average home. That’s massively unrealistic for hard-working families.
We are also reporting today on the hidden but troubling impacts of the housing crisis as it trickles down to our most vulnerable Islanders and workers who are falling through the cracks. Our reporting shows a community has been setting up a homeless encampment in the State Forest, where life is not easy. They are exposed to elements like oppressive heat and tick-borne illnesses. While maybe not Mass and Cass in Boston or Skid Row in Los Angeles, to know that Islanders working in our community are living in the woods is shameful.
It should serve as a reminder that now is not the time to give up the fight at the State House, but to step up efforts for lawmakers to pass legislation that they can to help the Island.
Our local lawmakers have been supportive of the transfer fee, and we know that new leaders are stepping in to keep the momentum going. Arielle Faria, a housing advocate who has been one of the leaders pushing for lawmakers to pass the Island housing bank, is running to represent the Islands at the State House next legislative session. She has shown she could be a powerful voice to help bring the transfer fee home.
While it’s right to be disappointed that state lawmakers may not have brought it home this time around, Islanders can and should remain optimistic and committed to the housing cause. Let’s be sure our voices are heard.
