On August 6, Governor Maura Healey signed a $5.1 billion housing bond bill that authorizes funding for the production, preservation, and rehabilitation of over 65,000 homes in Massachusetts over the next five years, as well as dozens of new policy initiatives aimed at addressing the state’s high housing costs. Notably, prior to passage its passage, debate on this legislation was extensive and the Greater Boston Real Estate Board worked tirelessly to advocate for a final bill that would be the most sensible and least harmful to the housing market and real estate industry.
The most significant issue that GBREB and its allies focused time and resources on was transfer taxes, including a series of home rule petitions filed by approximately one dozen communities seeking to create a new sales tax on homes and commercial property. Additionally, there was a separate, broader proposal introduced into the housing bond bill that sought to provide a local option for any city or town in the Commonwealth to approve a tax of 0.5% - 2% on the portion of a home’s sales price above $1 million. Significantly, the Greater Boston Real Estate Board, along with the Massachusetts Association of REALTORS® and several other industry groups, implemented informational campaigns that were able to successfully prevent transfer tax provisions from being included in the bill.
Another equally troublesome provision in the legislation that GBREB helped to defeat for members was a proposal that would have allowed tenants to have the right of first refusal to purchase a property before it is put on the market for sale. This measure was left out of the final bill, as was an initiative that sought to make landlords responsible for paying broker fees in rental transactions.
Among key policy changes aggressively advocated for by GBREB that did get included in the legislation and will help promote housing production is language that allows for the construction of accessory dwelling units by right in single-family zoned lots. Meanwhile, there are two provisions contained in the housing bond bill signed into law which GBREB continues to address, with hopes of reaching a more favorable outcome. Specifically, GBREB is pursuing efforts to get clarification as what happens with the sealing of eviction records that are dismissed. GBREB also is part of a collation of real estate groups, led by MAR, that opposed language in the legislation that
mandates home inspection contingencies, and will work to modify this provision.
Currently, the requirement regarding home inspections is not due to take effect until November 4th.