HOUSE DOCKET, NO. 3941        FILED ON: 1/18/2019

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2552

The Commonwealth of Massachusetts

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PRESENTED BY:

Elizabeth A. Malia and Joanne M. Comerford

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act establishing local options for generating affordable housing monies.

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PETITION OF:

HOUSE DOCKET, NO. 3941        FILED ON: 1/18/2019

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2552

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-First General Court
(2019-2020)

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An Act establishing local options for generating affordable housing monies.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

Chapter 64D of the General Laws is hereby amended by adding the following section:-

Section 14 (a) A city or town which accepts this section and has established a Municipal Affordable Housing Trust Fund pursuant to section 55C of chapter 44, or other municipally established affordable housing trust fund, or a Community Preservation Fund, pursuant to section 7 of chapter 44B, may impose a fee or range of fees of at least 0.5 per cent but not more than 2 per cent of the purchase price upon the transfer of any real property interest, or the transfer of a controlling interest in a trust, limited liability company or other entity that directly or indirectly holds an interest, in any real property situated in the city or town for which the (i) price per square foot is greater than 300  per cent of the median price per square foot in the county in which the real property is situated, (ii) price per acre is greater than 300 per cent of the  median price per acre in the county in which the property is located, or (iii) sales price falls within the top 5 per cent of real property sales prices for the previous year  in the county in which the real property is located.

(b) The following transfers of real property interests shall be exempt from the fee or fees permitted by this section: (i) transfers to the government of the United States or any other instrumentality, agency or subdivision thereof, or the commonwealth or any other instrumentality, agency or subdivision thereof; and (ii) transfers to any charitable organization as defined in clause third of section 5 of chapter 59. Any city or town adopting this section shall have the authority to establish further exemptions from such fee or fees; provided, however, that no exemptions shall be allowed for properties that are subject to tax under chapter 62C .

(c)  The fee or fees imposed by the city or town that adopts this section shall be paid to such city or town.  Such city or town is authorized to adopt an ordinance to provide for the collection and liening of any outstanding transfer fee.  Such city or town shall have such remedies to collect said amount as provided by law with respect to the collection of real property taxes. 

(d) A copy of the deed or other instrument evidencing the transfer shall be provided to the city or town and shall be accompanied by (i) an affidavit signed under oath or under the pains and penalties of perjury by the purchaser attesting to the purchase price; (b) the applicable fee owed or, if applicable, an affidavit of intent to seek a residential exemption for that property by the purchaser; and (c) the basis, if any, upon which the transfer is claimed to be exempt in whole or in part from said fee.  The city or town, or the designee, shall promptly thereafter issue a certificate indicating that the fee has been paid or that the transfer is exempt from the fee.

(e) Upon receipt of the fee pursuant to subsection (c) above, the treasurer of the city or town shall transfer the funds to the Municipal Affordable Housing Trust Fund, or other municipally established affordable housing trust fund, or Community Preservation Fund established by the town in accordance with subsection (a).

(f)  The register of deeds for the county in which the real property is located shall not record or register a deed for a real property interest subject to a fee under this section unless the deed is accompanied by a certificate issued pursuant to subsection (d).

(g)  A city or town that adopts this section shall provide to the Regional Planning Office publicly available reports on the total fees collected and disbursed in accordance with this section.