HOUSE DOCKET, NO. 3571        FILED ON: 2/19/2021

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 4567

The Commonwealth of Massachusetts

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PRESENTED BY:

Tommy Vitolo and Cynthia Stone Creem

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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 authorizing the town of Brookline to impose a real estate transfer fee.

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PETITION OF:

HOUSE DOCKET, NO. 3571        FILED ON: 2/19/2021

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 4567

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-Second General Court
(2021-2022)

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An Act authorizing the town of Brookline to impose a real estate transfer fee.

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

SECTION 1. Except where otherwise exempted pursuant to this act, the Town of Brookline may impose a fee of up to two percent of the purchase price upon the transfer of any real property interest or the transfer of a controlling interest in a company, trust, limited liability company, or other entity that directly or indirectly holds an interest in any real property situated in the Town of Brookline, as follows:

a.     Up to two percent in aggregate shall be paid by purchaser and seller. Any agreement between the purchaser and the seller or any other person that references the allocation of the liability for the fee shall not affect such liability of the purchaser to the Town. The Town may define by by-law what constitutes a controlling interest and the method for calculation of the fee.

b.     The Town may authorize that certain transfers of real property interests be exempt from the fee including: (a) transfers to the federal government, the Commonwealth, the Town, and any of their instrumentalities, agencies or subdivisions, including the Brookline Housing Authority; (b) transfers to the Brookline Improvement Corporation; (c) transfers of real property subject to an affordable housing restriction; (d) transfers made without additional consideration to confirm, correct, modify or supplement a transfer previously made; and (e) transfers to a charitable organization, as defined in clause Third of section 5 of chapter 59 of the General Laws, or a religious organization, provided, however, that the real property interests so transferred will be held solely for the production of affordable housing.

c.     The first $500,000 of all real property transactions are exempted from the fee imposed in this act.

d.     The fee shall be paid to the Town. The Town is authorized to adopt a by-law to provide for the collection and liening of any outstanding transfer fee. The Town shall have such remedies to collect said amount as provided by law with respect to the collection of real property taxes.

SECTION 2. A copy of the deed or other instrument evidencing such transfer shall be provided to the Town and shall be accompanied by (a) an affidavit signed under oath or under the pains and penalties of perjury by the purchaser and seller attesting to the purchase price; (b) the applicable fee owed or, if applicable, an affidavit of intent to seek an exemption for that property by the purchaser; and (c) the reason, if any, upon which the transfer, or one or both of the parties to the transfer, is claimed to be exempt in whole or in part from said fee. Upon receipt of the transfer fee or satisfactory evidence of exemption, the Town or its designee shall promptly thereafter issue a certificate indicating that the fee has been paid or that the purchaser or seller, or the transfer, is exempt from the fee. The Norfolk Register of Deeds shall not record or register a deed unless the deed is accompanied by such certificate.

SECTION 3. Funds raised by the fee shall be used for projects related to affordable housing. This may include renovation and rehabilitation of Brookline Housing Authority properties.

SECTION 4. The Town may, by by-law, adopt additional requirements, exemptions, and regulations to implement or enforce said fee, consistent with this act.

SECTION 5. The Town may, through policy, regulation and or by-law require prioritization of projects that employ sustainable practices which focus on increasing the efficiency of resource use — energy, water, and materials — while reducing building impacts on human health and the environment during the building's lifecycle, through better siting, design, construction, and use.

SECTION 6. The Town may, through policy, regulation and or by-law require prioritization of projects that employ mixed income and mixed-use development as characterized as pedestrian-friendly development that blend two or more residential, commercial, cultural, institutional, and/or industrial uses.

SECTION 7. The Town shall, through policy, regulation and or by-law require prioritization of projects, including renovation projects, that preserve and or expand the supply of housing affordable for low income renter households, and give particular consideration for such projects owned and or sponsored by the Brookline Housing Authority (BHA).

SECTION 8. The Town shall prepare and issue an annual report that (a) identifies fee receipts by payer category, including purchasers and sellers; (b) quantifies affordable housing programs funded, including type and purpose; and (c) evaluates the impact of said affordable housing programs, including but not limited to, to the extent reasonably possible and permitted by applicable law, the number and demographics of individuals and families served as well as measures of housing stability and wealth generation in the community.

SECTION 9. This act shall take effect upon its passage by a Town-wide vote.