Real Estate Transfer Fee

Funds raised via the proposed RETF would be applied to a local affordable housing trust to be used to provide lower cost housing within our community.

The affordable housing crisis causes harm across our Commonwealth and Lexington is not exempt. Housing and apartment rental prices strain budgets, young people are forced to take their talents far from home, and local workers face long daily commutes that weaken their connection to our community.

The Real Estate Transfer Fee (RETF) enabling legislation that is part of Governor Healey’s Affordable Homes Act is a powerful tool for local communities like ours. This legislation ought not be confused with the MBTA Communities Act, that Lexington, Arlington, and many other communities in Massachusetts passed last year. Governor Healey’s bill does not require a municipality to implement a transfer fee. Rather, it creates the possibility, should a municipality so choose, to develop a plan to include a 0.05% – 2% fee on the value of the real estate sales over $1 million. Thus, for a home that sold for $1.2M, the fee would apply to only the last $200K. A town may set the threshold that fits its own real estate market. Estimates are that if Lexington set the thresholds at $1million and 2%, we could generate $14.5 million for affordable housing.

In a climate where there are limited resources, the RETF provides a reasonable source of revenue.

Funds raised this way would be applied to a local affordable housing trust to be used to provide lower cost housing within our community. More than a dozen Massachusetts communities already support this effort. Our tradition teach about the sanctity of a home. As members of a local faith community that has been active in the Greater Boston Interfaith Organization’s (GBIO) Housing Justice Campaign, we urge our state Representatives and Senators to work hard to make sure the Real Estate Transfer Fee remains a part of this year’s bond bill.

Stephen Quatrano, Stan Wolf and David Landis
Temple Emunah GBIO Core Team

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1 Comment

  1. How ironic. In an effort to fund more affordable housing in Lexington, we will adopt a transfer “fee” that will increase the sale price of new homes, making it more expensive for people to move to Lexington.

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