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HOUSE DOCKET, NO. 1112 FILED ON: 1/14/2025
HOUSE . . . . . . . . . . . . . . . No. 3056
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Mike Connolly and Carmine Lawrence Gentile
_________________
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 enabling a local option for a real estate transfer fee to fund affordable housing.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Mike Connolly26th Middlesex1/14/2025Carmine Lawrence Gentile13th Middlesex1/14/2025James C. Arena-DeRosa8th Middlesex2/11/2025Christine P. Barber34th Middlesex2/18/2025Manny Cruz7th Essex3/10/2025Leigh Davis3rd Berkshire2/10/2025James B. EldridgeMiddlesex and Worcester1/27/2025James K. Hawkins2nd Bristol2/7/2025Vanna Howard17th Middlesex3/7/2025Mary S. Keefe15th Worcester3/4/2025David Henry Argosky LeBoeuf17th Worcester2/10/2025Samantha Montaño15th Suffolk1/23/2025Steven Owens29th Middlesex1/24/2025Lindsay N. Sabadosa1st Hampshire1/15/2025Danillo A. Sena37th Middlesex1/31/2025Erika Uyterhoeven27th Middlesex1/24/2025 1 of 12
HOUSE DOCKET, NO. 1112 FILED ON: 1/14/2025
HOUSE . . . . . . . . . . . . . . . No. 3056
By Representatives Connolly of Cambridge and Gentile of Sudbury, a petition (accompanied by
bill, House, No. 3056) of Mike Connolly, Carmine Lawrence Gentile and others for legislation to
support affordable housing with a local option for a fee to be applied to certain real estate
transactions. Revenue.
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Fourth General Court
(2025-2026)
_______________
An Act enabling a local option for a real estate transfer fee to fund affordable housing.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Section 55C of chapter 44 of the General Laws, as appearing in the 2022
2Official Edition, is hereby amended, by inserting after the word “fee,” in line 99, the following
3words:- transfer fee
4 SECTION 2. Said chapter 44, as so appearing, is hereby further amended by inserting
5after section 55C the following section:-
6 Section 55D. (a) For purposes of this section, the following words shall, unless the
7context clearly requires otherwise, have the following meanings:-
8 “Affidavit of transfer fee”, an affidavit signed under the pains and penalties of perjury by
9the settlement agent that attests to (i) the true and complete purchase or sale price of the transfer
10of the real property interest; (ii) the amount of the transfer fee owed or the basis, if any, upon
11which the transfer is exempt from the fee imposed by said transfer; (iii) the amount that the seller 2 of 12
12shall pay as required by the bylaw, ordinance or regulation; and (iv) the obligation of the
13settlement agent to make payment of the transfer fee to the city or town.
14 “Affordable housing purposes” uses allowed by the municipal affordable housing trust
15fund or regional affordable housing commission fund into which funds are deposited hereunder,
16which shall include the acquisition, construction, rehabilitation and preservation of affordable
17housing for the benefit of low- and moderate-income households as defined in such municipal
18affordable housing trust fund or regional affordable housing commission fund, assistance to a
19housing authority as defined under section 1 of chapter 121B or other affordable housing
20purposes pursuant to regulations promulgated by the executive office of housing and livable
21communities.
22 “Affordable housing restriction"", a recorded instrument held by a qualified holder which
23encumbers or restricts a real property interest so that the real property interest is perpetually or
24for a term of at least 30 years limited to use as a residence occupied by a low or moderate income
25household with area median income, as defined by the United States Department of Housing and
26Urban Development, not to exceed the income limits to which the municipal affordable housing
27trust fund or regional affordable housing commission fund is subject.
28 “Member cities and towns”, cities or towns that are members of a regional affordable
29housing commission.
30 “Municipal affordable housing trust fund”, a municipal affordable housing trust fund
31established pursuant to section 55C, or any other municipal trust fund established pursuant to a
32law of the commonwealth providing for the creation and preservation of affordable housing in a 3 of 12
33particular city or town for the benefit of low- and moderate-income households or for the
34funding of community housing, as defined in and in accordance with chapter 44B.
35 "Purchaser", the transferee, grantee or recipient of any real property interest.
36 "Purchase price" or “sale price”, all consideration paid or transferred by or on behalf of a
37purchaser to a seller or the seller’s nominee, or for the seller’s benefit, for the transfer of any real
38property interest, and shall include, but not be limited to: (i) all cash or its equivalent so paid or
39transferred; (ii) all cash or other property paid or transferred by or on behalf of the purchaser to
40discharge or reduce any obligation of the seller; (iii) the principal amount of all notes or their
41equivalent, or other deferred payments, given or promised to be given by or on behalf of the
42purchaser to the seller or the seller’s nominee; (iv) the outstanding balance of all obligations of
43the seller which are assumed by the purchaser or to which the real property interest transferred
44remains subject after the transfer, determined at the time of transfer, but excluding real estate
45taxes and other municipal liens or assessments which are not overdue at the time of transfer; (v)
46the fair market value, at the time of transfer, of any other consideration or thing of value paid or
47transferred by or on behalf of the purchaser, including, but not limited to, any property, goods or
48services paid, transferred or rendered in exchange for such real property interest.
49 “Qualified holder”, a governmental body or charitable corporation or trust which
50qualifies under the terms of chapter 184 to hold an affordable housing restriction.
51 "Real property interest", any present or future legal or equitable interest in or to real
52property, and any beneficial interest therein, including the interest of any beneficiary in a trust
53which holds any legal or equitable interest in real property, the interest of a partner or member in
54a partnership or limited liability company, the interest of a stockholder in a corporation, the 4 of 12
55interest of a holder of an option to purchase real property, the interest of a purchaser or seller
56under a contract for purchase and sale of real property and the transferable development rights
57created under chapter 183A; but shall not include any interest which is limited to any of the
58following: the dominant estate in any easement or right of way; the right to enforce any
59restriction; any estate at will or at sufferance; any estate for years having a term of less than 30
60years; any reversionary right, condition, or right of entry for condition broken; and the interest of
61a mortgagee or other secured party in any mortgage or security agreement.
62 “Regional affordable housing commission”, a regional planning and land use commission
63created by any general or special law with authority to prepare and oversee the implementation
64of a regional land-use policy plan for a region of the Commonwealth comprising at least one
65county, and whose membership includes all of the cities or towns in such region; provided, that
66the regional commission’s statutory purposes and authority shall include promoting the creation
67of fair affordable housing for low-income and moderate-income persons; provided further, that a
68regional affordable housing commission may be an agency within the structure of a regional
69government, including, but not limited to the Cape Cod regional government, known as
70Barnstable county; and provided further, that said regional government may require additional
71procedures for member cities and towns to adopt a transfer fee that are not inconsistent with this
72section, including, but not limited to procedures for adopting bylaws and ordinances, establishing
73a transfer fee and administering the collection of a transfer fee established pursuant to this
74section.
75 “Regional affordable housing commission fund”, a fund established by general or special
76law for the creation and preservation of affordable housing, as defined in the general or special
77law establishing such fund, in a particular region comprising at least one county. 5 of 12
78 "Seller", the transferor, grantor or immediate former owner of any real property interest.
79 “Settlement Agent”, an escrow agent, real estate attorney, or representative of a lender or
80title company that conducts the closing or settlement of the sale or transfer of a real property
81interest including the coordination of the attendance and document signing for all the parties,
82verification that each party to the transfer has performed their required responsibilities as
83outlined in the contract and the disbursement of all funds, along with the title and deed, to the
84appropriate parties after checking that all conditions are met at the close of the transfer
85transaction.
86 "Time of transfer", the time at which a transfer of a real property interest is legally
87effective as between the parties thereto, and, in any event, with respect to a transfer evidenced by
88an instrument recorded with the appropriate registry of deeds or filed with the assistant recorder
89of the appropriate registry district, not later than the time of such recording or filing.
90 “Transfer fee”, a fee, to be paid by the seller pursuant to this section, upon the transfer of
91a real property interest between a seller and a buyer.
92 (b) (1) A city or town that has established a municipal affordable housing trust fund, or a
93regional affordable housing commission that has established a regional affordable housing
94commission fund, as applicable, may, pursuant to subsection (e), impose a fee upon the transfer
95of any real property interest in any real property situated in the city or town, or real property
96situated in the member cities and towns, as described and as subject to conditions and
97exemptions described herein; provided, that a city or town that is an MBTA community as
98defined in section 1A of chapter 40A shall not impose a transfer fee pursuant to this section
99unless such city or town has been determined by the executive office of housing and livable 6 of 12
100communities to be in compliance with section 3A of chapter 40A; and provided further, that
101member cities and towns shall not impose a fee pursuant to this section if a transfer fee is in
102effect pursuant to the adoption of such fee by the applicable regional affordable housing
103commission under subsection (e).
104 (2) A city, town or regional affordable housing commission, as applicable, may establish
105different transfer fee rates for different classifications of properties, defined by the tax
106classification of such properties, and the purchase price of a property; provided, however, that
107any transfer fee shall be not less than 0.5 per cent and not more than 2 per cent of either (i) the
108full amount of the purchase price of such real property interest, (ii) the portion of the purchase
109price of such real property interest in excess of the exemption threshold established pursuant to
110paragraph (1) of subsection (c), or (iii) a different amount between (i) and (ii) at the discretion of
111the city, town or regional affordable housing commission, as applicable.
112 (3) The city, town or regional affordable housing commission, as applicable, shall have
113the authority to designate whether the transfer fee shall be borne by the purchaser, the seller or
114how it will be allocated between the two.
115 (4) The seller or settlement agent shall, in advance of the time of transfer, request and the
116city or town or regional affordable housing commission, as applicable, shall provide to said seller
117or settlement agent in advance of the time of transfer a certificate indicating the dollar amount of
118the transfer fee owed based on the agreed upon purchase price as evidenced by an executed
119purchase and sale agreement, contract for sale or other document evidencing the agreed upon
120purchase price or that the transfer is exempt from the transfer fee, stating the basis for the
121exemption. 7 of 12
122 (5) Whenever the transfer of a real property interest will occur at or about the same time
123as a conveyance of personalty related thereto, the calculation of the fee with respect to such
124transfer shall be determined by the city or town or regional affordable housing commission, as
125applicable; provided, that the allocations of payments between real estate and personalty agreed
126to by the purchaser and seller shall not determine the calculation of the transfer fee due pursuant
127to this section.
128 (6) The transfer fee shall be paid within 7 days of the time of transfer by the settlement
129agent to the city or town, or its designee, or to the regional affordable housing commission or its
130designee, as applicable and shall be accompanied by a copy of the deed or other instrument
131recorded or registered with the registry of deeds for the county in which the real property interest
132is located, or the assistant recorder for the registry district of the county in which the real
133property interest is located, and a copy of the affidavit of transfer fee. The city or town, or its
134designee, or the regional affordable housing commission, or its designee as applicable, shall
135promptly thereafter execute and issue a certificate indicating that the appropriate fee has been
136paid.
137 (7) Upon receipt of a transfer fee by a city or town, the treasurer of the city or town shall
138deposit the transfer fee in the city or town’s municipal affordable housing trust fund. Upon
139receipt of a transfer fee by a regional affordable housing commission, or its designee, the
140regional affordable housing commission, or its designee, shall deposit the transfer fee into the
141regional affordable housing commission fund.
142 (c) (1) The following transfers of real property interests shall be exempt from a transfer
143fee established pursuant to this section; 8 of 12
144 (i) Transfers for less than the lesser of $1,000,000 or 100 per cent of the median single
145family home sales price for that county; provided, that a municipality or regional affordable
146housing commission, as applicable, may adopt a higher threshold pursuant to this section. The
147county median sales price for a single-family home shall be determined annually by April 1 of
148each calendar year by the executive office of housing and livable communities.
149 (ii) Transfers made as gifts with consideration of less than $100;
150 (iii) Transfers from the government of the United States, the Commonwealth and any of
151their instrumentalities, agencies or subdivisions, including but not limited to transfers from the
152city, town, local housing authority or regional housing commission;
153 (iv) Distributions by the trustees of a trust to the beneficiaries of such trust;
154 (v) Transfers to the trustees of a trust in exchange for a beneficial interest received by the
155seller in such trust;
156 (vi) Transfers between family members as defined by bylaw, ordinance or regulations
157adopted by a city, town or regional affordable housing commission, as the case may be;
158 (vii) Transfers which, without additional consideration, confirm, correct, modify or
159supplement a transfer previously made;
160 (viii) Transfers by operation of law without actual consideration, including but not
161limited to transfers occurring by virtue of the death or bankruptcy of the owner of a real property
162interest;
163 (ix) Transfers made in partition of land and improvements thereto, pursuant to chapter
164241; 9 of 12
165 (x) Transfers to any charitable or religious organization, as defined pursuant to section 5
166of chapter 59; provided, however, that the real property interest so transferred will be held by the
167charitable or religious organization solely for affordable housing-related uses that are consistent
168with the uses allowed by the municipal affordable housing trust fund or regional affordable
169housing commission fund, as applicable; and provided, further, that such housing shall be subject
170to an affirmative fair housing marketing plan approved by the executive office of housing and
171livable communities;
172 (xi) Transfers to a mortgagee in foreclosure of the mortgage held by such mortgagee, and
173transfers of the property subject to a mortgage to the mortgagee in consideration of the
174forbearance of the mortgagee from foreclosing said mortgage;
175 (xii) Transfers consisting of the division of marital assets under the provisions of section
17634 of chapter 208 or other provisions of law; and
177 (xiii) Transfers of an interest in real property containing not less than 3 residential units
178in which not less than 1 residential unit or 25 per cent of the residential units, whichever is
179greater, is governed by affordable housing restrictions; provided, however, that if less than 100
180per cent of the residential units are governed by affordable housing restrictions, the exemption
181shall apply only to the portion of the property that is governed by affordable housing restrictions
182and the transfer fee imposed pursuant to this section shall be proportionately reduced based on
183the percentage of residential units subject to affordable housing restrictions, as compared to the
184total number of units located on that property. 10 of 12
185 (2) Any city, town or regional affordable housing commission, as applicable, may,
186through local ordinance or bylaw, exempt certain other transactions from a transfer fee
187established pursuant to this section, including but not limited to:
188 (i) transfers to first-time homebuyers;
189 (ii) transfers to or from persons eligible for the senior circuit breaker tax credit
190established in paragraph (2) of subsection (k) of section 6 of chapter 62; and
191 (iii) transfers from taxpayers that are subject to the residential tax exemption pursuant to
192section 5C of Chapter 59, or who otherwise would meet the requirements of said exemption.
193 (3) The payor of the transfer fee shall have the burden of proving that an exemption
194applies to a transfer of real property interest pursuant to this section; and provided further, that
195any otherwise exempt transfer shall not be exempt in the event that such transfer, by itself or as
196part of a series of transfers, was made for the primary purpose of evading the fee established
197pursuant to this section.
198 (d) The city or town’s treasurer, or the treasurer or other person designated by the
199regional affordable housing commission, as applicable, shall keep a full and accurate account
200stating when, from or to whom, and on what account, money has been paid or received relative
201to the activities of the municipal or regional affordable housing trust fund.
202 (e)(1) The adoption of any transfer fee pursuant to subsection (b) shall be determined by
203either (i) a majority vote by the city or town’s legislative body or (ii) with respect to a regional
204affordable housing commission, by the terms of, or in accordance with, the procedures
205established by such commission; provided, that member cities and towns may adopt a transfer 11 of 12
206fee pursuant to clause (i) if a transfer fee is not in effect for the applicable regional affordable
207housing commission pursuant to clause (ii); and provided further, that a transfer fee adopted by
208any member cities and towns shall have no force or effect upon the effective date of a transfer
209fee adopted by the applicable regional affordable housing commission pursuant to clause (ii).
210The adoption of a transfer fee pursuant to subsection (b) shall take effect on the first day of the
211calendar quarter following 30 days after its acceptance pursuant to this subsection or on the first
212day of a later calendar quarter as the city or town or regional housing commission, as applicable,
213may designate.
214 (2) A city, town or any of the member cities or towns of a regional affordable housing
215commission may provide for the enforcement and collection of a transfer fee established
216pursuant to this section, including, but not limited to the denial, revocation or suspension of local
217licenses and permits pursuant to section 57 of chapter 40 and the authority to impose a lien on
218real property pursuant to section 58 of chapter 40.
219 (3) A city, town or regional affordable housing commission enacting a real estate transfer
220fee pursuant to this section, may issue rules, policies and procedures to effectuate its terms.
221 (4) A city, town or regional affordable housing commission that adopts this section shall
222submit an annual report to the executive office of housing and livable communities and the
223department of revenue detailing the total fees collected and the amounts used or planned to be
224used for affordable housing purposes in accordance with this section.
225 (5) A city, town or regional affordable housing commission that adopts this section shall
226adopt a bylaw, ordinance or regulation, as the case may be, which establishes a procedure by 12 of 12
227which an aggrieved person may appeal the transfer fee amount, in whole or in part, or the denial
228of an exemption.
229 (6) Any person aggrieved by a denial of relief pursuant to a bylaw, ordinance or
230regulation established pursuant to paragraph (5) may, within 60 days from the receipt of the
231notice of such denial, petition the appellate tax board under the provisions of chapter 58A.
232 (f) The executive office of housing and livable communities, in consultation with the
233department of revenue, shall promulgate regulations to carry out the provisions of this section,
234which shall include, but not be limited to regulations that provide for the forfeiture of revenue
235collected pursuant to this section to said executive office if such revenue has not been used for
236affordable housing purposes within a reasonable amount of time.