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SENATE DOCKET, NO. 1951 FILED ON: 1/17/2025
SENATE . . . . . . . . . . . . . . No. 966
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Julian Cyr
_________________
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 relative to funding housing and mitigating investor real estate in seasonal communities.
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PETITION OF:
NAME:DISTRICT/ADDRESS :Julian CyrCape and Islands 1 of 12
SENATE DOCKET, NO. 1951 FILED ON: 1/17/2025
SENATE . . . . . . . . . . . . . . No. 966
By Mr. Cyr, a petition (accompanied by bill, Senate, No. 966) of Julian Cyr for legislation to
fund housing and mitigating investor real estate in seasonal communities. Housing.
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Fourth General Court
(2025-2026)
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An Act relative to funding housing and mitigating investor real estate in seasonal communities.
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, as appearing in the 2022 Official Edition, is
2hereby further amended, by inserting after the word “fee,”, in line 99, the following words:-
3transfer fee pursuant to section 55D.
4 SECTION 2. Said chapter 44 is hereby further amended by inserting after section 55C the
5following 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, year round housing trust fund or regional affordable housing commission fund into which
16funds are deposited hereunder, which shall include the acquisition, construction, rehabilitation,
17and preservation of (1) affordable or attainable housing for the benefit of low- and moderate-
18income households and (2) year-round housing in municipalities designated as seasonal
19communities by the executive office pursuant to section 32 of chapter 23B. All activities shall be
20subject to the income limits as are applicable to such municipal affordable housing trust fund,
21year-round housing trust fund, regional affordable housing commission fund, assistance to a
22housing authority as defined under section 1 of chapter 121B or other affordable housing
23purposes pursuant to regulations promulgated by the executive office of housing and livable
24communities.
25 “Affordable housing restriction", a recorded instrument held by a qualified holder which
26encumbers or restricts a real property interest so that the real property interest is perpetually or
27for a term of at least 30 years limited to use as a residence occupied by a low or moderate income
28household with area median income, as defined by the United States Department of Housing and
29Urban Development, not to exceed the household income limits applicable to the municipal
30affordable housing trust fund, year-round housing trust fund or regional affordable housing
31commission fund that funded the acquisition of the affordable housing restriction.
32 “Attainable housing”, as the term is defined by the executive office of housing and
33livable communities. 3 of 12
34 "Low or moderate income household'', a household with gross income at or less than 150
35per cent of area median income as most recently determined by the United States Department of
36Housing and Urban Development, adjusted for household size.
37 “Member cities and towns”, cities or towns that are members of a regional affordable
38housing commission.
39 “Municipal affordable housing trust fund”, a municipal affordable housing trust fund
40established under section 55C, or any other municipal trust fund established pursuant to a law of
41the commonwealth providing for the creation and preservation of affordable housing in a
42particular city or town for the benefit of low- and moderate-income households or for the
43funding of community housing, as defined in and in accordance with chapter 44B.
44 "Purchaser", the transferee, grantee, or recipient of any real property interest.
45 "Purchase price" or “sale price,” all consideration paid or transferred by or on behalf of a
46purchaser to a seller or the seller’s nominee, or for the seller’s benefit, for the transfer of any real
47property interest, and shall include, but not be limited to: (i) all cash or its equivalent so paid or
48transferred; (ii) all cash or other property paid or transferred by or on behalf of the purchaser to
49discharge or reduce any obligation of the seller; (iii) the principal amount of all notes or their
50equivalent, or other deferred payments, given or promised to be given by or on behalf of the
51purchaser to the seller or the seller’s nominee; (iv) the outstanding balance of all obligations of
52the seller which are assumed by the purchaser or to which the real property interest transferred
53remains subject after the transfer, determined at the time of transfer, but excluding real estate
54taxes and other municipal liens or assessments which are not overdue at the time of transfer; (v)
55the fair market value, at the time of transfer, of any other consideration or thing of value paid or 4 of 12
56transferred by or on behalf of the purchaser, including, but not limited to, any property, goods or
57services paid, transferred or rendered in exchange for such real property interest.
58 “Qualified holder”, a governmental body or charitable corporation or trust which
59qualifies under the terms of chapter 184 to hold an affordable housing restriction.
60 "Real property interest", any present or future legal or equitable interest in or to real
61property, and any beneficial interest therein, including the interest of any beneficiary in a trust
62which holds any legal or equitable interest in real property, the interest of a partner or member in
63a partnership or limited liability company, the interest of a stockholder in a corporation, the
64interest of a holder of an option to purchase real property, the interest of a purchaser or seller
65under a contract for purchase and sale of real property, and the transferable development rights
66created under chapter 183A; but shall not include any interest which is limited to any of the
67following: the dominant estate in any easement or right of way; the right to enforce any
68restriction; any estate at will or at sufferance; any estate for years having a term of less than 30
69years; any reversionary right, condition, or right of entry for condition broken; and the interest of
70a mortgagee or other secured party in any mortgage or security agreement.
71 “Regional affordable housing commission”, a regional trust, bank, board or like entity,
72whose membership includes two or more municipalities.
73 “Regional affordable housing commission fund”, a fund established by the regional
74affordable housing commission for the creation and preservation of affordable or attainable
75housing.
76 "Seller", the transferor, grantor, or immediate former owner of any real property interest. 5 of 12
77 “Settlement Agent”, an escrow agent, real estate attorney, or representative of a lender or
78title company that conducts the closing or settlement of the sale or transfer of a real property
79interest including the coordination of the attendance and document signing for all the parties,
80verification that each party to the transfer has performed their required responsibilities as
81outlined in the contract and the disbursement of all funds, along with the title and deed, to the
82appropriate parties after checking that all conditions are met at the close of the transfer
83transaction.
84 "Time of transfer", the time at which a transfer of a real property interest is legally
85effective as between the parties thereto, and, in any event, with respect to a transfer evidenced by
86an instrument recorded with the appropriate registry of deeds or filed with the assistant recorder
87of the appropriate registry district, not later than the time of such recording or filing.
88 “Transfer fee”, a fee, to be paid by purchaser upon the transfer of a real property interest
89between said purchaser and the seller of such property.
90 “Year-round housing”, housing for occupancy by persons or families who occupy either
91rental or other housing as their principal residence for not less than 10 months a year.
92 “Year-Round Housing Trust Fund”, a fund established under section 32 of chapter 23B to
93provide for the creation and preservation of affordable and attainable housing in seasonal
94communities for the benefit of year-round residents and for the funding of programs available to
95seasonal communities.
96 (b) (1) A city or town designated as a seasonal community under section 32 of chapter
9723B of the Generals Laws may, pursuant to subsection (e), impose a fee upon the transfer of real 6 of 12
98property interest in any real property situated within the city or town, or real property situated in
99the member cities and towns.
100 (2) A city, town or regional affordable housing commission or its designee, as applicable,
101may establish different transfer fee rates for different classifications of properties, defined by the
102tax classification of such properties, and the purchase price of a property; provided, however,
103that any transfer fee shall be not less than 0.5 per cent and not more than 2 per cent of the portion
104of the purchase price of such real property interest in excess of the exemption threshold
105established pursuant to paragraph (1) of subsection (c).
106 (3) A purchaser of real property bearing the fee established under this section or
107settlement agent shall, in advance of the time of transfer, request and the city or town or regional
108affordable housing commission, as applicable, shall provide to said party or settlement agent in
109advance of the time of transfer a certificate indicating the dollar amount of the transfer fee owed
110based on the agreed upon purchase price as evidenced by an executed purchase and sale
111agreement, contract for sale or other document evidencing the agreed upon purchase price or that
112the transfer is exempt from the transfer fee, stating the basis for the exemption.
113 (5) Whenever the transfer of a real property interest will occur at or about the same time
114as a conveyance of personalty related thereto, the calculation of the fee with respect to such
115transfer shall be determined by the city or town or regional affordable housing commission or its
116designee, as applicable; provided, that the allocations of payments between real estate and
117personalty agreed to by the purchaser and seller shall not determine the calculation of the transfer
118fee due pursuant to this section. 7 of 12
119 (6) The transfer fee shall be paid within 7 days of the time of transfer by the settlement
120agent to the city or town, or its designee, or to the regional affordable housing commission or its
121designee, as applicable and shall be accompanied by a copy of the deed or other instrument
122recorded or registered with the registry of deeds for the county in which the real property interest
123is located, or the assistant recorder for the registry district of the county in which the real
124property interest is located, and a copy of the affidavit of transfer fee. The city or town, or its
125designee, or the regional affordable housing commission, or its designee as applicable, shall
126promptly thereafter execute and issue a certificate indicating that the appropriate fee has been
127paid.
128 (7) Upon receipt of a transfer fee by a city or town, the treasurer of the city or town shall
129deposit the transfer fee in the city or town’s municipal affordable housing trust fund or year-
130round housing trust fund. Upon receipt of a transfer fee by a regional affordable housing
131commission, or its designee, the regional affordable housing commission, or its designee, shall
132deposit the transfer fee into the regional affordable housing commission fund.
133 (c) (1) A city or town, in adopting the fee established under this section, shall exempt the
134following transfers of real property interests from said fee:
135 (i) Transfers for less than $1,000,000; provided, however, that a municipality or regional
136affordable housing commission, as applicable, may adopt a higher threshold pursuant to this
137section.
138 (ii) Transfers from the government of the United States, the Commonwealth and any of
139their instrumentalities, agencies, or subdivisions, including but not limited to transfers from the
140city, town, local housing authority or regional housing commission; 8 of 12
141 (iii) Transfers between family members as defined by bylaw, ordinance or regulations
142adopted by a city, town or regional affordable housing commission, as the case may be;
143 (iv) Transfers consisting of the division of marital assets under the provisions of section
14434 of chapter 208 or other provisions of law;
145 (v) transfers of property in which the purchaser is a beneficiary of a city-approved
146homeuyer program.
147 (vi) Transfers of an interest in real property containing not less than 3 residential units in
148which not less than 1 residential unit or 25 per cent of the residential units, whichever is greater,
149is governed by affordable housing restrictions; provided, however, that if less than 100 per cent
150of the residential units are governed by affordable housing restrictions, the exemption shall apply
151only to the portion of the property that is governed by affordable housing restrictions and the
152transfer fee imposed pursuant to this section shall be proportionately reduced based on the
153percentage of residential units subject to affordable housing restrictions, as compared to the total
154number of units located on that property;
155 (2) A city or town, in adopting the fee established under this section, may exempt the
156following transfers of real property interests from said fee:
157 (i) Transfers made as gifts with consideration of less than $100;
158 (ii) Distributions by the trustees of a trust to the beneficiaries of such trust;
159 (iii) Transfers to the trustees of a trust in exchange for a beneficial interest received by
160the seller in such trust; 9 of 12
161 (iv) Transfers which, without additional consideration, confirm, correct, modify, or
162supplement a transfer previously made;
163 (v) Transfers by operation of law without actual consideration, including but not limited
164to transfers occurring by virtue of the death or bankruptcy of the owner of a real property
165interest;
166 (vi) Transfers made in partition of land and improvements thereto, pursuant to chapter
167241;
168 (vii) Transfers to any or religious organization, as defined pursuant to section 5 of
169chapter 59; provided, however, that the real property interest so transferred will be held by the
170charitable or religious organization solely for affordable housing-related uses that are consistent
171with the uses allowed by the municipal affordable housing trust fund, year-round housing trust
172fund or regional affordable housing commission fund, as applicable; and provided, further, that
173such housing shall be subject to an affirmative fair housing marketing plan approved by the
174executive office of housing and livable communities;
175 (viii) Transfers to a mortgagee in foreclosure of the mortgage held by such mortgagee,
176and transfers of the property subject to a mortgage to the mortgagee in consideration of the
177forbearance of the mortgagee from foreclosing said mortgage;
178 (ix) a vulnerable senior, as may be defined by ordinance;
179 (x) transfers of property subject to a year-round or other deed restriction;
180 (xi) transfers of property in which the purchaser is a first-time homebuyer who lives in
181the home for a specified number of years; and 10 of 12
182 (3) The city or town may, by ordinance, accept and determine the amount of the fee and
183adjust the exempted value to assess the entire value of the transaction.
184 (4) The payor of the transfer fee shall have the burden of proving that an exemption
185applies to a transfer of real property interest pursuant to this section; and provided further, that
186any otherwise exempt transfer shall not be exempt in the event that such transfer, by itself or as
187part of a series of transfers, was made for the primary purpose of evading the fee established
188pursuant to this section.
189 (d) The city or town’s treasurer, or the treasurer or other person designated by the
190regional affordable housing commission, as applicable, shall keep a full and accurate account
191stating when, from or to whom, and on what account, money has been paid or received relative
192to the activities of the municipal, year-round or regional affordable housing trust fund.
193 (e)(1) The adoption of any transfer fee pursuant to subsection (b) shall be determined by
194majority vote by the city or town’s legislative body. The adoption of a transfer fee pursuant to
195subsection (b) shall take effect on the first day of the calendar quarter following 30 days after its
196acceptance pursuant to this subsection or on the first day of a later calendar quarter as the city or
197town or regional housing commission, as applicable, may designate.
198 (2) A city, town or any of the member cities or towns of a regional affordable housing
199commission may provide for the enforcement and collection of a transfer fee established
200pursuant to this section, including, but not limited to the denial, revocation or suspension of local
201licenses and permits pursuant to section 57 of chapter 40 and the authority to impose a lien on
202real property pursuant to section 58 of chapter 40. 11 of 12
203 (3) A city, town or regional affordable housing commission enacting a real estate transfer
204fee pursuant to this section, may issue rules, policies and procedures to effectuate its terms.
205 (4) A city, town or regional affordable housing commission that adopts this section shall
206submit an annual report to the executive office of housing and livable communities and the
207department of revenue detailing the total fees collected and the amounts used or planned to be
208used for affordable housing purposes in accordance with this section.
209 (5) a city, town or regional affordable housing commission that adopts this section shall
210adopt a bylaw, ordinance or regulation, as the case may be, which establishes a procedure by
211which an aggrieved person may appeal the transfer fee amount, in whole or in part, or the denial
212of an exemption.
213 (6) Any person aggrieved by a denial of relief pursuant to a bylaw, ordinance or
214regulation established pursuant to paragraph (5) may, within 60 days from the receipt of the
215notice of such denial, petition the appellate tax board under the provisions of chapter 58A.
216 (f) The executive office of housing and livable communities, in consultation with the
217department of revenue, shall promulgate regulations to carry out the provisions of this section,
218which shall include, but not be limited to regulations that provide for the forfeiture of revenue
219collected pursuant to this section to said executive office if such revenue has not been used for
220affordable or attainable housing purposes within a reasonable amount of time.
221 (g) Two or more municipalities within the same county may join together to create a
222regional affordable housing commission for the purposes of creating and preserving affordable or
223attainable housing for the benefit of low-and-moderate income households or year-round
224residents in municipalities designated as seasonal communities under section 32 of chapter 23B. 12 of 12
225If a municipality is a member of a regional affordable housing commission, any authority
226granted to a city or town under this section shall be exercised solely by the regional affordable
227housing commission, including administration of the fee established under this section.
228Municipalities may, by a majority vote of their respective legislative bodies, establish or disband
229by intermunicipal contract a regional affordable housing commission. Such contract shall set
230forth: (i) the rights, powers and obligations of the regional affordable housing commission; (ii)
231the number, composition, method of selection, and terms of office of commissioners serving on
232such commission; (iii) the manner by which the regional affordable housing commission may
233establish a transfer fee pursuant to this section, and the amount of such transfer fee including any
234different rates based on property classifications, if any; (iv) low- and moderate- income limits
235applicable to the regional affordable housing commission fund as determined to be appropriate
236by the member cities and towns based on housing needs and market conditions within such
237member cities and towns (v) the method by which the contract may be amended or terminated;
238(vi) the term of the contract, not exceeding twenty-five years; and (vii) any other matters, not
239incompatible with this section, which the member cities and towns may deem advisable.