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H 3166

An Act authorizing a local affordable housing surcharge

194th Legislature (2025-2026) Introduced by Jay Livingstone

Massachusetts bill authorizes municipalities to levy optional real estate transaction surcharges dedicated to funding local affordable housing programs.

Accompanied a study order, see H5182
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Bill Summary · H 3166

Legislative bill overview

H 3166 authorizes Massachusetts municipalities to implement a local surcharge on real estate transactions to fund affordable housing development. The bill allows cities and towns to establish this optional revenue mechanism, giving them a new tool to address housing affordability challenges at the local level.

Why is this important

Housing affordability is a critical issue across Massachusetts, with high property costs pricing out many residents. By enabling local governments to generate dedicated funding through real estate transaction surcharges, the bill could accelerate affordable housing creation while allowing communities to determine their own approach rather than relying solely on state or federal programs.

Potential points of contention

  • Impact on real estate market: Critics may argue that an additional surcharge on property transactions could discourage home purchases, increase transaction costs for buyers, and potentially cool local housing markets
  • Regressive burden: The surcharge could disproportionately affect first-time homebuyers and moderate-income purchasers, potentially worsening affordability for those trying to enter the market
  • Local variation: Creating a patchwork of different municipal surcharges could create complexity and incentivize geographic arbitrage, where buyers strategically purchase in lower-surcharge areas

Compiled from official sources — confirm details with the bill’s official record.

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