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Bill

HD 1112

An Act enabling a local option for a real estate transfer fee to fund affordable housing

194th Legislature (2025-2026) Introduced by James Arena-DeRosa and 15 co-sponsors

Allows Massachusetts municipalities to locally impose real estate transfer fees via voter approval to fund affordable housing development and preservation.

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Bill Summary · HD 1112

Legislative bill overview

HD 1112 would allow Massachusetts municipalities to locally impose a transfer fee on real estate sales, with revenue directed to affordable housing development and preservation. The bill grants individual cities and towns the option to implement this fee through local ballot vote, rather than implementing a statewide mandate.

Why is this important

Housing affordability is a critical challenge in Massachusetts, with high home prices outpacing wage growth in most regions. Local transfer fees could generate dedicated funding streams for affordable housing without requiring state budget appropriations, giving communities tools to address their specific housing needs. However, this approach shifts the fiscal burden onto property transactions, which affects both buyers and existing homeowners selling property.

Potential points of contention

  • Economic impact on real estate transactions: Transfer fees could increase closing costs for buyers and reduce seller proceeds, potentially cooling local real estate markets or being passed to consumers through higher home prices
  • Fairness and incidence questions: Debate over whether property transaction fees are the appropriate mechanism for housing funding, and whether this disproportionately burdens middle-class homeowners versus other funding sources
  • Implementation complexity: Questions about fee structure (percentage vs. fixed), exemptions, enforcement mechanisms, and whether revenue actually reaches affordable housing versus general municipal budgets

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

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