Bill
H 4574
Imposes a local real estate transfer fee in Arlington to fund affordable housing, with town-determined thresholds, rates (0.05%–2%), exemptions, and fund use.
Status and timeline
- Introduced: September 29, 2025
- Referred to: Massachusetts Senate/House Committee on Revenue
- Legislative actions: Senate concurred on October 2, 2025
- Local action: Acceptance of the act requires Arlington town meeting approval followed by a ballot vote
Purpose and intent
- Establishes a local real estate transfer fee (the “fee”) for transfers of real property located in Arlington or transfers of a controlling interest in an entity that directly or indirectly holds Arlington real property.
- The fee is intended to fund affordable housing initiatives in Arlington through the Municipal Affordable Housing Trust Fund and related costs.
Key provisions and how it would work
- Section 1: Creates the fee with terms set by Arlington Town Meeting, upon a recommendation by the Arlington Select Board.
- Section 2 (threshold): Applies only to transfers exceeding a threshold price set by Town Meeting, between 50% and 150% of the state median sale price for a single-family home. The threshold is determined by Town Meeting after a Select Board recommendation.
- Section 3 (rate): The fee rate ranges from 0.05% to 2% of the transfer price. The rate, and who pays (buyer, seller, or both), are determined by Town Meeting after a Select Board recommendation. The town may define “controlling interest” and the calculation of the fee by by-law.
- Section 4 (exemptions): Several exemptions apply (and may not be eliminated by by-law), including:
- Transfers below the threshold;
- Gifts under $100 to certain family relationships;
- Transfers to the federal government, Commonwealth, or their instrumentalities;
- Residential transfers with affordable housing restrictions, with proportional fee reductions based on the share of units under restriction;
- Transfers without additional consideration to confirm/correct a prior transfer;
- Transfers by operation of law (e.g., death, bankruptcy);
- Partitions of land;
- Transfers to charitable or religious organizations for affordable housing uses;
- Foreclosures or related forbearance transfers;
- Division of marital assets.
- Section 5 (exemptions): Arlington cannot eliminate exemptions via by-law.
- Section 6 (use of funds): Fees go to Arlington’s Municipal Affordable Housing Trust Fund and may be used only for affordable housing financing and related costs; collection methods mirror property tax collection, including liens for unpaid fees.
- Section 7 (administration): Arlington may enact additional requirements or regulations to implement or enforce the fee.
- Section 8–9 (documentation and recordation): Requires deeds to be accompanied by an affidavit of price, declaration of exemptions (if any), and basis for exemptions; the town issues a certificate of payment or exemption before registry recording.
- Section 10 (annual reporting): The town must publish an annual report detailing fee receipts, financed affordable housing programs, and program impact (including demographic and housing stability measures where feasible).
- Section 11 (acceptance process): Local acceptance requires an annual Town Meeting vote followed by a majority vote on the ballot.
Who is affected
- Real property transfers in Arlington, including transfers of controlling interests in entities that own Arlington property.
- Buyers, sellers, or both, depending on Town Meeting votes.
- Property owners and developers dealing with Arlington real estate, subject to threshold, rate, and exemptions approved by the town.
Impact considerations
- Creates a new local revenue stream dedicated to affordable housing in Arlington.
- Grants Arlington substantial discretion to set thresholds, rates, and exemptions via town meeting action.
- Requires documentation and formal certification to record transfers, affecting closing processes.
Compiled from official sources — confirm details with the bill’s official record.
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