Bill
H 3056
Allows MA cities to adopt a local real estate transfer fee, directing proceeds to municipal/regional affordable housing funds to acquire, build, rehab, or preserve affordable homes.
Status & key dates
- Introduced (MA): Jan 14, 2025; prefiled Dec 5, 2024.
- Referred to Committee on Judiciary (1/14/2025) and Committee on Revenue (2/27/2025).
- Hearing scheduled: Sept 9, 2025 (Gardner Auditorium).
- Primary sponsors: Reps. Mike Connolly and Carmine L. Gentile, joined by multiple co‑sponsors.
- Related bill: HD 1112 (replaces).
Note on documents provided
- The packet also includes unrelated draft text from South Carolina creating a “reckless endangerment” offense. That South Carolina text is separate and not part of Massachusetts H.3056. The Massachusetts bill before the Legislature concerns a local option real estate transfer fee for affordable housing.
Purpose and intent
- H.3056 would authorize Massachusetts cities and towns to adopt a local real estate transfer fee (a “transfer fee”) on certain conveyances of real property, with proceeds dedicated to municipal or regional affordable housing trust funds. The aim is to create a locally controlled revenue stream to acquire, build, preserve, or otherwise support affordable housing for low‑ and moderate‑income households.
Key provisions (as provided in bill text)
- Amends chapter 44 (municipal finance law) by inserting a new Section 55D following Section 55C to establish the statutory framework for a municipal/regional transfer fee.
- Definitions: detailed definitions are included for terms such as “affidavit of transfer fee,” “purchase price” (broadly defined to include cash, assumed debt, notes, property or services exchanged), “real property interest,” “affordable housing restriction” (term of at least 30 years or perpetual), “municipal affordable housing trust fund,” “regional affordable housing commission,” “qualified holder,” “purchaser,” and “member cities and towns.”
- Collection mechanism: requires a settlement agent to execute an “affidavit of transfer fee” attesting to the true purchase/sale price, fee owed or exemption basis, the seller’s payment obligation if required by local bylaw/ordinance/regulation, and the settlement agent’s obligation to remit the fee to the city or town.
- Use of funds: proceeds deposited into the municipal or regional affordable housing trust fund may be used for acquisition, construction, rehabilitation, preservation of affordable housing, assistance to housing authorities, or other affordable housing purposes consistent with the trust’s rules and state regulations.
- Legal/administrative structure: establishes who may hold affordable housing restrictions (“qualified holder”) and cross‑references Municipal Trust Fund rules (chapter 44B). (Bill text provided is truncated; additional implementation details, exemptions, penalty/enforcement provisions, or rate limits may appear in the full version.)
Who would be affected
- Buyers and sellers of real property in municipalities that adopt the local option fee (affecting transaction costs).
- Settlement agents/title companies (responsible for affidavit and remittance).
- Municipalities and regional housing commissions (able to adopt and administer the fee; recipients of proceeds).
- Low‑ and moderate‑income households and local housing providers (potential beneficiaries through increased affordable housing funding).
Potential impacts and considerations
- Revenue: creates a dedicated, locally controlled funding source for affordable housing; amount depends on fee rate and transaction volumes (bill text does not include a statewide rate cap in the excerpt).
- Market effects: could modestly raise transaction costs and affect housing affordability/market activity if passed at high local rates; municipalities would choose whether to adopt the option.
- Administration: requires municipal capacity to administer funds and for settlement agents to comply; clear guidance, exemptions, and enforcement mechanisms will be important.
- Legal issues: definitions (e.g., “purchase price”) are broad and may require clarifying regulation to avoid disputes.
Procedural next steps
- Committee hearings (Revenue/Judiciary) and potential amendments. The scheduled hearing on Sept 9, 2025 is the next public procedural milestone reflected in available actions.
Compiled from official sources — confirm details with the bill’s official record.
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