Massachusetts Eyes Mansion Tax to Fund Affordable Housing [BNN Bloomberg (Canada)]
Redfin Corporation (RDFN)
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Source: BNN Bloomberg
Governor Maura Healey's $4 billion housing bond bill, the state's biggest-ever investment in its residential stock, includes a provision allowing cities to impose a transfer fee of 0.5% to 2% on property sales exceeding $1 million. The revenue generated would go toward affordable housing projects. The initiative, which mirrors a measure recently spurned by Chicago voters, has sparked a debate among local governments, housing advocates and critics who fear it may squeeze home sales and further burden property developers who are grappling with record office vacancy rates. Supporters, including Boston Mayor Michelle Wu and leaders of more than 15 other municipalities, see the transfer fee as a critical tool to address a growing shortage of affordable housing. State Housing Secretary Edward Augustus says Massachusetts needs 200,000 more homes to keep pace with population growth. “This policy is a win for local governments, but most importantly it is a win for renters and homeowners
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