The Edgartown and West Tisbury select boards pressed the pause button this week on a draft article to create an Islandwide housing bank, after a review by town counsel raised questions.
For a second straight week the Edgartown select board Monday pressed the pause button on a draft article to create an Islandwide housing bank, after a review by town counsel raised a series of questions about the article.
West Tisbury is also holding off on action. At Wednesday’s select board meeting, chairman Skipper Manter and member Cynthia Mitchell emphasized their support for the measure but said they wanted to see language changes.
The coalition that is advocating for the housing bank has been circulating the draft warrant article in the six Island towns for inclusion on the annual town meetings warrants next spring. The article anticipates a bill in the state legislature, which has not been filed yet.
The housing bank is intended to be modeled after the Martha’s Vineyard Land Bank. As currently proposed, the housing bank would collect two per cent transfer fee on most real estate transactions over $1 million. The money would be distributed in the form of grants for affordable housing projects on the Island. An elected Islandwide commission would control the funds.
Last week the Edgartown select board said they wanted town counsel Ron Rappaport to review the draft article before deciding to put it on the warrant.
In a four-page letter sent to town administrator James Hagerty, Mr. Rappaport zeroed in on key differences between the 1986 land bank legislation and what is being proposed for a housing bank. The differences include the process for adopting the housing bank article, which would allow passage by four of the six towns at annual town meeting instead of all six towns, as was done with the land bank. The land bank process also included a return to voters for ratification at the ballot box after legislation cleared Beacon Hill. The housing bank proposal does not include this provision.
“A threshold issue is whether any housing bank act should require approval by voters at a town election before it goes into effect,” Mr. Rappaport wrote in part.
The letter expressly notes that what is referred to as “An Act Establishing a Martha’s Vineyard Housing Bank” in the state legislature is still preliminary. “I am advised that the housing bank act has not been finalized and is not likely to be filed with the town clerk until February,” Mr. Rappaport wrote.
The letter highlights other areas in the draft article lacking clarity, including the question of whether a town that votes against the housing bank would be required to join it. It lightly questions the legality of a broadly drawn provision that would allow the housing bank commission to grant exemptions to grant recipients who exceed income thresholds. And it notes that the question of compensation for housing bank commissioners remains unsettled.
“The land bank act expressly provides that the commissioners shall serve without compensation. The housing bank article does not suggest a similar restriction, and commissioner compensation would not be subject to review by voters at town meetings,” Mr. Rappaport wrote. “If you do not believe the commissioners should be compensated, you may wish to offer an amendment to that effect.”
Housing bank proponents have said repeatedly that the article is a draft and still subject to change and revision.
“All we’re looking for is agreement from you to put the article on the warrant,” said John Abrams, a member of the Coalition to Create the Martha’s Vineyard Housing Bank, who attended the meeting Monday.
But select board members said they would like to see more discussion and analysis, including from other towns.
“Ron is town counsel for five of the six towns. I think it’s going to be important, not just for our board, but for the other towns also, to have the benefit of what Ron discusses and comes up with,” selectman Arthur Smadbeck said. “I think the points that he has brought up the differences that we’re now seeing between [the land bank and housing bank] legislations, maybe we can conform them more with Ron working with the housing bank people,” he added.
“I agree with that, I think the more united we are the better,” selectman Michael Donaroma said.
Selectwoman Margaret Serpa said she saw no reason to take a vote if there are still changes to be made to the draft.
“Right now I feel that it’s premature for putting it out on [the] town meeting warrant, we’re not ready for that if the language isn’t what it’s going to be,” Ms. Serpa said.
In West Tisbury Wednesday, select board members chimed in, saying they wanted to see a draft that hews more closely to the land bank legislation.
“As much as it can mirror the framework of the land bank, which by most accounts is the gold standard, I think the better off and the most support it will get,” Ms. Mitchell said. “We have until February to accept a warrant article,” she added.
Mr. Abrams told the board that Mr. Rappaport and the housing bank campaign’s attorney will work together to resolve the town attorney’s concerns with the current draft.
“We’re on it,” Mr. Abrams said.
The Chilmark and Aquinnah select boards have already agreed to put the article in front of voters. Oak Bluffs and Tisbury are due to take up the draft article next week.
Louisa Hufstader contributed reporting.
Comments
Will be voting to oust any
Mark EdgartownWill be voting to oust any select board members that support an unfair tax on property owners. Leave people’s retirement nest eggs alone.
Pretty sure the fee would be
David EdgartownPretty sure the fee would be paid by the buyers of the property, like the Land Bank fees, so it’s unclear how this would affect anyone’s retirement nest egg.
Doesn’t matter who pays it,
Mark EdgartownDoesn’t matter who pays it, increasing overall frictional costs and taxes will reduce sale price / proceeds to the seller.
I will counter your vote, and
Tim EdgartownI will counter your vote, and will be voting to retain select board members who support this.
Who knows what Beacon Hill
Bob EdgartownWho knows what Beacon Hill would do to anything they get and a second vote by the town is absolutely needed. But a better question is the housing bank had a perfect blueprint with the Land bank model why did they not follow these points. And why would Chilmark and Aquinnah allow something on their ballot without knowing what it is. Thank you Edgartown selectman for looking out for the island.
Chilmark has 0.0 affordable
Just Wondering Oak BluffsChilmark has 0.0 affordable housing according to the State. Oak Bluffs has the most of all the island towns. Why should O.B. residents pay for the wealthy town of Chilmark when Chilmark has done so little and we have made such progress?
Chilmark does have affordable
Aretha Taylor WTChilmark does have affordable housing. Just one example is Middle Line Rd - a 12 unit development that’s a mix of affordable rentals and youth lots. Chilmark is also planning more affordable development near that one. Chilmark also allows people to build additional homes on their properties if they are rented affordably. More is needed. it it’s unfair to say Chilmark doesn’t want it. They do.
Putting the proposal on the
George Stein Oak BluffsPutting the proposal on the town warrant provides an opportunity for the taxpayers to be engaged in the conversation. Yet another example of creating barriers to an actual consensus to move forward on.
Only the "taxpayers" who live
Ben West TisburyOnly the "taxpayers" who live on the island year round. Second-home owners get no vote in the matter.
Which is absurd.
Johanna BostonWhich is absurd.
No matter what is proposed
Charlie Callahan So Boston/EdgartownNo matter what is proposed for affordable housing there are those that think they are better than the folks just trying to get a little place,and for years they have been finding one excuse after another to prevent it from happening and it has worked. It's time for the ste to step in and make the towns conform to the 10% rule which is how many units there are supposed to be based on the number of units in a town. No one is trying to hurt peoples nest eggs,but if something isn't done someday when someone need a cop,afireman or heaven forbid an electrician to change the lite bulb in muffy and buffys wine cellar,they may have to do it themselves.OH NO
Thank you Edgartown….
Marie EdgartownThank you Edgartown….
Any decision on the Housing
John Cape CodAny decision on the Housing Bank article should have to be approved only by the voters in all six towns, certainly not by a select board. Just another money grab for when you add up all the various taxes/fees on property owners, what's left?
Please do not do this.
mike SomewherePlease do not do this.
Nobel idea for the rich to fund the poor.
We get it.
But:
Not fair to the regular family that worked hard to get what they have only to have a tax on their effort to fund low income families that have not gotten their yet.
The state collects taxes on capital gains. Let the state provide the money for affordable housing. That's part of what taxes are for.
I'm glad our board and
reality check edgI'm glad our board and attorney does due diligence on behalf of the taxpayers instead of 'caving' in to a small vocal group.
This is a can of worms that
ken rusczyk OBThis is a can of worms that should be opened very cautiously. Why the rush? Just make sure you know what and why you are voting for. Once it's done ......it's done!
First, you can't buy a house
Islander61 OBFirst, you can't buy a house now for under $1 million dollars so those who are looking to buy will have to pay yet another tax on their potential year-round home. $1 million dollars doesn't buy much any more, increase the minimum to $2 million if you are going to do this at all. Second, these houses are likely going to be built in the lower towns, OB, Edg, Tisbury, where the likelihood of those living in these houses will have school age children. The up island towns need to start paying their share when it comes to the high school assessments. If you are going to have a housing bank like this then those proposing the housing bank need to get the up island towns to dissolve the current high school per pupil system in place and have each town pay an equal share of the high school budget. OB already loses the property tax revenue for the high school, the hospital, community services, the rink and YMCA, now we will have to pay more with the current affordable housing trends, i.e. Southern Woodlands. This 60 year old agreement needs to be dissolved and create one that is based on 21st century politics and populations. Time to get out of the stone age.
Subsidized housing brings new
mark acker wtSubsidized housing brings new problems to the Island. I would gladly pay more for importing laborers than overpopulate the Island. Over population means higher taxes from increased infrastructure cost, especially schools. It also ruins a once comfortable lifestyle with traffic jams, wider roads, stop lights, and makes us feel like the Mainland. And no one ever thought of all the future offspring and where to house them. It has to end somewhere. No thanks.
I wish we would tackle the
Ken Edg.I wish we would tackle the wastewater issue with as much energy. Id even agree to a tax on sales to build a plant to resolve this issue. I think the whole island would.
Land Bank … Housing Bank …
Islander EdgartownLand Bank … Housing Bank … Automobile Bank … Education Bank … Vacation Bank. Why stop there? 2% here, 2% there … 2% everywhere. The reality is that every transfer tax (tax not a “fee”) is a cost born by EVERY party, not just the buyer. It’s simple economics.
So what's the bottom line?
Brian C. Smith OAK BLUFFSSo what's the bottom line? How much affordable housing do we need? I've seen numbers somewhere around 600 families? And if we satisfy that demand what about the next generation of islanders? How much of the island do we develop to satisfy affordable housing and as we develop that land how much more expensive will the remaining land become? What's the end game? What happens when we max out all the land that can be developed? Granted it's very hard for working class people to afford to live here. It's very hard for these same people to afford to live in Manhattan or Beacon Hill or many other expensive locations. What we lack is subsidized transportation opportunities for workers to commute to the island to provide our vital services. I'd be in favor of a real estate tax that would provide free or discounted high speed ferry transportation from the mainland for workers to the island.
Creating affordable housing
Steve EdgartownCreating affordable housing is a salutary idea. Is a proposed Housing Bank the institution that might be able to accomplish this objective? Historically, it seems as if there's been very little development of this type of housing on Island. It's not clear that this lack of development is principally due to an absence of available funds as much as it is due to a lack of available land and other logistical obstacles. In this regard, the Land Bank's purpose (preservation and non-development) and the purpose of a proposed Housing Bank seem to be in direct conflict. It might be useful - before imposing another 2% tax/fee on sales - to try to demonstrate the viability of of affordable housing development on Island. As salutary as is this objective, there seems little point to funding a Housing Bank that may have little use for levied taxes/fees (other than perhaps compensating the commissioners who control the levied funds).
The unintended (or maybe
Steve EdgartownThe unintended (or maybe intended) consequences of a housing bank. Last year a little over 1 Billion with a B dollars of real estate was sold. Assuming it remains the same That means the housing bank will have $20 million per year to invest. Are they allowed to borrow? Then it could be so much more. If I were in charge of the housing bank money I would only allow the acquisition of land and existing housing.
Then I would turn over the cost of building and management to others such as IHT and Habitat. This would insure that over the next 20 years no one would really be able to own their own land because the housing bank would own all land in the lower tier pricing because they would have over $400 million plus dollars to spend on lower priced properties in 20 years.
Think about that.
Effectively, they would squeeze out those that they are supposedly trying to help. The little guy that believes in the free market effectively loses.
And that is what this is, free market or government subsidies. The free market cannot compete against the government endless dollars or tax.
Over the next 20 years assuming the same or better amount of sales will generate between $400 million to whatever you might guess to $800 million dollars of revenue to purchase real estate on MV. That is huge.
The lower income earners will be completely squeezed out.
Some will say that is not a bad thing. BUT, if you earn more than $44,000 per year and are single or depending on dependents and marital status YOU DO NOT QUALIFY to get this housing.
Two teachers or nurses would typically not qualify based on income so when IHT asks who is going to take care of you they are lying because it won't be them based on income qualifications.
The entire system is messed up. You need to ask what you want for you, your family and your friends. We are at a crossroads. Three choices really, do nothing and let the economy dictate, stick everyone under $44k in today's dollars in affordable housing or add middle management higher earners.
If offered to me as a higher earner middle manager I would not accept the restrictions of affordable housing of either restrictions on profit from the sale of my (their house) my/house
What are the unintended outcomes of this???
My future peers are screwed. Not holding back that is the truth by the MVC and IHT. I hope they will actually think about it and what their decisions mean over the long haul.
Doubtful, but whatever...
There is so much abuse of
whatever edgThere is so much abuse of affordable housing on MV I wish the Attorney General would look into it.
There is so much unfairness and lying just to get a subsidized home it is incredible. Whatever, that seems to be what we must accept toda1y based on current political standards.
I support the idea of the
Chip Coblyn OBI support the idea of the housing bank and believe it can and will be tailored to fit the island and be passed into law. Nobody is advocating for creating overcrowding, but to simply guarantee that residents have access to secure housing. Housing insecurity in the form of the island shuffle negatively affects working adults and their children caught in that annual cycle of anxiety and disruption. This is a much bigger problem here than most people realize and addressing it will positively affect island life.
The island and the pristine
EM edgartownThe island and the pristine nature of such should be considered. In addition more housing more need for more infra-structure which means more taxes, more people and so the wheel turns. The point at issue here is that those who provide the essential services to both full and part time residents can not afford to buy/rent decent housing at a competitive price relative to those who purchase second homes. In addition; those on the island with the ability to purchase rental homes (charge a fee far in excess of the compensation of the service providers who live on the island).
Eventually; we will reach a tipping point where the service providers will not be able to live on the island (housing/rental); so they will move. When they move those who live full and part-time will not have access to essential services; tourist will stop coming because service provision will be greatly diminished. Part-time residents will stop coming sell their places and prices will come down; thereby making it more affordable for people to purchase. In addition; owners of businesses will be forced to pay a better wage -living wage to the service providers who will in turn be able to pay for more expensive housing (rental). So economics will drive the system hence paving the way for the providers of service to live and exist. All without the housing bank.
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