Four of the six Island towns will take the first steps next week in deciding the pivotal question of whether to ask the state legislature to allow creation of a Martha’s Vineyard Housing Bank.
Four of the six Island towns will take the first steps next week in deciding the pivotal question of whether to ask the state legislature to allow creation of a Martha’s Vineyard Housing Bank, aimed at stemming the escalating affordable housing crisis on the Island.
Modeled loosely after the Martha’s Vineyard Land Bank, the housing bank would be an all-new regional government entity with broad, autonomous powers to buy and sell real estate, grant loans, take on debt and issue bonds. Funding for the bank would come from a two per cent transfer fee on most real estate transactions over $1 million, paid by the buyer.
Developed and written by a coalition of Islanders and their attorney over the past year and a half, the housing bank proposal has been the subject of a high-profile campaign in recent months and weeks via public forums, government meetings and social media platforms.
And while previous housing bank proposals on the Vineyard have sputtered for various reasons, this time around the proposal has seen a groundswell of passionate community support from clergy groups, business leaders, younger voters and the NAACP, among others. All have been spurred by increasing alarm as the housing crisis pervades nearly every aspect of Island life.
Critics of the proposal have been less vocal but no less committed to their belief that the Island is already under extreme pressure from development and the housing bank could open a Pandora’s Box of unintended consequences. The finance committees in Tisbury and Edgartown have voted not to recommend passage and the Oak Bluffs finance committee declined to take a position. The West Tisbury finance committee has recommended passage.
On all sides there is tension and deep-seated worry about the future.
If it is approved by at least four towns, a bill to create the housing bank would go to the state legislature as a home rule petition. There it would become one piece of a much larger and dynamic political puzzle involving real estate transfer fees around the commonwealth.
Cities and towns from Boston to western Massachusetts to the Cape and Islands are grappling with their own versions of the housing crisis. There are currently 12 bills pending on Beacon Hill, including one from Nantucket. All are different, according to Cape and Islands state Sen. Julian Cyr, who supports the housing bank concept for the Vineyard.
The housing bank question appears as a 2,000-word article on every annual town meeting warrant this spring. A companion nonbinding question appears on town election ballots. The warrant article references a 27-page draft bill that is filed with the town clerks in every town.
Approval of the question by four towns would only be a first step. If the legislation eventually clears the legislature, it would return for a final vote at town meetings.
The warrant article and accompanying legislation are complex, but in summary the proposal would:
• Create a seven-member commission, with six members elected from Island towns (one from each town) to serve three-year terms, and one member elected at large to serve a two-year term.
• Establish appointed town advisory boards in each town, including one representative from the select board, conservation commission, planning board, board of health, zoning board, wastewater committee (if one exists), and two representatives from the town housing committee. The advisory boards would have a two-thirds majority voting power over proposed projects or expenditures of housing bank funds within their towns.
• Create funding for the bank from a two per cent, buyer-paid transfer fee on real estate transactions, with the first $1 million exempt from the fee.
• Set an income cap for applicants seeking funding for housing at 240 per cent of area median income (currently about $250,000 for a family of four).
• Authorize the housing bank to make grants for the acquisition, renovation, or construction of housing, and also provide “loans, bond guarantees, lines of credit, interest subsidies, rental assistance, and other means of financial assistance,” including “shared appreciation equity loans through which the housing bank receives a portion of the appreciation of the applicable property upon resale.” Recipients could include individuals, nonprofit and for-profit organizations including developers. Projects would be subject to year-round occupancy restrictions. The housing bank cannot itself be a developer.
• Set guidelines for considering projects, including master plans, comprehensive wastewater plans and climate action goals.
• Allow elected commissioners to be paid annual stipends up to $2,000, subject to approval by town advisory boards.
• Require that 75 per cent of the funding be allocated to projects on previously developed properties with existing buildings.
• Require new construction to meet green energy standards, preserve open space and protect natural ecology.
• Create a withdrawal and sunset clause. Any town could withdraw with a majority vote taken by ballot in a town election. And the housing bank would expire after 30 years, unless at least four member towns vote to extend it.
In an interview this week, Laura Silber, the paid coordinator for the housing bank coalition, reflected on the campaign.
“In every sense of the word it’s a true grass-roots effort,” she said. “It’s been this really inclusive process . . . from the beginning the goal was to engage with town government on every level and help bridge the conversation.”
She acknowledged that the proposal is complicated, and said the article and draft legislation were written with assistance from the coalition’s legal counsel Eric Reustle, an attorney with Krokidas & Bluestein in Boston. “They do municipal law. We worked with him for months on drafting and redrafting . . . we had to look at state-level legislation and make sure it agreed, make sure it would allow for the needs of the Island. It’s been a lot of back and forth,” Ms. Silber said.
But she said the months-long effort has been worthwhile, with many revisions made based on community feedback. “I think what we are sending to the legislature is better because of what we have been doing and been through,” she said.
She emphasized that passage of the proposal at town meeting would only be a start.
“It’s not over,” Ms. Silber said. “This is the beginning of a long process. The votes next week are not about adopting a housing bank, the votes are to send this to the state house. We are at least a year away from anything happening.”
Speaking to the Gazette by phone, Senator Cyr echoed the theme.
“I would encourage Islanders, if they support the idea of having an Islandwide housing bank and having a real estate transfer fee to fund it, I would encourage them to vote,” Mr. Cyr said. “In the process certain details are going to change. So don’t sweat the details. Because the details are going to change.”
At the state level, Mr. Cyr painted a picture of an ever-changing environment around the transfer fee issue.
“I’m pretty convinced the transfer fees are going to happen,” he said. “But none of these bills are going to pass individually,” he added.
Mr. Cyr said he has long been a booster for the idea of a housing bank on the Vineyard. “It’s something I’ve long fought for. It makes abundant sense for the Vineyard, and I’m delighted to see these warrant articles advancing,” the senator said. “We are uncertain if and when a transfer fee will pass at the state level, so just having a framework in place for having a housing bank makes sense . . . We are identifying a revenue source to solve the current housing crisis and it’s directly related to the housing crisis.”
Leslie Baynes, a member of the Edgartown finance committee who led the committee to a unanimous vote to not recommend the housing bank, had a different view.
“The complexity of it, that’s part of my issue,” Mr. Baynes said. “We’re signing off on something we haven’t read or even understand if we did read it . . . this is buyer beware.” He continued:
“We really are going to delegate the spending of a billion dollars to an unknown entity? . . . We can’t even get along with our existing [regional] formulas.”
On Tuesday it will be time for voters to decide.
Ms. Silber said the coalition has been working to engage with younger voters.
“Our hope is we’re going to see a lot of new voters at these meetings, people who’ve never attended town meetings,” she said. “But it’s not just younger voters . . . it’s the whole Island.”
Comments
Hard no on this legislation.
Mark EdgartownHard no on this legislation. Simply cannot support another real estate tax that will penalize those that have invested in an maintained their homes and may be depending on sale proceeds to fund their retirement. This new agency will have little oversight and add additional bureaucracy to an already crowded island. Think before you vote MV.
The buyers of the property
David EdgartownThe buyers of the property pay the fee, not the sellers.
David - it’s economics 101,
Mark EdgartownDavid - it’s economics 101, increasing the friction costs of the transaction through additional taxes reduces buyers purchasing power and the proceeds to the seller.
And then expect the seller to
Victoria Oak BluffsAnd then expect the seller to subsidize it with a reduction in the sales price, thereby, reducing their profit which is the point of the comment.
Let’s examine the other side
Mark Acker VhLet’s examine the other side of housing. Housing contributes to overpopulation which stresses all of us. The need for school expansion from increased population will increase everyone’s taxes dramatically. Then with this increased population we need more jobs which means it will be impossible to stop building as that is the primary income source here. Think of this new giant labor lobby that will grow that will overpower our town boards. And don’t forget all these residents will have children and that cycle will only increase Exponentialy. Let’s learn to settle for what we have and suggest the next generation commute from the mainland. I would agree to a faster boat to reduce travel time.
I'm so proud of the
Caitlin Burbidge Vineyard HavenI'm so proud of the collective effort of our community on this! Way to go Martha's Vineyard. The young people and essential workers of this island who cannot afford to stay will remember that people were fighting for them. VOTE YES
Most people vote in favor of
Islander MVMost people vote in favor of their immediate economic self-interest. The fact that the eligibility cap is $250,000 suggests that it was purposely set high enough to capture a larger number of self-interested voters. We should wonder how many voters would support the initiative if the cap was set forth much lower, at a more appropriate need-based amount — say at $100,000. Likely a lot fewer.
This proposal should replace
Steve AquinnahThis proposal should replace the Land bank
Multiple mass mailings,
Ed C. ChilmarkMultiple mass mailings, Facebook sponsored adds, continuous media space in both newspapers, expensive Boston based law firm, professionally done propaganda videos, paid “coordinator” with a extremely professional marketing campaign. If these are all not warning signs as why you not vote for this “grassroots” proposal … you are not paying attention. It takes money to make money.
We at MVFF Productions made
Tom Ellis EdgartownWe at MVFF Productions made the short film. We are a local production company under the Martha's Vineyard Film Festival umbrella and are part of a non-profit; as such we are able to help out other non-profits, making quality films for rates that would otherwise be out of reach. I definitely put a lot of heart and soul into it because I myself am housing insecure. I'm flattered that you consider it a "professionally done propaganda video", but our making the video is still very much part of the grassroots aspect of the campaign for the housing bank. If you'd like to discuss it at all, feel free to reach out to us, and if you are curious how the Coalition to Create the MV Housing Bank has acquired their donations, I'm sure they'd be happy for you to reach out as well.
I feel the same way and I’m
Bob EdgartownI feel the same way and I’m ready to vote on this. I am tired of my inbox being filled with the messages and reading about it in all the newspapers. Not to mention a few unsolicited phone calls. My hope is that people vote with their mind and not with their hearts because rational thinking knows this is a perpetual problem that will never be fixed this way. One last point is these affordable house recipients do not build up equity in their properties the way other people have and will miss out on the gains. And the housing bank will be competing with first time homebuyers for the same properties which seems a bit unfair.
As an “Ed C” that once
Ed CisekAs an “Ed C” that once resided in Chilmark I’d like to put it out there that this guy ain’t me.
As for the substance of the comment I’ll just say that Ed grossly overestimates PR capabilities of what actually is a true grassroots organization.
As a retired marketing
Lisa Berkower EdgartownAs a retired marketing executive I must say right off the bat that I appreciate the compliment but was not compensated monetarily but rather in a personal fulfillment knowing that every hour spent working for this cause would hopefully bring us that much closer to a YES vote. I am an Edgartown resident and voter and I feel that this is the most viable long-term solution for the Vineyard.
Thanks for the compliment,
Abbie Zell West TisburyThanks for the compliment, Mark! I (a 31-year old VOLUNTEER) whipped up most of the artwork at home after work using free software.
My fellow organizers all live on-island, and devote their free time to this issue in a volunteer capacity. They come from multiple generations, speak multiple languages, I think 70% of us are women, and many are housing insecure or actively living in affordable housing.
Doesn't get more grassroots than that!
What you think reaks of off-island professionalism is really just soul.
Hard no here also. It is
mike SomewhereHard no here also. It is outrageous that a family making $250,000 needs subsidization. As I have said before, this is the states responsibility. There is a Massachusetts State Housing Authority, if you want affordable housing the money should come from that program. This proposal is fraught with issues not very well thought out; No sunset clause, Excessive percentage at 2%, Identifying the future maximum that the Island could provide and capping it there. This is a money grab that will become a burden, drive prices up overcrowd areas beyond their capacity, and make available affordable housing more scarce if not non existent. Not to mention the hundreds of thousands of dollars paying for the staff to run it. Do affordable housing recipients pay full valuation when paying real-estate taxes? No, thereby increasing the burden of the few of us that have managed to get our houses the old fashioned way. Working hard and making in many cases extreme sacrifices. I personally have never made even close to $250K. This is so wrong on so many levels. Most of the people that this will affect, cant even vote. What a travesty. Say it again and say it loud. Taxation without representation is the way here. And its appalling. Over 50% of the islands houses fall into this category. This is just an opinion of someone that has been here since '54 that apparently no-one wants to or cant hear through the cheering.
Agree 100%. Multi
Amy EdgartownAgree 100%. Multi generational Islander here. Year round. Happily making a hard earned, honest living. No where near $250k. This plan will only benefit those that are already in a bracket above the true blue collar worker. This is not going to gain more teachers, healthcare providers, store clerks, etc.
So if a family making $175
Janet Case Oak BluffsSo if a family making $175,000 purchases a home, they will have to pay a transfer fee that subsidizes the housing of another family making $249,000? Doesn’t seem right, I cannot fathom how voters could actually support this?
The median cost of a home
Mike EdgartownThe median cost of a home currently on the Vineyard is $1.2 Million. A family with household income of $175,000 would benefit from the existence of the Housing Bank and the assistance it would lend to afford to purchases a home in the current real estate environment. If they were lucky enough to find a house for sale for $1M or less, there would be Zero Dollars of transfer fee. The Housing Bank would be there to help that family with $175K income buy a home.
Ed C, you are correct. This
Lorraine EdgartownEd C, you are correct. This is not, I repeat, not a grass roots movement. This is a well orchestrated, professionally managed campaign. If someone looks at the value of a property, say, a house in the village of Edgartown, and only looks at the perceived value at this time, this someone has no idea of the life of the people who live in that property, no idea of a reverse mortgage, perhaps, to keep a family property; no idea of an elder living on a reduced income; no idea of the financial life of the people inhabiting that property. Everything is not always what it seems. Vote no, this is a grab and it is using property owners as an ATM machine.
Hi Lorraine -- thanks for the
Laura Silber, Coalition Coordinator, CCMVHB West TisburyHi Lorraine -- thanks for the compliment on being well organized -- when grassroots campaigns are well run with a large number of active volunteers this is what it looks like. We have volunteer members who have been organizers for MA Coalition to Prevent Gun Violence, Susan G. Komen for the Cure, We Stand Together/Estamos Todos Juntos and other large groups so they come with extensive and invaluable experience. We also have volunteer members who are attorneys, members with extensive legislative experience, and an amazing team of young volunteer Islanders who design and run our website and social media feeds. Many of our members are housing insecure, and our co-chair is the fortunate recipient of an affordable housing rental, as she has stated publicly in the press. Many of us, including myself, have been housing insecure and cost-burdened in the past so know quite intimately what it means to choose between paying rent or accessing medical care, and have slept in our cars or couch surfed for months at a time -- it is the reason we are working on this, to pursue solutions.
It's definitely a grassroots
TisburyIt's definitely a grassroots movement. And they've given us all a masterclass in how to do it right. I'm so thankful for these people that care enough to devote their time and talents to this measure. I am proudly, boisterously voting yes.
I am so proud of everyone who
Zivah Vineyard HavenI am so proud of everyone who has put time, energy, care, and immense thought into how we keep our community thriving by proving long term, sustainable, affordable housing on the island. I have seen firsthand how hard it is to afford housing here - even with a “livable” wage. I have friends who have left because they couldn’t find housing or afford it. I have friends considering leaving because they have no other options. This crisis is intergenerational. We cannot wait for everything to be perfect, because everything evolves. This is one of the Solis things we can have at our disposal. Vote yes on the housing bank - for our community and this beautiful, complicated place we call home.
If this was a truly Island
Jonathan West TisburyIf this was a truly Island-wide crisis, there would be an Island-wide solution: changing zoning laws, raising property taxes, etc. Instead we are urged to vote for a tax that will affect almost no one - only those buying or selling....a very very small minority of people. But, if it will make you feel good to vote for someone else to carry the burden, hey, go ahead.
I guess the housing bank to
Ken EdgartownI guess the housing bank to be formed from the rental tax that we put on the back burner is dead. We really dont need another tax. We have CPA which disappointed because the state match almost went to zero. The rental tax which has brought millions to town coffers should have been used for this. We also have the land bank tax, so its a no from me for another tax.
No,no,no,no,no,no,no,no,no
Dollar Bill MVNo,no,no,no,no,no,no,no,no.Get the picture? Please vote no. Keep the Island safe and peaceful.
The Housing Bank legislation
Keith Chatinover, Dukes County CommissionerThe Housing Bank legislation has been publicly available for months now and the towns certainly have excellent resources to review legislation and warrant articles. As an elected official myself who often has to digest lengthy documents, claiming something is difficult to read is not an appropriate criticism. There are myriad town laws and zoning bylaws that are incredibly difficult to read, and that does not invalidate them. The Housing Bank will be a massive step in the right direction for our island.
i think it would be very
gabrielle west tisburyi think it would be very beneficial if there was a diagram presented at town meeting to illustrate where the money comes from, where it goes to, who oversees that it is used for what is outlined, who has oversight and how are the relationships manages between the mvc, the boards of selectman, IHT, local affordable housing committees and other stakes holders. What is the scope of power for each board?
I cannot support this as
PaulaI cannot support this as proposed - it actually INCREASES the cost of housing by 2%. Aren’t we trying to resolve this situation? The cost of housing is too high? You do not solve that problem by adding an additional 2% fee. This will make our housing less affordable for even more people. The way to solve this is not by adding fees to make our housing costs even higher. This is the opposite of what we are trying to do.
Hi Paula, the 2% fee only
Lucy Morrison EdgartownHi Paula, the 2% fee only applies to transactions over $1 million, and only on the money over $1 million. The fee for a $1.2 million house would be $4,000 (2% of 200,000).
Can someone lay it out in
Amy EdgartownCan someone lay it out in simple terms? Who exactly will be able to tap into this proposed housing bank? When and how?
I completely agree, all we
Jackie Sullivan EdgI completely agree, all we know is that this housing bank will collect a lot of money, I wish they would have spent time communicating how the money is used and where it will go! I am not comfortable voting for such large sums of money to drift off into the bureaucratic ethers. This grassroots group has done a great job of raising awareness to the issue, but we all know the issue is there, exactly how and where does this money move after it is collected?!
In my opinion, as I’ve stated
Trey WilliamsonIn my opinion, as I’ve stated before, there are simpler actions at the local level that can be deployed to help the affordability issue. A commuter fast ferry from WH and changing zoning bylaws (imagine the possible housing supply if 3 acre zoning changed to 0.5). A fast ferry would DIRECTLY benefit every stakeholder. Lastly, in my opinion, the comments and responses from the housing bank read as disingenuous and condescending. To me, it’s an indication that they are not taking all stakeholders into account. Stable housing is not synonymous with affordable housing. Support smart action. Support a year round fast ferry from WH.
Respectfully, this is an
Heidi Lehigh ChilmarkRespectfully, this is an awful idea. People don't seem to understand basic economics. This would be cannibalization of our community. It will only raise the cost of living -- not just housing -- for everyone. Did everyone forget the sub-prime mortgage crisis? This is basically what's being proposed here. I'll make it simple: supply & demand. Artificially lowering the price of housing (with Housing Bank loans and subsidies) will increase the demand on the limited supply of housing. When demand outweighs supply, prices increase.
This will do nothing to help the housing situation. It will inflate prices. And whoever takes these loans, good luck, because we've seen the record on federal and state loans with their wish-washy interest rates ("Oh, let's just let outsource to loan servicers and let them arbitrarily hike the interest rates whenever they feel like it, seeing as we're skimming off the top.") I'm sorry, but any kid who is paying off college loans should know better than to get involved in a scam like this ever again. But it seems this is the demographic being targeted here.
Perhaps the true need here is for an Economics 101 course for Island townspeople.
If you build/fund/collect it
BJ W.TisburyIf you build/fund/collect it they will come and then you will need to build more and more and more... Many Americans would love to live where they grew-up but can't afford it... As we all know it's an island with shaky access. It will never be, and shouldn't be a place where everyone 'deserves' or is 'guaranteed' a piece of it. Housing for employees at the airport or smaller apartments near the transportation points make sense but creating another bureaucracy ripe for favoritism and possibly even fraud isn't.
I'm wondering if how this
Gabrielle West TisburyI'm wondering if how this proposal is viewed by the MVC? It encourages cluster zoning which is good, but environmental and zoning considerations remain a very vague. Are they advocating for zoning changes? If they are concentrating on current housing stock, does every building entering the housing bank need to be net Zero?
I'd also like clarity on how the housing bank will work with Island Housing Trust? If multiple towns are in favor of a project but the town in which the project is located opposes it, what is the process? I imagine there will be qualifying projects in areas with environmental, wastewater or other considerations, how will these considerations be dealt with? Is it essentially a hands-off approach, where the funds are provided but not much MORE? The landbank and the MVC are more or less on the same page, whereas the relationship between the Housing Bank and the MVC is bound to be more complex, will there be a liason position?
While I applauded your work, I think what is really needed is a concerted to identify suitable areas for cluster, high density housing as I am afraid this problem demands a multitude of approaches.
Perhaps a high density 3
Paul ChilmarkPerhaps a high density 3 story condo building , not town houses , should be built out by the Airport in the woods.
If you are lower income , it would be more affordable to own a market rate unit that only costs $450,000 per unit to build.
It would also use up less land .
That is how you supply affordable housing to those in need .
Protect the Island and house workers and elderly.
Affordably !
Regulating short term rentals
Sarah VHRegulating short term rentals would go far in alleviating the housing crisis. Maui did it, a much bigger and more populous island. It can be done. You can read their legislation:
https://www.mauicounty.gov/1874/Short-Term-Rental-Home-STRH-Application
So this will be in addition
Sara VHSo this will be in addition to the land bank fee that property buyers already have to pay when purchasing a home? Making that a 4% purchase fee on all property sales?
Regardless of which side one
gina Menemsha/NYCRegardless of which side one is on keep in mind that when & if this bill gets to the State House it will be re written @ least 10 times pre final vote. so @ this point it's a very rough draft IMO...
Y'all we NEED this. We share
Jared TisburyY'all we NEED this. We share one island, and if we all vote on this, we can help solve this problem together. Leave the provinciality at the door and please join me in voting YES at your town meeting and voting YES on voting day.
This is a no-brainer. We must support our island's strength - the workers, teachers, and medical staff that make us a functional and sustainable year-round community - or end up having to pay for it later.
The CCHBMV has done an
Ed Cisek EdgartownThe CCHBMV has done an amazing amount of work over the past few months. They have been transparent and inclusive at every turn. They have met with stakeholders and received an impressive amount of endorsements. The professionalism of the organization doesn’t mean it isn't grassroots, that is just a product of the dedication of those involved.
The warrant article and the draft legislation it supports is easily the largest and most consequential citizen lead initiative in recent island history. This is a once in a generation opportunity to counter the runaway Hamptonization of MV and throw a lifeline to the year-round community.
Please vote yes.
I would support the housing
Ernest H West TisI would support the housing bank if it was focused only on rentals, and if it was focused mostly on helping those who are most needy.
But 250,000/year? Ownership, where the money isn't even going towards "affordability?"
No.
I’ve read the warrant article
Mitch EdgartownI’ve read the warrant article and legislation — it’s dense but no more so than any municipal document. It’s concerning to me as a voter that a member of Edgartown FinCom is pointing to appropriately crafted legislative language as a detriment. I’m in support of the Housing Bank, it’s well thought out, and this is an Island wide problem that requires an Island wide solution.
If you read the Oak Bluffs
Bob OBIf you read the Oak Bluffs Town Meeting Warrants, very article has a yes/no recommendation from the town Finance and Advisory Committee - except this one. For the article dealing with the housing bank, the Finance Board stated "The FinComm members expressed a variety ofconcerns regarding the proposed article but felt it is too early and there was insufficient information to make a recommendation at this time." If that is the case, then why is this thing even on the ballot at this time?
The Towns are already
Anonymous EdgartownThe Towns are already providing affordable housing in a thoughtful way. There’s no need to add taxes, overpopulate and damage our natural resources. We do not have the infrastructure in place to support high density housing. Vote no on this money grab.
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