Realtors Oppose Proposed Housing Transfer Tax
The Greater Boston Real Estate Board has announced its opposition to the proposal contained in Governor Healey’s Housing Bond Bill that would allow cities and towns to levy an additional transfer tax on the sale of housing units with a sale price over $1 million. The proceeds from the new levy would be used to create affordable housing in those communities. More than a dozen cities and towns across the state have filed home rule petitions that seek the Legislature’s permission to allow them to impose a transfer tax. The Governor’s proposal would give every community the right to impose the tax without seeking permission from the Legislature. Supporters of the proposal claim the new funds will help communities construct much-needed affordable housing units while the opponents argue the new tax will increase the cost of housing which they claim defeats the purpose of the proposal. The Senate has been generally supportive of the transfer levy in the past but the House of Representatives has refused to act. However, House Speaker Ron Mariano recently signaled his willingness to consider this local option tax. This issue will be considered in May when the House is expected to debate the Governor’s legislation.
State Selects Fossil-Free Construction Communities
The Department of Energy Resources has notified 7 communities that they have been authorized to enact local zoning regulations that will prohibit the use of fossil fuels in the construction of new housing units or major renovation projects. These local zoning restrictions are authorized by the state’s 10-community Municipal Fossil Fuel Free Building and Construction and Renovation Demonstration Project that was passed by the Legislature in 2022. The communities approved for participation are Action, Aquinnah, Brookline, Cambridge, Concord, Lincoln, and Lexington. The Department also gave initial approval to participate to the town of Arlington and the city of Newton. Those 2 communities have not yet reached the affordable housing goals that are required for participation. Their failure to reach those goals will disqualify them from the program. The cities of Northampton and Somerville have also filed applications for inclusion in the program and those applications will be considered after the original community applications have been completed. It is estimated that buildings are responsible for 35 percent of the greenhouse gas emissions in Massachusetts, second only behind the transportation sector.
Committee Advances Bill to Increase Access to Solar Power
The Joint Committee on Telecommunications, Utilities, and Energy has approved legislation that would require the Department of Energy Resources to establish standards to provide timely access to the distribution grid for solar energy projects and to ensure that distribution companies undertake the necessary investments and improvements to facilitate the transformation of the electricity distribution grid to align with the state’s climate and energy goals. The recently enacted stretch energy codes and the state’s goals for achieving clean energy electricity supplies will require a significant increase in the installation of residential rooftop solar systems. Unfortunately, the ability of the electricity grid in Massachusetts to accept new solar power to the grid is limited. Proposals to connect solar energy projects to the grid can face lengthy delays. These barriers to interconnection for residential solar systems can hinder the construction of new housing units in those communities where the new energy codes now require the use of solar power to meet the code’s energy efficiency requirements.
Senate Passes Debt Collection Limits
The State Senate has passed legislation that limits the amount of a person’s weekly salary that can be attached to satisfy an outstanding consumer debt. The bill exempts wages from collection that are equal to the greater of 90 percent of the debtor’s gross weekly wages or the first $975.00 in wages. The bill also enables a debtor to file a hardship application with the court to further reduce the amount of their wage garnishments. This legislation does not apply to proceedings to attached earnings to satisfy a divorce, separate maintenance, or child support order. It also prohibits an employer from taking adverse action against an employee or refusing to hire an individual because of an existing wage garnishment order. An action to seek recovery of a consumer debt must be commenced not more than 5 years after the cause of action accrues. The collection of the debt arising from a judgment shall be commenced within 10 years after entry of the court decree and can be renewed one time for an additional 10 years. This legislation has been referred to the House Committee on Ways and Means for consideration.