MA H4410

Cities and towns designated as seasonal communities may impose a real estate transfer fee of 0.5% to 2% on property sales exceeding $1,000,000, with proceeds deposited into municipal affordable housing trust funds or year-round housing trust funds

Transfer fees are paid by the purchaser within 7 days of closing, collected by the settlement agent, and must be used for acquisition, construction, rehabilitation, and preservation of affordable or attainable housing for low- and moderate-income households (up to 150% of area median income)

Mandatory exemptions include transfers under $1,000,000, government transfers, family transfers, marital asset divisions, and properties with affordable housing restrictions; optional exemptions include gifts, trust distributions, foreclosures, first-time homebuyers, and vulnerable seniors

Two or more municipalities within the same county may form a regional affordable housing commission through intermunicipal contract (up to 25-year terms) to jointly administer the transfer fee and pool resources for affordable housing

Municipalities adopting the fee must submit annual reports to the Executive Office of Housing and Livable Communities detailing fees collected and housing expenditures, with forfeiture provisions if funds are not used for affordable housing within a reasonable timeframe