Bill Summary: A07632

• Authorizes cities and towns (except those with population of 1 million or more) to establish community preservation funds by local law to acquire and manage land for preserving community character, including parks, open space, wetlands, historic properties, and water quality improvements.

• Authorizes cities and towns to impose a real estate transfer tax of up to 2 percent on property transfers exceeding $500, with revenues deposited into the community preservation fund, subject to mandatory voter referendum.

• Authorizes cities and towns to establish community housing funds to provide financial assistance to first-time homebuyers, produce affordable housing for eligible individuals, and conduct housing rehabilitation, funded through a supplemental real estate transfer tax of up to 0.5 percent.

• Requires each municipality establishing these funds to create advisory boards, adopt preservation and housing plans updated every five years, and commission annual independent audits of fund activities.

• Imposes strict restrictions on fund use, including limiting management costs to 10 percent of preservation funds, prohibiting asset sales without legislative approval, and ensuring community housing remains permanently affordable with equitable geographic distribution.