Mayors, housing trust directors and community development officials from Cape Cod, Nantucket and Martha’s Vineyard told the joint committee that high prices and short‑term rentals are hollowing out year‑round communities and that a local option transfer fee would produce a steady revenue stream for affordable‑housing efforts.

Jay Coburn, CEO of The Community Development Partnership on Cape Cod, told the committee that median home prices on the Cape have more than doubled in five years and that short‑term rentals are removing much of the year‑round rental stock. Coburn testified in favor of Senate Bill 14 34, a local‑option “luxury” transfer fee on high‑value transactions that would direct revenue to local housing programs. Nantucket officials and the Nantucket Land Bank said their local transfer fee model (Chapter 699 authorizing land‑bank fees) has worked for open‑space preservation and could be adapted to housing. Nantucket speakers said a modest fee on high‑end transactions would produce millions of dollars for local housing without depressing sales.

Supporters emphasized island constraints: limited buildable land, fragile ecosystems, nitrogen and wastewater restrictions and a narrow labor market for construction. Nantucket and Martha’s Vineyard witnesses said that local control over a transfer fee would let island communities pair funds with state programs to buy down units, create deed restrictions and support year‑round workforce housing.

Opposition was limited in the hearing record but the committee heard traditional caution about any new transaction costs; supporters said exemptions and thresholds in the bill could limit effects on typical buyers. No committee vote was taken; the committee accepted written testimony and will continue the record.

Why it matters: Transfer fees would give seasonal and island communities a dedicated local revenue source for affordable housing at a time when outside buyers, second homes and short‑term rentals are making it harder for local workers and families to remain year‑round residents.