Select Board backs local-option real-estate transfer fee to fund affordable housing; staff analysis shows modest potential revenue

The Acton Select Board on Sept. 8 approved a letter endorsing state legislation that would let cities and towns adopt a local-option real-estate transfer fee on high-value transactions, with revenues dedicated to affordable-housing programs.

Bob, speaking for the Acton Community Housing Corporation (ACHC), presented a preliminary town analysis: "On that basis, in 2024, if a fee had been in place at that level, it would have generated about $557,000 for the town," he said. The figure assumed a fee set at the low end of proposals (0.5% applied only to the portion of the sale price above $1,000,000 or above the county median, whichever is lower).

Why it matters: proponents say the fee would create a predictable, locally controlled revenue stream for affordable-housing projects and upkeep that is more flexible than community-preservation funds. Opponents and several residents raised concerns about tax scope, indexing and potential unintended effects on commercial transactions.

Details of the presentation and board discussion

ACHC staff provided preliminary counts and a revenue scenario. The town recorded 88 transactions exceeding $1,000,000 in 2024 out of 290 total property transactions. Under the example used in the presentation'a 0.5% fee on the portion above $1,000,000'those sales would have generated approximately $557,000 in one year.

Select Board members and public commenters focused on several implementation questions: whether the fee would apply to residential or commercial transfers; whether the $1,000,000 threshold would be fixed or indexed (the current draft language ties the threshold to $1,000,000 or the county median, whichever is lower); whether the seller or buyer would pay; and whether the town could exclude types of transfers (for example, multifamily or deed-restricted affordable housing) when it drafts a local bylaw.

Public commenters and members of the Finance Committee voiced caution. Karen Hodseth (Finance Committee member) asked whether the $1,000,000 figure was indexed and observed that "if the intent was to go after... out-of-state people... this hits everybody," noting Middlesex County's median home value is currently below $1,000,000.

Supporters stressed local control. Tara (representing a local business group) called the proposal a tool for giving municipalities options and suggested local-level exemptions for long-time residents and prioritized definitions that would protect true affordable housing.

Next steps and state context

Select Board members noted the legislation still requires action at the State House; the Legislature's joint committee on finance planned a hearing the morning after the meeting. The board's vote approved only a letter supporting the availability of a local option, not local adoption: any town-level implementation would require additional local deliberation and a town-meeting bylaw.

ACHC representatives and planning staff said the revenue estimates are preliminary and that the final effect would depend on the chosen threshold, the fee rate and any local exemptions.

The board voted to approve the letter of support and asked the manager to ensure the letter is submitted electronically to legislative staff.