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New Shoreham board weighs community land trust, transfer‑fee adjustments and impact fees to finance housing
Summary
Board discussed several local revenue approaches — community land trust formation, reallocating part of the existing 3% transfer fee, raising or expanding the 1% seasonal rental fee, and impact/permit fees — and agreed to stage outreach, legal review, and community engagement before pursuing legislation.
Board members spent substantial time on Dec. 17 examining local revenue options to narrow the funding gap identified by consultants. The discussion centered on three complementary pathways: a community land trust (CLT) to hold land and steward deed‑restricted housing; adjustments to existing local fees (the 3% real‑estate transfer fee that currently funds conservation and a 1% seasonal rental fee that accrues to the housing board); and impact or permit fees.
Board members noted the town’s current short‑term rental fee generates roughly $200,000 per year for the housing board. The chair said a 3% transfer fee on real estate currently goes to the Block Island Land Trust for conservation purchases and stewardship, and several members proposed investigating whether some portion of that revenue could be directed to housing while maintaining conservation stewardship.
Consultants cautioned the board to consult legal counsel before attempting to repurpose or reframe impact fees. "Impact fees are pretty heavily regulated by state law ... you have to have a needs analysis that's done," one consultant said, noting impact fees must be tied to capital projects and typically cannot be used for soft costs.
Members discussed alternatives: asking the land trust to share a portion of transfer‑fee revenue, seeking town council and legislative changes to expand the seasonal rental tax base or percentage, or establishing a new local fee dedicated to housing. Several members favored beginning with community outreach and building coalitions (including the land trust and town council) before proposing legislation or fee changes.
The board also agreed to explore tax incentives that could encourage year‑round rentals (for example, homestead exemption adjustments) and to strengthen enforcement and certification of existing ADUs to preserve the current affordable housing stock. Members asked the consultant and town solicitor to review legal constraints and bring back guidance on options that would comply with state law.
