Nantucket Land Bank raises first-time homebuyer exemption to $1.4 million
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Summary
The Nantucket Land Bank Commission voted to raise the first-time homebuyer ("m") exemption to $1.4 million for 2026, citing the jump in median purchase prices through Nov. 30; the change requires owner-occupancy for five years and will be recorded with a lien.
The Nantucket Land Bank Commission voted on Dec. 9 to raise the first-time homebuyer exemption (the "m" exemption) to $1,400,000 for calendar year 2026.
Staff recommended the change after reporting that the median purchase price through Nov. 30 stood near $1.47 million, and said the increase is intended to keep the exemption aligned with local market conditions. A commissioner moved the increase, another seconded, and the commission approved the motion by voice vote.
The exemption is limited to first-time, year-round homeowners and includes compliance conditions: recipients must certify they will occupy the home as their primary residence for five years and the Land Bank places a lien to enforce that requirement. Staff said the exemption’s calculation is designed to track the median price of qualified transactions rather than subsidize higher-end purchases.
Chair (staff presenter) described the program’s history and application mechanics, noting past adjustments: "The m exemption basically is targeting first-time year-round homeowners," the chair said during the discussion. Commissioners emphasized the program’s goal of aiding year-round Nantucketers while protecting program compliance.
The increase follows prior adjustments in recent years: the exemption was $1.0 million in 2023–24 and was raised to 1.2 million previously as part of the commission’s median-tracking approach. Staff said the commission will continue using available transaction data to set the exemption in future years.
Votes at a glance - Motion to adopt the $1.4M first-time homebuyer exemption: moved by an unnamed commissioner (transcript reference: Speaker 2), seconded by another commissioner (Speaker 4); approved by voice vote. The transcript records an "Aye" voice vote but does not provide a roll-call tally.
What happens next Staff will implement the new exemption threshold for eligible transactions in 2026 and continue monitoring median prices; compliance operations (including lien recording and post-purchase checks) will be handled by Land Bank staff.