Trust forms working group to consider local property tax exemption for affordable rental units

Committee members reviewed the new state law (Mass. Gen. Laws c.59, §5o) that allows municipalities to provide property-tax exemptions to incentivize conversion of market-rate rental units to affordable housing, and voted to create a working group to draft a town bylaw and recommended rules and regulations.

Alan summarized the law: municipalities can determine affordability targets and AMI bands, set eligibility rules and determine whether to count units on the Subsidized Housing Inventory (SHI). The law permits linking the percentage of the tax exemption to AMI levels—for example, a deeper exemption for units targeting 80% AMI than for higher AMI bands—and applies to property value (land and improvements), not just building value. Members noted accessory dwelling units (ADUs) could qualify under a town program, which may counterbalance ADU-driven increases in property value.

Committee discussion focused on whether the Trust or the select board should sponsor the warrant article and who would direct town staff resources. Several members urged select-board sponsorship so the town manager and assessor could commit staff time; others said the Trust could serve as sponsor but must ensure the participation of assessor, zoning and legal staff. The committee asked Mark and staff to “socialize” the concept with the town manager and return with a recommended working-group membership and scope for the next month.

The committee moved and passed a motion to create a working group, nominate initial participants and begin outreach to town staff and the select board for support. The working group will draft a bylaw and recommended rules for possible referral to fall town meeting.