HERO Bill
Full title: An Act providing for climate change adaptation infrastructure and affordable housing investments in the Commonwealth (H.2894 / S.1799)
Lead Sponsors: Rep. Sam Montaño; Sen. Jamie Eldridge
Committee: Joint Committee on Revenue
The Issue
Massachusetts faces a growing affordable housing crisis. To rent the average 2-bedroom apartment requires an income equal to $37.97 per hour, more than twice the minimum wage. Home ownership has become increasingly out of reach, as the state’s median home price has passed $600,000.
We also face a growing climate crisis. To meet and exceed our state’s climate goals, we must address the emissions from our buildings sector, of which small residential housing accounts for 60%. Meanwhile, more and more communities are threatened by flooding, extreme weather, and other climate impacts.
The Solution
This bill, initiated by the Housing and Environment Revenue Opportunities (HERO) Coalition, would double the Deeds Excise Fee on home purchases from $4.56 per $1000 to $9.12 per $1000 (which would still be lower than those of Connecticut, New Hampshire, New York, and Vermont) and devote the estimated $300 million in annual revenue raised to climate resilience and affordable housing.
Half of the new revenue would be dedicated to climate mitigation and resiliency through the Global Warming Solutions Trust Fund. The other half of the revenue would be divided into aiding working-class homeowners and renters through the Affordable Housing Trust Fund and aiding low-income renters and the unhoused through the Housing Preservation and Stabilization Fund.
Highlights
- The deeds excise fee has remained at the same level for decades.
- Even if we double the current tax, Massachusetts would still have a lower fee than most neighboring states.
- Most families only pay the tax once or twice in their lifetime and as a small fraction of a much larger transaction.
- The $300 million in new revenue raised by the bill would
- create or preserve additional housing for 18,000 working-class homeowners and renters over 10 years;
- finance hundreds of millions of dollars in competitive, flexible grants to localities for climate resilience and mitigation;
- assist between 3,500 and 6,500 additional extremely low-income families per year with housing vouchers or project-based rental assistance;
- be used to provide emergency rental assistance to tenants impacted by COVID-19.
Contact Your Legislators
Find your legislators’ contact information here.
Massachusetts faces a growing affordable housing crisis. To rent the average 2-bedroom apartment requires an income equal to $37.97 per hour, more than twice the minimum wage, and home ownership has become increasingly out of reach, as the state’s median home price has passed $600,000. We also face a growing climate crisis requiring both accelerated work on climate mitigation and on climate resilience. as more and more communities are threatened by flooding, extreme weather, and other climate impacts.
Please co-sponsor the HERO bill, An Act providing for climate change adaptation infrastructure and affordable housing investments in the Commonwealth (H.2894 / S.1799), filed by Rep. Sam Montaño and Sen. Jamie Eldridge, that would address both of these crises head on.
This bill, initiated by the Housing and Environment Revenue Opportunities (HERO) Coalition, would double the Deeds Excise Fee on home purchases from $4.56 per $1000 to $9.12 per $1000 (which would still be lower than those of Connecticut, New Hampshire, New York, and Vermont) and devote the estimated $300 million in annual revenue raised to climate resilience and affordable housing. This money could go toward goals such as creating or preserving additional housing for 18,000 working-class homeowners and renters over 10 years; financing hundreds of millions of dollars in competitive, flexible grants to localities for climate resilience and mitigation; and assisting between 3,500 and 6,500 additional extremely low-income families per year with housing vouchers or project-based rental assistance.
- We have an affordable housing crisis and a climate crisis. The #HERO bill understands that these crises are connected — and our solutions should be too. #mapoli
- We need new revenue to address the affordable housing crisis and the climate crisis. An increase in the Deeds Excise Tax is the way to go. #mapoli
- The #HERO bill would offer municipalities the resources to ensure a future where our housing is both green and affordable. Let’s make it happen. #mapoli
- Municipalities have an important role to play in the affordable housing and climate crises. The #HERO bill will give them the resources to do so. #mapoli
Write a Letter to the Editor
Adapt the template below! Or email us at issues@progressivemass.com for help!
Massachusetts faces a growing affordable housing crisis. To rent the average 2-bedroom apartment requires an income equal to $37.97 per hour, more than twice the minimum wage, and home ownership has become increasingly out of reach, as the state’s median home price has passed $600,000. We also face a growing climate crisis requiring both accelerated work on climate mitigation and on climate resilience. as more and more communities are threatened by flooding, extreme weather, and other climate impacts.
We must address these two interlocking crises, and, fortunately, the HERO bill (H.2894 / S.1799), initiated by the Housing and Environment Revenue Opportunities, does just that. This bill, filed by Rep. Sam Montaño and Sen. Jamie Eldridge, would double the Deeds Excise Fee on home purchases from $4.56 per $1000 to $9.12 per $1000 (which would still be lower than those of Connecticut, New Hampshire, New York, and Vermont) and devote the estimated $300 million in annual revenue raised to climate resilience and affordable housing.
What does this mean in practice? This money could go toward goals such as creating or preserving additional housing for 18,000 working-class homeowners and renters over 10 years; financing hundreds of millions of dollars in competitive, flexible grants to localities for climate resilience and mitigation; and assisting between 3,500 and 6,500 additional extremely low-income families per year with housing vouchers or project-based rental assistance. It’s the type of bold yet common sense policy we need.
Read More
- Massachusetts Commission on Clean Heat. Massachusetts Commission on Clean Heat Final Report. November 30, 2022, https://www.mass.gov/doc/massachusetts-commission-on-clean-heat-final-report-november-30-2022/download.
- National Low Income Housing Coalition. “Massachusetts.” Accessed April 5, 2023. https://nlihc.org/oor/state/ma.
- Young, Colin. “Median Home Price in Massachusetts Tops $600K for the First Time.” State House News Service. July 19, 2022. https://www.cbsnews.com/boston/news/median-home-price-massachusetts-600k/.
For more information, visit https://www.mahousingclimate.org/.
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