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Concerned citizens got its chance to sound off on the proposed real estate transfer fee at a public hearing of the Somerville Board of Aldermen Legislative Matters Committee last week. — Photos by Donald Norton
By Jim Clark
The Somerville Board of Aldermen’s Legislative Matters Committee got a collective ear full last Wednesday, April 4, at its public hearing on the proposed home rule petition to impose a real estate transfer fee on property sales in the city.
Residents and other interested parties, both pro and con, made their opinions known loud and clear, with passions running high at times on each side.
Ostensibly intended to assist those who are being priced out of Somerville, the ordinance would impose a fee of 1 or 2 percent of the selling price when a home or apartment building is sold, with the transfer cost imposed on developers who are “flipping” homes for quick profits.
The revenues raised from the transfer fee would would theoretically go only to an Affordable Housing Trust Fund.
A number of exemptions from the fee have been discussed as the proposal has evolved in Committee, aimed at sparing long term residents and established families from any undue hardship. This, among several other aspects of the proposal, was a matter of concern for many who spoke up at the hearing.
According to the city, the home rule petition process requires that some details that cannot be changed at a later time be determined before submitting the petition. For this reason, the Board of Aldermen held the public hearing on the matter prior to submission of the petition.
The Board is currently reviewing and revising a draft petition, submitted by the mayor as a starting point, but not intended as the final version. At the hearing, the public was given the opportunity to voice support for or against the fee overall, as well as comment on a range of issues such as exemptions. The Board will vote on the details of the final draft and whether to submit it to the Legislature.
The Committee Chair, Ward 5 Alderman Mark Niedergang, opened the hearing by asserting that he and others on the Board were committed to submitting the home rule petition to the state legislature before the deadline passes later this month, thus avoiding a delay in the process of a full year.
Next, Tim Snyder from the mayor’s office explained the home rule petition legislative process in some detail. After reviewing the steps involved in getting permission from the state to impose the transfer fee, Snyder added, “Now, there’s one important thing about a home rule petition I want to point out. If we are successful in getting a home rule petition, anything that is contained in that home rule petition cannot change unless we go back to the legislature and ask for future changes. So we have to be very careful about what is put into the home rule petition, knowing that it wouldn’t be able to change at a later date.”
Snyder went on to discuss further details of the proposed home rule petition, including possible exemptions which are still being worked in the draft of the proposal.
Following Snyder’s presentation, other officials and members of the general public took turns expressing their thoughts and feelings on the matter.
State Representative Mike Connolly spoke in favor of the proposal saying, “What we are facing is truly a housing emergency, and we will lose everything we love about Somerville and everything we love about the Greater Boston area if we can’t come up with some new tools, tools to put into your hands, to help us fund affordable housing developments and affordable housing projects.”
A number of those who spoke before the Committee urged the members to put the matter before the voting public before taking it to the state legislature. One speaker said, “This honorable Board sought voter approval for the Community Preservation Act tax, and for the Proposition 2.5 override for the bonds necessary to finance the new Somerville High School. Whether the voters would approve this transfer tax is at the moment an open question. However, this is neither a reasonable nor a justifiable basis to deprive our voters of the opportunity to exercise their franchise in the same manner and to the same extent they were afforded on these prior referendums.”
John L. Sullivan, a Somerville resident since 1965, a homeowner and landlord, made his feelings known saying, “I find this process extremely disrespectful and cowardly, that members of this Board did not want to notify the residents and finding that they can’t afford to do so, but you can inundate us when you want to get elected – with all your stuff.”
Others felt differently, expressing their willingness to contribute to a plan to help facilitate the development of more affordable housing in the city. One such speaker put it simply by saying, “I think to have bought a house 20 years ago and watch it go up way more than any economist would have predicted – well, I just want to make a living, not a killing. But if I can keep 99 percent instead of 100 percent, I think I might make a killing and help affordable housing.”
A wide array of similar comments was heard by the Committee, both pro and con, during the nearly five-hour long hearing.
According to the city, the next steps in the home rule petition process are as follows:
The Board of Aldermen will further deliberate on the draft home rule petition and vote on whether to approve and send the petition to the state legislature.
Next, the state legislature will vote on whether to approve the petition.
If approved, the city will host a community process to discuss details of a potential ordinance.
The city will follow the framework of rules established by the home rule petition to develop a detailed ordinance setting the final fee and criteria for what transactions are subject to the fee.
Then the Administration would submit a draft transfer fee ordinance, within the framework approved by the legislature, to the Board of Aldermen for deliberation.
Finally, the Board of Aldermen would hold a public hearing or hearings on the proposed ordinance before voting on any amendments and final approval.
Anyone interested in learning more about the real estate transfer fee home rule petition process can learn more and follow its progress by going online to https://www.somervillema.gov/departments/proposed-transfer-fee-home-rule-petition, where lots of relevant material is available for public review.
Those who are interested in watching a video of this meeting may do so by going online to http://somervillecityma.iqm2.com/Citizens/Calendar.aspx.
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I’d love to know how Our Revolution felt watching last night’s meeting as their “Dream Slate” buckled under the pressure when it came time to vote on the HRP Transfer Tax. Not such an easy decision when over 65% of the community is adamantly against this tax. Shame on Mark N, Matt M and Lance D for being the driving force behind dividing our community. You three are now on everyone’s radar and will likely face an opponent in the next election.
Finally the light bulb went on for some of the BOA. There needs to be an extensive audit of the Affordable Housing Trust as no one can say for sure where all the money has gone and what it has exactly been used for. Fact: The Affordable Housing Trust has not been audited since 2008. That’s 10 years and a lot of money that has never had to be answered for. It’s time for a forensic audit by a reputable outside source to give the public some clarity on what is actually being done with the funds and who is actually benefiting from their use. I think a lot of folks might just be surprised with what is uncovered, and a few folks might just be a little worried.
What I cannot understand is how we are being told we need more affordable housing, while still allowing developers to come in and convert every available property into high-end rentals. Only a tiny fraction of those has to be affordable, yet far more people need affordable housing than will ever become available.
If they are so concerned about “affordable” housing, then why not encourage developers who are interested in creating ONLY affordable housing to come here?
How many long-time well-known and respected businesses have disappeared because they were bought out by developers, and those buildings converted into living spaces instead of having those businesses continue under new owners?
Somerville has completely changed from what it was when I was a kid. I’m sick of hearing people say that this is simply “progress” and to just deal with it.
Gentrification is not just a matter of progress, it is a matter of changing everything that makes a city what it is into something that is no longer recognizable.
Too often we are told there is a problem that needs to be fixed at our expense, when the ones that are telling us are the ones who created the problem in the first place.
Linda, I don’t think it is possible to convince developers to build and sell housing that are at reasonable cost 350k-450k, for a 3 br because the cost of the dirt is too high for them to turn the profit they need. The way municipalities have driven low cost units (that stay low cost) is 40b exemptions which let developed build at higher density then would otherwise be allowed. To build what you describe the developers would basically need to operate as a non-profit.
The challenge is if you operate a mission driven non-profit you would probably choose to not develop in Somerville because the cost to get in is too high, when you can goto parts of Boston and deliver more towards your mission per dollar spent.
While I am not a fan of the current proposal, I believe that a fee to support affordable housing will be added either via property tax or the transfer fee is inevitable based on the BOA and citizen voting history. What I am now focused on is how that money will be spent, plans of which are very vague.
As bad as this proposed tax is, what’s being buried and ignored in all of this is the tenant right of first refusal. That states the obvious, that the tenant has the right to decide if they want to purchase the property. But it also states that their right of first refusal can be assigned to a non-profit or to the city or its’ designee. When they start holding meetings on this things are going to get really ugly. Speaking of ugly, when they’ve posted the video of last nights’ meeting regarding the transfer tax please watch it. It is like a 3-ring circus. None of them even have a clue what they want, and they can’t even keep track of whether or not they’ve already voted on the motion. They are totally lost as Bill White does his level best to explain the process to them. Truly scary stuff.
And here it is: http://somervillecityma.iqm2.com/Citizens/SplitView.aspx?Mode=Video&MeetingID=2600&Format=Agenda
Janie, I’m a bit ignorant on the risk of right of first refusal. I’m guessing that if the owner lists too low, they lose the opportunity for a bidding war and will therefore list high and take let offers, right?
SOMERVILLE PROPERTY OWNERS ARE UNDER ATTACK!
The Board of Alderman and the city of Somerville will conduct its second and final public hearing on the TRANSFER TAX. Even with pressure from some Alderman in both cases the the Mayors administration has chosen not to notify the property owners because of the cost of a mailing which is approximately 20,000.00. They were not even willing to utilize the robo call system which is frequently used for simple things such as arts related events and road races.
A small cost to approximately a two hundred fifty million dollar budget while ensuring everyone has a fair chance at being heard. The notice delivered by a small group on the first public meeting drew hundreds of responses by residents in opposition to the home rule petition. Because of your letters, emails phone calls, and attendance at meeting the Alderman made many changes to the original Transfer tax petition. As a result we submitted over four hundred signatures to the City Clerk in opposition.
Because of some elected officials who had chosen to address the condo boom along with the endless development the tax paying property owners will suffer.
It is time for the city to be more fiscally responsible instead of imposing another TAX on top of the CPA TAX, EXCISE TAX, WATER METER FEES, EXCESSIVELLY HIGH WATER BILLS, REVALUATION INCREASES, ASSEMBLY SQUARE BONDS, HIGH SCHOOL BONDS, MBTA BOND, UNION SQUARE BONDS, AND THE NEWLY REQUESTED AFFORDABLE HOUSING BOND.
WE ARE SOMERVILLE and our voices need to be heard! Attend the final public hearing before it gets voted on by the Board of Alderman and gets sent to the State House for approval.
MONDAY MAY 7 TH. CITY HALL @ 6:00 P.M. in the Aldermanic chambers second floor