Establish a Martha’s Vineyard Housing Bank modeled largely after the MV Land Bank, which, funded by a 2% transfer fee on real estate transactions, has successfully enhanced the Island’s conservation and public access to land for the last 30 years. The Land Bank works. We need an Island-wide Housing Bank to complement it.

Over the past 20 years, considerable affordable housing progress has been made, but the progress has been entirely outstripped by the rising need caused by escalating real estate prices and the rapid growth of short-term rentals.

With median Vineyard real estate sales exceeding $1,500,000, it is becoming harder than ever for working people to afford stable housing. The pandemic-driven migration of seasonal residents increased the percentage of year-round occupied Vineyard homes from 38% to 51%, which only aggravated our affordable housing crisis – creating more need for services and fewer places for the workforce to live. Our decades-long affordable housing problem has intensified to become a crisis.

A permanent funding source that generates significant funds to address the issue.

It’s a flawed strategy to pit one good thing against another: conservation vs housing.

Both the Land Bank and the Housing Bank are essential for the Vineyard. Legally, the Land Bank is restricted to preserving open space. However, by partnering, it has consistently assisted affordable housing efforts (examples: Kuehn’s Way, Eliakim’s Way, Child Farm) and has agreed to collect and process Housing Bank fees to reduce administrative overhead. Furthermore, even if the legislature would agree to change the Land Bank legislation to allow this kind of change (which we doubt), 60% of Land Bank revenues are committed to property management (to keep properties enjoyable for all of us!), and debt service; there’s not enough Land Bank money to do both. Taking from the Land Bank is not a viable option.

An Act Establishing The MV Housing Bank states the buyer pay the transfer fee. This doesn’t agree with some other bills proposed, but we are working continuously with our legislators to promote and support a buyer-paid fee.

In keeping with other bills, An Act Establishing the MV Housing Bank sets the fee at 2% on real estate sales. The first $1 million of all transactions will be exempt – only dollars over $1 million are subject to the fee, and this figure may be reviewed annually and adjusted if necessary. Examples: The buyer of a house selling for $950,000 pays no fee; for a house selling for $1,400,00, the fee is paid only on the $400,000 – a fee of $8,000.

In An Act Establishing the MV Housing Bank, they do, but only on the portion above $1,000,000

Those who are currently shut out of the Vineyard housing market, including:

• Low- and moderate-income people earning less than 80% of the area median income (AMI) ($100,150 for a family of four in 2023)

• Middle-income people earning up to 240% of AMI ($312,480 for a family of four in 2023) who are not served by any existing programs

Raising the maximum allowable AMI assures opportunities for essential members of our workforce who are currently shut out of the housing market. This benefits 100% of the community who need assistance.

Like the Land Bank, decisions will be made by seven commissioners (one elected from each town, plus one at-large Commissioner elected by all member towns) in conjunction with Town Advisory Boards from each town. No development will be permitted to occur in any town without the approval of the Town Advisory Board.

In An Act Establishing the MV Housing Bank, the Housing Bank will be authorized to purchase and grant property. It will not undertake its own development or land management. It will be primarily a funding agency.

Towns, non-profit and for-profit developers, other entities, and individuals will bring proposals to the Housing Bank. The elected commissioners will evaluate them and determine which best qualify, bringing them to Town Advisory boards for approval. The Housing Bank will award funds and oversee their use.

Far less than one might imagine because An Act Establishing the MV Housing Bank requires that 75% of all funds must be used for properties that already have been developed, limiting excessive new development. Properties currently used as short-term rentals may be purchased (or permanent restrictions purchased), and converted to year-round accessory dwellings (ADUs) may be funded. In-fill development will occur where density already exists, and services are available.

An Act Establishing the MV Housing Bank includes stringent environmental requirements and priorities.

An Act Establishing the MV Housing Bank requires that all funds spent in any given town must be approved by that town’s Town Advisory Board, thereby assigning ultimate spending authority to town officials.

MV Housing Bank expenditures will have both positive and negative effects on the tax base. Analysis by the Oak Bluffs town assessor indicated that, overall, it will be relatively minor.

Yes, but in An Act Establishing the MV Housing Bank, bonding will be strictly limited. No more than 10% of revenues can be used for debt service.

Our role is to build and maintain island-wide support for our proposed housing bank and the state-wide legislation that will enable it, encourage votes in favor of town warrant articles, craft the local legislation, and shepherd MV's bill through The State House. Once it’s passed and adopted by Island towns, our job will be done, and the Housing Bank will be managed by elected commissioners.

To provide the necessary staffing, publicity, legal, and political assistance, total expenditures will exceed $500,000. Funding is being raised from private donors and facilitated by fiscal sponsorship from The Martha’s Vineyard Community Foundation (formerly the Permanent Endowment of Martha’s Vineyard).