A proposed bill intersecting real estate and renewable energy is headed to the state legislature for consideration. If passed, it will have major effects in Massachusetts, particularly around the dual housing and climate crises.
Led by HERO, the Housing and Environment Revenue Opportunities Coalition, this bill paves the way for both environmental and housing policy solutions. The bill calls for more funding to be diverted toward climate adaptation and green, affordable housing options for those at risk.
Most unique is HERO’s pathway to get there. To raise adequate funding, the coalition aims to raise the Massachusetts deeds excise tax, nearly double it in fact, to raise annual revenue to approximately $300 million. Proceeds would be funneled into projects that directly support the intersections of energy efficiency and affordable housing.
If you’re wondering what a deeds excise tax is in Massachusetts, you’re not alone. To put it simply, the excise tax is a fee paid to the state once a home is sold. The fee as of now, and for the last thirty years, has been roughly $2.30 for every $500 of home value. This equals out to $1,140 for a $250,000 home and scales upwards -- meaning a hefty fee for luxury home sales.
According to HERO, the collected revenue would be split equally between environmental and housing efforts. Proponents of the bill are hopeful that more Massachusetts residents will be able to afford sustainable housing to mitigate greenhouse gas emissions. Not only would the programs help those in need find quality housing, but they would also support the nation-wide need to address climate change.
The bill would effectively act as an all-in-one solution for the two major policy problems the Commonwealth is facing.Unfortunately, it seems that neither issue is easily solved by the solutions that Massachusetts has implemented in the past, as the dual housing and climate crises continue to grow at exponential rates. HERO is hopeful that this will change with the passing of this bill, which has already received both Senate and House support in its early stages.
How Are Housing and Environmental Policy Related?
Both climate and housing conditions directly feed off of one another and are facing critical threat levels. With new developments being built that do not implement green energy, the climate crisis continues to worsen. At the same time, new developments can price out vulnerable populations, leaving inadequate properties in vulnerable areas to those in need. Oftentimes those in the most vulnerable communities are the ones who are most likely to face the effects of climate change or housing insecurity.
The good news is that, in effectively addressing just one of these issues, policies can also alleviate the other. For example, building new affordable housing that is energy efficient targets both the housing and climate crisis.. With this proposed bill, HERO aims to address both issues at the same time, recognizing how closely they’re related.
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https://energynews.us/2021/07/08/mass-bill-would-double-real-estate-fee-to-fund-clean-energy-affordable-housing/