The City of Somerville estimates that a 2% real estate transfer fee — with 1% paid by sellers and 1% paid by buyers, and that exempts owner-occupants (defined as persons residing in the property for at least two years) — could generate up to $6 million per year for affordable housing. The hotter the market, and the greater the number of property transactions, the more such a fee would generate.
According to Richard Rothstein in his 2017 book, Color of Law: A Forgotten History of How Our Government Segregated America, “we have created a caste system in this country, with African-Americans kept exploited and geographically separate by racially explicit government policies,” he writes. “Although most of these policies are now off the books, they have never been remedied and their effects endure.” Zoning was one of the policies that contributed significantly to this outcome.
This infographic demonstrates in data and graphs why Arlington needs more housing.
by Alexander vonHoffman, Joint Center for Housing Studies, Harvard University, February 2006
Report by Vicki Been, Ingrid Gould Ellen, and Katherine O’Regan, Supply Skepticism: Housing Supply and Affordability, NYU Furman Center 8/20/18
Last Spring, as Town Meeting considered zoning options for increasing the amount of housing, including affordable housing in Arlington, some citizens rallied against this effort. The reason: Housing is built by developers. Developers are greedy and can not be trusted. Ergo the community must prohibit developers. But much of the Arlington now cherished was planned and built by developers.
Issues of supply, affordability, and equity all contribute to an ongoing housing crisis in Massachusetts. Among U.S. metro areas with knowledge-based industries, metro Boston ranks near the bottom in housing production and near the top on development costs. Due to the latter, production of new affordable housing units has scarcely increased over the past decade. And largely decentralized authority over land use regulations, by 351 cities and towns, does little to foster uniform housing equity standards.
A study by Elise Rapoza and Michael Goodman shows that new housing construction in MA does not have an adverse affect on municipal or school budgets. And when it might, state funding covers the difference. This study contradicts the often heard argument against new housing development, especially multi-family housing, because it, the argument claims, it will have a negative fiscal impact on communities.
Minneapolis is the most recent governmental entity to disrupt the almost 110 year old idea of local zoning in America by overriding single family zoning. Zoning was developed in the the early 1900’s to control property rights and, in part, to limit access to housing by race. These early laws were upheld by the courts in the 1930’s and the use of zoning to control private property for the interests of the majority became common. Houston Texas did not adopt zoning, an outlier in the nation.
In a 2019 study, MAPC found that: