An Act authorizing a local affordable housing surcharge

This bill authorizes Massachusetts cities and towns to collect a local affordable housing surcharge of up to 2% on real property taxes. To implement this charge, a municipality must first secure a two-thirds vote from its local approving authority and then win approval from voters at a regular election. The collected funds must be deposited into a designated affordable housing trust, and the surcharge applies to property values after accounting for existing tax exemptions. Local governments can also choose to exempt certain properties, such as low-income housing, commercial properties, or the first $100,000 of residential value, and they may adjust the surcharge rate no more than once every 12 months.