This bill establishes a real estate transfer fee of up to 2% on property sales in Boston to fund affordable housing and senior tax relief programs. The fee is paid by the seller but excludes the first $2 million of a property's value and includes exemptions for family transfers, government entities, and other specific cases. Collected funds must be deposited into the Neighborhood Housing Trust, though the city can reserve some for additional housing stability initiatives. Additionally, the legislation updates the criteria for senior homeowner property tax exemptions by raising income and asset limits to better protect vulnerable residents from displacement.
Senate, December 8, 2025 -- The committee on Housing to whom was referred the petition (accompanied by bill, Senate, No. 1010) of Liz Miranda, Sal N. DiDomenico and Patricia D. Jehlen for legislation to create a permanent affordability homeownership program, report the accompanying bill (Senate, No. 2762).
This bill restricts accessory dwelling units (ADUs, or secondary homes) in single-family zoning districts with lots 10,000 square feet or smaller. It requires ADUs to be owner-occupied and limited to extended family members living there. Municipalities can override these rules by voting locally to waive the owner-occupancy and family requirements. The law directly affects homeowners in qualifying single-family neighborhoods seeking to add ADUs on smaller properties.
HD 3296 creates a refundable tax credit for Massachusetts first-time homebuyers who use capital gains from selling investments to cover their down payment. The credit amount equals the lesser of the capital gains tax owed on the sale or the down payment amount, directly benefiting eligible buyers. To qualify, the capital funds must be liquidated within 60 days before the property transfer. This bill specifically affects Massachusetts residents who haven't owned a home in the past three years and use investment proceeds for a primary residence down payment.
HD 3106 proposes expanding Boston's senior homeowner property tax exemption to provide greater relief for residents aged 65 and older. The bill would increase the exemption amount from $500 to $1,500, adjust income limits to 50% of Area Median Income (based on HUD data), and raise asset limits from $28,000/$30,000 to $80,000/$110,000. These changes aim to make the exemption more accessible for seniors on fixed incomes, as current enrollment is far below the estimated eligible population. The bill seeks state legislative approval to modify Boston's local tax rules under Massachusetts' home-rule provisions.
HD 1225 creates a property tax exemption for homeowners who make specific alterations to provide housing for elderly (60+ years) or disabled individuals. The exemption covers up to $500 in annual property taxes on the increased home value from these improvements, but only if the home has no more than three units before the changes and is owner-occupied. Homeowners must annually certify the housing is provided to an eligible person and provide proof to the local tax office. This exemption ends if the housing is no longer occupied by an elderly or disabled person and applies only to improvements made after a city or town adopts the provision.
This bill changes how residential mortgage foreclosures are handled for 1-6 family owner-occupied homes. It requires lenders to file foreclosure lawsuits in Superior Court instead of using out-of-court processes, and mandates specific service methods (posting and mailing if not delivered in person). Homeowners facing foreclosure can now raise legal defenses in court, and courts gain authority to cancel or adjust mortgages if violations of existing laws are found. The court must also record decisions invalidating prior foreclosure actions in property records at no cost. This directly affects homeowners in these properties and lenders seeking to foreclose.
HD 1763 requires real estate agents, brokers, and mortgage brokers in Massachusetts to provide first-time homebuyers with a standardized homebuyers' guide developed by the Massachusetts Housing Finance Agency (MHFA) before key steps in the home purchase process. The guide must cover essential topics like home inspections, lead paint disclosure, environmental regulations, mortgage terms, and the roles of agents, attorneys, and associations. Real estate professionals and mortgage brokers who fail to provide the guide face fines of up to $100 per violation. The bill directly affects first-time homebuyers and the real estate/mortgage industry by mandating this information to help buyers make informed decisions. The MHFA must create and publish the guide online, including specific resources about home buying processes and legal disclosures.
This bill creates a new tax-advantaged savings account in Massachusetts to help first-time homebuyers save for a down payment and closing costs. Account holders can deduct contributions (up to $5,000 individually or $10,000 jointly) from their Massachusetts income tax each year, with a lifetime limit of $50,000 over 15 years. Funds must be used within 15 years for eligible home purchases by a designated first-time homebuyer (someone who hasn’t owned a home in Massachusetts for three years). The account is open to anyone who establishes it, but only the account holder - not contributors - receives the tax benefit. Funds not used for home purchases by the 15-year deadline become taxable income.
By Representative Cahill of Lynn, a petition (accompanied by bill, House, No. 3041) of Daniel Cahill relative to the establishment of first-time homebuyer savings accounts and providing for an income tax deduction for certain amounts contributed to such accounts. Revenue.
