MVC Advises Additional Review of Draft Bill for Housing Bank

By IAN FEIN

The Martha's Vineyard Commission last week recommended that
draft legislation for the proposed Martha's Vineyard Housing Bank
receive one more round of public comment across the Island before it is
filed with the state legislature.

Housing bank representatives said yesterday they do not think it is
necessary.

"We're not going back again for another official thing
from the selectmen because we already have the vote of the
population," said Abbe Burt, administrative coordinator for the
Martha's Vineyard Community Housing Bank Coalition. "I think
that we did all of our work for the past 10 months, and I think the
people of the Island have spoken."

MVC chairman Linda Sibley agreed it was probably unnecessary, but
said another round of support might not hurt.

"It's political advice," Mrs. Sibley said.
"We think it would be a good idea to get support, but they may
have another strategy. And they've really thought about it more
than we have."

Approved in a nonbinding ballot initiative by voters in all six
Vineyard towns last spring, the housing bank would generate revenue for
affordable housing projects through a one per cent seller-paid transfer
fee on real estate transactions more than $750,000. The concept is
modeled after the Martha's Vineyard Land Bank, and could raise as
much as $2.5 million per year for affordable housing.

Cape and Islands Sen. Robert O'Leary plans to file the bill in
the state legislature later this month. Both he and Rep. Eric T.
Turkington have described the road to passage as an uphill battle.

In a three-page letter sent to Ms. Burt last Friday, commission
members provided input and raised questions about some of the elements
of the draft legislation, but also offered procedural recommendations to
improve its chances on Beacon Hill.

"In order to ensure strong public support for this
legislation, it would be desirable to allow a final opportunity for
public comment on the revised draft," the commission wrote, adding
that a show of strong political support from town boards of selectmen,
the Dukes County Commission, public and private nonprofit housing
entities and other regional boards would resonate with leaders on Beacon
Hill.

The commission noted twice in the letter that it has not taken a
formal position on the draft legislation, but will consider endorsing it
after reviewing a revised version.

The commission did, however, provide a preliminary vote of support
last winter, prior to the annual town meeting circuit in the spring.

Mr. Turkington said yesterday that while additional endorsement from
the commission and boards of selectmen could help the bill at the state
level, the response at town meeting and in the ballot box last spring
was strong enough to indicate Island approval.

"You can always use more support for any proposal, but town
meeting votes are significant," he said.

The coalition held an Islandwide public forum about the legislation
on August 30, and Mr. Turkington said an additional round of public
comment was unnecessary because the bill likely will be changed multiple
times during the legislative process.

"I wouldn't spend too much time fine-tuning it before it
gets there," he said. "What the housing coalition sends up
is the beginning of the process, not the end."

Both Mr. Turkington and housing bank coalition member John Abrams
noted that Vineyard residents will have another opportunity to voice
their opinions when the state legislature holds a public hearing on the
bill. And if the legislation is approved at the state, it would still
need to return to the Island for another round of binding votes.

"When the public really is going to react to this is if we can
get through the legislative process," Mr. Abrams said. "And
we don't feel it's worth going too far with it right now
because we don't know what will happen at the legislature."

Mr. Abrams added that the draft legislation is making its way
through the towns for one final review from counsel, and said he hopes
Vineyard residents turn out for the legislature's public hearing,
whether it is held in Boston or on the Island.

"We don't know yet where or when the public hearing will
be, but certainly the Vineyard will be aware of it and we'll be
pushing for supporters to come," he said.

Ms. Burt also said another round of comment is unnecessary because
she received so little feedback during the previous two months, after
sending the draft legislation to every board of selectmen, planning
board and housing committee on the Island.

"We sent it to 32 committees, and not one of them came back
and said they think it should be different," she said.

Ms. Burt and Mr. Abrams both said they appreciated the comments from
the commission, which were more extensive than feedback received from
other organizations. They said the coalition plans to meet this week to
incorporate some of the commission input, and will likely go back to the
MVC with the revised draft per its request.

The commission in its letter to the coalition, noted that the
housing bank town advisory boards would be more accountable to the
public if some of the members were elected, and that an exemption should
be added for real estate transactions related to a divorce, as it is for
the land bank.

The commission also expressed concerns about the $750,000 exemption
price - an aspect of the draft legislation that Ms. Burt and Mr.
Abrams said might be changed this week.

"Although the under $750,000 exemption was part of the
proposal approved by the towns, there was not much discussion of this
formula at the time and concerns have been raised more recently about
the application of this technique, especially for houses selling in that
price range," the commission wrote in its letter, noting that a
house selling for $749,999 would have no fee but one selling for
$750,001 would be charged a $7,500 surcharge.

"Another formula (such as an across-the-board exemption for a
lower amount) might deal with this issue and could potentially generate
the same revenue," the commission added.

Mr. Abrams said the coalition will reexamine the lower
across-the-board exemption this week.

Mrs. Sibley said yesterday that she thinks it deserves a second
look.

"It seemed to be a critical area," Mrs. Sibley said.
"At the public forum in August a number of people raised concerns
about the exemption, and I didn't hear anyone come up with a very
good defense about it being an all-or-nothing thing."