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Mass. bill would double real estate fee to fund clean energy, affordable housing – Energy News Network

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Environmental and housing advocates are joining forces in Massachusetts to push a bill expected to generate $300 million per year to fund investments in clean energy, energy efficiency, climate adaptation, and affordable housing. 

The legislation would double the deeds excise fee paid on real estate transactions, which hasn’t been increased in more than 30 years. The added revenue would be split evenly between programs to slow and respond to climate change and those to improve access to affordable housing — two urgent needs that are intimately connected, advocates said.

For at least a decade, housing prices in Massachusetts have climbed steadily, while supply languishes. Today, it can be extremely challenging for low- and middle-income earners to find reasonably priced housing — or any housing at all. At the same time, the impacts of climate change are becoming increasingly apparent as increased flooding and extreme heat take their toll on vulnerable communities. 

“We face a housing crisis and a climate crisis, each of which is getting worse, not better, over time. Moreover, the two are completely intertwined,” said Joe Kriesberg, president of the Massachusetts Association of Community Development Corporations, one of more than 40 nonprofits and civic groups that have formed the Housing and Environment Revenue Opportunities (HERO) coalition to support the proposal. 

By addressing the two problems together, the deeds excise bill could amplify efforts being made in each sector, supporters said. 

Buildings are responsible for more than 40% of the greenhouse gas emissions in Massachusetts, so any money spent to develop new, more energy-efficient affordable housing, perhaps paired with solar panels, will benefit both tenants and the state’s efforts to go carbon-neutral by 2050, supporters contend. At the same time, they say, neighborhoods with a high need for affordable housing are also generally the most vulnerable to climate change effects like flooding and increased respiratory problems, so money invested in adapting to these impacts would make these communities healthier and safer. 

“I can’t think of an intersection of policy that is more important to the health of communities,” said Leslie Reid, chief executive of the Madison Park Development Corp., a member of the HERO coalition.

Reid, whose work focuses on the Roxbury neighborhood of Boston — most of which is classified as an environmental justice community — envisions the additional funding being used for a range of projects in her community. Maintaining mature tree canopy and installing green roofs could help mitigate the heat island effect, which is associated with respiratory illness and increased rates of heat-related death. Building new affordable housing to highly energy-efficient Passive House standards and retrofitting existing properties could lower fossil fuel use and utility bills, while creating healthier living conditions. 

In Lawrence, a former factory town in the northern part of the state, Heather McCann of community nonprofit Groundwork Lawrence would like to see an influx of revenue that could help accelerate work on a bicycle and pedestrian trail connecting different parts of the city. This network could help people from all neighborhoods access services, recreation, and jobs without using a car or walking hot, exhaust-laced streets. 

“Having those connections, it gets you to parks, it gets you to the hospital, it gets you to the two big areas for employers,” McCann said. 

Supporters argue the bill is needed because, while the state has announced goals and strategies for going carbon-neutral and improving affordable housing, there needs to be more guaranteed funding if these efforts are to be successful. 

“I think there’s a real recognition that unless you have a dedicated revenue source, you can talk about affordable housing or climate change, but it’s not going to make much of a difference because the funding isn’t there,” said state Sen. James Eldridge, who introduced the bill in the Senate.

The Massachusetts deeds excise tax is paid upon the sale of a property, currently at a rate of $2.28 per $500 of value. A house sold for $500,000, about the median price for a single-family home in the state, incurs a fee of $2,280. 

Most states have similar fees, though they go by a variety of names. The Massachusetts rate hasn’t changed since 1989, and is lower than the rate in the other New England states, with the exception of Maine.

Two years ago, Massachusetts Gov. Charlie Baker proposed increasing the tax by 50% to raise money for efforts to protect communities from the rigors of climate change. At that time, housing advocates first proposed instead doubling the fee and splitting the proceeds between housing and climate needs. Baker’s proposal did not make it through the Legislature, but the idea of increasing the tax had taken hold. 

Some in the real estate sector object to the bill, arguing that a larger transaction fee would only worsen the state’s affordable housing problems.

“It would increase the cost of housing by imposing a sales tax on homes,” said Justin Davidson, director of government affairs at the Massachusetts Association of Realtors. “Taxing homes raises rents and barriers to homeownership, further exacerbating the longstanding housing affordability crisis in Massachusetts.”

Supporters of the bill disagree with this analysis. The added cost would be too low to deter a buyer already planning such a major purchase, they say. 

“This bill is a very modest bill, but it will create critical income for the state that goes to housing and climate,” said Karen Chen, executive director of the Chinese Progressive Association, a member of the HERO coalition. 

The bill has been introduced in both the Senate and House, and 50 co-sponsors have signed on so far, a number Eldridge considers a satisfying start. Action on the legislation is unlikely this summer, he said, as pandemic recovery measures still dominate discussions. But he is encouraged to see so many disparate advocates uniting behind the cause.

“It’s been great to see the coalition of housing activists and climate advocates,” Eldridge said. “It makes it more likely that it will pass.”

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Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Homelessness: Tiny home village to open next week in Halifax suburb

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HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Here are some facts about British Columbia’s housing market

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Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

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