Boston City Council Committee Hears Testimony on Real Estate Transfer Fee and Senior Tax Relief (April 10, 2026)
Boston City Council Committee Hears Testimony on Real Estate Transfer Fee and Senior Tax Relief (April 10, 2026)
On April 10, 2026, the Boston City Council Committee on Government Operations, chaired by Councillor Gabriela Coletta Zapata, held a hearing on Docket 0163, a home rule petition for a special law authorizing a real estate transfer fee and expanded senior property tax relief. The hearing began at 10:18 AM and included opening remarks from council members, testimony from housing and aging officials, and extensive public comment. The petition would allow the city to impose a fee of up to 2% on the value of real estate transactions above $2 million, with exemptions for family transfers and affordable housing. The estimated revenue over the past four years would have been $180 million. The fee would fund affordable housing programs and increase the 41C senior property tax exemption.
Public Comments & Testimony
- Jenny Huang (Chinese Progressive Association): Expressed support, noting that Chinatown residents face displacement from development and need affordable housing funds.
- Ma Bing Xiang (Chinatown resident): Described personal experience of forced displacement after a building sale, urged passage to deter speculation and fund affordable housing.
- Michael Kane (Mass Alliance of HUD Tenants): Supported the petition, emphasizing that large commercial transactions (e.g., Skanska flipping 101 Seaport) generate the bulk of potential revenue, not homeowners. Urged help to overcome State House obstacles.
- Cortina Van (Maha – Massachusetts Affordable Home Ownership Alliance): Supported the petition, noting that 72% of Maha's 1,800 home buyers in 2025 had incomes below 80% AMI. Urged passage to reduce the racial homeownership gap.
- Adam Block (Commonwealth Land Trust): Supported the petition, stating that city funds unlock additional state and federal resources, and that the transfer fee would provide critical flexible financing for deeply affordable housing.
- Lily Bryan (Mass Senior Action Council): Expressed strong support, describing fixed-income seniors' struggles with rising costs and the need for both the transfer fee and expanded 41C exemption.
- Aliana Dalvenaire (testimony read by Amira Settles): An eighth grader described personal experience of food insecurity and housing instability, forcing her family to move out of Boston, causing long commutes.
- Michelle Delima (Dudley Street Neighborhood Initiative): Supported the petition, noting that revenue would support community land trusts and the Acquisition Opportunity Program (AOP) to fight displacement.
- Mary Celeste Brown (Southwest Boston Community Development): Supported the petition, explaining that AOP saved 68 families, but funding gaps now threaten rehab projects. Urged passage to sustain local funding.
- Meredith Levy (Boston Neighborhood Community Land Trust): Supported the petition, stating that permanent affordability requires public subsidy and that the transfer fee is a fair tool to fund AOP and other programs.
- Lydia Lowe (Chinatown Community Land Trust): Supported the petition, calling it a "flippers tax" that would fund preservation of existing affordable housing and removal of properties from the speculative market.
- Phil Cohen (in-person): Supported the petition, emphasizing the need for consistent funding as federal sources are uncertain.
- Marqueisha Moore (Boston Neighborhood Community Land Trust): Supported the petition, stressing that it targets developers and investors, not small homeowners, and would provide permanent affordability.
Discussion Items
- Opening Remarks: Councillor Santana (lead sponsor) stated the city is in a housing emergency and that the fee targets high-value transfers to fund senior relief and affordable housing. Councillor Louis Jean noted this is the third time the council has heard this matter, emphasizing the urgency under current federal funding cuts. Councillor Braden highlighted that developers flip projects in Alston-Brighton, extracting wealth without benefiting neighborhoods. Councillor Flynn expressed interest in learning more and noted public safety challenges in BHA developments. Councillor Coletta Zapata (chair) committed to moving the petition expeditiously. Councillor Culpepper raised questions about sustainability, equity, and impact on housing production. Councillor Weber supported the need for local revenue control.
- Panel Testimony (Chief of Housing Sheila Dillon, Commissioner Emily Shea, Administrator Kenzie Bach):
- Chief Dillon presented the policy: a 2% fee on the value above $2 million per transaction, exempting family transfers and affordable housing. She estimated $180 million in foregone revenue over the past four years. She noted 43,000 rent-burdened households, including 14,000 seniors, and declining federal funding.
- Commissioner Shea detailed the proposed 41C exemption expansion: income limit increased to 50% AMI, asset limit doubled to $80,000 (individual) / $110,000 (couple), and exemption amount increased to up to $3,000. She cited that two-thirds of seniors over 65 living alone have incomes below the elder index.
- Administrator Bach stressed the importance for BHA: the fee would fund capital improvements to convert aging public housing to voucher-based subsidy, enabling better operating budgets. She noted that Boston spent more ARPA dollars on housing than any other city, and that the infrastructure to use funds effectively is in place.
- Council Questions:
- Councillor Santana asked how the fee fits into the city's housing strategy. Chief Dillon replied that it would fund a long pipeline of projects currently delayed. Commissioner Shea said expanded senior relief would directly help those on fixed incomes. Administrator Bach said the fee would allow transformative investments in senior public housing.
- Councillor Louis Jean asked about the comparative lens of other cities. Chief Dillon noted that many Massachusetts cities have filed similar home rule petitions. Administrator Bach added that the fee is narrowly tailored (only at time of sale) and avoids broad-based tax increases.
- Councillor Braden asked about the anticipated demand from aging baby boomers. Commissioner Shea cited a 61% increase in older population over 25 years, and that the fee would help address the growing housing challenge.
- Councillor Flynn asked about lessons from previous failed attempts. Chief Dillon answered that the largest change is exempting the first $2 million, and that the petition was popular at the State House last time but fell short due to a few individuals. She also clarified that the fee only applies to sales over $2 million; family transfers are exempt.
- Councillor Culpepper discussed the federal 202 program (HUD Section 202) that provided capital and operating subsidies for senior housing, now largely eliminated. He asked if the transfer fee could replace that. Chief Dillon said the fee would be a consistent source for capital, but operating subsidies remain a challenge.
- Councillor Weber asked about impact on homeless students. Chief Dillon said affordable housing construction includes a 10% set-aside for homeless families, and additional funds could support supportive services.
- Councillor Fitzgerald raised concerns about future home values for middle-class families and the message to developers. Chief Dillon noted that the exemption is adjusted every five years to keep pace, and that the city needs the revenue to avoid saying no to projects. Councillor Coletta Zapata clarified that only 10% of sales would be affected.
- Community Panel (Tanya Hinnell – East Boston CDC, Angie Liu – Asian CDC, Lily Bryan – Mass Senior Action, Intia Ambrogi Isaza – Madison Park Development):
- Tanya Hinnell described the rising cost of construction (from $350k to $750k per unit) while federal resources stagnate. She noted that the Acquisition Opportunity Program (AOP) is now unable to keep up with market prices, and her organization has 57 permitted units awaiting funds. She argued the fee is a fair investment of profit.
- Angie Liu stated that there is "no one else coming to save us" and that the fee would enable her CDC to acquire and preserve existing affordable housing, preventing displacement of longtime residents.
- Lily Bryan reiterated the struggles of seniors on fixed incomes, with many still working into their 90s.
- Intia Ambrogi Isaza underscored that the fee would provide flexible funds for homeownership projects, noting a 35-unit project in Nubian Square that could be permitted within six months if funding were available.
Key Outcomes
- The chair, Councillor Coletta Zapata, announced her intention to move the petition through committee with a vote on Wednesday, April 15, 2026, and urged the full council to pass it quickly so it can be sent to the State House.
- The hearing was adjourned at approximately 12:30 PM.
- No formal vote was taken during the hearing; the next step is a committee vote followed by a full council vote.
Meeting Transcript
Good morning. Uh, thank you all so much for being here for the record. My name is Gabriela Caladez Apata, District One City Councillor, and I'm the chair of the Boston City Council Committee on Government Operations. Today is April 10th, 2026, and the exact time is ten eighteen. This hearing is being recorded, and it's also being live streamed at Boston.gov forward slash city dash council dash TV and broadcast on Xfinity Channel 8, RCN Channel 82, Files Channel 964. Written comments may be sent to the committee email at ccc.go at Boston.gov and will be made a part of the record and available to all counselors. Public testimony will be taken in the middle of this hearing, and at the end. Individuals will be called on in the order in which they signed up, and we'll have two minutes to testify. If you're interested in testifying in person, please add your name to the sign-up sheet near the entrance of the chamber. And if you're looking to testify virtually, please email our central staff liaison, Michelle Goldberg at M I C H E L L E. At Boston.gov in your for the link and your name will be added to the list. Today's hearing is on Docket Zero One Six Three Petition for a Special Law regarding an act relative to a real estate transfer fee and senior property tax relief. This matter was sponsored by counselors Henry Santana, Rutsi Louis Jeanne, and Chair Durkin, and referred to the committee on January twenty-eighth of this year. Today I'm joined by my colleagues in order of arrival, Councillor Rootsy Louis Jeanne, Councillor Liz Braden, Councillor Henry Santana, and Councillor Flynn. I'll now pass it before we go to the panel. I'll pass it to my colleagues for any opening remarks they may have, starting with the lead sponsor, Councillor Santana. Good morning. Um, and thank you, Counselor Colorado Sapata, for working alongside um me and my colleagues to make this hearing a reality. Uh, I want to thank Councillor Du Jan and Counselor Durkin for um joining me as co-sponsors, and thank you for our panel for spending this Friday morning with us discussing discussing this very important topic. Our city is in a housing emergency. Without intervention, these communities are at risk for displacement. This is this displacement tears at the fabric of our communities, and it's everyone's responsibility to guard against these harms. That's where our city can and should step in to fund property relief for our seniors and to keep communities together. We must tap into currently untaxed high-value property transfers. Wealth is increasingly being concentrated in an ever decreasing amount of individuals and companies. These individuals and companies need to pay their fair share, and that's the at the core of this policy. It's about fairness. It's about addressing gaps and inequalities and how we collect fees, and it's about being able to decide as being able to decide as a city how we take on and take care of our seniors and residents. These taxes are modest fees, and they're tailored to exclusively target the most high-value property transfers in our city. By exempting the first two million dollars of a properties purchase price, we ensure that our working class and middle class families won't be burdened. Through their tailored specific taxes, they have real impact by reducing financial burdens, we support our seniors and respect a right to Asian place. In short, by imposing transfers fees, we're asking the wealthiest among us to pay their fair share to support our most at-risk communities, the same communities this wealth is extracted from. Thank you, Madam Chair. Thank you, Councillor Santana. Councillor Louis Jen. Thank you, Madam Chair, and I want to thank the lead sponsor, Councillor Santana, for his work. I want to thank community for being here. Um this transfer fee is so needed in this moment. This is our third time on the Boston City Council hearing this matter. Um when I heard it the first time uh when we were under the Biden administration, and we were we still had ARPA money, it was something that we needed. Uh now under an administration that has been really challenging our ability to provide for our most vulnerable residents, we need it all the more. And given the financial situation and the challenges that we have here, the city level, we need to be thinking about for all of the reasons mentioned, uh alternative forms of revenue to do the work of providing ho housing and opportunity for our most marginalized, our most vulnerable residents. With this transfer fee, we're talking about uh something that could generate anywhere from 50 million to upwards of a hundred million dollars a year to help us do the work of uh ensuring housing as a basic right for all of our residents. So I think all of the folks who are here today for your advocacy. I know that so many projects could benefit from the support of this money. Overall, we're talking about um uh a transfer fee that would affect less than 10% of the housing portfolio here in our city. Uh, we've heard so many times from so many of our advocates and members of community from our seniors about how this would be important to them. The senior exemption that is part of this is also important under 41C. So we are really hoping that we can partner and work and collaborate with our State House partners. And once this passes the Boston City Council, as it has in the past, to make sure that we make housing a reality for all.
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