Work Group Meetings #1d

Thurs. September 28th 10:30 a.m. – noon     Town Hall Meeting Room A

Financing Actions

 

Present: Jerry Ananthan, J.D. Bower, Jim McCollum, Mike Peregon, Jim Turner, Steve Tait, Bob O’Malley

 

Next Meeting

Thurs. October 19th 10:30 a.m. – noon Town Hall Meeting Room A

 

Priorities

  1. Provide tax and funding incentives for property owners and businesses that provide community workforce housing

 

v     Discussed need to market more effectively the nature of the housing crisis and the incentives already available to existing weekly renters. Get message out to seasonal renters in soft market.

 

v     Discussed need to provide some additional financial incentives to landlords to encourage the shift from weekly or seasonal to year-round rents (see attached program description from Martha’s Vineyard)

 

2.      Explore a transfer tax

 

v     Discussed how to get RE community support for this concept. Ideas include: 1) an exemption for primary residents on the first roughly $350,000 based on a sum equal to median sale price for Barnstable County; 2) an exemption for elderly; 3) an exemption for anyone selling property for less than it cost; and 4) a five to ten year sunset provision based on the timeframe for meeting the goals of the Action Plan

 

v     Suggested definition of Primary resident determined by representation to IRS at closing.

 

v     See attached language of transfer tax petition for Martha’s Vineyard and Nantucket.

 

v     The key is what it will take to get a majority of the Town’s MAR member realtors to support the measure.

 

3.      Identify and pursue all existing state, federal and private funding sources including a specific request for earmarked funding from DHCD and MHP

 

v     Consultant will provide more detailed initiative by November meeting

 

Other Actions Discussed

 

4.      Re-submit a Home Rule petition to expand Land Bank share for housing from 10 percent to 35 percent

 

v     According to the Town Manager, the open space share of Land Bank funds are pretty substantially tapped right now and would provide relatively little revenue. He considers this a very tough sell at this point.

 

  1. Explore a two-tiered property tax levy to distinguish between year-round and seasonal housing and businesses

 

v     It seemed that the work group’s general view it that a measure to transfer the tax burden of community housing on to the seasonal owner will be hard to justify on a fairness basis. The Town Assessor said it would be virtually impossible to manipulate the property tax system so that only one class (in this case seasonal residents) would be carrying the load.

 

  1. Begin aggressively enforcing tax collection on weekly rentals

 

v     This will require a home rule petition (see attached language of Room Tax Home Rule Petition template prepared by Senator O’Leary’s office). General sense that pursuing this plays well a fairness issue. It is not going to deliver that much money, however. The consultant estimates between $100,000 - $165,000/ year (see attached Revenue Matrix).

 

  1. Create a mechanism for soliciting private support for community housing from among seasonal residents

 

v     Tough sell. Not that much there. Donor fatigue. Where is their self-interest.

 

v     Jerry Ananthan suggests a fund raising message based on “Be a HERO”. Help Existing Residential Occupancy. The consultant wonders whether a campaign aimed at owners who rent by the week could be successful with a “Donate One Week” to the community housing effort [accompanied by a major education campaign of course].

 

 

 


Suggestions for Next Meeting

 

  1. Review the attached Martha’s Vineyard rental program description and discuss whether to recommend it as an action in Provincetown.
  2. Review suggestion to simply mount an outreach campaign to convert seasonal and weekly rentals to year-round and discuss whether to recommend it as an action.
  3. Continue to discuss Transfer Tax (review Attached Range of Potential Revenue) and how to work with Realtor community. Discuss whether to recommend it as an action.
  4. Looking at the other potential actions #4-#7, do we want to continue to pursue these ideas? If so, what more do we need to know?