A housing bill closely watched on Cape Cod, Martha’s Vineyard, and Nantucket is now law.
The law designates parts of the Cape, Islands, and Berkshires as “seasonal communities” — qualifying them for specific policy changes and likely making them eligible for future grants to address high housing costs.
It also allows accessory dwelling units without a special permit, statewide.
Gov. Maura Healey signed the housing bond bill, known as the Affordable Homes Act, Tuesday.
It authorizes more than $5 billion in spending over five years and creates new policies designed to support the construction and rehabilitation of more than 65,000 homes.
Alisa Magnotta, CEO of Housing Assistance Corporation, attended the bill signing in Boston.
She said towns should go to work to use the tools the law provides.
“Every single town should be figuring out land and projects that they can allocate to housing, because this really is our opportunity to change the tide,” she said. “It really signals Day 1 of the work. Now we have the ability and more funding than ever to add housing in our towns and in our region.”
State Sen. Julian Cyr championed the seasonal communities designation.
In a written statement, he called the seasonal provisions “a game changer in our efforts to salvage our year-round economy and community in the face of a daunting housing market.”
According to Cyr, the law allows seasonal communities to:
• Establish a year-round housing trust fund without going through the home rule process;
• Acquire occupancy restrictions to require year-round housing; and
• Acquire and develop housing specifically intended for public employees, along with artist housing to support the creative economy.
In addition, seasonal communities are required to allow “tiny houses,” and to allow units to be built on undersized lots, provided they are for year-round housing. The law also gives seasonal communities the authority to increase tax exemptions on a principal residence.
All towns on Martha’s Vineyard and Nantucket will automatically receive the seasonal designation. Towns in Barnstable County qualify if at least 35 percent of their housing units are second homes.
The law also offers the seasonal designation in Berkshire County, where 40 percent of housing must be second homes for the community to qualify.
A state agency, the Executive Office of Housing and Livable Communities, has the authority to designate additional communities as seasonal. Communities may accept or reject the designation.
The final version of the bill left out a provision supported by some Cape and Islands housing advocates, but opposed by the real estate industry: a real estate transfer tax on high-priced homes, to be used for community housing initiatives.
