The Harwich Housing Committee is exploring a bold new funding mechanism to combat the town’s escalating affordability crisis, proposing a transfer fee on real estate transactions exceeding $1 million. Chair Elizabeth Harder reported that she has spent the last several months developing a framework at the county level for a transfer fee model based on the Vail Indeed program in Colorado. Under this proposal, the town would use revenue generated from high-end home sales to pay property owners for permanent deed restrictions, requiring those houses to be occupied by year-round residents. Harder emphasized the importance of humanizing the data, noting that the community needs to understand that attainable housing is for our municipal workers and local families.

The proposal comes as Harwich faces a demographic shift that projects more than half of its population will be over the age of 60 by 2030, a trend that intensifies the need for worker-accessible housing. However, the transfer fee plan met with some professional caution from the committee. Member Matt Hemian, a real estate professional, raised concerns about the potential unintended consequences for long-term residents. Hemian noted that if an elderly resident needed to sell their home to fund a move into a nursing home, a year-round deed restriction might make the buying pool minuscule and significantly delay their plans. Harder countered that in the Vail model, such restrictions have not significantly lowered property values but instead guaranteed that a substantial portion of the housing stock remains available for residents rather than seasonal investors.

The committee also welcomed its newest member, mortgage underwriter Ellen Collins, who joined the board after seeing a call for volunteers while paying her water bill at Town Hall. Collins highlighted her professional interest in helping residents build equity, while long-time member Art Bowden shared a more personal motivation, recalling a hand up he received from a developer on his own first home mortgage decades ago. Bowden, who has served on the committee for nearly ten years, expressed concern over the rising costs of creating smaller units. He noted that even converting an existing structure like an oversized garage into an Accessory Dwelling Unit (ADU) could cost upwards of $200,000, rendering it unaffordable without significant incentives.

Septic limitations remain a primary hurdle for housing density in Harwich, a town currently navigating a 25-year infrastructure wall. Harder informed the committee that she is serving on an ADU task force investigating alternative systems, such as urine diversion and composting toilets, which could allow for development in areas where traditional wastewater systems are at capacity. This push for innovation aligns with recent efforts by the Board of Health to mandate advanced nitrogen-neutral technology for larger developments along the Route 28 corridor.

Brandon Louney of the Affordable Housing Trust provided an update on shifting leadership and regional strategy, noting that Larry Ballantine will soon resume his role as Chair of the Trust. Louney urged the Housing Committee to take the lead on investigating the Seasonal Communities Act, a piece of state legislation that Brewster and Harwich have yet to adopt. He also noted a strategic pivot toward homeownership, as state funding for rental projects has recently dried up. Harder agreed with the focus on ownership, stating, I agree that we should focus on attainable housing.

Housing Coordinator Briana Nickerson detailed several actionable items aimed at moving Harwich toward its safe harbor status and meeting regional housing goals. Nickerson is launching a Housing Stories initiative to collect testimonials from residents struggling with the local market. She is also planning an outreach program to major local employers to document how the housing shortage is impacting their ability to maintain staff. Nickerson reported that the town is very close to securing final approval for a local housing unit at the West Street Schoolhouse and that she has been matched with a mentor from the Mass Housing Partnership to accelerate Harwich’s community development goals.

Looking at physical inventory, the committee identified a town-owned parcel at 72 Willow Street as a potential site for development. Art Bowden noted that the property, which backs up to an existing Habitat for Humanity project on Murray Lane, had historical boundary issues that were finally settled by the town in 2020. Bowden also warned against the loss of attainable inventory through private renovations, citing a house on Route 39 that was purchased for roughly $300,000 but will likely sell for $800,000 after being stripped and raised. To combat this, Harder mentioned that the town is working on inclusionary zoning and a year-round housing fund that would allow the town to act quickly to purchase properties as they hit the market.