State and local lawmakers urged the Barnstable County Assembly of Delegates on Wednesday to support a local-option luxury real estate transfer fee as a dedicated revenue source for affordable housing on Cape Cod and the islands.

The discussion — led by State Representative Thomas Mokely and state senators Julian Cyr and Dylan Fernandez and joined by Representative Hadley Luddy — centered on giving towns and the county a means to raise and keep money locally to preserve and create year-round, deed-restricted housing for local workers, teachers and first responders.

The fee is proposed as a local option, not a statewide mandate, and would apply to high-value property transfers; the exact threshold and percentage would be set by each municipality or by a regional framework if the county pursues a home rule petition. "I filed a home rule petition on behalf of the town of Falmouth to institute a luxury real estate transfer fee," Representative Thomas Mokely told delegates. "I encourage you guys to talk about this, and to please be in touch with us and your your local representatives." Senator Dylan Fernandez said the fee "is a mechanism that would allow us to really be able to dictate our own future when it comes to supporting housing because this funding stays, local, is raised locally, and is used at the discretion of the local municipality."

Why it matters: delegates and legislators said the region needs a dedicated revenue source to implement the policy tools created by last year’s Affordable Homes Act, including the "seasonal communities" designation. Senator Julian Cyr described the delegation as "laser focused on delivering this tool," and said the scale of need is large: he cited a median home price in Barnstable County of more than $760,000 and said the island of Nantucket estimates roughly a $500 million housing deficit. Cyr said 14 of the 19 towns in his district have passed home rule requests related to a transfer fee.

Delegates pressed legislators on how a county-level home rule petition would interact with municipal petitions and on distribution of any revenue raised. Senator Cyr said the two approaches are not mutually exclusive: a county petition would "add to the menu of options" for Beacon Hill and could be pursued alongside municipal petitions. On distribution, Cyr said the legislative process would need to work through an equitable allocation similar to the Cape Cod and Islands Water Protection Fund model used to finance wastewater projects, and that those details would be negotiated by legislators and stakeholders.

No formal vote or policy change was taken by the assembly at this meeting. Legislators asked delegates to consider endorsing or otherwise signaling support to strengthen the delegation’s position at the State House. Several delegates said they would follow up with written questions and requested more detail on timing and design; Senator Cyr said the legislative session runs through July 31 and urged early engagement.

The record shows robust discussion but no assembly action; legislators and delegates agreed the specifics — exemptions, whether the fee applies to buyers and/or sellers, distribution formula, and whether the county or individual towns would administer proceeds — are matters for further policy development and negotiation on Beacon Hill.