Proposal would charge some high-value homes to fund housing programs

The proposal would charge owners of certain high-value homes. It would cover residential properties assessed above $1 million that are not used as a primary residence for at least 183 days a year. Owners could claim an exemption by filing a homestead declaration with the state revenue department. The charge would be $2.50 for each $500 of value above $1 million. Payments would be due twice a year, with the first due by June 30, 2027; the threshold would adjust for inflation starting January 1, 2028.

The proposal would set aside state money for housing and planning programs. Funding would go to state housing programs, municipalities, and regional planning commissions. The proposal directs money to affordable housing, municipal housing and infrastructure grants, planning, demolition grants, regional planning, and offsets for expanded tax credits. These appropriations would start in the fiscal year ending June 30, 2027, and continue annually thereafter.

The proposal would fund building trades training and apprenticeship support. The funding would support building trades students, apprenticeship programs, and apprentices. The $15 million would support training, apprenticeships, tuition assistance and loan forgiveness, and extra apprentice wages. The act would take effect January 1, 2027.

The proposal would offer housing incentives and application support to municipalities. The incentives would apply to designated municipalities, while application support would be available to municipalities that have not yet applied for that designation. Municipalities designated as housing champions could qualify for grants, tax assessment holidays, faster state approvals, and financing. Municipalities that have not applied would qualify for a planning grant; those receiving one would have two years to submit a complete application. The proposal would take effect January 1, 2027. Municipalities receiving planning grants would have two years to submit a complete application.