Home Equity Theft in Massachusetts

A new study suggests that homeowners in Massachusetts have lost nearly $100 million in equity over the last six years. The great home equity heist spans across thirty cities, according to the Pacific Legal Foundation, a California group committed to legal action on behalf of citizens.

The primary reason for these profound losses isn't due to nationwide policies. They're specific to Massachusetts, and twelve other states. The main culprit is the Massachusetts policy that states homeowners can be stripped of their home's equity in the case of tax lien foreclosures. Massachusetts, along with eleven other states, participate in this policy which paves the way for homeowners to lose everything down to the last bit of wealth they've built in owning property.

It can begin small, a simple tax debt perhaps, that can eventually expand into foreclosure. Upon the sale of the home, Massachusetts (or a third party assisting in the foreclosure) is entitled to keep all of the equity accrued without providing the homeowner any of the excess home sale value. In an extreme example, owing $50,000 in tax debts means losing your home valued at $200,000 entirely – a $150,000 profit for the state.

The Pacific Legal Foundation's report, titled Violating the Spirit of America: Home Equity Theft in Massachusetts, shows that 408 homeowners were victims in a six-year time span, making up the whopping $97 million figure. According to Pacific Legal Foundation, "on average, in the 31 municipalities covered in PLF's report, Massachusetts homeowners subjected to tax foreclosure lost 87% of their home equity—nearly $260,000 per home."

Pacific Legal Foundation argues the policy is unconstitutional because it violates a clause in the Fifth Amendment that states private property shall not be taken for public use without just compensation. As such, the Pacific Legal Foundation argues that the Commonwealth of Massachusetts and the eleven other states are participating in “home equity theft”.

While foreclosing on properties to cover debts is not uncommon in the US, the act of keeping the excess after debts are covered is not a regular practice. The benefits of owning a home and any upgrades made to it, have disappeared over debts as small as $2,000, according to the report’s authors. While residents may suspect that government cannot profit off of the sale of property used to cover liens, debts, and taxes, the policy has unjustly hurt those that can't afford to make tax payments and ultimately buries residents deeper in debt by stripping them of their biggest investment.

Several Massachusetts residents have already experienced this situation and the report highlights the lives and experiences of Neil and Mark Mucciaccio of Easton. The brothers, along with Mark's family, a wife, daughter, and two grandkids, live in the home they inherited from their parents. In 2016 when Mark fell behind on taxes, the City of Easton placed a lien on the property. Soon thereafter, Easton sold that tax lien to a third-party company investment firm, Tallage, who foreclosed on the home in 2019. In a matter of years, the Mucciaccios would lose their home and all equity along with it. The losses, combining the home itself and the land, are estimated to be $245,000.

According to Todd Kaplan with Greater Boston Legal Services, "[the problem] affects almost exclusively low-income people and elders who are house rich and cash poor. When we see the numbers of people who actually lost their homes, those are people that are vulnerable ... and that's why they lost their homes."

Some Massachusetts municipalities repeatedly pass liens onto third parties who subsequently chase down homeowners and attempt to foreclose when debts remain unsatisfied.

The Pacific Legal Foundation disputes the legality of this policy because private property is being seized without just compensation. The group has recently backed House Bill 3053, a potential remedy which would create a universal policy of returning excess funds to the homeowner after all debts have been paid. The bill requires an adjudication by the Massachusetts Land Court before any municipality may take a property for failure to pay taxes, and is being considered by the Joint Committee on Revenue.

For more information, please visit the Pacific Legal Foundation

Predictions for the Massachusetts Real Estate Market

Though the world is nearly shut down and public events, in-person learning, and the ability to go outside at all seem to be a relic of 2021, the heat being generated in the housing market shows no signs of cooling off in 2022.

According to new predictions, the real estate market is looking bright and expected to continue thriving given low inventory and high demand. Locally, Boston continues to be a hot market with record numbers and prolonged momentum as a result of the pandemic. Boston’s sale prices were up 11.1% in November 2021 compared to the year before, according to Redfin. The real estate giant also claims homes were reported to have closed after 23 days on the market versus 27 the year before. The number of homes sold rose from 462 to 502, showing that things are still trending upward in the area.

As one year ends and a new one begins, many organizations have attempted to predict what the hottest markets are for the new year. One prominent list is Fortune’s Best Places to Make Real Estate Investments in 2022 and the lists generally focus on places where housing prices are expected to continue rising.

This year’s list is a far cry from places that once were top picks in the past, excluding many bustling cities and tech hubs like New York City, Silicon Valley, and their well-heeled suburbs. Shying away from traditionally booming locations seems to be another side effect of the pandemic for new homeowners. With the realization that remote working is a way of life, and in many cases business can thrive under this arrangement, many people with the means to relocate are fanning out in favor of slower living and lower prices. Fortune’s predictions for 2022 include a town in Central Massachusetts, helping to put more of the state on the map.

Fortune’s top list of places to purchase include:

• Portland, Maine

• Providence, Rhode Island

• Salt Lake City, Utah

• Worcester, Massachusetts

• Boise, Idaho

Less than 50 miles east of Boston, Worcester is nestled in Central Massachusetts and major driver of the regional economy. It provides smaller scale living while remaining close to everything. In an autonomous, thriving city like this, it’s no wonder home prices in Worcester are expected to grow slightly above 8% next year. Though smaller than Boston, it is still the second most populated city in the state with over 200,000 residents. It offers a nice blend of Massachusetts living and was aptly named one of Realtor.com’s Top 20 Hottest Housing Markets as well.

Other predictions for 2022 real estate in Commonwealth include surrounding towns in Central Massachusetts adapting to accommodate an uptick in home owners. Webster, Sturbridge, and Hudson have plans to invest in downtown areas to help draw new visitors and residents alike, effectively capitalizing off of Worcester’s newly found fame and the appeal of less-expensive living conditions when compared to other places along the East Coast. With this, Worcester Business Journal reports that investors from the Greater Boston area have been racing to build new residential housing in Central Mass to accommodate the demand. Pairing new residential complexes with the host of vacant lots, buildings, and mills in the area, there are numerous and diverse options for housing. By remodeling previously established buildings, housing providers are able to save on construction and material costs in some locations while enhancing a once overlooked area in th

A Cooling Housing Market with Sky-High Prices

It looks like college students and those suffering from pandemic-induced breakups forced to move back in with their parents will have to suffer for a bit longer. Despite the real estate market in Massachusetts slowly cooling down, prices continue to be exorbitant, which means the majority of those who are looking to purchase continue to be out of luck.

Housing trends are predictable for the most part. Every year, the fall and winter seasons cause slowing while spring and summer sales run rampant. This is evident as people scramble to get settled before it comes time to register their kids in a new school district, or they simply don’t want to pack up and move during snowstorms.

But the pandemic completely displaced the market and, more vulnerable communities are struggling. This includes historically marginalized groups and those who are leading financially stable lives but want a little more. Regardless, it seems that we are all out of luck these days.

The market may be slowing down as we head into the colder months, but that doesn’t mean prices will change much. Normally with lower demand, we see lower prices, but experts expect pricing to remain high and near the same rate as the last year.

In fact, prices are estimated to be up by nearly 30%, even now, according to The Warren Group. That can be as much as $100,000 for single-family residences in some cases. Very few people can afford that jump, so the new normal seems to be that buyers are willing to wait.

If prospective buyers love a home, but it’s priced out of their reach, they are willing to wait a week and see if it’s still on the market before making an offer at a lower price. Buyers are also slowing down on their willingness to waive all contingencies, including inspections. With less competition for winning contentious bidding wars, many sellers realize the hard way that overpricing their home and taking advantage of the market is no longer a right of passage in this market.

The reality is that there is no longer a crystal ball and no way rely on past price increases to sell a home at the top of the market. It seems as though we are heading into a calmer season that may reap major benefits for buyers who were previously left out of the blazing market. While you may not find substantially lower prices, you may find peace of mind in not having to wave every contingency to simply find a place to settle down.

While, there’s certainly no shame in moving back in with parents or crashing on a friend’s couch as you wait for things to blow over, but recent data shows that we might be headed in a more favorable direction. So don’t unpack your blender and rock collection just yet!

In the meantime, you might also consider townhomes or condos that have a lower markup rate than a single-family standalone. Or, wait until later this year when traditional trends take hold and see if there is a break in your favor. The market might be correcting and it may advantage patient buyers.

Tackling Climate Change and the Housing Crisis

A proposed bill intersecting real estate and renewable energy is headed to the state legislature for consideration. If passed, it will have major effects in Massachusetts, particularly around the dual housing and climate crises.

Led by HERO, the Housing and Environment Revenue Opportunities Coalition, this bill paves the way for both environmental and housing policy solutions. The bill calls for more funding to be diverted toward climate adaptation and green, affordable housing options for those at risk. 

Most unique is HERO’s pathway to get there. To raise adequate funding, the coalition aims to raise the Massachusetts deeds excise tax, nearly double it in fact, to raise annual revenue to approximately $300 million. Proceeds would be funneled into projects that directly support the intersections of energy efficiency and affordable housing. 

If you’re wondering what a deeds excise tax is in Massachusetts, you’re not alone. To put it simply, the excise tax is a fee paid to the state once a home is sold. The fee as of now, and for the last thirty years, has been roughly $2.30 for every $500 of home value. This equals out to $1,140 for a $250,000 home and scales upwards -- meaning a hefty fee for luxury home sales. 

According to HERO, the collected revenue would be split equally between environmental and housing efforts. Proponents of the bill are hopeful that more Massachusetts residents will be able to afford sustainable housing to mitigate greenhouse gas emissions. Not only would the programs help those in need find quality housing, but they would also support the nation-wide need to address climate change. 

The bill would effectively act as an all-in-one solution for the two major policy problems the Commonwealth is facing.Unfortunately, it seems that neither issue is easily solved by the solutions that Massachusetts has implemented in the past, as the dual housing and climate crises continue to grow at exponential rates. HERO is hopeful that this will change with the passing of this bill, which has already received both Senate and House support in its early stages. 

How Are Housing and Environmental Policy Related?

Both climate and housing conditions directly feed off of one another and are facing critical threat levels. With new developments being built that do not implement green energy, the climate crisis continues to worsen.  At the same time, new developments can price out vulnerable populations, leaving inadequate properties in vulnerable areas to those in need. Oftentimes those in the most vulnerable communities are the ones who are most likely to face the effects of climate change or  housing insecurity.

The good news is that, in effectively addressing just one of these issues, policies can also alleviate the other. For example, building new affordable housing that is energy efficient targets both the housing and climate crisis.. With this proposed bill, HERO aims to address both issues at the same time, recognizing how closely they’re related. 

FIND OUT MORE

https://energynews.us/2021/07/08/mass-bill-would-double-real-estate-fee-to-fund-clean-energy-affordable-housing/

Growing Back

With nearly 50% of residents fully vaccinated, and the state rapidly expanding business and home vaccination programs, Massachusetts has gone from having one of the worst records on vaccination to one of the best in the country. As a result, most restrictions put in place to fight the pandemic will be lifted in the coming weeks — just in time for some summer fun in the sun.

In other news this week, Democrats in Massachusetts must now contend with an army of young adults who are fluent in social media marketing and venturing into politics. This is a fascinating trend that politicians ignore at their own risk.

On Beacon Hill, the idea of a $1,200 “Back To Work” bonus is being kicked around. In energy, Massachusetts is becoming the “Saudi Arabia of Wind.” The T is gearing up for a massive increase in ridership. Residential property taxes are on the rise along with home prices. And (federally legal) hemp is now being sold in (federally illegal) marijuana shops.

Let’s unpack this week’s news.

Politics

Democrats in Massachusetts Must Now Answer To Growing Demands from Savvy Teenagers

An influential new force is rising in Democratic politics. Even though they aren’t even old enough to vote, teenagers have been organizing to promote progressive candidates. 

To give you some idea of the power that this demographic is claiming, one only needs to look at Edward Markey’s surprise upset over Joe Kennedy in last year’s Democratic primary here in Massachusetts. Kennedy was the odds on favorite to win. That is until “an army of 16-year-olds,” as one political veteran put it, took to the internet to paint Kennedy as standing too far to the right on important issues.

The new movement is making centrist politicians in the Massachusetts Democratic establishment a bit nervous as these youngsters know their way around social media better than any of them. The young activists smell that fear and are empowered by it. 

Last year saw an explosion of new voter registrations as the number of 18 to 24-year-olds shot up to 20.9% in the 2020 primary from 6.7% in 2018, and 2.1% in 2016. That is according to data provided by Tufts’ Center for Information and Research on Civic Learning and Engagement. Considering that most elections are won by less than 10% of the vote this changes everything.

The teens are operating sophisticated grassroots campaigns using chat groups, direct messages, and automated and manual text messaging to mobilize their friends and followers into a volunteer PR army.

Last summer, teens on TikTok were able to pull a fast one on President Trump. They waged a campaign to reserve seats at a Trump rally in Florida. Trump even boasted about the numbers before the event. When the time came to count heads, the number was far less than expected. Although this is dirty politics, the success of that campaign has emboldened teens to put their collective weight behind candidates who they feel have their best interests at heart.

These efforts have been so successful that some candidates’ PR teams have reached out to leaders of the movement for campaign help. And for those candidates who stand to lose the most, bashing these teens is not an option as it could easily backfire, draw their ire, and result in serious damage to their careers.

The movement is sure to affect upcoming elections — such as the race for mayor of Boston. This is a fascinating story that candidates on all sides ignore at their own peril.

Boston.com has an in-depth report on the movement.  

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Business

$1,200 “Back To Work” Bonus Proposed For 2022 Budget

Massachusetts lawmakers are considering putting a “Get Back to Work Bonus” in the fiscal year 2022 budget. The idea is to help employers who are having trouble filling positions while trimming the state’s unemployment bill. 

Budget amendment 811 was proposed by state Sen. Ryan Fattman. The plan calls for using funds from the $1.9 trillion federal American Rescue Plan to pay Mass. residents up to $1,200 to land and keep a job. Fattman essentially wants to “repurpose” the $300/month federal unemployment bonuses to incentivize people to get back to work. 

In a conversation with MassLive, Fattman had this to say:

“I’ve been contacted by a lot of businesses, local employers, restaurants, trucking companies, and they’re all struggling to find people to work for them. All this is designed to get people back to work into those positions so the economy can thrive.”

Although the state unemployment rate dropped to 6.5% in April, the bonus would be welcomed by Massachusetts businesses still scrambling to fill vacant positions ahead of the state's reopening on May 29.

According to a recent U.S. Census survey, millions of Americans are avoiding work for fear of contracting or spreading COVID-19. And many are content to collect unemployment benefits for as long as possible.

Other states are also considering similar measures. Connecticut and New Hampshire recently announced plans to award successful job hunters bonuses up to $2,000. Meanwhile, several red states are looking at axing the extra $300/month unemployment payments offered by the federal government claiming that the free cash incentivizes residents to stay home. 

Read all about it as MassLive.com.

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• 'Massachusetts is open for business': Lifting of pandemic restrictions brings surprise, elation

• Massachusetts unemployment rate edges down, but job gains slow

• Massachusetts House proposal aims to relieve employers from major unexpected unemployment costs

Energy

Massachusetts Becoming the “Saudi Arabia of Wind”

Last week we told you about the final federal approval of the Vineyard Wind project. In two years, 62 turbines will begin generating about 800 megawatts of electricity. That’s enough to power 400,000 homes. 

As huge as that is, it’s not the whole story. All told, offshore wind developers, are planning to produce 9,100 megawatts from 13 offshore-wind projects along the East Coast within the next five years and then 30 gigawatts by 2030. That’s the equivalent of about 30 coal-fired power plants. 

As the price of generating wind energy plummets, Massachusetts is looking at a clean energy boom. Once the project is up and running, Vineyard Wind is projecting a cost of six and a half cents per kilowatt-hour. (Cape Wind has been charging over 20 cents per kilowatt-hour.)

Erin Baker, professor and faculty director of the Energy Transition Initiative at the University of Massachusetts says costs have fallen “much more in the last five years than any of the experts were predicting.” 

Baker co-authored an article in Nature in which she predicted that the cost of wind energy will be cut in half between now and 2050. And Kathleen Theoharides, the state’s energy and environment secretary, told conservative-leaning Intelligencer that Massachusetts is being dubbed the “Saudi Arabia of wind.” 

Check out Intelligencer’s detailed report here.

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Transportation

MBTA Trains and Buses Expected To Get Crowded As Massachusetts Reopens

As COVID-19 restrictions are lifted across Massachusetts, public transportation is beginning to ramp up again. Subways and busses in the Bay State are expected to get crowded as commuters’ rideshare options — including services such as Uber and Lyft — have been evaporating.

The fact that a set of new Chinese-Made Subway Cars has malfunctioned for the fourth time isn’t helping matters. 

Crowded public transit vehicles pose a risk of spreading covid to the unvaccinated. To assure this doesn’t happen, MBTA riders will still be required to wear masks. 

Boston 25 News reports that the MBTA is “monitoring ridership and plans to quickly and safely build back service.”

Meanwhile, if you’re thinking of hitting the road next weekend, plan on leaving early. Officials are expecting Memorial Day traffic to increase substantially over 2020’s numbers as restrictions are lifted and residents with pent-up cabin fever begin to venture out.

More Transportation 

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Real Estate

Residential Property Taxes Are On the Rise

With the Mass. residential real estate market on fire, homeowners might be wringing their hands over the increased value of their properties. However, there’s a downside to the exploding valuations. That is along with the rise in home values comes a rise in property taxes (which have already been on the rise in recent years).

The state of Massachusetts requires property values to be reassessed every year. And according to SmartAsset, homeowners in Massachusetts already pay some of the largest annual property tax bills in the country with a median annual property tax bill of $4,899, with a higher-than-average effective tax rate of 1.17%.

Boston 25 News has more details on this story.

And for those who are interested, here are the 50 Massachusetts communities with the highest residential tax rates.

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Cannabis

CCC Issues Guidance For the Sale Of Hemp Products At Mass. Dispensaries

In an industry full of ironies, up until now, Mass. marijuana dispensaries were not allowed to sell hemp products such as CBD oil. That is even though marijuana is federally illegal while hemp (cannabis strains with negligible levels of THC) has been completely legal for more than two years. 

And there are still restrictions. In order to clarify requirements and restrictions the Massachusetts Cannabis Control Commission has issued Guidance for the Retail Sale of Hemp.

Under new rules, marijuana retailers are able to purchase “consumer-ready hemp products,” but only from hemp processors licensed by the Massachusetts Department of Agricultural Resources. And the products may only be sold in a dedicated section of the store.

Furthermore, hemp all products must be accompanied by an insert that includes the following warning language:

“This product was produced, packaged, and labeled by a Massachusetts hemp processor licensed by the Massachusetts Department of Agricultural Resources (MDAR). It is not regulated by the Massachusetts Cannabis Control Commission and the product may not be consistent with the requirements of M.G.L. c. 94G or 935 CMR 500.000. Consumers that have questions or concerns about this product are encouraged to contact the manufacturer, MDAR, or the appropriate state or federal agencies.”

Whitelisted products include hemp seed, hemp seed oils and powders, hemp clothing, and non-food CBD products — as long as no medical claims are made.

And although consumers can purchase CBD oil (and edibles such as gummies) at a myriad of shops throughout the state, the sale of hemp products is not permitted at marijuana treatment centers — only at dispensaries. 

Which leads to this question: What if a licensed marijuana grower grows “marijuana” with less than 0.3 percent THC? Does it count as hemp? Or can they sell it the same way they sell marijuana? As it stands, high-CBD, low-THC products produced by licensed growers are treated no differently than high-THC products. 

Read the complete guidance document for the retail sale of hemp at Mass. marijuana dispensaries here.

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The Race to Reopen

It’s mid-May and Massachusetts residents are eager to take advantage of some of the wonders that New England has to offer — activities that many of us had to forgo in 2020 — such as baseball games, camping trips, beach days, fireworks, and graduations. 

And now, the state of emergency put in place just over a year ago is coming to an end two months earlier than the Baker administration had originally planned.  

With few exceptions, we’re a week away from the end of the mask mandate in Massachusetts with most other emergency measures including business capacity and gathering limits officially ending on June 15. 

"The temporary limits and restrictions imposed on the private sector and on individuals were the most difficult decisions I've ever had to make," says Baker. "The loss and the isolation so many of our friends and families experienced is likely to impact all of us for a very long time."

Here is a list of places and situations that will still require face coverings after Memorial Day

Let us all rejoice and dig into this week’s curated list of Mass. political news.

Politics

Prominent Republican Figures Align With Trump Resistance Effort

The GOP is being ripped apart at the seams. There were lingering questions as to whether or not the wounds of the Big Lie and the Capitol riot were too big to heal. But now Republicans have answered those questions when they stripped Liz Cheney of her leadership position last week while moving a farcical Arizona recount into high gear. It’s now become painfully obvious that Trump’s grip on the party’s base is undeniable and that he now owns the Republican party.

The majority of Republicans are following Trump in lockstep as he works to exact revenge on his political enemies. However, a growing contingent of Republicans has banded together in a resistance movement. Among the 150 conservatives in the coalition is Former Governor Bill Weld.

Mitt Romney, another former Governor, is also helping to lead the resistance. Romney was recently awarded the JFK Profile in Courage Award by the John F. Kennedy Presidential Library and Museum for his “consistent and courageous defense of democracy.” Romney was the only Senate Republican with the nerve to vote to convict Donald Trump on impeachment charges in 2020. In fact, Romney is the first senator in history to vote to convict a president of his own party.

And although his name is not on the list of 150 Republican signatories on an open letter to the party, Mass. Gov. Charlie Baker, who has been critical of Trump, said Wednesday that he continues to believe in the "core values" of the Republican Party. 

"I've had my differences, as everybody knows, with plenty of folks in the party over the course of the time that I've been in public life. But I'm a big believer in what the party fundamentally stands for, based on what I believe it stands for," Baker said at a press conference from the Norwood laboratory of COVID-19 vaccine manufacturer Moderna.

According to recent polling, Baker is more popular with Democrats and independents than with voters in his own party. When asked if he agreed with Cheney that the Republican Party was "abandoning the rule of law and democratic principles" in fealty to Trump, Baker said Cheney was right in her defense of the election results.

"I made very clear that I felt the election process that took place back in November was fair, and that President Joe Biden won the election. And on these issues I believe Liz Cheney is absolutely right," said Baker, one of the few Republican leaders that didn’t vote for Trump in 2016 and 2020.

Last week, Baker took part in a bipartisan virtual meeting with President Biden and five other governors to discuss effective vaccination strategies. The following day, Baker said he has found governors to be less hyper-partisan than Washington politicians.

"One of the things I like about playing this role as governor is the fact that most governors will pick up the phone when you call them and help you try to solve whatever problem it is that you're trying to solve and vice versa because we have a lot of commonality on that, and I think in some ways it's something I wish there was a lot more of at the federal level," Baker said.

Read more at WBUR: Baker Says He Remains 'Big Believer' In GOP's Core Values After Cheney's Ouster

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Business

Massachusetts Launches Employer Vaccination Program

In an effort to expand vaccination efforts in the bay state, Massachusetts is launching an Employer Vaccination Program this week. The program lets companies reserve a block of time for their workforce at mass vaccination sites. 

Companies will also have the option of setting up a kiosk or table at the sites. And companies with 35 or more employees will be eligible for pop-up clinics at their place of business.

In order to take part in the program, employers must survey employees to confirm that they are willing to participate.

Read more at WCVB: COVID-19 employer vaccination program begins in Massachusetts

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Energy

It’s official. After hundreds of hours of public hearings and the review of more than 33,000 public comments, the federal Bureau of Ocean Management has given the green light to the Vineyard Wind project. 

Located 15 miles off the southern coast of Martha's Vineyard, the massive project is the first commercial-scale offshore wind farm in the U.S. The project is integral to Mass. efforts to become carbon neutral by 2050 and is expected to create thousands of jobs here in the bay state. 

Offshore wind is also a central part of President Biden's clean energy agenda. Biden is calling a staggering $2.5 trillion in spending on renewable energy projects over the next decade.

Construction will begin this year and start supplying power by 2023. Once completed, the facility is expected to power more than 400,000 Massachusetts homes and businesses. 

Read more at WCVB: Feds grant approval to 84-turbine Vineyard Wind project off coast of Massachusetts

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Transportation

MassDOT Chosen for NASA Development Partnership

NASA announced Friday that the Massachusetts Department of Transportation’s Aeronautics Division has been selected for the space agency’s Advanced Air Mobility (AAM) Community Planning and Integration Partnership Opportunity. The program gives the MassDOT the opportunity to partner, collaborate, and exchange information with other agencies from Ohio, Minnesota, Orlando, and North Central Texas also chosen for the program. 

Many industry experts believe electric vertical takeoff and landing (eVTOL) aircraft will be available later this decade. The program seeks to develop a green, quiet, and equitable mobility option for these next-generation air vehicles. 

MassDOT Aeronautics Administrator Dr. Jeffrey DeCarlo had this to say about the program:

“MassDOT Aeronautics is pleased to have been accepted by NASA for this partnership opportunity as we have been collaborating with other entities already in an effort to make the Commonwealth of Massachusetts an early adopter location for advanced air mobility operations. Massachusetts is looking to be at the forefront of early community demonstrations, policy solutions, and initial operations and we feel privileged to be working with team members who are true visionaries and global thought leaders from academia, industry, and government.” 

Information from NASA on the program can be found on their website.

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Real Estate

Alexandria Real Estate Equities closes $130 million purchase of the Watertown Mall

The Watertown Mall, just minutes outside of Boston, was purchased by Alexandria Real Estate Equities. The Mall houses 260,867-square-feet of shop space on 17.8 acres and, unlike most malls in the U.S. today which are turning into ghost towns, the Watertown Mall is 98% occupied and hosts more than 2.7 million customers annually. More than 344,000 residents live within a three-mile radius of the facility which is adjacent to the 1-million-square-foot Arsenal Yards mixed-use redevelopment project.

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Cannabis

Largest Marijuana Dispensary On East Coast Opens in Boston

Ascend, Downtown Boston’s first retail marijuana shop, had its grand opening Thursday. The 16,000 square-foot adult recreational dispensary is said to be the largest on the East Coast. 

There is limited parking in the area and customers are encouraged to use public transportation. Ascend is located on Friend Street, right near North Station and the TD Garden. Customers can order online for pickup or delivery and “budtenders” are standing by to answer questions concerning the shop’s menu of cannabis products.

Ascend is also planning to open dispensaries in New Bedford and Newton.

Check out CBD Local’s report here: Downtown Boston's First Retail Marijuana Shop Has Grand Opening; Said To Be Largest Dispensary On East Coast

More Cannabis News

• Cannabis commission eyes enhancements to social equity program, mentorships

• Massachusetts cannabis stores will soon be allowed to sell hemp products

• Innovative Industrial Properties, Inc.(IIPR) Acquires Pennsylvania Property and Expands Real Estate Partnership with Parallel

• AmeriCann Reports Record Quarterly Revenue and Positive EBITDA

• Cannabis community host agreements being exploited by some Mass. cities and towns

• Smokescreen: Mass. Lacks Transparency in Money Cannabis Firms Pay to Cities and Towns

• Massachusetts cannabis firms forced to pay $2.6 million in unlawful fees, study shows

• Curaleaf acquires Los Sueños for $67M, expands Colorado marijuana footprint

Our Uneven Progress

The mayoral race is simmering in Boston as the reopening of the state commences. Ironically, although the state suffers record-high joblessness, employers are having trouble filling newly opened position and the state’s hospitality industries continue to atrophy with hotels alone predicted to shed another 14,000 jobs this year. 

And for the masses of unemployed labor workers in the Bay State, one possible deterrent to job hunting is the generous unemployment benefits that have been doled out over the past year. 

In energy and transportation news, the state has opened up an RFP that, once awarded, will eventually double the state’s current wind generation. Also, the Fed is making billions of dollars in grants available for improvements and expansion to public transportation infrastructure. Both of these ambitious projects will create plentiful well-paying jobs.

Meanwhile, the state has begun to open up thousands of acres of agricultural land to hemp and marijuana growers, and a judge smacked down a federal eviction ban.

Let’s get inside and unpack this week’s news: 

Politics

Mayoral Candidate Jon Santiago On The Scrum

The Scrum, GBH News' political podcast, with Adam Reilly and Peter Kadzis, has been hosting an ever-expanding roster of guests. In the latest episode, Jon Santiago talked about laying the groundwork to win Boston’s 2021 mayoral contest. (Former mayor Marty Walsh is off to Washington after being confirmed by the Senate to head the U.S. Labor Department.)

In the Scrum interview, Santiago expressed his hopes to land key endorsements from elected officials and also to win the support of labor unions. Santiago also made some revelations about his personal history. He said that he has no intention of criticizing former Mayor Marty Walsh’s stewardship of the city but he did criticize acting Mayor Kim Janey’s decision to delay Boston’s reopening.

Listen to the podcast here: Jon Santiago On The State Of the Mayor's Race, Marty Walsh's Legacy and Kim Janey's Tenure

More Politics

• Mass. Senate President Karen Spilka seeks input on intergenerational care

• The Massachusetts millionaire’s tax is back, and it’s a little different this time

• Massachusetts Passes One Of The First State-Wide Laws On Facial Recognition

• Massachusetts Plays Catch Up In Offering 'Early College' Courses In High School

Business

Business Leaders Press For Speedy Reopening As Hospitality Industry Continues to Shed Jobs

The Bay State is moving ahead with reopening plans this week. However, some business leaders are complaining that Gov. Charlie Baker isn’t moving fast enough and are asking that the current reopening timeline be moved up by about a month. Baker’s plan calls for Massachusetts’ to be fully functional again by Aug. 1.

“This is all about balance,” said Jon Hurst, president of the Retailers Association of Massachusetts. “We’ve done very well on vaccinations and we need to start moving toward reopening. Worst-case scenario, I hope we’re at 100% by July 4th weekend.”

One of the big challenges now is getting people to come back to work after a nice, long, paid stay-cation. Although unemployment numbers are up nationwide, Mass. businesses are having trouble filling job vacancies.

Although service industry hirings are on the rise again, The American Hotel & Lodging Association projects that Massachusetts could lose more than 14,000 hotel jobs in 2021 due to ongoing reticence to travel post-pandemic. (That’s in addition to the nearly 17,000 hotel jobs lost in the state over the past year.)

All told, about 70% of the 43,000 hotel workers lost their jobs since 2019. In the wider hospitality and leisure industries, about 59% or 225,000 jobs were lost after emergency measures kicked in. That is according to the U.S. Bureau of Labor Statistics. 

More Business

• Baker-Polito Administration Celebrates COVID-19 Business Relief Program, Awards Final Round of Grants

• Western Mass. expected to see busy summer for tourism, but picture more uncertain for Boston

• State Updates Tax Relief For Certain Businesses

• State sues marketing firm for role in opioid crisis

Energy

Mass. RFP Expected To Double Wind Output

This big news in Mass. energy this week: A 1,600-megawatt procurement will double the amount of energy Massachusetts utilities have under contract since a 2016 clean energy law kicked in. 

Energy and Environmental Affairs Secretary Kathleen Theoharides said this in a statement:

"This new solicitation will not only procure more affordable offshore wind energy for residents than ever before, but will also direct greater investment in economic development while requiring offshore wind developers to create comprehensive plans to ensure the Commonwealth's environmental justice and minority communities share equitably in the benefits of this growing industry." 

Currently, Vineyard Wind I and Mayflower Wind, are under contract to provide 1,600 megawatts. The new 140-page RFP seeks bids of "at least 400 MW and up to 1600 MW of Offshore Wind Energy Generation" and requires bidders to submit workforce diversity, equity, and inclusion plans, as well as potential impacts on environmental justice populations and host communities. Moreover, the nominal levelized price of any proposal must be less than $77.76 per megawatt-hour.

There seems to be a difference of opinion among stakeholders as to the numbers. Some claim the price cap should be set at the $77.76 per MWh price that DPU approved. Others such as National Grid are gunning for a lower $70.26 per MWh price cap.

Bids for the lucrative contract are due by Sept. 16. No preferred bid size has been specified. 

Here are numerous sources on this story:

• Massachusetts launches 1.6GW offshore wind tender

• Mass. sees more competition on offshore wind infrastructure

• Massachusetts opens 1.6GW offshore shoot-out

• Offshore Wind Pricing Plan Stirring Crosscurrents

More Energy News

• Avangrid sees Vineyard Wind approval coming, power onshore in 2023

• Agilitas Energy starts work on 3 MW/9 MWh lithium-ion battery for Rhode Island

• Clean energy roadmap not strong enough, activists say

• Largo Resources Picks Site for 1.4 GWh Battery Plant

• Stop & Shop's Green Energy Facility Marks Five Years of Turning Food Waste Into Sustainable Energy

Transportation

Sen. Markey Pitches Investments in N.E. Railways

“If we build it, they will come,” says Sen. Ed Markey who is pitching investments in passenger rail for Massachusetts and other under-connected communities across the Northeastern U.S. by reintroducing the BRAIN (Building Rail Across Intercity Networks To Ride Around Interior of the Nation) TRAIN Act. 

Under the proposed bill the U.S. Department of Transportation would create a competitive grant program offering up to $5 billion in annual grants to fund rail projects including the East-West rail effort to link Springfield and Western Massachusetts with communities stretching from New Haven to Buffalo.

This is in addition to President Biden’s $2 trillion American Jobs Plan which earmarks $85 billion to modernize public transit plus another $80 billion for Amtrak upgrades.

Rail expansions throughout the state will cost between $2.4 and $4.6 billion. Estimates suggest the investment could draw a quarter to a half-million new riders annually.

Read all about it at MassTransitMag.com.

More Transportation News

• Massachusetts Port Authority revisiting climate action plans | Local News | gloucestertimes.com

• A potential Red Line-Blue Line connector is back in the spotlight

• Advocates Say The BRAIN TRAIN Act Could Transform Massachusetts. Will It Pass?

• Regional Transit Authorities Win Funding Victory in House Budget -

• $1,000 Landing Fee Proposed For Massachusetts Private Aircraft

• Study Sees Big Financial Benefits For CT and MA From Improved Passenger Rail Lines

Real Estate

Federal Judge Strikes Down Eviction Ban

In his ruling on a lawsuit brought by real estate industry groups, a federal judge has struck down an emergency ban on evictions in the United States, putting millions of renters at risk of being ousted from their homes. US District Judge Dabney Friedrich ruled that the eviction ban clearly overstepped the authority of the CDC.

The Biden administration, which extended the ban originally instituted under the Trump administration, says it plans to appeal Wednesday’s decision.

This action is “the latest in a string of decisions that chip away at eviction bans that have protected renters, and frustrated landlords, for more than a year,” according to the report in the Boston Globe.

A similar eviction ban in Massachusetts expired in mid-October of 2020. 

More Real Estate

• https://patch.com/massachusetts/wakefield/bizposts/local-update/218753/ma-homeowners-eligible-for-3-252-mortgage-relief

• New home prices climbing higher with lumber business ‘crisis’

• Housing starts slowed in Greater Boston, Massachusetts in 2020

• Frenzied Real Estate Bidding Drives Mass. Home Prices Up

• MA home inspector warns buyers against waiving inspections

• Local Officials And Congressional Leaders Decry Investors Who Put Affordable Housing At Risk

• Hunt Real Estate buys All American Properties

• A Revamped Penthouse Loft Hits the Market at $2.9M in Boston, MA

Cannabis

Bay State Opens Up Agricultural Reserves To Cannabis

The Massachusetts Department of Agricultural Resources (MDAR) has released guidance under a 2020 plan to allow cannabis and hemp cultivation on more than 73,000 acres of land belonging to the state Agricultural Preservation Restriction (APR) and Farm Viability Enhancement programs.

According to the agency website, the APR program, instituted in 1979, pays farmland owners the difference between fair market value and the agricultural value of their farms in exchange for permanent deed restrictions that conserve the land for agricultural use.

And according to the state website, the Farm Viability Enhancement Program provides business and technical assistance to farmers through grant funding in exchange for signing an agricultural covenant on the property.

In a document titled, “Hemp and Marijuana Production on APR and Farm Viability Protected Lands, Apr. 28, 2021,” the Mass. Department of Agricultural Resources writes:

“After reviewing these concerns and evaluating the evolving state of the law as it relates to the legalization of medical and adult use marijuana in Massachusetts and cultivation of hemp in the United States, the Department has been reviewing its policies related to hemp and marijuana and evaluating whether the Department may recognize such activities as horticultural uses in a manner consistent with the laws and intent of the APR Program.” 

More details are available at these fine hemp and cannabis industry news outlets: 

• Massachusetts Opens Up Hemp & Cannabis Cultivation on Protected Farmlands

• Massachusetts Farmland Unlocked For Cannabis Cultivation

• Massachusetts opens land for hemp farming

More Cannabis News

• Massachusetts sets marijuana sales records around 4/20 holiday

• The Grow-Off cannabis competition is coming to Massachusetts, putting a spotlight on craft and small growers - masslive.com

• Uber's interest in cannabis delivery highlights sector's potential and pitfalls

• What Is Biden's Beef With Cannabis?

• How High Are Taxes on Recreational Marijuana in Your State?

A Newer Normal

According to the 2020 federal census, the Massachusetts population has passed the seven million mark. Bay State residents now account for 0.1% or one one-thousandth of all humans on earth. And that number doesn’t include the state’s massive student population.

Things are looking up for most of those seven million as the state’s economy came roaring back in the first quarter of 2021, and at a much faster pace than the national average. That is according to economic analysts at MassBenchmarks. “Real gross domestic product in Massachusetts increased at an 11.3 percent annualized growth rate in the first quarter, compared to the 6.4 percent growth rate in the nation's economy,” they say.

This trend is expected to continue into the foreseeable future for a number of encouraging reasons. For starters, CDC data shows that New England is a national leader in vaccination rates. Witness the fact that mass vaccination sites are beginning to tear down as the state moves to a community outreach-style vaccination program. All the hard work is paying off as more than one-third of residents have been fully vaccinated and the state has seen its lowest single-day covid case count since November. 

Citing progress in the Battle of the Bend, Gov. Baker lifted the outdoor mask mandate on April 30th. And by May 10th amusement parks, water parks, and theme parks will be allowed to reopen at 50% capacity, and ballparks, indoor stadiums, and arenas will be permitted up to 25 percent capacity — as long as social distancing is maintained. Road races and other large outdoor organized group athletic events will also be permitted, Baker said on Tuesday. The governor is gunning to have COVID restrictions fully lifted by Aug. 1.

Also happening this past week, the House passed its version of the state budget, and Massachusetts continues to be a national leader in alternative energy technology and cannabis banking. And, strangely, who would have ever guessed that the Commonwealth would actually welcome news of increasing traffic in Boston? File under “The New Normal.”

Now, let’s get on with this week’s Policy Note.

Politics

Massachusetts House Approves Its Version of Fiscal 2022 Budget

Last week we told you about the Mass. House of Reps. deliberation over more than 1,100 proposed amendments to the fiscal 2022 state budget. They seem to have ironed it all out and passed the plan on to the Senate for further deliberation. 

The proposed $47.7 billion spending plan aims to set the state on a path toward post-pandemic economic recovery and the shoring up of the state’s education systems plus $94 million in funding for regional transit authorities.

One of the amendments to the budget raises the state’s existing requirement for 4,000 megawatts of offshore wind power to at least 5,600 megawatts and requires electric companies to enter into long-term contracts for offshore wind power by June 30, 2027. The budget also includes $10 million in offshore wind career training.  which takes effect July 1. 

Read all about it at MassLive.com.

More Politics

• OTR: What does latest Census mean for Massachusetts politics? 1 HR – WCVB Boston

• Warren reflects on 2020 loss and gender in new memoir

• Fitch Rates Massachusetts' $600 Million GO Bonds 'AA+', Outlook Stable

Business

$28.6 Billion in Restaurant/Service Grants Up For Grabs — But Hurry!

Massachusetts restaurants and service businesses are now eligible for grants up to $10 million via the state’s new $28.6 billion Restaurant Revitalization Fund. The program is part of President Joe Biden’s $1.9 trillion American Rescue Plan. 

According to the National Restaurant Association, about 93% of Mass. restaurant workers were let go in more than 211,000 layoffs and furloughs. That’s about a 20% to 25% drop in 2020 according to Stephen Clark, vice president of government affairs for the Massachusetts Restaurant Association.

The following businesses are eligible to apply for the grants:

• Restaurants

• Food stands, food trucks, food carts

• Caterers

• Bars, saloons, lounges, taverns

• Snack and nonalcoholic beverage bars

• Bakeries (onsite sales to the public comprise at least 33% of gross receipts)

• Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)

• Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)

• Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)

• Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts)

• Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products.

With so many Mass. businesses in need of relief, the $26 billion is expected to dry up quickly. Applicants need to visit the Small Business Administration website.

Also of note, included in the House budget is an added $2 million for the Massachusetts Tourism Trust Fund. If the line item makes its way into the final budget it would bring the total to $7.2 million more than the previous year. It would also loosen restrictions on how much government funding regional tourism councils could receive. 

Again, MassLive.com has more on this story as well. 

Also read: How Massachusetts Restaurants Fared in the First Quarter of 2021 and Massachusetts tourism, cultural groups could see funding boost from Mass. House lawmakers

More Business

• These are the best hospitals in Massachusetts according to safety report

• Massachusetts Supreme Court issues confusing decision on Section 230

• Hotel industry group predicts slow job recovery

• Another class of biotech companies are about to go public in Massachusetts

Energy

Biden’s Moonshot Offshore Wind Ambitions Could Cut Electric Costs In Half by 2050

With President Biden floating a moonshot offshore wind project, researchers at the U.S. Department of Energy and the University of Massachusetts Amherst estimate that the future costs of onshore and offshore wind combined could be cut by a third by 2035 and nearly halved by 2050. 

“We’re on the precipice of a revolution that we’ve been waiting for, for too long,” says Bill White, head of offshore wind at Avangrid Renewables, a partner in Vineyard Wind, the first scheduled major offshore wind farm on this side of the Atlantic. 

According to developers, Vineyard Wind will generate enough power for 400,000 homes and cut emissions equivalent to taking 325,000 cars off the road each year. Combined with Mayflower Wind, another 800 MW project south of Martha’s Vineyard, ratepayers will save $3.8 billion over the 20-year life of their contracts.

Take a long breath for a deep dive into this topic here: Biden’s new moonshot: An offshore wind industry to rival Europe’s

More Energy News

• Solar Power + Bees = Extra Benefit for Massachusetts

• Environmental justice advocates hold Massachusetts accountable

• Construction deal reached for $15m Massachusetts biomass project

• Some worry wind and solar will gobble up forests and farms

• On course to create a fusion power plant

• Utilities testing geothermal heating and cooling | Local News | gloucestertimes.com

• Environmentalists surprisingly divided over clean energy projects in Mass., Maine and elsewhere

Transportation

When Increasing Boston Traffic Is Good News

Who would have ever suspected that increasing traffic in Boston could be welcome news? It’s all part of the so-called “new normal” brought on by a global pandemic and subsequent emergency lockdowns. While sitting in traffic is never fun, the uptick in traffic is another promising sign that the Mass. economy is on the road to recovery. 

Although traffic has been increasing in the Bay State and in Boston, in particular, it hasn’t yet U-turned to pre-pandemic levels. Between March 29 and April 11, traffic volume was down between 5 and 14 percent from 2019 levels. That is according to the state Department of Transportation. Although that sounds bad, compare it to last April when traffic plummeted by about 60 percent.

The Boston Globe has this report: Traffic is getting worse in Massachusetts (but it's not back to pre-pandemic levels... yet)

More Transportation News

• Listen: What Biden's Infrastructure Plan Means For Transportation In Massachusetts

• Post-pandemic behaviors may dictate new transportation options - Boston Business Journal

• Massachusetts exit renumbering project moves to Interstate 93

• There's really nothing blocking the path to free buses

• MBTA Control Board commits to funding Transit Priority Group as part of FY22 budget

Real Estate

Home Prices Continue to Rise

Just when you think stock and crypto prices can’t go any higher… they do. And the same is now true for residential real estate here in Massachusetts. We’ve been telling readers for weeks now about how the Commonwealth’s homes market is blasting off. Home prices in the state are now well on their way to the moon. 

According to data from the Massachusetts Association of Realtors (MAR), the median sale price of a single-family home launched to $485,000 in March, up 16.9 percent from 2020. Condo prices are also on the rise, up nearly 7 percent, to $459,450. March saw 3,385 single-family home sales closed (up from 2,779 in Feb.) and 5,804 new properties listed in February (up from 3,393 in Jan.). Also, 1,922 condos were sold in March (up from 1,298 in Feb.). That’s 26 percent more than were sold in Mar. 2020.

President of MAR, Steve Medeiros said in a statement. “We're seeing a very busy, competitive spring market this year as more buyers line up and sellers are feeling more comfortable putting their homes on the market compared to this time last year,” adding, “While prices are increasing along with mortgage rates, we're encouraged by the increase of new listings and seeing some more inventory come on the market."

WBUR has this report: Frenzied Real Estate Bidding Drives Mass. Home Prices Up

More Real Estate

• Realtor: 4 things first-time Massachusetts home buyers need to do

• Standard Communities Acquires L.P. Interest in Boston Affordable Property, Increasing Its Presence in Massachusetts

• State weighs appeal of Superior Court decision on Boston waterfront - Boston Business Journal

• This Sudbury Home Costs More Than A Castle In France

Cannabis

Massachusetts Banks Lighten Up To Marijuana

Last week we told you how the U.S. House had passed the SAFE Banking act — again. Should it survive the Senate and be signed by President Biden, the measure would make it far less risky for banks to do business with marijuana-touching businesses by preventing federal agencies from penalizing those that offer financial services to cannabis concerns.

While the fate of the bill remains uncertain, banking is already becoming easier for Mass. marijuana. That is according to a report at the Boston Business Journal which says at least six financial institutions are now servicing the sector with at least one lending directly to cannabis clients.

Cases in point:

• In 2018, only three Mass. banks were open for business to the cannabis industry — Medford-based Century Bank, Swansea’s BayCoast Bank, GFA Federal Credit Union in Gardner. 

• Last month, Eastern Bank announced it would acquire Century and take over its cannabis division. 

• Recently, Northern Bank & Trust in Woburn announced it would be hiring a security deposit relations manager who would be tasked with growing the bank’s cannabis clientelle.

• Hudson-based Avidia Bank which is affiliated with a hemp and CBD payment company out of Arkansas has begun working with cannabis clients.

• Several financial institutions including BayCoast, GFA, and Century have been lending to real estate companies involved in the cannabis sector.

Steven Hoffman, chairman of the Mass. Cannabis Control Commission says that he continues to discuss the matter with at least three more banks starting due diligence around entering the industry.

“I know any bank that is servicing the cannabis business is taking some risk, given federal law,” Hoffman said. “I’m grateful for those who have stepped up because they have made an incredible contribution to public safety.”

The Boston Business Journal has more on this story.

More Cannabis News

• Ascend opens first recreational marijuana dispensary in downtown Boston

• Massachusetts opens land for hemp farming

• Top Massachusetts Court in a Haze Over Local Control of Cannabis

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