The following is the full article quoted from The Falmouth Enterprise published on 4/10/26, pages 1 & 13, entitled, “Tax Incentive Wins Approval”, online entitled “Year-Round Rental Tax Incentive Wins Approval”.
Town Meeting members approved Article 15 this week, adopting a state law that allows the town to create a voluntary property tax exemption program intended to encourage more year-round rental housing.
Supporters said the program could help address workforce and demographic challenges facing the community.
Precinct 2 member Karen L. Bissonnette framed the issue as one of long-term economic sustainability.
We are an old community and we need workers,” Bissonnette said, listing municipal positions. “Those are not going to be most of the people of the age in this room. So we need young people in this community…We really need that demographic in this community or we are not going to have services.”
Bissonnette received applause for her comment.
The measure authorizes the Select Board to offer property tax exemptions to homeowners who rent units to income-qualified tenants at affordable rates. The board will determine the program’s specific parameters, including rent levels and income limits, though tenant income cannot exceed 200% of the area median income. The tax exemption could be as much as 100% of the property tax on the qualifying unit and could be adjusted annually by the Select Board.
The program, which has been adopted by municipalities throughout the Cape and proposed by the Affordable Housing Committee, is voluntary and is designed to encourage homeowners to rent properties long-term rather than using them for short-term rentals, potentially expanding the town’s year-round housing supply without requiring new construction.
“With housing, it’s going to be every tool we can think of,” Select Board member Douglas C. Brown said. “It’s never going to be one cure.”
The units under this program would not be deed-restricted and therefore would not count toward the town’s subsidized housing inventory.
Proponents of the program say it is a less expensive way to increase and retain attainable housing.
Select Board vice chairwoman Heather M.H. Goldstone offered a hypothetical comparison to illustrate the potential impact. If the town offered 100% exemption of about $5,000 for 100 qualifying homeowners, the total cost would be about $500,000 per year while potentially supporting 100 affordable rental units.
By comparison, the town currently contributes about $150,000 from its affordable housing fund to create a single affordable unit, a process that can involve land disturbance, construction and several years to complete.
“One hundred rentals through the exemption or four units is the kind of comparison that we’re talking about in terms of bang for the buck from our Affordable Housing Fund,” Goldstone said.
John C. Beatty of Precinct 3 raised concerns that the incentive could unintentionally disadvantage middle-income renters if landlords targeted lower-income tenants to qualify for the tax break.
Assistant Town Manager Peter K. Johnson-Staubb said the state law gives the Select Board flexibility when setting eligibility requirements.
“This local option actually is designed to help the missing middle,” Johnson-Staubb said. He explained the town’s goal is to create housing opportunities without the expense of new construction by stimulating rentals for households earning roughly 80% to 200% of the area’s median income.
“So no, I don’t believe it would have any negative impact on affordable housing,” he said.
A number of members said the article “lacks a lot of figures,” asking what percentage of homes in town are currently rented, how much the exemption might be and whether landlords have shown interest in participating.
“This article has more questions than answers,” Joseph A. Netto of Precinct 9 said.
Elizabeth M. Klein, from Precinct 6 and a member of the Affordable Housing Committee, emphasized that participation would be voluntary and that the program is expected to be modest in scale.
“The Affordable Housing Committee does not believe this program will be the thing that solves the problem,” Klein said. “This is not a gigantic program.”
She pointed to Provincetown’s similar program, which has about 62 participating rental units.
“Every rental unit is a person who is housed in a safe and secure setting for a year at a time, for a relatively low cost,” Klein said.
Renter and non-Town Meeting member Athena C. Aicher spoke in opposition, saying the program incentives property owners who have the finances to have/purchase a second home to rent, while a home owner who may benefit from the tax break, but don’t have the means to rent out a portion or all of their property or their main residence would be left out.
Peter L. Clark of Precinct 1 and a member of the Affordable Housing Committee, urged members not to let unresolved details derail the measure.
“This is being complicated by worries that don’t need to overwhelm us,” Clark said. “It’s a one-year voluntary process. The Select Board will be setting the parameters with a lot of discussion, protecting revenues at the same time they are trying to provide additional housing.”
The article received the required two-thirds majority support on night one of Town Meeting.