The proposed bill aims to establish a "residential development community housing surcharge" in the town of Lexington, Massachusetts, to address the loss of moderate-income housing due to the demand for buildable land. This surcharge will be applied to all new single- and two-family residential construction permits issued for parcels where an existing dwelling has been demolished. The select board will determine the surcharge amount based on a dollars-per-square-foot calculation of the total gross floor area of the new structures, with exemptions for community housing projects and certain reconstructions. The select board is also tasked with adjusting the surcharge annually for inflation.

Additionally, the town manager or their designee is required to conduct a study every seven years to assess the surcharge's effectiveness and recommend adjustments as needed. The bill mandates that all surcharge revenues be deposited into the Town of Lexington Affordable Housing Trust Fund and stipulates that a certificate of occupancy cannot be issued until the surcharge is paid. The act defines "community housing" in accordance with existing laws and specifies that demolition refers to the removal of more than 50% of a building's shell. The act will take effect upon passage.