SECTION 1. Subsection 1 of section 9 of chapter 268 of the Public laws of 1986, entitled "An Act Relating to the Preservation of Farm Land and Open Space in the town of New Shoreham and Establishing a Land Trust" as amended by chapter 266 of the Public Laws of 1987, is further amended as follows:

SECTION 9. The following transfers of real property interests, in addition to those exempt under section 44-25-2 of the general laws, shall be exempt from the fee established by section 7. Except as otherwise provided, the buyer shall have the burden of proof that any transfer is exempt hereunder.

(1) The first seventy-five two hundred thousand dollars ($75,000) ($200,000) of the purchase price and fifty percent (50%) of the next four hundred thousand dollars ($400,000) of the purchase price of the transfer made to a buyer who, or and whose spouse at the time of transfer, has at no time prior to said transfer owned or possessed any real property interest either within or without the tone of New Shoreham; provided that the buyer makes the real property interest which is the subject of the transfer the buyer's actual residence and domicile within two (2) three (3) years of the time of transfer, and provided further, that in the event of subsequent transfer within five (5) years of the transfer exempted from the fee under this section, date the buyer made the real property his/her actual residence and domicile as evidenced by the filing by the buyer with the land trust of a certificate of use and occupancy for the residence on the real property and an affidavit that it is his/her actual residence and domicile, other than the transfer of a mortgage to an institutional lender, the fee exempted shall become due, together with accumulated interest and penalties, and in addition to any fee other wise due as a result of the subsequent transfer. The buyer shall certify and covenant as to the foregoing, and the trust shall attach to the deed a certificate which shall recite the fact that there is running with the land a lien equal to the amount of the fee exempted plus accumulated interest and penalties until such time as all conditions of this section have been met.

This exemption shall remain in effect unless the electors at an annual or special town meeting amend the rate to increase said exemption. Said exemption shall not be increased without notice of the proposed change or repeal having been placed in the warrant for a financial town meeting.

SECTION 2. Section 9 of chapter 268 of the Public Laws of 1986, entitled "An Act Relating to the Preservation of Farm Land and Open Space in the town of New Shoreham and Establishing a Land Trust" as amended by chapter 266 of the Public Laws of 1987, is further amended by adding thereto the following subsection:

(4) Transfer to a buyer pursuant to a program of affordable housing sponsored or endorsed by the town of New Shoreham; provided, however, that in the event a program of affordable housing sponsored or endorsed by the town of New Shoreham includes both market priced housing and affordable housing, only a buyer of affordable housing units shall be entitled to the exception. This exception shall apply only to a buyer, and whose spouse at the time of the transfer, has at no time prior to said transfer owned or possessed any real property interest either within or without the town of New Shoreham; provided that the buyer makes the real property interest which is the subject of the transfer the buyer's actual residence and domicile within three (3) years of the time of transfer, and provided further, that in the event of subsequent transfer within five (5) years of the transfer exempted from the fee under this section, other than the transfer of a mortgage to an institutional lender, the fee exempted shall become due, together with accumulated interest and penalties, and in addition to any fee otherwise due as a result of the subsequent transfer. The buyer shall certify and covenant as to the foregoing, and the trust shall attach to the deed a certificate, which shall recite the fact that there is running with the land a lien equal to the amount of the fee exempted plus accumulated interest and penalties until such time as all conditions of this section have been met.

SECTION 3. This act shall take effect upon passage.