Introducing the Community Preservation Act (CPA)...Introducing the Community Preservation Act (CPA)...

Introducing the Community Preservation Act (CPA) Workshop on CPA and Biomap2 for Worcester County Communities

Leominster Library, October 9, 2013

About the Community Preservation Coalition

Acton

Acushnet

Agawam

Amherst

Aquinnah

Ashland

Ayer

Barnstable

Becket

Bedford

Belchertown

Belmont

Beverly

Bourne

Boxford

Braintree

Brewster

Bridgewater

Cambridge

Canton

Carlisle

Carver

Chatham

Chelmsford

Chilmark

Cohasset

Concord

Conway

Dartmouth

Deerfield

Dennis

Dighton

Dracut

Dunstable

East Longmeadow

Eastham

Easthampton

Easton

Edgartown

Fairhaven

Fall River

Falmouth

Georgetown

Gloucester

Goshen

Grafton

Granville

Great Barrington

Groton

Groveland

Hadley

Hamilton

Hampden

Hanover

Hanson

Harvard

Harwich

Hatfield

Hingham

Holliston

Hopkinton

Hubbardston

Hudson

Kingston

Lenox

Leverett

Lexington

Lincoln

Littleton

Longmeadow

Manchester

Marion

Marshfield

Mashpee

Mattapoisett

Maynard

Medway

Mendon

Middleborough

Middleton

Millis

Monson

Nahant

Nantucket

Needham

Newburyport

Newton

Norfolk

North Andover

Northampton

Northborough

Northfield

Norwell

Oak Bluffs

Orleans

Pembroke

Pelham

Phillipston

Plympton

Provincetown

Quincy

Randolph

Rehoboth

Rockport

Rowley

Royalston

Salem

Sandwich

Scituate

Seekonk

Sharon

Shutesbury

Somerset

Somerville

Southampton

Southborough

Southwick

Stockbridge

Stoughton

Stow

Sturbridge

Sudbury

Sunderland

Swansea

Templeton

Truro

Tyngsborough

Upton

Waltham

Wareham

Wayland

Wellesley

Wellfleet

Wenham

West Boylston

West

Bridgewater

West Newbury

West Springfield

West Tisbury

Westfield

Westford

Weston

Westport

Weymouth

Whately

Wilbraham

Williamstown

Yarmouth

And Community Preservation Committees from…

Coalition Services

• Technical assistance

• Website: www.communitypreservation.org

• CPA advocacy

• Email newsletter

• Regional CPA conferences and training

• Assistance with CPA education and adoption

What is CPA?

The Community

Preservation Act is state enabling legislation passed

in 2000

Adopted by individual communities at a local ballot

election

….enables Massachusetts cities and towns to create a local dedicated fund for….

What is CPA?

Open Space

Historic Preservation

Community Housing

Outdoor Recreation

CPA in 2013: 155 communities

44% of the state

Recent CPA Ballot Activity

(November 2012)

CPA Adopted by All Types of Communities

CPA Funds at Work

CPA - Many Types of Projects

•Text

CPA by the Numbers through 2013

HISTORIC PRESERVATION: 3,300 appropriations made

OPEN SPACE: 19,700 acres preserved

OUTDOOR RECREATION: 1,000 projects funded

AFFORDABLE HOUSING: 7,800 units created or supported

OVERALL: 6,600+ projects approved & $1.2 billion raised

Basics of CPA

Adopting communities establish a dedicated local fund for:

Historic Preservation

Open Space & Recreation

Community Housing

Communities vote to establish a CPA surcharge of no higher than 3% on local

property taxes…

Basics of CPA – CPA Revenue Sources

…and then receive annual matching funds

from the state

Not necessarily a permanent commitment

• The CPA must remain in place for at least 5 years

• After 5 years, the Act can be repealed at any time

• Amendments to the CPA surcharge percentage or the exemptions can be made at any time

Amending or Repealing the CPA

Required representation from:

• Conservation Commission

• Historical Commission

• Planning Board

• Recreation Board

• Housing Authority

Community Preservation Committee (CPC)

City Ordinance or Town Bylaw establishes a CPC

Plus up to 4 additional members

• Assess Needs • Accept/Review Project Proposals • Get Input from the Public and Boards/Committees • Recommend Expenditures to City Council/Town Council • Budgeting/Record Keeping, Annual Report • NOTE: Legislative approval required on all CPA projects!

CPC Functions

CPA Annual Fund Distribution Requirements

Potential Uses of CPA Funds

REHABILITATE

CPA and Historic Preservation

• Buildings • Structures • Parks • Vessels

• Landscapes • Documents • Artifacts

PRESERVE

RESTORE ACQUIRE

ADAPT FOR REUSE

Restoration of historic municipal buildings

CPA and Historic Preservation

CPA and Historic Preservation

Adaptive Reuse of Buildings

Grants to non-profit community groups (typically with a preservation easement)

CPA and Historic Preservation

Historic City/Town Documents

CPA and Historic Preservation

CPA and Open Space

PRESERVE

(REHABILITATE) ACQUIRE

CREATE

• Agricultural Land • Vulnerable Land

• Drinking Water Supplies

Protecting Agricultural Land

CPA and Land Protection

Protecting Vulnerable Land

CPA and Land Protection

Protecting Drinking Water Supplies

CPA and Land Protection

CPA and Recreation

CREATE REHABILITATE

ACQUIRE

• Playgrounds • Athletic Fields • Hiking and Biking Trails

• Parks • Community Gardens • Outdoor facilities only

PRESERVE

Playgrounds

CPA and Recreation

Athletic Fields

CPA and Recreation

Hiking and Biking Trails

CPA and Recreation

Parks

CPA and Recreation

Community Gardens

CPA and Recreation

CPA and Affordable Housing

REHABILITATE

CREATE

PRESERVE

ACQUIRE

SUPPORT

• Housing for Veterans • Conversion of Existing Buildings

• Meeting Specialized Needs • Community Involvement & Nonprofit Partnership • Sustainable Development

CPA and Affordable Housing

Differs from 40B in that:

For families & individuals earning up to 100% of area median income:

• All local zoning and bylaws apply

• City Council/Town Meeting approval required

• Permanently affordable

• $48,510 for 1 person

• $55,440 for a couple

• $69,300 for a family of 4 (Leominster and Fitchburg)

Housing for Veterans

CPA and Affordable Housing

Conversion of Existing Buildings

CPA and Affordable Housing

Meeting Specialized Needs

CPA and Affordable Housing

Community Involvement

and Non-profit Partnerships

CPA and Affordable Housing

LEED Certification and Sustainable Development

CPA and Affordable Housing

Costs and Benefits of CPA

What would CPA cost the average homeowner in this area?

Communities can choose from a menu of CPA exemptions…

It depends partly upon the exemptions your city/town adopts ….

First $100,000 of residential property value New: First $100,000 of commercial & industrial property value Low income families; low/moderate income seniors Full commercial and industrial exemption (with split tax rate only)

Menu of CPA Exemptions

*Note: Any existing property tax exemptions apply to the CPA surcharge

What about Residents with Low or Fixed Incomes?

FY13 income limits to qualify for exemption to CPA surcharge in Leominster and Fitchburg

Avg Assessed Home Value

With $100,000 exemption

Net House Value Surcharged

Municipal Tax Rate (per $1000)

Amount Subject to Surcharge

CPA Surcharge Rate

Amount paid toward CPA Fund

The average Leominster homeowner would pay $19 into the local

Community Preservation fund annually.

What would the average local homeowner pay with a 1% CPA surcharge?

$209,968

$100,000

$109,968

$17.96

$1,975

1%

$19

x

x

(Based on FY2013 tax data for Leominster)

The Statewide CPA Trust Fund

• Guaranteed annual disbursement from statewide CPA Trust Fund

• Administered by the Department of Revenue (DOR)

• Funds come from $10 and $20 fees charged at the Registries of Deeds

• New!! Additional $25 million from the state budget surplus for 2013… and beyond?

How Much Can Communities Expect to Receive from the State CPA Trust Fund?

Annual match has ranged from 26%-100% of local CPA revenues Communities with 3% CPA surcharges get more $$$ each year!! Another route to 3%: ‘Blended’ CPA

(Assumes Leominster adopts the exemption for the first $100,000 of residential property value)

Estimated Annual Leominster CPA Revenues (FY13)

Overall Benefits of CPA: Leveraging

Town Project CPA $ Other $

Peabody Rail-trail $162,000 $1.36 million federal grant

West

Bridgewater

Anderson Farm $400,000 $1.23 million state and

federal grants

Easthampton Restore Town Hall $50,000 $50,000 from MHC

Newton Elderly housing $850,000 $3.167 million from HUD

Grafton Hassanamesitt Village

– open space/historic

preservation

$250,000 $1.85 million from state,

federal and private

sources

Hampden 166 acres open space $100,000 $400,000 from state and

private sources

Overall Benefits of CPA

• Important community projects funded with state $$$

• Steady source of funding for local CPA needs

• Leverages other funding

• Strengthens community’s financial outlook

• New: Broadened allowable uses and increased funding

• Local economic activity and jobs

Questions?

For more information: www.communitypreservation.org

617-367-8998