The Community Preservation Act in Sutton – May 27, 2004

The Community Preservation Actin Sutton – May 27, 2004

Who We Are

• Partnership of advocates for open space, affordable housing and historic preservation

• Worked for 15 years to help pass the CPA in the state legislature

• Helping communities to understand, adopt and implement CPA.

The Community Preservation Coalition

Open Space

Historic Preservation

Affordable Housing

Allows communities to establish a dedicated fund for:

The Community Preservation Act

MAP

Basics of the ActBasics of the Act

• Local adoption needed

• Establishes up to a 3% surcharge on local property taxes

• Requires 10% of monies to be spent on each of the 3 categories

• Allows flexibility for the remaining 70% in each of the 3 categories

• Establishes a Community Preservation Committee

Exemptions to the CPAExemptions to the CPA

• First $100,000 of property value – exempts the first $100,000 of residential property value from the surcharge.

• Low-moderate income – exempts any household that earns less than 80% of area median and any senior (60+) who earns up to 100% of the median.

Maximum Incomes for ExemptionMaximum Incomes for Exemption

One person in

household

Two people in

household

Four people in household

Seniors (residents over 60)

$48,510 $55,440

Low-income residents

$33,808 $44,352 $55,440

What does that mean for the taxpayer?What does that mean for the taxpayer?

Median Assessed Home Value $248,000* With $100,000 exemption $100,000Net House Value Surcharged $148,000Municipal Tax Rate (per $1000) $ 12.32

_______Amount Subject to Surcharge $1823CPA Surcharge Rate 2%

_______Amount paid toward CPA Fund $36

Based on this scenario, $36 would be paid into the Community Preservation Trust Fund annually

Sutton CPA Revenue and Surcharge Sutton CPA Revenue and Surcharge ScenariosScenarios

Surcharge Cost Amount Raised

With First $100,000 Exemption

1.0% $ 18 $ 66,653

2.0% $ 36 $ 133,306

3.0% $ 55 $ 199,959

Without First $100,000 Exemption

1.0% $ 31 $ 103,588

2.0% $ 61 $ 207,177

3.0% $ 92 $ 310,765

Commissioner of RevenueDisburses Match

(October 15th)

State Matching FundsState Matching Funds

FY 2002$17.8 Million

Match Distribution

FY 2003$27.2 Million

Match Distribution

Fund balance is more than

$110 million

Amending or Repealing Amending or Repealing the CPAthe CPA

• The CPA must remain in place for at least five years.

• After five years the Act can be repealed at any time using the same procedures available for passage of the Act.

• Amendments to the surcharge percentage or the authorized exemptions can be made at any time using the same procedures available for passage of the Act.

Potential Uses of CPA FundsPotential Uses of CPA Funds

Open SpaceOpen Space

Community Preservation funds may be used to:

1. Purchase land 2. Purchase easements or restrictions on land 3. Protect drinking water 4. Protect nature preserves 5. Restore polluted land to its natural state 6. Protect farms and farmland - APR

Historic PreservationHistoric Preservation

Community Preservation funds may be used for acquisition, preservation, rehabilitation or restoration of a building(s) or real property that:

• has been determined by the local historic preservation commission to be significant in the history, archeology, architecture or culture of a city or town; or

• is listed or eligible for listing on the state register of historic places

Historic PreservationHistoric Preservation

• Restoration of historic municipal properties• Adaptive reuse• Capital improvements to existing sites• Reversal of historically inappropriate alterations• Environmental mitigation• Signage• Grants to private non-profit groups, or individuals with a preservation easement

CPA HousingCPA Housing

• Income limits for recipients ($69,300 for a family of four).

• Units can count towards 40B requirement• Protected forever• Can build new homes or convert existing• Can help people buy homes or rent them

RecreationRecreation

Also, land can be purchased for :

1. Active and passive recreation 2. Community gardens, 3. Trails, 4. Non-commercial sports 5. Parks, playgrounds or athletic fields.

Community PreservationCommunity Preservation Committee Committee

• Membership: (one from each)

– Conservation Commission– Historic Commission– Planning Board– Board of Park Commissioners– Housing Authority

• Bylaw or Ordinance specifies:– Method of selection

• (elected, appointed)– Length of term – Number of members (5-9)

Community Preservation Act Funding in FY 2002-2004

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

FY 2002 FY 2003 FY 2004

Recreation

Historic

Open Space

Housing

CPA MilestonesCPA Milestones

• 65 Adopting Communities

• 15-20 Communities voting in 2004

• More than $110 million appropriated so far

• Nearly 550 units of housing created

• About 4,000 acres of open space protected

• More than 140 historic sites preserved

For Further InformationFor Further Information

www.communitypreservation.org