The Community Preservation Act Hadley – April 14, 2004

• The Community Preservation Coalition

• What is the CPA and how does it work?

• What does the CPA mean for Hadley?

• The benefits of the CPA

• Questions and answers

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

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)

$41,580 $47,520 $59,400

Low-income residents

$33,264 $38,016 $47,520

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

Median Assessed Home Value $250,000* With $100,000 exemption $100,000Net House Value Surcharged $150,000Municipal Tax Rate (per $1000) $ 13.11

_______Amount Subject to Surcharge $1967CPA Surcharge Rate 2%

_______Amount paid toward CPA Fund $39

Based on this scenario, $39 would be paid into the Community Preservation Trust Fund annually

Hadley CPA Revenue and Surcharge Hadley CPA Revenue and Surcharge Scenarios – Residential PropertyScenarios – Residential Property

Surcharge Cost Amount Raised

With First $100,000 Exemption

1.0% $ 20 $43,756

2.0% $ 39 $87,512

3.0% $ 59 $131,267

Without First $100,000 Exemption

1.0% $ 33 $65,676

2.0% $ 66 $131,351

3.0% $ 98 $197,027

Surcharge – Commercial PropertySurcharge – Commercial Property

Surcharge Cost

Commercial Property

Average assessment - $387,774

1.0% $50

2.0% $101

3.0% $151

Chap. 61A Property

Average assessment - $31,257

1.0% $4

2.0% $8

3.0% $12

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

CPA HousingCPA Housing

• For families and individuals earning up to 100% of area median ($59,400 for a family of four).

• Units count under 40B so long as inhabitants earn less than 80% of median.

• Other features:- requires a permanent deed restriction- Subject to zoning- Local CPC screens and recommends

projects; legislative body makes appropriations.

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

Open SpaceCommunity Preservation funds may be used to purchase land, easements or restrictions to protect:

1. Existing and future water supply areas, 2. Agricultural, forest or coastal lands, 3. Frontage to inland water bodies, 4. Wildlife habitat, 5. Nature preserves, and 6. Scenic vistas.

Also, land can be purchased for :

1. Active and passive recreational uses, 2. Community gardens, 3. Trails, 4. Non-commercial youth and adult sports 5. Use of land as a park, playground or athletic field.

Open SpaceOpen Space

Active/Passive Recreational UsesActive/Passive Recreational Uses

Athletic FieldsAthletic 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)

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

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

For Further InformationFor Further Information

www.communitypreservation.org