On April 13, the Joint Committee on Community Development and Small Business held a hearing on a bill that would boost state support for the Community Preservation Act.

The CPA gives cities and towns the authority, at local option, to adopt a property tax surcharge of up to 3 percent for the purposes of creating affordable housing, acquiring open space, preserving historic buildings, or improving recreation facilities. Revenue generated by the local surcharge is amended with money from a statewide trust fund supported by real estate transaction recording fees.

In 2008, for the first time in the CPA’s eight-year history, CPA communities received an average match of 74 percent, rather than the dollar-for-dollar match seen in previous years. The match fell dramatically last year, to below 30 percent for many communities, due in part to the popularity of the program as well as the decline in real estate activity.

The bill filed by Sen. Cynthia Stone Creem of Newton and Rep. Stephen Kulik of Worthington (SB 1841/HB 765) would stabilize the CPA trust fund and guarantee that CPA communities would receive a match of at least 75 percent each year.

Committee members heard support for the bill from legislators, numerous statewide organizations, the MMA, and municipal officials from Gloucester, Needham, Quincy, Taunton, Upton and other communities.

A guaranteed minimum match would give local governments a reliable source of funds for specific needs. Especially in a tough economy, the CPA helps municipalities fund open space, housing, preservation and recreation projects without diverting funds from priorities such as public safety, education, maintenance and public works.

To date, 147 of the state’s 351 municipalities have adopted the CPA. Communities may tailor CPA projects based on local priorities.

Some communities have used their CPA funds as the matching source necessary to qualify for other state, federal and private funds on a project-by-project basis.

Using CPA funds, municipalities have preserved more than 13,000 acres of open space, according to the Community Preservation Coalition, including wetland resources such as lakes, rivers, and saltwater ponds. The CPA has funded the creation or rehabilitation of more than 4,000 affordable housing units and the development of hundreds of innovative affordable housing programs. More than 2,000 historic preservation projects and 600 recreation projects have been approved under the program.

The Community Development and Small Business Committee is expected to vote on the bill during the current legislative session.

The bill was reported favorably by the committee last year.

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