CPA revised, could get funding boost under budget provision

The state budget signed by Gov. Deval Patrick on July 8 could provide a one-time funding boost for Community Preservation Act matching funds.

Up to $25 million from any state surplus left at the end of fiscal 2013 will be transferred to the statewide CPA Trust Fund, which is used to match funds raised locally for CPA projects.

The legislation also gives the 148 participating communities more flexibility in the CPA program. The funding can now be used, for example, for renovating parks and recreational facilities, whereas previously, only new open space-related projects were eligible.

Communities that adopt the CPA with a minimum 1 percent property surcharge are now allowed to use other sources of municipal revenue to boost the amount of money qualifying for the annual statewide CPA Trust Fund match.

The Community Preservation Act, signed into law in 2000, allows adopting municipalities to place a surcharge of up to 3 percent on real property in order to create a local dedicated fund for the four CPA purposes: open space preservation, historic preservation, outdoor recreation, and affordable housing. Adoption of CPA triggers annual distributions from the statewide CPA Trust Fund, which derives its revenue from fees collected at registries of deeds.

Distribution amounts from the CPA Trust Fund to communities have declined precipitously in recent years due to the decline of the real estate market; as a result, the average CPA community’s match has fallen from 100 percent to this year’s projected 22 percent.

The CPA provisions in the state budget were sponsored by Sen. Cynthia Creem of Newton and Rep. Stephen Kulik of Worthington. Also receiving credit for getting the measure passed was House Minority Leader Bradley Jones Jr. of North Reading, whose strong support made the effort bipartisan.

“In creating a new funding mechanism for the Community Preservation Act Trust Fund, we have facilitated the state’s ability to provide a greater match for community preservation monies raised by cities and towns,” said Rep. Jones. “Additionally, allowing cities and towns to fund their local CPA account with other municipal revenues, including private donations, will provide communities that do not wish to implement the traditional 3 percent property tax surcharge with another means of raising CPA funds.

“These measures not only sustain the Commonwealth’s commitment to existing CPA communities, they encourage additional cities and towns to adopt the Community Preservation Act.”