Community Preservation Act Primer

The CPA or Community Preservation Act was formally adopted and signed on September 14, 2000 by Governor Cellucci and Lieutenant Governor Swift.  The CPA allows for a city or town to impose a real estate tax surcharge of up to 3% on its residents.  Individual municipalities however must vote by referendum at a regularly scheduled local or state election to participate.  The City or Town is then free to decide what portion up to 3% they choose as their CPA surcharge.  Once adopted, the municipality cannot repeal for 5 years although the amount of the surcharge may be adjusted during this time. 

The CPA’s specific focus is to address the needs of three areas:  open space, historic preservation and affordable housing.  Each municipality is required to designate 10% of the funds raised per year to each of these three areas with the remaining 70% to be used as the CPA Committee determines.  A Community Preservation Act Committee is usually comprised of appointed and elected officials.  They are responsible for drafting a long-term plan for the use of the funds and to decide on individual proposals – such as the purchase of a specific farm or parcel for open space.
   

Special legislation creating a land bank on Cape Cod was extremely successful and provided the model for the statewide CPA.  It is interesting to note that all of the Cape Cod communities have successfully voted for the CPA and are today reaping great benefits, as compared to those Massachusetts communities who have not adopted the statute.  Of great concern is that wealthier towns who have voted to adopt this Act within their town are benefitting at the expense of poorer communities who contribute registry receipts but have not voted to adopt the Act.  

As part of the legislation, the state matches those local funds (collected under the CPA plan) with money derived from registry of deed receipts.  From inception until 2008 the state had matched at a 100% level.  However, in 2009, the state funding level dropped below its 100% match due to both increasing participation by city and towns and a decline in registry receipts.  While local funds will continue to be collected up to their adopted percentage, it is expected that a 100% match will not be met in 2010 and should not be expected in the near future.

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