The Community Preservation Act (CPA) is a state law that enables cities and towns to create a dedicated fund for local open space, historic preservation, community housing and outdoor recreation projects.  These CPA funds are generated through a surcharge between 1-3% on property tax bills.  The money raised locally is matched by the state to create a local Communty Preservation Fund.  Ten percent (10%) of this fund must be dedicated to each of the three core areas (open space, affordable housing, and historic preservation) each year. Up to 5% of the funds can be spent on administrative costs.  The remaining 70 - 65% can be spent or reserved for future spending in any of the three areas as well as an additional area, outdoor recreation.

Since 2000, the CPA has passed in a 142 communities, including Rehoboth, Swansea and Seekonk.  The state has given out over $330 million dollars to these communities.  The town of Dighton has received none of these funds because it has not passed the CPA.
 
 At the annual town meeting in 2009.  Dighton residents voted to put the CPA on the ballot.  In April 2010 Dighton residents will vote on adopting the CPA for the town.  The surcharge would be 1%, with low-income households (up to 80% of median income) and moderate-income seniors (earning up to 100% of median income) exempt from contributing.  The first $100,000 of any residential property value is also exempt.  The average household in Dighton would pay between $25-30 per year.  This will generate approximately $78,000 locally and these funds are matched with state funds. The state match comes from fees collected at the registry of deeds.  The match is based on these funds with a minimum of 5% match. For the first 6 years of the program the state match was 100%.  In fiscal year 2008 the state match was 65%.  In 2009 the match was 34%.



What are the advantages?
Towns that adopt the CPA have a dedicated revenue source for protecting their environment and history.  This money can not be taken and spent on other town services.  Activities such as protecting water resources, preserving farm land and historic sites are usually difficult to fund without the CPA.

Affordable housing projects can also be created through the CPA.  Any community housing created through the CPA will count toward achieving the 10% affordable housing stock required by Chapter 40B.  It can also help keep seniors in their homes by providing the money needed to modify their homes.


The money collected by the CPA is locally controlled and all expenditures must be approved by the residents at the town meeting.


Isn't this just another tax?
No, this money can only be spent in very specific concrete ways.  Residents will be able to see the benefits such as the creation of a new park or the restoration of a historic building.  Without the CPA these kinds of projects are very difficult to fund.


Can the town withdraw from the CPA?
The town must keep the CPA for 5 years.  Afterwards the town can vote to withdraw.

How does the CPA affect property taxes?
The surcharge added to property taxes can be no more than 3% of ones real estate property taxes.  The town can elect a surcharge smaller than this, such as 1%.  However, towns that adopt the 3% surcharge will receive a larger match from the state.  Any portion of a taxpayer’s real property taxes that are already exempt are also exempt from the CPA.  The town can also decide to allow exemptions for low income households or moderate income seniors, the first $100,000 of taxable value of residential real estate and for class 3 (commercial) and 4 (industrial) properties. 

In Dighton the surcharge would be 1%, with low-income households (up to 80% of median income) and moderate-income seniors (earning up to 100% of median income) exempt from contributing.  The first $100,000 of any residential property is also exempt.  The average household in Dighton would pay between $25-30 per year.  In Dighton the surcharge will be 1% of the tax bill so the average resident will pay between $25-30 annually.  There will also be exemptions for low income households and moderate income seniors.  The first $100,000 of taxable residential property value will also be exempted.

Residential Surcharge Example:

House value:                        $350,000
Exemption:                        - $100,000
                                           ___________
Taxable value for surcharge: $250,000

 Tax rate $11.50 per $1,000 of house value. Annual property tax bill $2,875.00

Annual CPA surcharge: $2,875.00 x 0.01 = $28.57 per year


Commercial or industrial property surcharge example:

Value of commercial property: $350,000

Taxable value for surcharge: $350,000

Tax rate $22.61 per $1,000 of commercial or industrial property value.  Annual property bill $7,913.50

Annual CPA surcharge: $7913.50 x 0.01 = $79.13

What does low and moderate income mean?  In 2008 a low income household for a family of 4 was considered to be a household making less than $63,400 annually.  This family would be exempt from paying the CPA surcharge.  The average household income for a family of 4 in Dighton was $79,300  this is considered moderate income.  A moderate income household with one person was $55,510.  A senior in a one person household earning up to $55,510 annually would be exempt from paying the CPA surcharge.  Any person believing that they should be exempt from paying the surcharge would need to fill out a form at the town hall requesting an abatement.

Can the surcharge go up?
To increase the surcharge it must be put on the ballot at a town meeting.  It would then be voted on at the next regularly scheduled election. 

How can the money be spent?
Each fiscal year the town must spend 10% of the money collected on each of the following 1) open space 2) historic resources 3) community housing.  Up to 5% can be spent on administrative costs.  The remaining money can be spent on the above uses as well as recreational purposes.  The money collected can also be saved and spent on these areas in future years.

Who controls the money?
You do.  After a town adopts the CPA, a local Community Preservation Committee is formed.  The committee must hold public meetings where citizens can suggest ways to spend the money.  The committee will make recommendations on how to spend the money at town meeting.  Here Dighton residents will be able to vote for or against the projects.


Who will be on the Community Preservation Committee?
 
After a town adopts the CPA, a Community Preservation Committee is formed.  The committee must have between 5 and 9 members.  The committee can be elected, appointed or a combination.  The committee must include a member from the conservation commission, historical commission, planning board, board of park commissioners and the housing authority.  The other 4 members can be other people from the community.  


What kinds of projects have towns used the money for?
Open space projects: protect drinking water, restore brown fields, protect farmland

Recreation projects: create trails, create playgrounds, purchase land for athletic fields

Historic projects: restore municipal buildings, preserve historic objects, purchase preservation easements 

Community Housing projects: convert buildings to affordable housing, add accessibility features to houses for seniors.