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 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 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 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? Median Assessed Home Value $250,000 * With $100,000 exemption $100,000 Net House Value Surcharged $150,000 Municipal Tax Rate (per $1000) $ _______ Amount Subject to Surcharge $1967 CPA 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 Scenarios – Residential Property SurchargeCostAmount Raised With First $100,000 Exemption 1.0% $ 20 $43, % $ 39 $87, % $ 59 $131,267 Without First $100,000 Exemption 1.0% $ 33 $65, % $ 66 $131, % $ 98 $197,027

Surcharge – Commercial Property SurchargeCost Commercial Property Average assessment - $387, % $50 2.0% $ % $151 Chap. 61A Property Average assessment - $31, % $4 2.0% $8 3.0% $12

Amending or Repealing the 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 After five years the Act can be repealed at any time using the same procedures available for passage of the Act.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 Funds

CPA 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 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 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 Space Community 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 Space

Active/Passive Recreational Uses

Athletic Fields

Community Preservation 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 Revenue Disburses Match (October 15th) State Matching Funds FY 2002 $17.8 Million Match Distribution FY 2003 $27.2 Million Match Distribution

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