The Community Preservation Act in Topsfield – August 31, 2004

The Community Preservation Coalition 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 Act Allows communities to establish a dedicated fund for: Open Space Historic Preservation Affordable Housing

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 Includes matching funds!

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) $57,820 $66,080 Low-income residents $46,256 $52,864

What does that mean for the taxpayer? Median Assessed Home Value $468,000 * With $100,000 exemption $100,000 Net House Value Surcharged $368,000 Municipal Tax Rate (per $1000) $ 12.20 _______ Amount Subject to Surcharge $4490 CPA Surcharge Rate 3% Amount paid toward CPA Fund $135 Based on this scenario, $135 would be paid into the Community Preservation Trust Fund annually

CPA Revenue Based on Topsfield’s 3% surcharge and the included exemptions, the town will collect about $300,000 annually. This amount does not include the state matching funds.

Commissioner of Revenue State Matching Funds Commissioner of Revenue Disburses Match (October 15th) FY 2002 $17.8 Million Match Distribution FY 2003 $27.2 Million Match Distribution Fund balance is more than $110 million

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 After five years the Act can be repealed at any time using the same procedures available for passage of the Act.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

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 Property Management Properties acquired through the Community Preservation Fund must be owned and managed by a city or town, but the legislative body can delegate management of properties to the Conservation Commission, Historical Commission, Board of Park Commissioners, or Housing Authority. In the case of properties acquired or protected for future wellhead development a Water Supply District or Fire District can also be delegated management resp9nsibility. Property Management can also be delegated to non-profit organizations

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: 1. Purchase land 2. Purchase easements or restrictions on land 3. Protect drinking water 4. Protect nature preserves 5. Restore polluted land to its natural state 6. Protect farms and farmland - APR Eminent Domain: CP Committee can recommend taking by eminent domain fee or lesser interest in property or waters located in the community. Must have 2/3rd vote of legislative body Funds from the CP Fund can be expended as compensation to the property holder Deed Restrictions: Real property interest acquires with monies from a CP Fund must be bound by a permanent deed restriction limiting the use of the property to the purpose for which it was acquired. The deed restriction must run with the land and be enforceable by the community, the Commonwealth, or a nonprofit or charitable corporation foundation selected by the community. Liability Any person who steals, mutilates, destroys, damages or cuts any tree, shrub, grass or other real property purchased through the CP Fund is liable to the community for such actions Damages may be recovered in a city action brought by the community or if requested by the Attorney General. Damages are deposited into the CP Fund of the community in which the violation occurred.

Recreation Land can be purchased for : 1. Active and passive recreation 2. Community gardens, 3. Trails, 4. Non-commercial sports 5. Parks, playgrounds or athletic fields. Eminent Domain: CP Committee can recommend taking by eminent domain fee or lesser interest in property or waters located in the community. Must have 2/3rd vote of legislative body Funds from the CP Fund can be expended as compensation to the property holder Deed Restrictions: Real property interest acquires with monies from a CP Fund must be bound by a permanent deed restriction limiting the use of the property to the purpose for which it was acquired. The deed restriction must run with the land and be enforceable by the community, the Commonwealth, or a nonprofit or charitable corporation foundation selected by the community. Liability Any person who steals, mutilates, destroys, damages or cuts any tree, shrub, grass or other real property purchased through the CP Fund is liable to the community for such actions Damages may be recovered in a city action brought by the community or if requested by the Attorney General. Damages are deposited into the CP Fund of the community in which the violation occurred.

CPA Housing For families and individuals earning up to 100% of area median ($82,600,000 for a family of four, $66,080 for a couple, $57,820 for 1 person). Units count under 40B so long as inhabitants earn less than 80% of median. Other features: requires a permanent deed restriction Subject to zoning All projects are approved locally

Community Preservation Committee Membership: (one from each) Conservation Commission Historic Commission Planning Board Board of Park Commissioners Housing Authority Up to 4 additional members

CPA Milestones 65 Adopting Communities 12-15 Communities voting in 2004 More than $116 million appropriated so far More than 620 units of housing created More than 4,000 acres of open space protected More than 150 historic sites preserved

For Further Information www.communitypreservation.org