For a decade or more, as land prices escalated throughout the state and farms and woods were being covered with residential and commercial development at ever-increasing rates, conservationists throughout Massachusetts fought to create a Land Bank for the entire Commonwealth, based on the model then in use on Cape Cod and the Islands. Their Land Bank was funded with a small tax on the transfer of deeds, capturing for the public good a small portion of the increase in value of the land when sold for development. It works there; why not everywhere?
Unfortunately, governors, Republicans all, did not agree. Eventually, a compromise was reached, and we got the Community Preservation Act. The CPA does have a tax on deed transfers; that tax provides a CPA Trust Fund to "match" funds raised by communities that adopt the CPA. To adopt the CPA, a city or town must vote to increase its own local property tax by between 1% and 3% of the taxable value of the property in town. Localities are permitted to exempt some of the value of properties to decrease the burden on the less affluent property owners. The CPA also defines the uses to which the money can be put: projects for open space, affordable housing and historical preservation are all required; recreation is allowable.
Each municipality that adopts the CPA has a fund of money raised locally by their own taxes, and gets a "match" from the Trust Fund. Although the percentage of match can vary (it's based on how much is in the Fund and may not exceed 100%), in the first few years of the Act's operation, so far there has been plenty in the state's fund and every match has been 100%. Seventy five cities and towns have adopted the CPA, and currently there is $101 million in the CPA Trust Fund.
As you can imagine, a large pot of money like that is very tempting, particularly to Republican governors who like to make big promises but don't like to find ways to pay for them. The Governor's budget proposal for this year would transfer $10 million from the Community Preservation Trust Fund to the Smart Growth Housing Trust Fund. The Smart Growth Housing Trust Fund was "created" last year to encourage communities to zone for higher density housing and mixed-use developments, as a way of encouraging lower-cost housing. The idea was to provide incentive payments to cities and towns. Unfortunately, the governor and legislature failed to provide funding for this Trust Fund. To the Governor, and, perhaps, to some legislators, the CPA Trust Fund looks like the perfect solution.
Supporters of the CPA don't see it that way at all. We agree that a Housing Trust Fund is a good idea Ð but not at the expense of a different program that was adopted by cities and towns according to the rules at the time. The 100% match is a major argument in favor of local adoption when municipalities hold referendums. We don't want to risk that incentive: we want more communities to adopt the Act, so that there will be more protection of historical sites and open space, and more help for affordable housing, throughout the Commonwealth.
Also, while some proponents of changing the Act argue that the Trust Fund has grown "larger than it was supposed to be," others are concerned that the large size of the Fund is only temporary. A significant portion of the real estate "transactions" that contributed to that Fund were from people refinancing property, and that wave of activity has passed. The Fund is not growing as fast any more, and gradually more municipalities are joining up, so there will be more demands made on it.
As usual, our own legislators understand the need to keep the CPA as it was passed. You can thank them; you can also write to the Governor, telling him you don't like the idea, and discouraging any veto thoughts he may be having.
If you want to know what is being proposed for Amherst's CPA funds, you can come to the CPA Committee's meetings. On February 15 and 22 at 7 pm in the Town Room, the Committee will be hearing proposals having to do with conservation, housing and recreation; we've already heard from the Historical Commission. The Committee will then vote its recommendations, which go to the Spring Town Meeting for the actual decision. Not surprisingly, there are far more worthy projects than there are funds, so making the decisions will be hard. Come hear about them, and let your opinions be heard as well.