Towns Brace for Decreased State Funding of Community Preservation Act

"Towns Brace for Less State Funding of CPA"
The Cape Codder, April 24, 2008
By Steve Desroches

CAPE COD -- The other shoe has dropped. The anticipated reduction in state matching funds to the Community Preservation Act is now a reality and communities across the commonwealth, and the Cape, are preparing for less money at a time when budgets are already stretched to the max. ...

The law allows municipalities to impose up to a 3 percent property tax surcharge and dedicates those funds to open space, historic preservation and affordable housing projects. For the past eight years the state matched those funds at 100 percent with funds raised by Registry of Deeds’ fees on real estate transactions. The state consistently warned that that might not always be the case. With the serious real estate slump continuing to get worse, the state can now only guarantee a 65 percent match. ... ©

Read the full article in The Cape Codder.

For more information, see the Community Preservation Coalition’s April 2008 newsletter, which notes that “For the first time in the seven-year history of the CPA, it is anticipated that the statewide CPA Trust Fund will have insufficient revenue to issue a 100% match to CPA communities when CPA state matching funds are distributed this October 15th, 2008. This week, DOR issued a projection for the percentage match CPA communities will receive in the October payment, as well as information on the funding formula."