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The
following is an article that was printed in Historic Salem’s Fall
2007 Newsletter.
Community Preservation Act to be Voted on November
6
On Tuesday, November 6, 2007 Salem voters will be asked to approve the
adoption of the Community Preservation Act (CPA). Historic Salem believes
that the adoption of this program will have significant benefits for
preservation efforts in our City. We urge our members to become informed
about the Community Preservation Act and to support its adoption.
WHAT IS THE CPA?
The Community Preservation Act (CPA) is a state law, already adopted
by 127 communities, that allows cities and towns in Massachusetts to
raise local revenue for open space protection, historic preservation,
and affordable housing and then receive significant State matching funds.
In order to qualify for these matching funds (currently 100% but may
be less as more communities adopt the CPA) Salem City Council has voted
to place a property tax surcharge of 1 percent on the upcoming ballot.
The surcharge is calculated from the tax bill, less the first $100,000
of assessed value of residential property. This means that the additional
annual cost on any property will be less then 1% of taxes paid. There
are provisions to exempt low income families and moderate income seniors
.
Based on the proposed 1% CPA surcharge the city would raise an estimated
$440,000 a year, which would be supplemented by the state match. At
the current 100% match amount the city would receive nearly $1 million
a year as a result of the CPA. Even at 50% state match the city would
have an additional $660,00 a year for CPA eligible projects at an individual
cost of less than 1% of current tax bills.
The level of the surcharge (and the optional exemptions) can be changed
at any time after the CPA is adopted, through a simple majority vote
of City Council, followed by voter
approval. At no time can the surcharge exceed 3 percent. The CPA remains
in effect for a minimum of five years from the date of voter approval.
After five years, it can be revoked
in the same manner used to approve the CPA originally.
The state match money comes from the CPA Trust Fund, a dedicated revenue
source outside of the normal legislative appropriations process that
may not be redirected for other purposes. It is funded by fees on recording
deeds at the Registry, therefore all communities pay into it. However,
only communities that have adopted CPA can receive payments out of it.
HOW FUNDS ARE SPENT
If Salem approves the CPA, a Community Preservation Committee (CPC)
will be formed to make annual recommendations to the City Council on
how the money should be spent. The CPA ordinance determines the composition
of the committee, the length of term and the method of selecting members,
which can be by election, appointment, or a combination. The CPC will
consist of not less then five nor more than nine members and will include
one member each from the conservation commission, historical commission,
planning board, parks and recreation commission, and housing authority.
By law the CPC must consult with existing municipal boards and study
the needs of the community at large. They will hold one or more public
informational meetings. Decisions will be approved by a majority of
CPC members. The City Council must then approve the CPC decisions and
appropriate Community Preservation Funds.
CPA funds are spent in four areas, or a combination of the four. By
law they are dispersed as follows.
• 10 percent for open space: Protect open space through land purchases
and easements. Used around the state to protect municipal water supplies,
woods, waterfront, wildlife habitat, and for environmental clean-up.
• 10 percent for historic preservation: Preserve historic resources,
including municipal, non-profit, and privately owned properties.
• 10 percent for community housing: Manage and preserve housing,
improvements to existing public housing, and down payment and rental
assistance that will allow municipal employees, families, and seniors
who are finding themselves increasingly priced out of Salem, to remain.
• 70 percent can be spent on eligible projects in any of the three
above areas as well as eligible recreational uses such as new parks,
playgrounds, athletic fields and bike paths, as well as improvements
on existing facilities.
Funds can also be spent on projects that meet needs in multiple areas
and they can be carried forward into future years if recommended by
CPC and approved by the City Council. Each year the mix of projects
in the remaining 70 percent can change based on the needs of the community.
The CPA funding allotment requirements will share the benefits with
nearly all residents, and many projects that are already planned or
are desperately needed are eligible for CPA funds including the matching
state grant. Essentially CPA allows Salem to get a generous return on
its investment that would be difficult to find anywhere else.
Impact of the CPA on Historic Preservation Efforts in Salem
The Historic Salem Board of Directors has voted to support the adoption
of the Community Preservation Act because it could provide a potentially
significant source of funding for historic buildings and resources in
Salem. In the six years since the passage of the enabling law,
adopting localities have approved more preservation grants than any
other type of CPA funding. Funding has been used to revitalize
aging city and town halls, libraries, schools, firehouses, commons,
cemeteries, monuments, bridges, lighthouses, and other municipally owned
historic buildings and landscapes. Funds have also helped private or
non-profit owners of historic property such as museums, historical societies,
churches, commercial storefronts and streetscapes, for the completion
of historical and archeological surveys, and to protect significant
properties from demolition or inappropriate alterations. CPA funded-restoration
efforts include the preservation of architectural features as well as
handicapped ramps, elevators, window, roof, and foundation repairs,
and other renovations to bring historic buildings up to code.
The list of potential projects in Salem is long but could include the
restoration of Old Town Hall, renovation of the Public Library, improvements
to downtown streetscapes and restoration of commercial facades, and
assistance to the many non-profits who own and maintain historic buildings.
Many potential preservation projects could also be eligible for the
other three project categories. These might include projects like restoring
and preserving the Salem Common fence; improvements at the Salem Willows
and the Winter Island Barracks, Hangar and Lighthouse; Pioneer Village;
the Park & Rec. Building at Mack Park; and historic cemeteries and
monuments. CPA funds can be used to match grants from the Massachusetts
Historic Commission, which have funded many projects in Salem. Examples
of recent projects which Historic Salem has supported which might have
benefited from CPA are the Pope House and Bowditch House restorations.
Salem CPA – YES is the city wide organization mobilizing in support
of the CPA vote November 6th. For more information their efforts contact
Stan Franzeen at derbystan@yahoo.com. For general information on CPA
you can visit www.communitypreservation.org, a state website that can
answer most questions.
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