Town of Dunstable, MA

A motion to adopt CPA with a 3% surcharge and an exemption for low income families and low-moderate income seniors passed at the March 6, 2006 town meeting and CPA was adopted at the May Town Election ballot.

CPA exemption applications for moderate income seniors and low-income families are now available from the Assessors'' office.

A new bylaw establishing the Community Preservation Committee was adopted on September 25, 2006 and went into effect on October 25, 2006.

Project Proposals

Generally, the funds must be used for the acquisition, preservation, restoration, rehabilitation or creation of open space, historical purposes, lands for recreational purposes, and community housing. Ten percent of receipts must be used (or banked) for each of three components: open space, historical and community housing. Five percent of receipts may be used by the Community Preservation Committee for administrative purposes such as appraisals, surveys, presentation materials, etc. The remainder of the receipts may be used for any of the four components eligible for funding.

There are some projects that are ineligible for funding such as routine maintenance. The funds may not replace operating budgets. In some cases, funding of one project may be dependent upon another project being completed. The Community Preservation Committee is charged with compiling a needs assessment for the Town. The Committee makes recommendations to the legislative body, Town Meeting, for appropriation of all funds. In order to make good recommendations to the voters, it is imperative that the Committee be made aware of all potential projects.

To propose a project, you must complete the Project Submission Form and submit it to the Community Preservation Committee for review. The document also provides the Selection Criteria that will guide the CPC in consideration of each application.

Requests are received on a rolling submission basis, however sufficient time must be allowed for review by the CPC prior to a Town Meeting. Please allow at least 30 days prior to a Town Meeting for this review to performed.

Questions may be directed to the Community Preservation Committee, c/o Selectmen’s Office, 978 649 4514.

Projects

Ferrari Farm Conservation - At the Special Town Meeting on February 26, 2007, 256 voters unanimously approved the use of CPA funds to back a $1.5 million bond, which, combined with funds from a number of other sources, made it possible for the town to acquire the Ferrari Farm property. The acquisition calls for 149 acres of the property to be set aside as conservation land, creating a 425 acre block of contiguous open space with a network of walking trails for recreation. To help fund the project, the house and 10 acres will be sold with a historical preservation restriction on the deed that will preserve the historical character of the farm house, which was the birthplace of Sara Read Roby, who funded the construction of the Town Hall as well as other contributions to the community. The Trust for Public Land and Dunstable Rural Land Trust were instrumental in facilitating the acquisition. (Click here to view the town meeting slide presentation, also available as 1.6MB PDF file.)

Conservation Commission Chairman Leah Basbanes' introduction for the presentation summarized the events that preceded the vote at the town meeting and were critical to the success of the project.

CPA Implementation Presentation

Click this link to access the slide presentation given to the prospective members of the Community Preservation Committee regarding the steps they need to take to implement the Community Preservation Act for Dunstable. The presentation is best viewed using Internet Explorer.

CPA Overview

The Community Preservation Act (CPA) is a state law (G.L. Ch. 44B) passed in September 2000 giving cities and towns a new funding source for protecting open space and historic properties, and creating affordable housing. The goal of the CPA is to preserve the character of our communities by addressing sprawl, the rapid loss of remaining open land and historic landscapes, and the need for housing affordable to town employees, senior citizens and others.

The law allows communities to establish a dedicated funding source (Community Preservation Fund) and receive matching funds from the State. Local funding comes from an up to 3% property tax surcharge and certain exemptions may be included. The CPA becomes effective by voting to adopt the Act and to specify the level of surcharge that will be added to the real estate property tax (up to 3%) and any exemptions to the surcharge. All funds raised by the CPA remain local to the town.

Local funds are matched by state funds (the CPA trust fund is protected by statute and is not subject to State budget cuts). The CPA trust fund balance was $94.7 million as of 12/29/05. State matching funds have been distributed to participating communities in prior years as follows:

FY2002 $17.8 million
FY2003 $27.2 million
FY2004 $30.8 million
FY2005 $46.3 million

This funding is only available to communities that have voted to adopt the CPA.

Upon adoption of the Act, a Community Preservation Committee (CPC) comprised of local residents will be established by Town bylaw. The CPC does not spend, it only makes recommendations on spending based on research of the Town’s needs for open space, historic preservation and community housing. Town meeting approval is required in order to spend the funds.

To date, over 100 communities including our neighboring towns of Groton, Tyngsboro, Chelmsford, Dracut, and Westford have adopted the Community Preservation Act since it’s inception in 2000. For your consideration Dunstable will bring the CPA to a Special Town Meeting on March 6th, and if it passes, to the annual Town Election in May.

For further information about the CPA, go to the State CPA website: www.communitypreservation.org

Overview Slide Presentation

The following presentation provides information on how adoption of the Community Preservation Act would affect Dunstable:

Click on one of the following options to display the presentation:

• Display as slides in a Microsoft-compatible browser, such as Internet Explorer.
• Display ~ 1MB PDF file.

Frequently Asked Questions

What is the Community Preservation Act?

The Community Preservation Act (CPA) is a state law (G.L. Ch. 44B) passed in September 2000 giving cities and towns a new funding source for protecting open space and historic properties, and creating affordable housing. The goal of the CPA is to preserve the character of our communities by addressing sprawl, the rapid loss of remaining open land and historic landscapes, and the need for housing affordable to town employees, senior citizens and others. Local priorities are researched and acquisitions and expenditures recommended by a Community Preservation Committee.

What are the steps in adopting the CPA?

The CPA becomes effective by local option. To adopt it:

• The town meeting or city council must vote to adopt the statue and specify the level of the surcharge that will be added to the real estate property tax (up to 3%) and the exemptions to the surcharge.
• There is a vote on a ballot question at the next regular state or municipal election to accept the CPA in the form voted by the legislative body.
• The town meeting or city council creates a Community Preservation Committee (CPC) through a bylaw or ordinance. Whether this vote can be taken at the same meeting where the legislative body votes to accept the CPA is being explored.

How is money raised and handled?

Funding is a combination of locally-raised money and a match provided by the state. Local funding comes from up to a 3% property tax surcharge, with the level determined by the community. Dunstable is proposing to adopt CPA with a 3% surcharge in order to obtain the maximum level of matching funds. However, the town can reduce that percentage to as low as 0.1% at any time by a town meeting vote.

Certain exemptions, spelled out in the statute, may be included. Local funds raised are matched by state funds raised through a new surcharge on the fees on filings in the Registry of Deeds and the Land Court.

The locally-raised surcharge money is placed in a Community Preservation Fund. The state money is placed in the Community Preservation Trust Fund administered by the Department of Revenue. After disbursal each October, the city or town places the state money in its Community Preservation Fund. The Fund may also receive penalties for violation of the CPA, and proceeds of any properties that are sold.

The deed transaction fees are expected to generate about $25 million annually. Gifts, settlement and other monies can also be placed in the fund. Eighty percent of the money received by the state fund each year will be distributed to participating communities as a percentage of the money they have raised locally. Each community will receive the same percentage match. The other twenty percent of the state money will be distributed according to a formula spelled out in the statute; the formula for this portion is based on population and property valuation criteria, and favors smaller and poorer communities.

The city or town notifies the Department of Revenue that it has adopted the CPA, the amount of the surcharge, and the amount raised in the past fiscal year. The state then begins an annual disbursement of matching funds.

What exemptions may be made?

Exemptions are chosen by the community and may include any of the following:

• Property owned and occupied by those qualifying for low income housing or low or moderate income senior housing.
• $100,000 of the value of all residential parcels
• Class three commercial and class four industrial properties in communities with classified tax rates

Dunstable is proposing to adopt CPA with the exemption for low income families and low-moderate income seniors. People 60 years of age and over qualify as seniors. Assets are not included in the qualification process. The definition of low and moderate income levels depends on the number of people in the household. The following table lists income levels for moderate and low income based on 2005 income data for the Lowell region, which includes Dunstable.

Does low or moderate income qualification include assets, or just income?

Qualification is based solely on income.

Who does the administration?

Most of the administration falls to the Assessor's office, but some of the CPA funds can be used to cover that administration. Towns that have adopted CPA have found that the administration requires less effort than the heavy load that they expected.

How can the money be used?

Funds are used for the protection of open space and historic resources, and for affordable community housing. At least 10% of the funds available each year must be designated to each use, though expenditure can be deferred. The community determines use of the remaining 70%. Specifically, funds are for:

• Acquisition, creation and preservation of open space. Open space includes land to protect existing and future well fields, aquifers and recharge areas, watershed land, agricultural land, grasslands, fields, forests, fresh and salt water marshes and other wetlands, frontage along the ocean and other water bodies, beaches, dunes and other coastal lands, scenic vistas, wildlife/nature preserves and land for recreational use. Land for recreational use here includes land for active or passive recreation e.g. community gardens, trails, parks, playgrounds, and athletic fields - but not stadiums, race tracks for animals, gymnasiums or similar structures.
• Acquisition and preservation of historic resources. This includes structures, vessels and landscapes eligible for listing on the state register of historic places or determined by the local historic preservation commission to be significant to local history, archeology, architecture or culture.
• Creation, preservation and support of community housing. Affordable community housing includes low and moderate income housing for individuals and families, and includes senior housing.

Funds can also be allocated to rehabilitation or restoration of the above when funded under this program, but not to management. Up to 5% can annually be used to administer the program.

Who owns and manages acquisitions?

All property acquired under the Community Preservation Act is owned by the city or town and must have a deed restriction limiting it to the purpose for which it was acquired. Management may be delegated to the Conservation Commission, historical commission, park commission or housing authority, or a water or fire district. Management may also be delegated to a non-profit organization.

What is the Community Preservation Committee?

A Community Preservation Committee consisting of 5-9 members that include one representative each from the local conservation, parks, and historical commissions, the planning board, and the housing authority. Other membership is determined by the community when CPA is adopted. If any of the boards or commissions don't exist in the community, the bylaw/ordinance provides a representative of that interest. The bylaw establishes the terms and whether any additional members are appointed or elected. The CPC researches the city or town's needs for open space, historic preservation and community housing, consults with relevant boards and commissions, recommends expenditures for these purposes, and keeps appropriate records.

Who decides how the funds are spent?

The Community Preservation Committee provides recommendations for expenditures, which are then acted upon in a town meeting. So, ultimately, the voters decide how the money is spent.

Are we locked in to CPA forever?

We can change the amount of surcharge at any time by a town meeting vote. After 5 years, we can revoke the act.

Does CPA come back to the town for a vote every 5 years?

No. It remains in effect until the town votes it out.

If we take out a bond that is backed by CPA funds, are we locked in?

The bond would need to be paid before we can revoke CPA.

Are we still paying the bond on the Town Hall. Can we use these funds to pay off that bond?

Yes, we are still paying the bond. However, we cannot use CPA funds to pay off that bond. CPA funds must be used for projects that are initiated after CPA is adopted.

What historic properties would qualify? Could these funds be used to subsidize improvements on a private residence?

The definition of historical building is determined by the Historical Commission. Generally, funds are applied to the preservation of public buildings, such as the Union School or the Town Hall. However, CPA funds could be applied to the preservation of a privately owned building, if the Historic Commission and Community Preservation Committee make it a priority to recommend such a project, and it is approved at a Town Meeting.