Why would Massachusetts communities be willing to pay this extra tax?

• Preserving the quality of life in a community adds to all the property values in that community.
• The Community Preservation fund improves the community as a whole and, therefore, protects the investment of homeowners.
• Studies have shown that preserving open space increases the value of the land and property nearby over the long term. (Worcester, Dayton, Oakland, San Diego, Seattle, e.g.)
• In comparing towns with different levels of development, including both residential and commercial/industrial, it was found that in general the more developed towns had higher tax bills for
  homeowners and the less developed towns had lower tax bills.
• Homebuyers don’t want to live in overdeveloped areas.
• Saving open space and protecting historic sites preserves the unique qualities of local areas.
• There is a direct link between the value of a community’s character and the length of time its residents will want to live there.
• Creating affordable housing allows those who provide essential services in a community - its municipal employees, firefighters, police officers, and teachers - to actually live in that community.

This Act provides flexibility in uses:

• Communities can spend the majority of funds collected on any one or combination of the three uses, depending on their needs.
• This is not a tax on outsiders. A surcharge on the property tax is a tax on all local property owners.
• The CPA allows a lot of latitude in the types of projects that may be funded. For example, in addition to new construction, CPA housing funds can be spent on a wide variety of uses including mortgage and rental subsidies, support of existing housing, subsidizing the purchase price of condos or houses, and down payment assistance.

What are some economic arguments for adopting the Community Preservation Act?

• Massachusetts’ natural and human resources: a clean environment, a skilled workforce, and a high quality of life draw business to the state.
• One of the main reasons that companies are reluctant to relocate to Massachusetts is the high cost of housing. By helping to create affordable housing, the CPA addresses this concern.
• Attractiveness (that is, dollar worth) of many of our historic towns depends on maintaining their rural and/or historic character.
• Prop. 2 ½ overrides should be saved for paying for escalating municipal capital and operating costs.
• Funds from the Community Preservation Act can
  • save farmland
  • prevent sprawl
  • protect water supplies
    
• Revitalizing downtowns through historic restoration can reduce pressure to build on greenfields and avoid sprawl.
• Often residential development does not pay for the services it requires.
• The optional elderly and low-income exemptions to the CPA surcharge insure that those least able to afford the CPA surcharge will not be burdened by it.
• Rather than remaining nuclei of blight, old mills and closed deteriorating buildings in downtowns can be restored to become magnets for productive activities.
• By helping to preserve and maximize a community’s resources and stabilize its local economy, this Act assists a community by attracting and keeping business.
• Community character depends on affordable housing for a range of households including municipal employees and the next generation.

Some further comments

• Because new development can destroy fields, forest, and farms, more and more towns are using development scheduling to protect their open spaces and other amenities.
• The Act is strictly local option. Some communities may want to adopt it; some may not, but at least the community starts to discuss these issues.
• Public open spaces give people of all income levels access to special places they could never afford to own or lease.
• The high cost of housing in Massachusetts is driving productive citizens away from the Commonwealth. The CPA is one effective tool to combat this trend and help ensure that our children can afford to purchase homes in the communities in which they grew up.
  

“Most Vermonters recognize the importance of downtowns as community and economic assets worthy of preservation. Downtowns give Vermont communities a sense of place, attracting businesses, residents, and travelers alike. Preservation of the working landscape and the natural environment are dependent upon strong communities and a growth pattern that avoids strip or sprawl development.”

William C. Shouldice, IV,
former Vermont Secretary of Commerce.