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Less cash to keep land free

State cutting aid on preservation

By Jennifer Fenn Lefferts
Globe Correspondent / October 25, 2009

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Communities that adopted the Community Preservation Act are receiving less money this year from the state as more cities and towns are vying for a shrinking pool of funds.

Officials say communities will have to cut back on new initiatives involving open space and recreation and projects geared toward affordable housing and historic preservation, as the average state match plunged to 40 percent this year. That’s its lowest level since the program began eight years ago, down from a high of 100 percent just two years ago.

“It makes the choices a little more difficult,’’ said David Foster, a member of the Ashland Community Preservation Committee. “The pot is smaller, so you have to weigh choices more carefully.’’

Ashland will receive $294,200 in state matching funds this year. Two years ago, it received about $668,000 at a 100 percent match; last year it received $524,000 for a 77 percent match.

The state recently distributed the matching funds for fiscal year 2010 to the 135 communities that participate in the program, including 30 in Boston’s western suburbs.

Those communities received a high of $1.1 million in Lexington ranging to a low of $37,300 in Millis. The match varies depending on the amount of money each community collects locally through the program.

The matching funds are generated from fees on real estate recording documents filed at county registries and go into a Community Preservation Act trust fund.

“It’s gone down because more communities have gotten involved, and the amount of money that goes to the fund has gone down with the decline of the real estate markets,’’ said Robert Bliss, a spokesman for the state Department of Revenue, which oversees the fund.

Those funds are used to match local funds raised by a property tax surcharge of up to 3 percent. Communities that vote to participate in the program must use the funds for recreation and open space, historic preservation, and affordable housing projects.

Stuart Saginor, executive director of the Community Preservation Coalition, a nonprofit organization that provides technical assistance to communities adopting or implementing CPA, said the match is projected to be as low as 28 percent next year. The current CPA legislation states that it can go down as low as 5 percent.

In an effort to keep the match from continuing downward, the coalition is supporting legislation filed by Democratic Senator Cynthia Stone Creem of Newton and Democratic Representative Stephen Kulik of Worthington that would raise the minimum match rate to 75 percent.

To support the legislation with additional funds, the bill would increase the CPA fee on real estate recording instruments from $20 to $40.

“Unless the Legislature acts, it will impact the ability of communities to do projects,’’ Saginor said. “If it’s not sustained, you’ll see less open space being protected, historic buildings continue to deteriorate, and less opportunities for people to have homes they can afford.’’

A legislative committee held a hearing on the proposal last month, and Saginor said he is hopeful the Legislature will approve it this year.

While the current drop in funding means communities will have to scale back projects or save up for a year or two for big-ticket initiatives, officials said they welcome any state match at a time when local aid from the state is being cut.

“We’re still getting $1 million from the state, which in today’s economic climate, is very welcomed,’’ said Betsey Weiss, the chairwoman of Lexington’s Community Preservation Committee.

Lexington received $2.5 million two years ago and $1.9 million last year. Since the town adopted the act in 2006, funds have been used toward 28 historic buildings, 33 acres of conservation land, 163 units of housing, and two new recreation projects.

In Waltham, one of the few cities that adopted the Community Preservation Act, William Durkee, the CPA program manager, said he’ll take what he can get from the state, even if it is a decline from last year.

Waltham will get $729,000 in matching funds this year, compared to $1.3 million last year and $1.9 million the year before.

“It will have an impact, but it’s still a very good return for our money,’’ said Durkee.

The CPA was approved in Waltham by just five votes in 2005. With the state match going down, some communities are looking at reducing the surcharge or getting out of the CPA altogether.

But Durkee doesn’t think it’s in any danger of being repealed in Waltham: It has won over many opponents who have seen the benefits, he said.

One of Waltham’s largest investments was using $930,000 to preserve six acres of open space near the Lexington line, Durkee said.

While Durkee doesn’t think his city is in danger of repealing the CPA, some communities have talked about it.

Bedford residents voted on a proposal to lower the surcharge at a Town Meeting in August, but it was rejected, said Myles McDonough, chairman of Bedford’s Community Preservation Committee.

He said residents support the CPA, even if the state match goes down further.

“Even if you’re getting 25 percent,’’ McDonough said, “that’s 25 percent and it’s better than nothing.’’

Jennifer Fenn Lefferts can be reached at jflefferts@yahoo.com.

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