State matches shrink

For fiscal 2010, which started July 1, the average state match plunged to 40 percent - the lowest level since the program began eight years ago, and down from a high of 100 percent just two years ago.

The state provides the matching money for 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.

Officials in a number of communities south of Boston say they are not surprised by the drop, given the state’s economic condition. Some say they are happy to get any match.

“Honestly, we thought we might get less than we are,’’ said Robert Bentley, chairman of the Carver Community Preservation Committee.

Carver, which received $207,887 this year, is among 142 communities in the state that participate in the program. Of those, 135 received a state match for the current fiscal year; the remaining communities did not approve the program in time to receive a match this year.

The reimbursements south of Boston ranged from a high of $537,596 in Plymouth to a low of $20,379 in Plympton. The state 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, or CPA, 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.

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

In an effort to keep the match from shrinking further, 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 raise 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. Officials from several communities attended the hearing and urged legislators to support the bill.

“We’d like to see it pass, to stabilize things,’’ said Steven Perdios, chairman of the Quincy Community Preservation Committee.

Perdios said the program has been widely popular in the city and the funding has allowed the city to support many projects that would otherwise never get off the ground. He said since the city adopted the CPA in 2006, the city has spent $4.5 million to preserve 18 acres of open space.

“That’s not chump change,’’ he said.

Perdios said because Quincy is a large community, it still generates a significant amount of money, despite the lower match. This year, Quincy, where property owners pay a tax surcharge of 1 percent, will receive $434,442, compared with two years ago when it took in $1,122,761 in the state match.

“Everybody likes money, so it would be nice if we had more, but it’s not surprising,’’ Perdios said.

Officials said they feel fortunate to have received a high match for so many years. They said they were prepared for a drop this year, and possibly for years to come as the state rebounds from the recession.

“As far as we’re concerned, anything is better than nothing,’’ said Diane Campbell, chairwoman of Hanover’s Community Preservation Committee. “It’s free money.’’

Hanover received $631,824 two years ago, $517,713 last year, and $291,996 this year. The town’s property tax surcharge is 3 percent.

“Every little bit helps, is what it comes down to,’’ Campbell said, adding her committee has always been conservative in its spending and the reduced match only means that philosophy will continue.

Robert Sears, chairman of the Hanson Community Preservation Committee, said this is the first year the town has received a state match. Even though it missed out on several years of the state matching communities 100 percent, Sears said the program is still worth the investment. Property owners in town pay a tax surcharge of 1.5 percent.

“We understood the parameters of the program going in,’’ he said. “The community is so much better off because those dollars give us the opportunity for projects we could not even consider before.’’

Hanson received $49,615 for its first match, but it has already taken on some projects using the local funds generated last year, Sears said. The funds were used to preserve historical town records and to buy the Nathaniel Thomas mill, a historic property in the center of town.

“Where else can you get a 34 percent return on your money?’’ Sears said, referring to the state’s matching contribution to the town.

Still, residents in some communities question the program, given the economic challenges.

In Duxbury, voters were asked whether the CPA surcharge should be reduced from 3 percent to 0.25 percent at a Town Meeting in April, but the proposal was defeated.

In Carver, Bentley said that there’s a faction in town opposed to the CPA and that he would not be surprised if the lower state match fuels their argument to get rid of the program or reduce the surcharge, which is 3 percent for local property owners. He said that’s one of the reasons his committee supports the legislation that would guarantee a match of 75 percent.

“The committee is really worried about an attempt to repeal it or a lowering of the surcharge,’’ Bentley said.

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