Sheffield voters have an opportunity to accept the Community Preservation Act (CPA) by voting “Yes” on Question 6 on the November 5 ballot. This is the first time we have been given the opportunity to vote on the CPA, and we need to take advantage of it—we may not get it again.
I, like many in our community, am focused on community/affordable/workforce housing; it has been the number one-requested use of ARPA funds by the public. It is likely our biggest current and future problem, and it is not easy to solve, especially without money.
Most if not all readers know someone who cannot buy into Sheffield given the unaffordable prices. Some could afford the monthly mortgage but not the down payment. While the Planning Board has laid the table for housing development through solid and continually updated zoning bylaws, we all know land is expensive. Likewise, some residents have become land rich on paper, but their incomes have not kept pace to be able to add a rentable apartment or accessory dwelling unit. And for some, seasonal and short-term rentals make more money, thus almost no rentals in town.
Likewise, the Housing Commission has received state approval of the town’s Housing Production Plan but has no money to implement it, including no ARAP funds. Town voters just voted not to sell a four-acre site on Hewins Street—a perfect site for multiple housing units, if voters approve this at a future town meeting. We can’t expect the 10 volunteers on these two boards to solve our housing issues. But again, money is needed and even $100,00 can make a significant difference when partnering with Construct, Habitat for Humanity, and other organizations.
Thus, the Community Preservation Act and Ballot Question 6
This state law and opportunity has been around for over 20 years and is designed to help communities, like Sheffield, address four needs, for which there is often no or little town funding available:
- Community housing
- Preservation of historic buildings and materials
- Outdoor recreation
- Preservation of open spaces
To make it more attractive, the state provides an annual match on locally collected CPA funds, which has varied from 17 percent to 43 percent of locally collected funds from 2017 to 2023. This annual state match allows CPA communities to leverage their funds and get a solid return. I have written a fair number of grants for Sheffield, and I know of no grant or other opportunity that provides an annual match, let alone at these rates.
CPA basics
To date, 196 of 351 Massachusetts communities, with over 70 percent of the state’s population, have accepted the CPA. Between locally collected CPA funds, state-matching funds, and occasional additional funds from the legislature, over $3.4 billion has been raised for community preservation projects.
CPA funds are made up of two contributions: (1) a local contribution of one three percent property tax surcharge (Sheffield voters are asked to accept a conservative one percent tax surcharge); and (2) state funds from a state CPA trust fund, funded by real estate transaction fees. Sheffield has been paying into this fund for over two decades, with no returns. In addition, the state legislature may contribute additional funds.
While Great Barrington, which accepted the CPA in 2012, has put over $7 million into their CPA coffers between locally raised CPA funds and state matches, Lenox has collected over $8 million, and Becket, with a 1.5 percent surcharge, has collected over $800,000. (The Community Preservation Coalition website lists all the municipalities that have accepted the CPA, what funds they have collected locally and received from the state, and projects approved by their voters.)
Costs and returns to Sheffield taxpayers
Using past CPA state matches, the CPA funds raised locally can be expected to generate over $80,000 annually, with a state-provided funds match contribution of $15,000 to $35,00 annually for a total estimated CPA revenue of $95,000 to $115,000 per year. CPA funds may be saved from year to year. This CPA fund may not be used for projects other than from these four categories. It may not be used for other town expenses. All proposed CPA-funded projects must be approved by voters at a town meeting.
CPA mechanics are straight forward, and every CPA deduction allowed by the law has been incorporated in Question 6. Our most vulnerable senior and non-senior property owners have a full exemption from this surcharge, when income qualified and after filing a simple exemption form.
Every property owner who owns residential, commercial, or industrial property has an automatic $100,000 reduction in their assessed property value before the one percent property tax surcharge is figured. Those property owners who have other exemptions, such as Chapter 61, Senior work-off, Veteran, and Blind; these exemptions are also deducted before the one percent surcharge is applied.
While the one percent property tax surcharge amount will vary based on increases or decreases in either property assessment values or fiscal year tax charges, for fiscal 2024, the average Sheffield single-family homeowner would pay $41.48 a year.
Benefits for Sheffield’s housing
While some of us may think the only way to solve Sheffield housing problems is to build houses, so much more is allowed under the Community Housing category. Sheffield could, with voter approval of a proposed CPA-funded housing project:
- Conduct housing planning including hiring a grant writer and someone to figure out Massachusetts’ new multi-billion-dollar housing plan and how to take advantage of it; investigate septic packets systems, shared water sources, or the cost to extend Aquarian’s water system; determine how to provide rehab and first-time homeowner mortgage assistance; as well as use available housing partnerships.
- Plan and assess current and future opportunities and fund accordingly.
- Buy land and housing—the most obvious, and this may be done with a partner and may mean providing just the cost of materials, as has been done by many communities, including Becket.
- Fund housing activities such as current and future projects in partnership with residents, nonprofits, and developers.
- Build new and renovate/rehab existing housing with partners, such as habitat for Humanity to leverage CPA and donated funding, on purchased or donated land and rehab owner-occupied housing through CDBG grant funds.
- Provide Mortgage Subsidy Loans and Rent Assistance, including first-time home-buyer programs, and work with local banks to provide solutions to these real obstacles.
The three other categories are also important to Sheffield as all categories may include nonprofit, not just town, projects, and each receives a mandatory 10 percent of the total annual CPA funds, which again may be accumulated for, as examples, upgrading the Town Park; repair work on Dewey Hall, the Library, a historic church, or the Stone Store; preserving historic records or artifacts; or purchasing a special piece of property.
We as a community may either continue to talk about housing needs or we may begin to do something about it by voting “Yes” on Question 6.
A “Yes” vote will establish a CPA-dedicated, secure source of funding for community/affordable/workforce housing and the other three CPA categories. It is a reasonable annual price to pay, or gift to give, to begin addressing real town housing and other problems that aren’t going to go away and begin to get our fair share of state CPA trust funds.
Ballot Question 6 is a community question and commitment. It asks all property owners, who are not exempt, to add a bit more to their property tax bill to raise funds to benefit our town and its future. The state will contribute funds, but we must first vote “Yes.”
I know we also need to step beyond the idea that it may benefit someone else. Most likely it will, but that someone else” may be kids, grandkids, or other family who want to come back but can’t. It may benefit current or future necessary employees, whether for private and nonprofit businesses, who can’t afford Sheffield and so take a job elsewhere. It may help create a more secure workforce for everyone and avoid the disruptions of not being able to find employees or constant expensive training. At some point, this isn’t a winning formula for attracting or keeping businesses. It may help your neighbor or you who needs a new roof, septic, or an ADA modification but can’t afford it. And with a median age of 59 years, Sheffield needs to think about its future citizenry.
Please join me in voting “Yes” on Ballot Question 6.
