City Council okays property tax surcharge for housing, parks, preservation

City councillors on Wednesday voted in favor of a property tax surcharge for community preservation purposes, sending the measure to Mayor Martin Walsh for almost certain approval and on to the ballot in November.

In a 12-1 vote, the council chose to once again put the Community Preservation Act (CPA) before the voters. The add-on tax, which has earned Walsh’s enthusiastic support, would be used to benefit housing, historic preservation, and open space.

City Councillor At-Large Michael Flaherty and District 4 City Councillor Andrea Campbell co-sponsored the measure, which drew one dissent in Wednesday’s vote from South Boston Councillor Bill Linehan, who said his was “really a protest vote."

“This is an exciting opportunity for all of us, because this is just the start, the kickoff,” Flaherty said in late April, joining Mayor Martin Walsh as the mayor declared his support for the program. In a statement on Tuesday, Flaherty said that after months of community discussions, he believes “voters should be given the opportunity to decide how funding should be allocated for local projects that will benefit our city for years to come.”

Across the state, 160 cities, including Cambridge, Somerville, and Quincy, have signed onto the 2000 law. Surcharge rates vary between 0.5 percent and 3 percent. The 1 percent proposal currently under consideration for Boston is a step back from the 2 percent add-on that was rejected by voters in 2001.

"We've studied the impacts and benefits,” Walsh said in a statement this week, “and I believe the Community Preservation Act offers a balanced and timely strategy for helping Boston build affordable housing, invest in our parks, and preserve Boston's historic and inclusive character.”

Individual property taxes would rise by an average of $28 a year under the CPA, Walsh said. An earlier estimate by the city council cited an average $23 increase.

Joe Kreisberg, executive director of the Massachusetts Council of Community Development Corporations, said the actual determination of the property tax surcharge depends in part on the “average house.” The first $100,000 of assessed property value is exempt from the calculations, as are families earning under $78,800 annually.

Boston expects to raise $16.5 million from CPA revenue, Walsh said, and another $5 million in state matching funds. Advocates note that the city has missed out on between $300 million and $400 million in revenue since the initial CPA vote in 2001.

The city already draws extensively from property tax revenue to fund its initiatives. While concerns have been raised about increasing that burden, even incrementally, improving and increasing the city’s housing stock will require new sources of revenue, city officials said.

"As I’ve articulated throughout this exercise, I believe that we as a city rely too much on property tax for our revenue," Linehan said, "and I believe we should be able to collectively take on the responsibility for finding new ways to find revenue for our city.”

Campbell said her support for the CPA arises from her constituents, who “want to establish a consistent and sustainable source of revenue to combat the housing crisis facing middle-income and senior families, preserve their historic landmarks, and revitalize and expand their recreational spaces.”

While councillors have touted the potential benefits of the CPA, the focus in council meetings has thus far been on getting the proposal on the ballot. Walsh’s unequivocal support for the measure, particularly on its effect on the city's housing stock, was given with an eye toward ensuring that the measure passes.

“I’m all in. We’re all in,” Walsh said in April, standing in City Hall Plaza under bright sunshine, flanked by members of his administration, city councillors, and community advocates. “And we’re not in this to lose on the ballot in November.”

Although the CPA is a state law, it quickly takes on the characteristics of the communities that adopt it, said Katherine Roth, associate director of the Community Preservation Coalition, which oversees CPA programs across the state.

The rules governing distribution are loose – 10 percent each must be set aside or spent each year on CPA-approved projects in historic preservation, housing, and parks/open space, with the remaining 70 percent apportioned depending on a city’s priorities.

Cambridge has dedicated about 80 percent of its CPA budget to housing, Roth said, while cities like Plymouth or Salem have focused on historic preservation.

A CPA committee reviews proposals and makes recommendations to local legislative bodies, such as the city council, that then approve the funding distribution. “Because it’s a program we expect will be around for many, many years, we may make different decisions on priorities every year,” Kreisberg said.

Advocates are already moving forward with a campaign for passage they have named “Yes for a Better Boston.” Kreisberg said this presidential election cycle is an ideal time to bring up the CPA, with high turnout expected and the mayor’s Imagine Boston 2030 initiative beginning to lay a blueprint for the city’s rapid growth.

“We see really, some very rousing, big campaigns around the CPA,” Roth said. “Almost always, there is a grassroots campaign for its passage, and we expect a big campaign in Boston.”


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