TO ENABLE A COMMUNITY PRESERVATION FUND TO BE ESTABLISHED IN CERTAIN MUNICIPALITIES.

FINDINGS. It is hereby found that the fundamental character of the communities of the commonwealth is now endangered as the result of the combined effects of a series of factors, including:

1. the loss of open space and park land as the result of continuing sprawl;
2. the loss or deterioration of structures and landscapes that are of historical importance to the communities in which they are located;
3. the inadequate supply of low and moderate income housing, which forces people of all ages to leave communities where they have roots or deprives them of housing that meets reasonable standards of habitation;

SECTION 2. CITATION. This act may be cited as the Community Preservation Act.

SECTION 3. DEFINITIONS. For the purpose of this act, the following words and phrases shall have the following meanings:

Community Preservation Committee, the committee designated by the local legislative body, in accordance with Section 4(b), to formulate a Community Preservation Plan and to administer the Community Preservation Fund.

Community Preservation Fund, the fund established in accordance with the provisions of Section 5 for the purposes of funding a Community Preservation Plan.

Community Preservation Plan, a plan formulated, or adapted from existing plans, by the Community Preservation Committee of the municipality, and adopted by its local legislative body, for the following purposes:

1. acquisition of open space;
2. acquisition or preservation of historically important structures and landscapes;
3. creating and supporting low or moderate income housing;
4. planning and administrative needs to support implementation of the Community Preservation Act; and
5. management of open space lands, historic properties, and low or moderate income housing.

SECTION 4. IMPLEMENTATION

(a) This act shall take effect in any city or town upon recommendation of the funding mechanism by the local legislative body and acceptance of this funding mechanism by majority vote in a duly authorized ballot referendum. The local legislative body shall recommend to voters one of the following three mechanisms for funding the Community Preservation Program:

(1) deeds excise tax of up to one percent;
(2) excise on real property up to three percent of the real estate tax levy against said property; or
(3) deeds excise tax of up to one-half of one percent and an excise on real property of up to one and one-half percent of the real estate tax levy against said property.

(b) If a funding mechanism, with or without an exemption, is accepted, the local legislative body shall determine the size and composition of the Community Preservation Committee, the length of terms, and the method of selecting its members, whether by election or by appointment or by some combination thereof.

(c) Once constituted pursuant to Section 4(b), the Community Preservation Committee of the municipality shall work closely with existing municipal boards in the formulation of a Community Preservation Plan for the municipality, which shall be submitted for a formal process of public review and adoption. The Community Preservation Plan shall address the municipality's needs for open space preservation, historic preservation, and community housing and shall prescribe funding and administrative strategies for meeting these needs. The Community Preservation Plan shall also describe a program of management of open space lands, historic properties, and community housing, and identify planning needs to support implementation of the Community Preservation Act.

(d) The Community Preservation Committee shall make available in one or more public places, including the town or city hall, copies of the proposed Community Preservation Plan.

(e) The Community Preservation Committee shall hold one or more public informational hearings on the Community Preservation Plan, publicized through the public press and posting of conspicuous public notices. The Community Preservation Committee shall make such changes to the Community Preservation Plan as it shall deem appropriate in light of the public hearings and comments and shall approve the Community Preservation Plan by majority vote and submit the same to the local legislative body for final approval, subject to such amendments, if any, as the local legislative body shall adopt.

(f) Proposals for amendment of the Community Preservation Plan shall follow the same process of public notification, public hearing, approval by the Community Preservation Committee, and final approval by the local legislative body.

(g) The Community Preservation Committee shall take such action and spend such funds from the Community Preservation Fund as are necessary or desirable to carry out the Community Preservation Plan; provided, however, that

(1) in any year the Community Preservation Committee shall spend, or set aside for later spending, no less than ten percent of the annual revenues for open space acquisition purposes, no less than ten percent of the annual revenues for acquiring, renovating and/or preserving historically important structures and landscapes, and no less than ten percent of the annual revenues for capital or loan expenditures associated with providing community housing,
(2) in any year a maximum of five percent of the annual revenues may be spent on developing the Community Preservation Plan and associated planning and administrative costs that support implementation of the Community Preservation Act; and
(3) in any year a maximum of ten percent of annual revenues may be spent on management of open space lands, historic properties, or community housing, consistent with management goals described in the Community Preservation Plan.

(h) Real property interests in open space may consist of any open space defined under Section 3 of this chapter. Acquisition of real property interests in open space, historic properties, or community housing may be in the form of fee simple, future interests, options, easements, development rights,restrictions or other partial interests. Any real property interest in open space purchased with monies from the Community Preservation Fund shall be retained in natural, scenic, or open condition and shall be bound by a permanent deed restriction in the nature of a conservation restriction pursuant to and meeting the requirements of Massachusetts General Laws Chapter 184, Sections 31-33, limiting the use of the interest to the purpose for which it was acquired. Said deed restriction shall run with the land and shall be enforceable by the municipality or the commonwealth. Said deed restriction shall also run to the benefit of a nonprofit, charitable corporation or foundation selected by the municipality with the right to enforce said restriction. Real property interests acquired under this act shall be owned and managed by the municipality; provided, however, that the city council or board of selectmen may delegate management of such property to a nonprofit organization created under chapter 180 or chapter 203 of the General Laws, the local conservation commission or parks commission, or, in the case of interests to acquire sites for future wellhead development, by a water company, a water district, a water supply district, or a fire district.

(i) Any municipality that has accepted this act may, after five years, terminate such acceptance by majority vote in a duly authorized ballot referendum; provided, however, that the increased levy imposed under Section 5(a) of this act shall remain in effect in any such municipality, both with respect to unpaid levies on past transactions and with respect to levies due on future transactions, until all contractual obligations incurred by the Community Preservation Committee prior to such termination shall have been fully discharged. Upon such termination of acceptance of this act and discharge of all such obligations, the municipality shall notify the register of deeds in each registry in which realty in that municipality is located, whereupon such registry shall cease to collect the increased levy imposed under Section 5(a).

SECTION 5. COMMUNITY PRESERVATION FUND.

(a) Upon recommendation of the local legislative body and acceptance by the voters, as provided in Sections 4(a), of the type, amount and computation of the levy or levies to be imposed, including any exemptions adopted pursuant to said Section 4(a), and upon notice of such acceptance given,

(1) in the case of the deeds excise tax, to the appropriate registers of deeds and/or
(2) in the case of the excise on real property taxes, to the municipal tax collecting authority, the accepted levy or levies shall be imposed.

(b) At any time after imposition of the levy or levies, the local legislative body may recommend and the voters may approve an amendment to the type, amount and computation of the increased levy or levies, or to the amount of exemption or exemptions, within the limitations set forth in Section 4 of this chapter.

(c) From and after receipt of notices of the increased levy or levies by the registers of deeds and/or municipal tax collecting authority, the registers of deeds and/or municipal tax collecting authority shall collect the increased levy or levies in the amount and according to the computation specified in such notices and shall pay the amounts so collected, not less frequently than monthly for the deeds excise tax and quarterly or semi-annually according to the schedule for collection of property taxes for the excise on real property, to the municipality's treasurer. If a deeds excise tax is imposed, an amount equal to one-half percent (0.5%) shall be deducted and retained from the amounts so collected, to reimburse the registry for its expenses in collecting and remitting such levy. The registers of deeds and/or municipal tax collecting authority shall cause appropriate books and accounts to be kept with respect to such levy or levies, which shall be subject to examination by the municipality upon reasonable request from time to time.

(d) The penalty provisions of sections 6A, 7, 8 and 9 of chapter 64D of the General Laws shall be applicable to the increased levy or levies imposed by this act.

(e) The municipality shall establish one or more revolving or sinking fund accounts within its treasury, which shall constitute the Community Preservation Fund. Deposits in said accounts shall include:

(i) funds appropriated for deposit in said accounts by vote of the local legislative body;
(ii) voluntary contributions of money or other liquid assets to the Community Preservation Fund;
(iii) revenues from the levy or levies established under Section 4(a) of this chapter;
(iv) proceeds of any borrowing permitted under Section 6 of this chapter; and
(v)proceeds from disposal of realty acquired with funds from the Community Preservation Fund.

SECTION 6. BORROWING. The Community Preservation Committee of any municipality that accepts this act may incur debt by issuing bonds or by signing notes secured by pledge of the Community Preservation Fund, the proceeds of which shall be deposited in the Community Preservation Fund and applied to implement the Community Preservation Plan, but the Community Preservation Committee may not pledge the full faith and credit of the municipality as security unless recourse to such credit has been authorized in each instance by a two-thirds vote of the local legislative body.

SECTION 7. RECORDS AND ACCOUNTS. The Community Preservation Committee shall keep a full and accurate account of all actions, including a record as to when, from or to whom, and on what account money has been paid or received under this act, and as to when, from whom and for what consideration real property interests have been acquired, improved or disposed of. Said records and accounts shall be public records and shall be subject to examination by the director of accounts or his agent pursuant to section forty-five of Chapter thirty-five of the General Laws as amended from time to time.

SECTION 8. OTHER PROGRAMS. Municipalities that accept this act shall not be precluded from participating in state grant programs. State grant programs may include local adoption of the Community Preservation Act among the criteria for selection of grant recipients. Funds in the Community Preservation Fund may be made available and used by the Community Preservation Committee as the local share for state or federal grants, provided that such grants and such local share are used in a manner consistent with the Community Preservation Plan.

The executive office of environmental affairs may establish a program to provide for matching funds to be awarded to municipalities in one or more selected regions, counties, or watersheds for open space acquisition. To be eligible to participate in such grant program, a municipality shall have voted to adopt the Community Preservation Act program in accordance with the provisions of this Act.

SECTION 9. JOINT COMMUNITY ACTION. Two or more municipalities may join together to form a regional, county, or watershed-wide Community Preservation Act program, provided that

(i) a regional, county, or watershed-wide Community Preservation Committee is established to administer the program;
(ii) a regional, county, or watershed-wide Community Preservation Plan is developed, reviewed and approved by each participating municipality; and
(iii) proceeds of the levy or levies described in Section 4(a) of this chapter are pooled and expended in furtherance of said regional, county, or watershed-wide Community Preservation Plan. Notwithstanding the foregoing, without entering a regional, county, or watershed-wide Community Preservation Act program, establishing a regional, county or watershed-wide Community Preservation Committee or developing a regional, county, or watershed-wide Community Preservation Plan, any municipality may choose to allocate any portion of its Community Preservation Fund which has been set aside to satisfy the statutory purposes set forth in Section 4(g) to any project in an adjoining municipality which satisfies the purpose for which that fund has been designated.