The Community Preservation Act (CPA) was approved in each of the ten communities where it appeared on the ballot Tuesday. That brings the total number of communities that have adopted CPA to 75. The ten communities that adopted the Act on Tuesday include: Barnstable, Concord, Groton, Hadley, Hanover, Middleton, Needham, Northborough, Sharon, and Wilbraham. To see the vote breakdown by community visit, www.communitypreservation.org/SpringElections.cfm

The CPA allows communities to impose a property tax surcharge of up to 3%. The funds raised are matched by the Commonwealth, and the money is used to fund affordable housing, open space, and historic preservation. The 65 communities that adopted the Act prior to November 2nd have raised more than $150 million (surcharge and match) for the three uses.

DHCD FY 2006 Budget Hearing

The Department of Housing and Community Development (DHCD) will hold a public hearing to accept comments from interested parties as part of its Fiscal Year 2006 budget recommendation process. The hearing will take place on Wednesday, November 10, 2004, at 100 Cambridge Street, 4th Floor, Conference Room A. It will begin at 3:00 p.m. Those who wish to attend should call Terry Farmer at 617-573-1107 to pre-register. Attendees must present a picture ID to enter the building.

If you are unable to attend the public hearing, written comments may be sent to Jane Wallis Gumble, Director, 100 Cambridge Street, Suite 300, Boston, MA 02114. Be sure to write "Attention: FY 2006 Budget" on the envelope.

CHAPA and Communities Support Municipal Trust Fund Bill

Responding to those who raised this issue at our recent membership meetings and to letters of support that we received from the City of Melrose and City of Gloucester, CHAPA is working with members of the Massachusetts House and Senate to pass An Act Promoting Affordable Housing Trust Funds (H.4709). The bill passed the House in May and is before the Senate Committee on Bills in Third Reading. Our meetings with the Senate have been favorable.

The bill would make it easier for communities to create housing trust funds. Currently, a community that wants to create a fund must file a Home Rule Petition with the legislature for the authority to do so. House 4709 would allow communities that accept the bill to establish Municipal Affordable Housing Trust Fund without the need for a separate Home Rule Petition. Rather, the legislation would be approved by the city council and mayor or at town meeting. The mayor or city manager would then appoint a board of trustees that would be confirmed by the city council or board of selectman.

The legislation will assist with the "[c]reation and preservation of affordable housing in municipalities for the benefit of low and moderate income households." The bill, as originally drafted, can be found at www.mass.gov/legis/bills/house/ht04709.htm.

Work Begins on 40R Regulations

The Department of Housing and Community Development (DHCD) and Massachusetts Housing Partnership (MHP) have begun working to implement G.L. c. 40R, the Smart Growth Zoning and Housing Production statute that passed as part of the FY 2005 budget. A consultant has been hired, and a working group representing communities and interested organizations has been appointed. The working group has met twice. The Department has indicated that its goal is to issue regulations by the end of the year.

Municipal Leasing and Public Bidding Letter

Earlier this year, the Town of Barnstable asked the Massachusetts Attorney General whether private developers would have to comply with public bidding laws if the town leased land to the developer for the purpose of affordable housing. The response from the AG's office left municipalities unsure of how and whether they should proceed to lease land for the construction of affordable housing. The Department of Housing and Community Development (DHCD) has been meeting with CHAPA members to resolve the issue and to provide guidance to municipalities regarding the level of municipal benefit/contribution/control that could lead to the application of public bidding laws. When a final opinion is released, it will be available on CHAPA's web site.

IRS Ruling Anticipated for State Affordable Housing Tax Credit

If the Massachusetts Department of Revenue receives the ruling it expects from the U.S. Internal Revenue Service later this week, it is likely that the yield on the Massachusetts Affordable Housing Tax Credit will increase.

When the legislature voted to extend the Massachusetts Affordable Housing Tax Credit program for five more years, there was general agreement to try and increase the value of the credits. The Massachusetts DOR requested a ruling from the IRS regarding whether state taxpayers could claim the tax credit yet also deduct the original amount of state taxes, before the credit, from their federal taxes. If the IRS rules that this is allowable, syndicators tell CHAPA they expect the value of the state housing tax credit to increase. Should this happen, it would address objections raised by some members of the Romney Administration regarding the program.

CHAPA to Submit Comments to HUD on Section 8 Fair Market Rents

CHAPA will be submitting comments to HUD this Friday on the FY 05 Section 8 Fair Market Rents (FMRs), which were published on October 1, 2004. In September, we submitted comments urging HUD to delay implementation of the new FMRs because we believed they were below the actual 40th percentile rents in many parts of Massachusetts, in part due to the proposed redefinition of FMR areas. We were pleased that HUD decided to keep the previous FMR area boundaries, but still believe that the FMRs published on October 1 are problematic for the following reasons:

The comments will be posted on CHAPA's web site on Friday.