The Community Preservation Act: An Innovative Tool for New York's Towns and Cities

Cities and towns across the state are facing mounting pressure from development. As proposals come in for subdivisions, strip malls, and commercial office parks, local officials must weigh the potential for economic growth against the need to preserve community character. The Community Preservation Act gives New York municipalities a way to strike a balance.

The statewide Community Preservation Act (CPA) seeks to amend the Town Law to give all towns and cities in the state the authority to voluntarily establish, through local referendum and the formation of a comprehensive plan, a Community Preservation Fund (CPF). A CPF finances the acquisition of recreational areas, the conservation of open space with natural, historic, or cultural significance, and the preservation of working farms. Under current law, towns and cities can establish CPFs only after obtaining approval from the Governor and State Legislature; the statewide CPA seeks to abolish this requirement.

CPFs derive their funds from a small real estate transfer fee, other gifts, and interest accrued from these assets. The transfer fee can be no higher than 2%, and may only be applied to the portion of a real estate transaction above the median price for the county in which the transaction occurs. In return, CPFs enable towns to purchase land or development rights from willing sellers in order to protect community character. A town might also use a CPF to establish a transfer-of-development-rights bank, or to manage land that is acquired (no more than 10% of a CPF may be used for the latter purpose).

Experience has shown that CPFs are welcome and effective conservation tools in New York. In the Towns of East Hampton, Riverhead, Shelter Island, Southampton, and Southold, CPFs have generated more than $400 million, which has protected over 7,500 acres of natural, productive, historic, and recreational land. Town residents have twice voted to extend the life of their CPF, which will now be in effect until 2030. Drawing from the East End's success, the Towns of Warwick, Red Hook, Chatham, and Fishkill also approved CPFs in recent years. And in August 2007, the Hudson Valley Community Preservation Act became law, granting the towns and cities in Putnam and Westchester Counties the authority to hold referendums on establishing CPFs.

But NLT believes the need to obtain approval from state government for CPF authority poses an undue burden on local government and flies in the face of home rule, a principle on which New York's Constitution is predicated. CPFs are created and administered transparently in accordance with state law, so additional state oversight seems to us redundant and a waste of limited resources. We strongly believe the residents of a town or city know best how to use their lands and local heritage, and should be given the freedom to make decisions based on that knowledge.

Moreover, as New York communities struggle to address a host of environmental issues, CPFs provide a welcome private source of conservation funding. Municipal budgets are tight, and state and federal funds are scarce. Although New York State is expected to earmark almost $400 million for environmental needs this year, unfunded demand to support preservation efforts is anticipated to top $1 billion per year over the next 10 years. In this context, we strongly believe the statewide CPA makes sense.

Statewide CPA legislation is pending in the New York State Legislature. It passed the Assembly in April 2007, as bill A. 7333. We thank the Honorable Rob Walker, from Nassau County, for his co-sponsorship of this legislation. Nassau County's own Senator Carl Marcellino introduced the companion bill in the Senate, S. 3836. We applaud Senator Marcellino and hope the bill will come before the full Senate for a vote before the end of the 2008 legislative session.

What can you do? Call or write your New York State Senator, asking him/her to co-sponsor S. 3836, the Community Preservation Act!

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