The Department of Revenue is now projecting a 17.7% first round trust fund distribution in November of 2020.
It is important to note, however, that the agency's projection is based solely on revenue that was collected in the CPA Trust Fund as of July 31st, 2020 - it does not take into consideration the additional revenue that will come in between August and November of this year. This effectively means that if the state match distribution occurred today, all communities would receive a base match of 17.7%.
What Could the Final November 15th Match Look Like?
Available reports show that monthly CPA collections from the state's Registries of Deeds have not been significantly impacted by the pandemic. Because of the new CPA revenue legislation that went into effect in January, collections each month have averaged out to be approximately 2.5x higher compared to last year. Assuming the collections hold strong for the rest of the year, the Coalition feels it is likely that the base match for November could fall into the range of 25-30% of what communities raise at the local level.
That being said, CPA communities are advised to use DOR's official projection before making any updates to their FY21 budgets.
FY2021 Community Preservation State Match - Update on State Match
As of July 31, 2020 collections from the Registry of Deeds indicates that the Community Preservation State Trust Fund balance would allow for a 17.7% base state match for FY2021. Now that communities are beginning to submit local surcharge reports (CP-1 form) we will update the state match estimate in September based on those reports and state collections as of the end of August.
We will provide updated guidance on the state match percentage as additional data becomes available.
What is CPA? The Community Preservation Act (CPA) is a smart growth tool that helps communities preserve open space and historic sites, create affordable housing, and develop outdoor recreational facilities. CPA also helps strengthen the state and local economies by expanding housing opportunities and construction jobs for the Commonwealth's workforce, and by supporting the tourism industry through preservation of the Commonwealth’s historic and natural resources.
