CPA Surcharge Increase Presentation — File 24-1038

Community Preservation Act Surcharge Proposed ballot question to increase CPA surcharge from 1.5% to 3%

● The CPA program has been a demonstrated success: a 10 year track record of investing in Somerville’s community needs. ● $24M in local revenue since 2024 has generated $7M in state match, and leveraged $300M in funds from other sources to build affordable housing, create parks, and make historic buildings safe and accessible. ● The CPA Plan gives details about the program goals, funding levels, and funding history. What is the Community Preservation Act?

Why increase the surcharge? ● CPA funding requests surpass available revenue ● Urgent community needs for affordable housing, open space, accessibility, and lifecycle upgrades to historic buildings ● Increasing cost of land and construction ● A surcharge increase takes full advantage of the tools locally available to us Why now? ● Other avenues to address affordable housing needs such as the transfer fee appear unlikely to pass at the state level at this time. ● Slower development means less revenue projected from other sources ● Presidential election cycle ensures the highest level of voter participation

How will this impact property taxpayers? ● Average owner-occupied condo would see annual increase of $38 per year. ● Average owner-occupied single family would see increase of $93 per year. ● Low income homeowners and low-moderate income seniors can apply for full exemptions from the CPA surcharge. (Generous qualifying income levels) Condo 1-Family 2-Family 3-Family 4-8 Family Estimated Annual CPA Surcharge (Potential increase to 3%) $76.06 $185.85 $196.96 $266.89 $436.35 Change in Annual CPA Surcharge from existing 1.5% to 3% $38.03 $92.93 $98.48 $133.45 $218.17 Monthly impact of Surcharge change $3.17 $7.74 $8.21 $11.12 $18.18

Who qualifies for exemptions from the CPA surcharge? ● Low income property owners and low-moderate income seniors can apply annually to be exempted from the CPA surcharge. ● The exemptions do not change under the proposed surcharge increase. Household Size ONE TWO THREE FOUR FIVE SIX Low-income homeowners (80% of AMI) $83,384 $95,296 $107,208 $119,120 $128,650 $138,179 Moderate income seniors (100% of AMI) $104,230 $119,120 $134,010 $148,900 $160,810 $172,724