Community Preservation Funds Aid Housing Development

Across the United States, cities have begun using Community Preservation Funds to ensure that the most important aspects of their respective cities are... well... preserved. The Funds are often designated for use in maintaining historic locations, parks and other recreational facilities. Some also use the funds to support affordable housing development.

Late last year, Cambridge, Massachusetts city council members spent a significant amount of time debating how best to allocate the city's Community Preservation Funds. Historically, 80 percent of the money has been earmarked for affordable housing, but some councilors believed it needed to be allocated differently.

City Councilor Tim Toomey suggested setting aside just 50 percent of the Funds for housing, and increasing the amount used for "open space" and historic preservation. Other councilors offered similar formulas. A total of $9.5 million was on the table as part of the city's fiscal year 2011 budget.

The Community Preservation Fund was enacted in 2000 and adopted by Cambridge voters in 2001. The Act requires the city to set aside a minimum of ten percent of its annual budget for each of three categories: historic preservation, open spaces and housing. In the end, the council agreed to stay with the same formula it had been using, allocating 80 percent - or $7.6 million - for affordable housing projects.

A common criticism during the debate was that affordable housing has been developed primarily in East Cambridge, with little or no housing available to low-income families in the rest of the city. Council members acknowledged the disparity and admitted they'd like to see affordable housing projects developed in other areas. It's a key piece of information for developers interested in exploring opportunities in Cambridge. The City Council is likely to look more favorably on projects that extend beyond the East Cambridge region.

In it's report to the City Council, the Community Preservation Act Committee noted that the Cambridge Housing Authority currently has a list of over 15,000 families that are waiting for affordable housing to become available.