Provincetown's 2001 Legislative Initiatives

The April 2, 2001 Special Town Meeting approved two affordable housing legislative initatives-- to establish an affordable housing trust fund, and to further amend the Land Bank Act for the Town of Provincetown.

Affordable Housing Trust Fund Expand List of Affordable Housing Uses, Receive 25% of Tax Title Foreclosure Proceeds .

On August 7, 2002, Acting Governor Jane Swift signed into law Chapter 230 of the Acts of 2002, establishing an Affordable Housing Trust Fund for the Town of Provincetown. The Massachusetts House of Representatives had enacted the bill-- House 4145-- on July 30, 2002; the State Senate, on July 31, 2002.

This home rule petition proposes the establishment of an Affordable Housing Trust Fund for the Town of Provincetown. Chapter 43 of the Acts of 2000 allows Provincetown to spend up to 10% of its proceeds under the Cape Cod Land Bank program for "affordable housing purposes." This petition would not only capture those 10% of Land Bank funds for that purpose, but would also expand the list of allowable uses to include the rehabilitation or restoration of existing buildings or construction of new buildings on previously developed sites, and the hiring of an affordable housing specialist. Monies from this fund would be expended by vote of the Provincetown Housing Authority, for affordable housing projects undertaken by the Town, the Housing Authority, a housing trust or community development corporation, or a successful applicant for county, state or federal housing funds. Deposits into this fund would include 25% of the proceeds generated by the sale of any land acquired by the Town through tax title foreclosure (over $800,000 is currently owed the Town by some 80 properties currently in tax title). Three town meeting votes have set aside 10% of the Town's Land Bank Funds for FY 2001, FY 2002, and FY 2003-- for $25,394, $26,029, and $27,007, respectively-- for this fund. Without this fund, we could only expend those funds to purchase undeveloped parcels to be developed for affordable housing. The Town of Provincetown needs more flexibility than that, and this petition provides that-along with additional funds from tax title foreclosures.

The expended list of uses for affordable housing is adapted from similar language in the Community Preservation Act [Chapter 267 of the Acts of 2000]-- i.e., "for the creation, preservation and support of community housing and for rehabilitation or restoration of such . . . land for . . . community housing that is acquired or created as provided in this section. With respect to community housing, the community preservation committee shall recommend, wherever possible, the reuse of existing buildings or construction of new buildings on previously developed sites." Among the expanded uses of Land Bank funds would be to defray the Town of Provincetown's costs of hiring an affordable housing specialist to coordinate a Town-wide response to this issue, including proposals for by-law and regulatory amendments, and financial assistance programs and incentives.

Perfecting Amendments to the Land Bank Increase Affordable Housing from 10% to 35%; Open Space Management from 3% to 10% for any Town-owned open space.

The bill was among those included in House 5137, an order authorizing the Legislature's Joint Committee on Housing and Urban Development to make an investigation and study of certain Senate and House documents concerning affordable housing and other matters.

This home rule petition would have further amended the Land Bank Act for Provincetown to allow our town to address both affordable housing and open space in ways which recognize the truly unique circumstances and challenges of our community-- even in comparison with other towns on Cape Cod.

Housing costs in Provincetown continue to escalate due to the pressure created by the tourist/second home market. Provincetown's median residential sales price of $375,000 for 2000 was the highest of any town on Cape Cod, according to Banker & Tradesman; and represents a 19.5% increase from 1999, and a 202% increase from Provincetown's 1992 median sales price. At 61.8%, Provincetown has the highest percentage of low- and moderate-income households on Cape Cod. At 33.8% in January 2001, ours is the highest unemployment level on the Cape. Our white-hot second home real estate market continues to threaten the ability of residents to remain in Provincetown and the ability of businesses to access the labor force needed during the critical summer months. The 2000 U.S. Census results confirm the exodus of Provincetown's year-round population caused by our housing crisis, as Provincetown was the only community on Cape Cod to see its year-round population actually decrease between 1990 and 2000-- from 3,561 to 3,431. Moreover, Provincetown was the only Cape community to see its year-round housing stock decrease during this same period: Provincetown lost 324 year-round housing units -- a 13.6% decrease.

At the same time, 79% of Provincetown's landmass-- 7.97 square miles of the total 10.09 square miles within our corporate boundaries-- is already permanently open space as part of the Cape Cod National Seashore, a unit of the National Park System. Of the remaining 2.12 square miles, the Town owns 95 acres of open space-- 80 of which were acquired without Land Bank funds (the 15-acre Foss Woods, the 24-acre abandoned railroad right-of-way, and the 40 acres near Duck Pond/Clapps Pond). The Town's two Land Bank purchases have added 15 acres-- the 7.52-acre Shankpainter Pond Uplands and the 7.92-acre Locke Property-- at purchase prices totaling $3.1-million (offset by $1.21-million in grants and gifts). Provincetown is committed to better managing its open spaces through development of a community-based plan, and to do so has launched an innovative partnership with other open space owners and interested parties in our town-- including Cape Cod National Seashore, the Massachusetts Fisheries and Wildlife Division, the Provincetown Conservation Trust, the Provincetown Conservation Commission, and the Town's Open Space Committee.

Provincetown voters have adopted the 3% property tax surcharge imposed by the Land Bank Act, but it is beyond our means to add another 3% surcharge from adoption also of the Community Preservation Act (CPA). This is somewhat ironic since the CPA offers a more balanced product for Provincetown than does the Land Bank-- for example, by requiring that no less than 10% of its proceeds be used for housing. Instead, Provincetown has chosen to use the CPA as our inspiration for the language proposed in House No. 4144; and, in so doing, to make the Land Bank Act-- and its 3% existing surcharge-- a more perfect fit for the Town of Provincetown.

The legislature has already recognized Provincetown's situation, when it approved Chapter 43 of the Acts of 2000-- allowing Provincetown alone among Cape communities to spend up to 10% of its proceeds under the Land Bank program for "affordable housing purposes." That act was accepted by the voters at Provincetown's May 2000 Annual Town Election by a vote of 670 to 247. This petition would increase that share from 10% to 35%. Over the 20-year life of the Land Bank Act, it means the difference between $600,000 and over $2-million available for affordable housing. These 35% funds would be deposited automatically in the Affordable Housing Trust Fund proposed in House Bill No. 4145.

Acceptance by the Voters. The resulting special act proposes to amend the Land Bank Act-- which itself was enacted by referendum. As such, it is proposed to take effect upon acceptance by the voters of the Town at the next annual or special town election following passage of the bill.