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City Rejects Property Tax Hike to Fund Affordable Housing

BOSTON-The controversial Community Preservation Act, which would have put a 2% surcharge on property taxes here, was defeated by 10,000 votes. The funds would have been used to develop affordable housing and preserve historic and green space in the city.

By Naomi Grossman | Updated on November 07, 2001

BOSTON-No one in this city was taken aback when city Mayor Thomas M. Menino won his reelection bid easily but it was surprising that the city responded relatively clearly to the ballot question on whether to enact the Community Preservation Act, which would involve a 2% surcharge on property taxes here. The answer was no.

The Act was question number one on the ballot and according to the latest poll results 43% of voters voted against the act while 32.4% of voters voted for it. The funds generated from the surcharge were to be used to pay for affordable housing and the preservation of historic and green space here. The bulk of the tax would have been paid by businesses because of the number of exemptions for homeowners and the commercial tax rate in the city. A coalition of business groups led by Fidelity Investments and including the National Association of Industrial and Office Properties, ran a campaign opposing the Act, emphasizing that with the downturn in the economy, this was not the time to be raising taxes.

A coalition of advocacy groups, including the Boston Preservation Alliance, the Massachusetts Affordable Housing Association, promoted the passage of the Act, emphasizing that it would raise $14 million in its first year, which would be matched by state funds. At the last minute, city Mayor Thomas M. Menino came out for the Act but that was apparently not enough to convince voters to open their wallets.

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