ARPA $$$ for Counties Soon Available to Municipalities | Hopkinton Latest Community to Use CPA $$$ for COVID-19 Housing Help | Pioneer Report Calls for Uniformity in PILOT Agreements
ARPA $$$ for Counties Soon Available to Municipalities
Most municipalities in Massachusetts will soon get another infusion of federal money when the Baker administration reallocates nearly $1 billion to the cities and towns that make up the state’s nine “inactive” counties. The American Rescue Plan Act provided $1.3 billion in direct aid to Massachusetts’ 14 counties, with $946 million earmarked for nine counties that the U.S. Treasury calls “not units of general local government.” So instead, the 254 municipalities of Berkshire, Essex, Franklin, Hampden, Hampshire, Middlesex, Nantucket, Suffolk and Worcester counties will share that money.
The state plans to begin sending the money out to cities and towns on a per capita basis Monday and local governments can expect to have the funds in hand in two to three business days, the administration’s special director of federal funds, Heath Fahle, said a memo to municipal leaders last week.
As with other Coronavirus Local Fiscal Recovery Fund aid, cities and towns get half of their allotment now and the remaining half in a year. Just more than $393 million is already available from the U.S. Treasury to the Bay State’s five functional and eligible counties. Norfolk County is awarded $137.3 million, Bristol County gets $109.8 million, Plymouth County is due $101.2 million, Barnstable County is allocated $41.4 million and Dukes County’s share is almost $3.4 million. “The Commonwealth has no ability to alter these allocations. Municipalities within the jurisdiction of the counties listed below should contact county officials for more information,” Fahle wrote in the memo, referring to the five counties that get their CLFRF money directly from the U.S. Treasury. – Colin A. Young/SHNS
Hopkinton Latest Community to Use CPA $$$ for COVID-19 Housing Help
Certain Hopkinton residents struggling to pay their housing costs because of COVID-19 will now be able to apply for assistance from the town, thanks to a May vote to set up an emergency relief program. Hopkinton officials are taking applications through Sept. 1 for its new COVID-19 Emergency Housing Relief Program, which will cover up to 70 percent of a household’s monthly rent payment or deed-restricted mortgage payment. Those eligible for mortgage assistance live in homes subject to an affordable housing restriction, and rental assistance is available for households living in units eligible for inclusion on the state’s Subsidized Housing Inventory.
“The ongoing COVID-19 pandemic has been difficult for all, but some have felt the financial burden heavier than others due to a loss of income or other financial means,” Town Manager Norman Khumalo said. “To combat this unexpected financial burden, we encourage residents to apply for our COVID-19 Emergency Housing Relief Program that will assist them with their housing costs.” In May, Hopkinton Town Meeting voted to approve the use of $90,000 in Community Preservation Act money reserved for community housing to fund the program, joining several municipalities pursuing similar approaches.
The Beverly City Council in June 2020 approved the use of $240,000 in CPA funding for an emergency housing assistance program, and Newton used a combination of CPA money and Community Development Block Grant funds for its program. Other cities and towns that approved the use of CPA funds for pandemic-related housing assistance include Arlington, Belmont, Cambridge, Canton, Chelsea, Easthampton, Malden, Manchester, Medford, Monson, Pittsfield, Rockland, Stoughton, Stow, Sunderland, Waltham, Wellfleet and Weston, according to a Community Preservation Coalition database. – Katie Lannan/SHNS
Pioneer Report Calls for Uniformity in PILOT Agreements
Pointing to a lack of a formal and uniform process governing the payments that nonprofits like hospitals, universities and churches often make to cities and towns in place of property taxes, the Pioneer Institute is calling for local-level efforts to systematize PILOT programs. Payment in lieu of taxes (PILOT) programs fill an important gap for municipal governments. Most of the nonprofit organizations that communities consider assets are exempt from the requirement to pay property taxes, which are the lifeblood of municipal finances. Instead, to recognize both the public benefits of the organization and the fact that it essentially removes land from the town’s tax rolls, many governments and organizations strike deals for the nonprofit to make PILOT payments. In a white paper published Tuesday, the Pioneer Institute said that most PILOT agreements are negotiated in isolation, often leading to inconsistencies between agreements and between municipalities.
The paper pointed to Worcester, where the city has an agreement that requires Clark University to pay 20 percent of what its property tax bill would be (a payment of $300,000 in fiscal 2019) while the agreement with the College of the Holy Cross calls for a flat payment of $80,000 a year. “The danger with PILOT programs is that the politics can get in the way of meaningful efforts to serve the public,” Andrew Mikula, who co-authored Pioneer’s PILOT report with Nina Weiss, said. “A more systematic approach to PILOT agreements at the local level can help tie payment amounts more explicitly to services provided, adding legitimacy to the process.” As an example of a city that handles PILOT programs in a formulaic and standardized manner, Pioneer Institute pointed to Boston. The city seeks voluntary annual payments from nonprofits equaling the commercial tax levy on 25 percent of the organization’s real estate and property value with the $15 million of property exempt and a deduction of up to 50 percent available in recognition of community benefits. “Ostensibly, nonprofits use city services more so than other major elements of local government spending, such as education and recreation. This alignment of services required and PILOTs made is an economical and equitable way of having nonprofits contribute to municipal coffers, but in reality it can be difficult to isolate the costs of, say, providing fire service to student dormitories at a private school,” the Pioneer report said. “At their best, property tax-based formulas for calculating PILOTs can help align payments among similar organizations, advancing fairness and reducing political discretion.” – Colin A. Young/SHNS
