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CPF FAQs and Facts

Will Red Hook be the first town to create
a Community Preservation Fund?

No, the five easternmost towns on Long Island were also given special permission by the state legislature to hold similar referendums in 1998. Their bill stipulated a lower exemption amount in their case, leaving more transactions subject to the fee. Residents in all five towns voted in favor of creating a Community Preservation Fund.

Residents of these Towns were so satisfied with the results of having a Community Preservation Fund that they overwhelmingly voted to extend the funds for an additional 10 years in 2002.

Since 2000, any municipality in Massachusetts has been permitted to pass a similar law. So far, 100 communities have voted to do so. Several other states have similar types of laws.

Who supports CPF in Red Hook?

Over 70 national and local environmental organizations, as well as the people from all different backgrounds here in Red Hook, who wrote to Albany to ask for the right to vote on this. They recognize that by protecting the Red Hook way of life they are also keeping ongoing expenses down.

Who’s against CPF in Red Hook?

Before other towns in New York had their vote to adopt the CPF, the real estate lobby mounted a campaign against the CPF, claiming it would hinder sales, drive out seniors, and push the cost to the seller side among other things. Those same real estate interests did not fight the renewal of CPF just 4 years later, because none of those predictions came true. In fact, one of the real estate brokers came to our area to report just how successful this tool was for the community and for the real estate industry!

What about folks who say the CPF isn’t fair?

The argument has been made by some that it is unfair to make new-comers pay an extra tax. In fact, the actual amount paid in CPF fees may be small compared to the value and benefit these new residents will receive from the town’s current infrastructure already built and paid for by the taxes of current residents.

Is it true that CPF helps improve property values?

In the four Long Island towns that have Community Preservation Funds for which statistics are available, property has appreciated at a much higher rate than in the rest of the state.

Families are drawn to Red Hook by its rural character. Buyers will be attracted to a community where that character is assured for the future.

How will it affect my ability to sell my house?

It quite likely will help increase your chances and the price of your home! Studies show that communities that have preserved open space are easier to sell in and have greater values.

What will it cost me as a seller?

Nothing: the fee is the buyer’s responsibility.

Do we know how people living with similar laws feel about them?

All five towns on eastern Long Island voted in 1999 to create their CPFs for 10 years. In 2002, voters in all five towns overwhelmingly voted to extend the funds to 2020. To date, not one town that has passed similar legislation has decided to repeal it.

Is it true that CPF helps lower property taxes?

The transfer fee will slow the growth of property taxes.

The problem comes from the fact that the taxes paid by new households do not cover the cost of schools and services provided to those households. Each new household adds at least one new child on average to the school district, costing us a minimum of $9,300 a year, yet contributing far less in taxes.

On the other hand, the PDR program has only cost about $7,500 per acre saved, and half of those costs have been covered by outside grants. Based on these numbers and school district data, we can make the following estimates on the tax advantages of community preservation:

This chart shows that taxpayers will save substantially over a ten year period by preserving the landscape with Community Preservation Funds.

This estimate is conservative, because the average cost to local taxpayers per child in the schools will almost certainly continue to increase, especially when new development means building more schools. It also doesn’t take into consideration the increased use of municipal services by residences versus farms, as well as the loss of taxes paid by farms and associated businesses. The reality: losing farms means that taxes increase for all of us.

What properties can be preserved through the CPF?

The funds can only be used for the purchase of properties or development rights for properties identified in the Community Preservation Plan as important for the preservation of community character.

Who will decide how the CPF is used?

Only projects specified in the Community Preservation Plan can be considered. The Plan will be subject to public hearing before it is adopted. An advisory committee of 5-7 town residents will be created by the Town Board to make recommendations concerning the use of CPF funds. CPF advisory committee members will not be paid. No more than 10% can be applied to the administrative and maintenance costs associated with the program. The majority of the committee must have a background in land preservation, and at least one member must be a local farmer.

What if we’re not happy with the fee?

Voters can withdraw the fee at any time in another referendum.

Any more questions?

Contact us: Red Hook Community Preservation Alliance, PO Box 181, Red Hook, NY 12571 or email contact@preserveredhook.org