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What is the Community Preservation Fund?

How the CPF Works

When a house or land is sold in Red Hook, the buyer would pay a small fee, generally less than the amount charged for title fees in a mortgage’s closing costs. The seller pays nothing. Funds from the fees are added to an escrow fund dedicated for projects identified in the Community Preservation Plan that preserve the community character of Red Hook.

What the Fund can do

The CPF Fee

• The fee is only charged on the amount above the county's median sales price (currently $329,000).

• The buyer’s fee is 2% on the remainder of the sale price.

Less expensive property will pay little or no fees because of the initial exemptions. For a $300,000 house sale, the buyer pays nothing; for a $350,000 sale, the PPF fee would be only $420. (e.g. $350,000-329,000=21,000; and 2% of 21,000=$420)

Why should property buyers pay into the CPF?

Existing home owners have paid local taxes for many years to build our infrastructure, including schools, roads and government buildings, and to develop the programs and services we all now enjoy.

Preserving Red Hook’s best environmental assets will require more than the funds authorized in the 2003 Purchase of Development Rights program ($3.5 million). We have already enjoyed the assistance of so many in matching funds (Scenic Hudson, New York State, Dutchess County) to name just a few. The transfer fee will give us a steady stream of funds that can be added to this important effort.

Totally exempt from CPF fee

• Gifts of property

• Tax and bankruptcy sales

• Land which already bears restricted development rights

• Agricultural land that will continue to be used for agriculture.

What the CPF Can Bring Us

Approximately $200,000 a year would accumulate in a fund for community preservation. Since much of the money used for PDR came from outside grants, it is reasonable to expect the Community Preservation Fund will draw additional funding to the town.