The Community Preservation Fund (CPF) is funded by a 1% real estate transfer tax, a one-time fee paid by the buyer at closing. Adopting the CPF will not increase resident’s property taxes and will not be a new tax burden for residents. In order to protect affordability, the first $425,000 of a sale is exempt.

For example: On a $500,000 home, the fee applies only to $75,000 = $750 total. ($500,000-$425,00) X 1%=$750.)

This exemption benefits and protects first-time buyers and lower priced properties. The exemption is based on the median home price in Ulster County and adjusted annually.

Money raised will go directly into the CPF and usable only for conservation purposes that are authorized by state law and outlined in the Community Preservation Plan (CPP). CPF funds cannot be used for general town expenses or unrelated projects.

An Advisory Board made up of town residents who are experts in community planning, farming, and environmental protection would be appointed by the Town Board. The Advisory Board will recommend projects to conserve and all projects would be discussed at public meetings with input from residents. The fund would be managed by the Town Board, just like all other finances in the Town of Rochester, and cannot be used for any other purpose.

Funds in a CPF protect the very features that attract new residents and homebuyers.