In just over seven years, funds generated through the Massachusetts Community Preservation Act on the Vineyard have been used for a wide variety of projects — including the renovation of historic lighthouses and bandstands, the creation of affordable housing and the renovation and improvement of public parks.

But faced with declining revenues tied to the sagging real estate market, the Massachusetts Department of Revenue is now considering reducing the amount paid annually to communities enrolled in the CPA program. Currently the state matches all locally generated funds by 100 per cent, but state officials are expected to reduce the match during the current fiscal year.

The state has yet to announce the new matching fund levels, but it is widely believed the state match could drop to as low as 65 per cent. The state Department of Revenue is expected to announce the rate sometime next month. State CPA funds come from a county deeds tax paid on real estate transfers. Local funds come from a three per cent surcharge on property tax bills.

The program was designed to help towns address three key needs: affordable housing, open space acquisition and historic preservation. Under the enabling legislation, at least 10 per cent of each town’s CPA appropriations must go to each of those three categories.

Local officials who administer the CPA program said this week they are not surprised to hear that the state match may drop below 100 per cent. More and more communities have enrolled in the program while the volume of real estate transactions has dropped substantially.

“When the program started there were only a few towns involved, so the real estate fees would just add up and the state had no problems matching [the local funds] 100 per cent,” said Bob Wheeler, chairman of the Tisbury Community Preservation Act committee. “But things have changed; people are buying less [real estate] and more towns are in line waiting for CPA money.”

Mr. Wheeler said that even with reduced state matching funds, the program can still benefit Island towns.

“Getting 50 per cent of something is better then getting zero per cent. Those [real estate] fees are still going to pile up; the money is going to be there. To some degree or another, the state will continue to match local funds,” he said.

He said the CPA program has been a boon for Island towns.

According to detailed figures compiled by Tony Nevin, administrative assistant for the West Tisbury CPA, Tisbury has spent a total of $1.09 million in CPA funds over the past two years, including $176,000 for the preservation and restoration of the historic Tashmoo Spring building and over $530,000 for affordable housing.

“Almost certainly the spring building would not have been done if it wasn’t for the [CPA] money; we’re talking about a building that was in desperate need of renovations,” he said.

Andrew Goldman, a member of the Chilmark community preservation act committee, said the legislation that created the program gives town voters control over how the money is spent. Voters give final approval to all CPA expenditures at town meeting, and they have the option of dropping out of the CPA program after five years, also at town meeting.

Mr. Goldman said he hopes residents will support the program even if the state decreases matching funds.

“If the level goes from 100 to 80 per cent, I don’t think voters are just going to say, oh well, it’s over. Just because someone gave you everything, and now they are giving you less than everything, that’s not a reason to walk away,” he said.

Chilmark has spent a total of $1.55 million in CPA funds over the past three years, a majority of which has gone to affordable housing, including $1.22 million for the Middle Line Road housing project. The town has also spent $150,000 on the Dukes County Regional Housing Authority rental conservation program.

Lesser amounts have gone to smaller projects, including $49,000 to restore historic stone walls, $10,000 to restore town records and $37,500 to replace doors and windows at the community center.

Edgartown has spent nearly $1.9 million in CPA funds, a majority of it for historical preservation.

Just over $250,000 has gone toward the streetscape project on historic North Water Street; $250,000 has been spent to restore the Edgartown Lighthouse; $150,000 has gone to preserve the Federated Church meeting house, and $200,000 has been earmarked for the construction of an historically appropriate hangar at the Katama airfield.

The town spent just under $500,000 for affordable housing during that same span, including $300,000 for the Jenny Way housing project and $30,000 for the Dukes County Regional Housing Authority rental conversion program.

Aquinnah has spent just under $400,000 in CPA funds on a wide range of projects; a total of 40 projects have received CPA funds — more than any other Island town. The smallest funding was $1,000 for the creation of a skate park, and the largest was $35,000 to buy resident home sites.

Aquinnah voters have approved $217,000 in CPA funds for historic preservation, $72,000 to buy open space and $109,000 for affordable housing.

West Tisbury has spent just over $1 million in CPA funds, over $820,000 of it for affordable housing.

Oak Bluffs has earmarked $226,000 to convert the old town library into affordable housing, $140,000 to restore the East Chop lighthouse, $200,000 for a new town recreational facility, $400,000 for the Bradley Square renovation project and $200,000 to restore the Ocean Park bandstand.

In total the town has spent $1.56 million: $716,000 on affordable housing, $382,000 for open space and $456,000 for historical preservation.

Adam Wilson, administrator for the Oak Bluffs community preservation act committee, said the CPA process is highly inclusive and gives townspeople full control over how the money is spent. He said the program generated funding for projects when no other funds were readily available.

“Take the [Ocean Park] bandstand for example; if it wasn’t for CPA I don’t know where the money would have come from,” he said.

Mr. Wilson agreed the program will continue to be viable even if the state reduces the matching fund levels.

“It’s an opportunity for residents to invest in the future of their towns,” he said.