The Massachusetts Community Preservation Act has been around for a short eight years, but in that relatively short span Island towns have come to depend on funding raised through the program to preserve open space, renovate and improve public parks and create affordable housing.

The act allows towns to assess a three per cent surcharge on property tax bills, which is then matched by the state through a county deeds tax paid on real estate transfers. In the early years of the program, the state matched the local portion 100 per cent.

But faced with declining revenues tied to the sagging real estate market, the state Department of Revenue last year reduced the match to 87 per cent, and the department is now considering dropping the match again, perhaps to 65 per cent or lower.

In response, legislation was filed earlier this year by two state senators from Newton and Worthington to stabilize the program. If it is approved the bill guarantees that all towns who participate in the program will receive at least a 75 per cent match.

The bill is expected to see a vote during the current legislative session. It will also be the subject of a presentation on the Vineyard on July 22 at 7 p.m. by the Community Preservation Coalition, an alliance of open space, affordable housing, and historic preservation organizations.

The meeting will be located at the Public Safety Building on State Road in West Tisbury.

The CPA 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 are not surprised the state match has been dropped.

“When it started eight years ago there were fewer towns enrolled, meaning there was more [state] money to go around,” said Adam Wilson, CPA administrator for Oak Bluffs. “Now there are more towns competing for this money . . . the program has become quite popular for towns looking for new sources of revenue,” he added.

And even with a reduced state match, the program still provides a financial boost to towns, he said.

“Even if the match was 50 per cent, then the town is getting something . . . 50 per cent is better than nothing,” Mr. Wilson said.

Bob Wheeler, former chairman of the Tisbury CPA committee and co-president of the Island Affordable Housing Fund, said funding from the program has become essential for affordable housing projects across the Island. “I don’t think a lot of these projects would even get off the ground without CPA money. It’s a vital component of affordable housing on the Vineyard,” he said.

David Vigneault, executive director of the Dukes County Regional Housing Authority, said $641,000 in CPA funds have been used for the group’s rental assistance program since 2004. In the current fiscal year, CPA funding will help subsidize the rent of 90 families or individuals on the Island.

“[The CPA money] is key to the development of permanent rental and ownership options even as programs such as rental assistance help to maintain working families on the Island. So far, four families have continued from rental assistance into ownership opportunities through programs supported by CPA money,” Mr. Vigneault said.

Statistics compiled last year by Tony Nevin, administrative assistant for the West Tisbury CPA, show that most Vineyard towns have spent a majority of their CPA money on affordable housing in the last two years.

Not including funds approved at the April town meeting, Tisbury has spent $530,000 of $1.09 million in CPA funds on affordable housing. In the last two years Oak Bluffs has spent $716,000 on affordable housing, $382,000 for open space and $456,000 for historical preservation.

Chilmark has spent a total of $1.55 million in CPA money, most 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 conversion program. West Tisbury has spent just over $1 million in CPA funds, $820,000 of it for affordable housing.

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

Aquinnah has spent $217,000 on historic preservation, $72,000 to buy open space and $109,000 for housing.

According to figures compiled by the Community Preservation Coalition, the program has been adopted by 142 commonwealth communities. Stuart Saginor, executive director for the coalition, said towns should support the legislation to establish the 75 per cent minimum state match, because it will preserve the right of voters to play a direct role in shaping their communities.

“That’s the beauty of the CPA,” he said. “It gives tremendous flexibility. Towns can mete out their CPA funds to any project, regardless of whether it is public, private or nonprofit.”