HISTORIC Preservation Easements

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HISTORICPreservation Easements
Michigan Historic Preservation Network May 29,2008
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What is an easement program ?
An easement program enables a tax-exempt,
charitable organization or public agency to
protect buildings or land against potential
adverse development or changes by acquiring
partial interests in such properties.
From Establishing an Easement Program To
Protect Historic, Scenic, and Natural Resources
Preservation Information, National Trust for
Historic Preservation, 1995.
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An easement

• Is a legal instrument or contract between a
  property owner and the Michigan Historic
  Preservation Network whereby the owner grants a
  portion of, or interest in, her property rights
  to MHPN.

Peter Dougherty House Old Mission Peninsula
Establishes perpetual protection for the property
by preventing inappropriate changes from being
made to the historical significance of the
structure and its setting.
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An easement

• Provides assurance to the owner of a historic or
  cultural property that the propertys value will
  be preserved through subsequent ownership.
• Becomes part of the propertys chain of title and
  runs with the land.
• Preserves the property for future generations

Book Cadillac, Detroit
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TRUE OR FALSE ?
1. Because a structure is historic it is
automatically protected from destruction.
FALSE !
2. If a building is listed on the National
Register of Historic Places an owner cannot
demolish it.
FALSE !
3. An easement is a legal document that insures
the preservation of a historic property in
perpetuity and is important for saving our
historic structures.
TRUE !
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How Can Easements Benefit Property Owners ?

• Having a preservation easement may entitle a
  property owner to various financial incentives.

• When owners donate an easement to the Michigan
  Historic Preservation Network they may claim the
  charitable deduction on their Federal Income tax.

• Benefits may also include reduced estate, gift,
  and local property taxes.

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So how does this affect owners rights ?

• An easement gives MHPN the legal authority and
  responsibility to enforce the terms of the
  easement. This includes the right to annually
  inspect the property to insure that the owner is
  complying with the terms of the contract.

The owner retains all the usual property rights,
except for the right to destroy the property.
Alterations, improvements, and even additions to
the structure are allowed, as long as the
historic character is not compromised in any way,
shape, or form and they are reviewed and approved
by MHPN.
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What properties qualify for tax deductions ?
Properties eligible for easement donation
include agricultural, industrial, commercial or
residential structures, and historically
important acreage. In addition, properties must
meet one of the following requirements

• Located in a historic district and certified
  as being historically significant to the district
• Listed individually on the National Register of
  Historic Places

Washington Street, Ann Arbor
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What does a Preservation Easement Cover ?
A building, a bridge, ship, dam or any other
structure.

• The interior of the building is not usually
  included in the scope of the easement however,
  structural elements are indirectly covered.

The easement prohibits alterations to the
surrounding grounds that would mar the exterior
appearance of the building, for example rubbish,
heaps and ash dumps.
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PUBLIC ACCESS OF PROPERTY

• May be as little as a few hours a year for a
  sensitive archaeological site or a traditional
  cultural place with religious significance.
• May include visual access from a public roadway
  for a historic building and grounds that are
  subject to a facade easement.
• May include allowing the public to tour the
  inside of a historic home subject to an interior
  easement two days per year.

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How does it work ?

• MHPN does not own the property
• Property stays in the hands of the donor of the
  easement and on the local tax rolls, still
  subject to local land use laws
• Easement program falls between full ownership
  and governmental land use controls like zoning
• Property is protected in perpetuity by the
  easement and is not subject to the vagaries of
  political power
• Donors may qualify for federal income, local
  property, and estate tax savings
• Easements legally establish the owners wishes
  about the future treatment of the property and
  can be individually designed within limits to
  meet the owners needs.

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MHPN EASEMENT PROGRAM

• MHPN is a charitable organization that is
  qualified to accept easement donations.
• Hold residential and commercial easements.
• Fees application (100), baseline study (2000),
  monitoring/legal fund donation (varies), and
  recording/legal fees (varies).
• Application, agreement, baseline, yearly
  monitoring.

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Getting an Easement Started

• For more information on the Michigan Historic
  Preservation Easement Program please contact

Nancy Finegood, Executive Director 107 E. Grand
River Lansing, Michigan 48906 (517)
371-8080 finegood_at_mhpn.org www.mhpn.org
The Michigan Historic Preservation Network is
a private, non-profit preservation organization
who advocates for Michigans historic places
because they contribute to our economic vitality,
sense of place, and connection to the past.