Historic Preservation Tax Credits

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Historic Preservation Tax Credits

• The Process and Avoiding Common Problems
• Charles E. Fisher
• New York City, June 2009

National Park Service, Technical Preservation
Services
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Success

• Projects approved 36,000
• Investment of over 50 billion
• Repeat users

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It Is a Regulatory Program

• Not uncommon that there will be some required
  changes
• Submit your project for review early in the
  planning process

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Who

• Administered by the National Park Service in
  conjunction with State Historic Preservation
  Offices (SHPO)

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What

• Unlike most other historic preservation review
  processes, your entire project will be reviewed
• Interior and exterior work on the historic
  building/s

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What

• Any new construction on the site
• Parking

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Where

• Most SHPO offices are located in the state
  capital
• National Park Services Technical Preservation
  Services is in Washington, DC

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Two Certifications Are Needed

• Certified Historic Structure
• Certified Rehabilitation

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Three-Part Historic Preservation Certification
ApplicationPart 1Evaluation of Significance

• Is my building historic?

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Certified Historic Structure

• Individually listed in the National Register of
  Historic Places
• Contributes to a National Register historic
  district
• Contributes to a registered historic district

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Certified Historic Structure

• For a certified property with multi-buildings,
  such as a mill complex or a former military base,
  only contributing buildings are eligible.

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Preliminary Determinations

• Proposed individually listed National Register
  property
• Contributing building in a potential historic
  district
• Certified Historic Structure status must be
  obtained no later than 30 months after the
  building is placed in service

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Part 1 Review
paper trail routine communication
Applicant
SHPO
NPS
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Project Review

• Consult early on in the planning process with the
  SHPO
• Seek preliminary review from the National Park
  Service on potentially problematic issues prior
  to submission of Part 2 of the Application
• Most projects approved with conditions

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Three-Part Historic Preservation Certification
ApplicationPart 2Description of Rehabilitation

• Does my proposed work meet the Secretary of the
  Interiors Standards for Rehabilitation?

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Secretary of the Interiors Standards for
Rehabilitation

• 10 broad principals of preservation
• Widely used by other agencies and organizations
• Only NPS issues certifications

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Part 2 and 3 Reviews

• paper trail
• communication
• project specific and/or state specific

Applicant
SHPO
NPS
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Three-Part Historic Preservation Certification
ApplicationPart 3 Request for Certification of
Completed Work (the last step)

• Submitted only after work is completed
• Issued by NPS only after completed work has met
  the Standards for Rehabilitation

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Phased Advisory Letters

• Projects involving multiple buildings in a
  complex that are being rehabbed one at a time
• Large building rehabilitation being done in
  distinct phases

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If Your Project is Denied

• First, try to resolve the issues
• Alternative is the Appeals Process

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Avoiding Common Problems

• Start the process early in the project planning
• Consult early with the SHPO
• Get decisions in writing from NPS

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Avoiding Common Problems Part 2 Application

• Include both before (existing condition) plans
  and rehabilitation (after) plans
• Provide thorough photo documentation of the
  entire property in its before work condition if
  shooting electronic images (good resolution),
  print on photo quality paper
• Authorize prepayment of processing fee charged by
  NPS

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Avoiding Common Problems

• Check websites of SHPO and NPS for additional
  information on the application submission
• Keep track as to which set of architectural plans
  have been approved
• Use services of a preservation consultant as
  needed
• Realize each project is different

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Special Considerations During The Current Economy

• Need to clearly establish what has been approved
  by NPS when there is a change in ownership during
  rehab

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Special Considerations During Current Economy

• Dealing with large multiple building projects
  phasing and financing
• Obtaining Part-3 (final) certification tenant
  fit-out

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State Incentives

• More than half of the states have tax credits or
  other incentives that can be piggybacked with the
  Federal tax credits
• Current budgetary pressure on state tax credit
  programs

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For Additional Information

• NPS website is www.nps.gov/history/hps/tps
• SHPO websites
• To request copy of NPS Technical Preservation
  Services Catalog of over 100 publications either
  email at NPS_HPS-info_at_nps.gov
• Or write Technical Preservation Services,
  National Park Service, 1840 C Street NW,
  Washington, DC 20240 email NPS_HPS-info_at_nps.gov