Historic Preservation The Local Government Role Catherine O Connor

Historic Preservation The Local Government Role Catherine O’Connor illinois historic preservation agency

Certified Local Government l Program funded and regulated by the National Park Service l Establishes historic preservation as a unit of your local government l Secretary of the Interior Guidelines l Administered by the IHPA

Certified Local Government l Costs nothing to apply l Can use municipal planner or volunteer staff or combination l Makes grants of federal funding available to IL communities (73) l Meetings and procedures subject to Open Meetings Act

Certified Local Government Benefits the Whole Community l Begins with the establishment of an appointed historic preservation commission l Involves ordinances for the designation of landmarks and historic districts l Protects significant historic resources

Certified Local Government l Requires building permit review by HP Commission ¡For significant changes or demo permit applications ¡On structures that have been designated as contributing landmarks

Certified Local Government Grants $$$ l Matching 70% / 30% fed/local ¡used for historic resources / NR Inventory and listing ¡used for adding HP section to local Comprehensive Plan ¡used for building assessment / feasibility studies

Tax Incentives benefit the whole community l 20% federal income tax credit for income producing property l state residential property tax assessment freeze l Re-use in original neighborhoods and existing structures is sustainable and saves tax $$$$ on infrastructure

State Property Tax Assessment Freeze benefit to owner l rewards owner -occupants for sensitively reinvesting in their homes

State Residential Property Tax Assessment Freeze 4 years + assessment = 12 years assessment of reduced 8 years frozen at prerehab level steps up in even increments l no cost to apply l no-obligation process property taxes

state property tax assessment freeze benefit to community l strengthens neighborhoods and housing stock l works with downtown revitalization programs like Main Street

State Property Tax Assessment Freeze benefit to community l reusing the built environment is sustainable

State Property Tax Assessment Freeze benefit to community l encourages protection of historic structures through promotion, recognition, & designation

State Property Tax Assessment Freeze benefit to community l encourages substantial rehabs, which increase property values l creates jobs using local labor

State Property Tax Assessment Freeze benefit to community l encourages district-wide reinvestment l Sustainable and creates less waste than demolition

Assessment Freeze example before after 1716 n. sedgwick, chicago, ca. 1880

Assessment Freeze example before after 312 n. church, jacksonville, ca. 1910

Assessment Freeze example before after 1019 chicago ave. , oak park, 1892

Assessment Freeze example before house then funeral home after now single-family house 627 st. louis st. , edwardsville, ca. 1870

Assessment Freeze Requirements use: owner-occupied housing 2. significance: “historic” 3. budget: > 25% “fair cash value” 4. work: meets “standards” 1.

Assessment Freeze Requirements 1. use: owner-occupied housingle family up to 6 -flat if 1 is owner-occupied condos & co-ops

Assessment Freeze Requirements 2. significance: “historic” l national register ¡ individually listed ¡ contributing to a historic district l certain local ¡ individually listed ¡ contributing to a historic district 35 estate drive, 1961 local glencoe landmark

Assessment Freeze 2. Designated significant certain local counties and municipalities with approved ordinances includes 73 cities, village and

Assessment Freeze Requirements 3. budget: l spend > ¼ of assessor’s “fair market value” for the year the work starts

Assessment Freeze Requirements 4. work: must meet “standards”

Secretary of the Interior’s Standards for Rehabilitation facades spaces features

Secretary of the Interior’s Standards for Rehabilitation l rehabilitation, not restoration before after

Secretary of the Interior’s Standards for Rehabilitation l more flexibility in less significant areas

Secretary of the Interior’s Standards for Rehabilitation l retain and repair historic windows l add storms, if desired

Assessment Freeze flipping? yes. l developer can sell with freeze when done l developer fills out & submits parts 1 & 2 l first “owneroccupant” submits part 3

Federal Income Tax Credits 20% rehabilitation credit for Income Producing Property before after first state bank, winchester, ca. 1890

Federal Income Tax Credits 20% rehabilitation credit four requirements use: “income-producing” 2. significance: “historic” 3. budget: > “adjusted basis” 4. scope: meets “standards” 1.

Federal Income Tax Credits 20% rehabilitation credit 1. use: “income-producing” l rental residential l office l retail l service l industrial chatterton place, springfield

Federal Income Tax Credits 20% rehabilitation credit 2. significance: “historic” l individually listed ¡ national register l historic district ¡ national register ¡ local districts certified by nps for the credit motor row, chicago

Federal Income Tax Credits 20% rehabilitation credit 3. budget: l must spend > “adjusted basis” or $5, 000, whichever is greater ¡ within a sliding 24 -month window, or ¡ within a sliding 60 -month window if a phased project with up-front planning adjusted basis is approximately (purchase price) – (land value) – (depreciation)

Federal Income Tax Credits 20% rehabilitation credit 4. scope: work must meet “standards”

l In 2010, Rutgers University comprehensive new report l that analyzes the economic impact of the Federal Historic Tax Credit (HTC) since its inception in 1976. l “ The findings are a major win for historic preservation advocates. ” l www. preservationnation. org/issues/communityrevitalization/jobs/Rutgers-Report

Federal HTC is a Strategic Investment for States and Local Communities l $85 billion in Historic Rehab Costs have been encouraged by $16. 6 billion federal historic tax credit costs to date l 1. 8 million new job years have been generated and billions of dollars of total (direct and secondary) Economic Gains result from this program

1. 8 Million Jobs Created by Preservation FY 1978 -2008

JOBS, JOBS l 1. 8 billion total and 58, 000 jobs in 2008 alone. Concentrated in the restoration, manufacturing, service, and retail sectors. l Rehab jobs require higher skill levels and pay better wages than those generated by new construction. l About 75% of economic effects are local

JOBS, JOBS l Rehab jobs are targeted to the areas that need it most. NPS stats show that most HTC projects have been located in Qualified Low-Income Census Tracts. l $16. 6 billion in aggregate tax expenditures for 1, 815, 000 jobs generated = cost per job of less than $10, 000, which compares quite favorably to other forms of economic stimulus.

$71 Million Income Created by Preservation Tax Credits

Recurring Life Quality and Economic Returns from Preservation “Prime the Pump” Restored buildings enhance tourism and heritage / cultural travel (a multi-billion $ industry) l Payroll and income tax revenues increase from small business in adaptive reuse downtowns l Positive increases gain in property values, with tax, wealth, and other benefits. l Boost in investor and neighborhood confidence induces a broader trend toward community-wide revitalization both residential and commercial l

thank you Catherine O’Connor illinois historic preservation agency 217 -785 -5730 catherine. oconnor@illinois. gov www. illinois-history. gov www. cr. nps. gov/hps