No one ever said it would be
          easy…

The Role of Historic District
     Commissioners
 Farmington Hills
 Historic...
Michigan Historic
       Preservation Network
Your statewide historic preservation non-
  profit
• Education: conference, ...
Michigan Historic
      Preservation Network
Advocacy: state & national legislation,
 how-to
Michigan Historic
     Preservation Network
Easement donations
Requirements of HDC members

   – Resident of the City
   – Majority must have a demonstrated
     interest or knowledge i...
Your Job as a Historic District
       Commissioner
   – Review all exterior changes in local historic
     districts.
   ...
Why is Review so
          important?
Knowing what the consequences of work will
 be in the planning phase provides the
 b...
Making the Decision
What to Consider – PA 169
 US Secretary of the Interior’s Standards for Rehabilitation and
   Guidelin...
Making the Decision
        Questions to ask
Why is the property significant?
• What information is contained in the
  stu...
Making the Decision
Questions to Ask - Significance
Making the Decision
       Contributing vs. Non-
           Contributing
Does this building contribute to a commercial
dis...
Making the Decision
Contributing vs. Non-Contributing
   • Does this still contribute to the
     district?
Making the Decision
        Questions to Ask
What are the key features of the
  resource?
• Architectural – porches, windo...
Making the Decision
            Questions to Ask
What are the key features of this resource?
Making the Decision
       Questions to Ask

What is the character of the
  proposal?
• Is it for repairing?
• Is it for r...
Making the Decision
Questions to Ask – Case Study
  The proposal is for vinyl replacement windows, what are
    the questi...
Making the Decision
Four options:
• Certificate of Appropriateness
• Denial
• Notice to Proceed
• Postpone to a date certain
Making the Decision
Certificate of Appropriateness
 • Does the work meet “The Secretary of the
   Interior’s Standards for...
The Secretary of the Interior’s Standards
     (1) A property shall be used for its historic
     purpose or be placed in ...
The Secretary of the Interior’s Standards
  (2) The historic character of a property shall be retained
     and preserved....
The Secretary of the Interior’s Standards
 (3) Each property shall be recognized as a physical
    record of its time, pla...
The Secretary of the Interior’s Standards
 (4) Most properties change over time; those
   changes that have acquired histo...
The Secretary of the Interior’s Standards
    (5) Distinctive features, finishes, and construction techniques or
       ex...
The Secretary of the Interior’s Standards
(6) Deteriorated historic features shall be repaired
  rather than replaced. Whe...
The Secretary of the Interior’s Standards
   (7) Chemical or physical treatments, such as
      sandblasting, that cause d...
The Secretary of the Interior’s Standards
   (8) Significant archeological resources
     affected by a project shall be
 ...
The Secretary of the Interior’s Standards
   (9) New additions, exterior alterations, or
     related new construction sha...
The Secretary of the Interior’s Standards
    (9) New additions, exterior alterations, or related new
       construction ...
The Secretary of the Interior’s Standards
(10) New additions and adjacent or related new
  construction shall be undertake...
Evaluating the application
• Review application – take note of what’s
  important about the resource
• Assess current cond...
Porches
• Add a metal railing to the steps
Siding
• Want to install vinyl siding
Windows
• Want to install vinyl replacement
  windows
Windows
• Want to replace these windows
Making the Decision
                  Denial
• The work does not meet “The Secretary of
  the Interior’s Standards for Reh...
Making the Decision
                      Notice to Proceed
•   Application does not meet “The Secretary of the Interior’s...
Notice to Proceed – Hazard to
          Public Safety
What would be required to determine if this structure is a
  hazard ...
Notice To Proceed - Deterrent to
  Major Improvement Program
The proposal is to demolish these houses to build a
  school ...
Notice To Proceed
       Economic Hardship
Refer to document from SHPO
Key Points:
1.   Economic Hardship – SOI Standards
...
Notice To Proceed
          Economic Hardship
What kind of evidence do you need to justify
 Economic Hardship?
Making the Decision
   Postpone to a date certain
Can postpone the application for the
  following:
• More information abo...
Before the Meeting
Ensure applications are complete – develop
  application guidelines
Ensure given proper notification fo...
Perception - During the
             Meeting
• Ensure public can hear – microphones if
  possible – no sidebar conversatio...
After the Meeting
• Written decisions sent to applicants
  - Why application approved or denied
  - If denied: reason, how...
Violations of the Ordinance
  Property owners who do work before getting a permit or
     do not do what the Commission ap...
Demolition by Neglect
Gives Commission powers to
 correct situations where property
 owners are neglecting their
 historic...
Demolition by Neglect
Commission can order repairs made.
If owner does not make repairs
  Commission can get a court order...
Demolition by Neglect
Successes
Property owner sold property that they
  could not care for, or made necessary
  repairs.
Demolition by Neglect
Failures
Property owner continues to put the
  Commission off by promising repairs and
  never makin...
Design Guidelines
• Helpful for
  common types of
  work
• Must be approved
  by the State
  Historic
  Preservation Offic...
Helpful HDC Education Hints
• Year-end wrap up – slide show of before &
  after of applications; evaluate HDC’s work
  – w...
HDC Staff Duties
• Varies from community to community

• Generally Staff is the day-to-day face of
  the Commission – dire...
Questions?


 Thank you!
Historic Preservation
   Tax Incentives
State Historic
        Preservation Office




      Michigan Historical Center
Michigan Department of History, Arts &
   ...
Historic Preservation Income
        Tax Incentives
 State – Michigan Business Tax
 State – Section 266 of the Income Ta...
STATE TAX CREDITS
 Encourage investment in Michigan’s
  historic resources
 Administered by the State Historic
  Preserv...
STATE TAX CREDITS
        QUALIFIED TAX PAYER

 Owner
 Long-term lessee
    Residential       27.5 Years
    Non-resid...
STATE TAX CREDITS
         HISTORIC RESOURCES

 The resource must be 50 years of age
  or older
 The resource must retai...
STATE TAX CREDITS
         HISTORIC RESOURCES
 If the resource is in a unit of government
  with a population less than 5...
STATE TAX CREDITS
         HISTORIC RESOURCES
 If the resource is in a unit of
  government with a population greater
  t...
STATE TAX CREDITS
         ELIGIBLE RESOURCES
 Owner-occupied residences
 Income-producing commercial, industrial
 or re...
STATE TAX CREDITS
          ELIGIBLE PROJECTS
 Rehabilitation expenditures must be
  equal to or greater than 10% of the
...
STATE TAX CREDITS
      ELIGIBLE EXPENDITURES

 Expenditures can be incurred over a
  maximum period of five years
 Expe...
STATE TAX CREDITS
       ELIGIBLE EXPENDITURES

 Expenditures eligible for the tax credit
  include:
    Mechanical, plu...
STATE TAX CREDITS
      ELIGIBLE EXPENDITURES

 Expenditures not eligible for the tax
 credit include:
   Acquisition co...
STATE TAX CREDITS
      TAX CREDIT APPLICATION

 Part 1 – Evaluation of Eligibility
 Part 2 – Description of Rehabilitat...
STATE TAX CREDITS
      TAX CREDIT APPLICATION

 Part 1 – Evaluation of Eligibility
   Brief description of resource
  ...
STATE TAX CREDITS
      TAX CREDIT APPLICATION

 Part 2 – Description of Rehabilitation
   Work description
   Plans an...
STATE TAX CREDITS
      TAX CREDIT APPLICATION
 Part 3 – Certification of Completed
 Work
  Photographs of completed wor...
STATE TAX CREDITS
           PROJECT REVIEW

 State tax credit application review is
  separate from local review
 State...
STATE TAX CREDITS
         USING THE CREDIT

 Credit is claimed the year work is
  completed and certified by the SHPO
 ...
STATE TAX CREDITS
      APPLICATION CERTIFICATION

 Certifications made by the SHPO
 Applicants have the right to appeal...
STATE TAX CREDIT PROJECT
        506 E. KINGSLEY, ANN ARBOR

 Remove
  asbestos shingle
  siding
 Repair porch
  structu...
STATE TAX CREDIT PROJECT
               506 E. KINGSLEY, ANN ARBOR




 $71,345
    Final Project
    Cost
   $17,836 Ta...
STATE TAX CREDIT PROJECT
  506 E. KINGSLEY, ANN ARBOR
STATE TAX CREDIT PROJECT
          HUGH H. RICHARD BUILDING, 505
           WILDWOOD AVENUE, JACKSON
   Repair slate roof...
STATE TAX CREDIT PROJECT
HUGH H. RICHARD BUILDING, 505
 WILDWOOD AVENUE, JACKSON
STATE TAX CREDIT PROJECT
              339 COLLEGE AVENUE, GRAND
            RAPIDS, HERITAGE HILL HISTORIC
              ...
STATE TAX CREDIT PROJECT
HUGH H. RICHARD BUILDING, 505
 WILDWOOD AVENUE, JACKSON
STATE TAX CREDIT PROJECT
          921 W. LOVELL, KALAMAZOO
 Remove asbestos
  shingle siding
 Reconstruct front
  porch...
FEDERAL TAX CREDITS
 10% Credit – Rehabilitation of non-
  historic buildings:
    Built prior to 1936
    Non-resident...
20% FEDERAL TAX CREDITS
 CERTIFIED HISTORIC STRUCTURE

 Individually listed in the National
  Register of Historic Places...
20% FEDERAL TAX CREDITS
       APPLICATION PROCESS

 State Historic Preservation Office –
  Reviews all Michigan projects...
STATE TAX CREDITS
   COMBINED WITH FEDERAL TAX
            CREDITS

 Must apply for federal tax credits if
  eligible
 2...
CONTACTS AND ADDITIONAL
     INFORMATION
 Federal or Combined Applications
  Robbert McKay
  517/335-2727
  McKayR@michig...
2008 01 09  H D C  Kidorf Farmington  Hills  H D C
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2008 01 09 H D C Kidorf Farmington Hills H D C

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Michigan Historic Preservation Network Presentation to Farmington Hills, Michigan, Historic District Commission and guests at regular meeting January 9, 2008, by volunteer Kristine M. Kidorf, Kidorf Preservation Consulting

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2008 01 09 H D C Kidorf Farmington Hills H D C

  1. 1. No one ever said it would be easy… The Role of Historic District Commissioners Farmington Hills Historic District Commission January 9, 2008 Kristine M. Kidorf Kidorf Preservation Consulting Detroit, Michigan www.mhpn.org
  2. 2. Michigan Historic Preservation Network Your statewide historic preservation non- profit • Education: conference, workshops, newsletter, essay contest, Randolph School, Partners for Sacred Places
  3. 3. Michigan Historic Preservation Network Advocacy: state & national legislation, how-to
  4. 4. Michigan Historic Preservation Network Easement donations
  5. 5. Requirements of HDC members – Resident of the City – Majority must have a demonstrated interest or knowledge in historic preservation – Members serve a 3 year term – 2 people from a list submitted by 1 or more preservation organizations – Registered architect if available
  6. 6. Your Job as a Historic District Commissioner – Review all exterior changes in local historic districts. – Issue Certificates of Appropriateness, Notices to Proceed, or Denials – Develop design guidelines – Promote preservation in your community
  7. 7. Why is Review so important? Knowing what the consequences of work will be in the planning phase provides the basis for more informed judgments about the irreplaceable material record. What we choose to repair, replace, or demolish ultimately determines how the property is understood by today's and tomorrow's viewers. Signs fall down and interpreters aren't always there. So essentially, the work itself is the explanation.
  8. 8. Making the Decision What to Consider – PA 169 US Secretary of the Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings (36 CFR part 67). Design review standards and guidelines if they exist. The historic or architectural value and significance of the resource and its relationship to the historic value of the surrounding area. The relationship of any architectural features of the resource to the rest of the resource and to the surrounding area. The general compatibility of the design, arrangement, texture, and materials proposed to be used. Other factors, such as aesthetic value, that the Commission finds relevant.
  9. 9. Making the Decision Questions to ask Why is the property significant? • What information is contained in the study committee report? • Is the resource important by itself or as a piece of a larger district? • Is it important for its architecture, its history, or both? • Does it contribute to the district?
  10. 10. Making the Decision Questions to Ask - Significance
  11. 11. Making the Decision Contributing vs. Non- Contributing Does this building contribute to a commercial district with buildings constructed from the 1890s through the 1930s?
  12. 12. Making the Decision Contributing vs. Non-Contributing • Does this still contribute to the district?
  13. 13. Making the Decision Questions to Ask What are the key features of the resource? • Architectural – porches, windows, doors, siding, trim, massing, roof • Landscape – trees, walkways, gardens • Garages and outbuildings • Placement in the district
  14. 14. Making the Decision Questions to Ask What are the key features of this resource?
  15. 15. Making the Decision Questions to Ask What is the character of the proposal? • Is it for repairing? • Is it for replacing? With a matching or modern material? • Is it for an addition? • Is it for new construction within a district? • Is it for demolition?
  16. 16. Making the Decision Questions to Ask – Case Study The proposal is for vinyl replacement windows, what are the questions we need to ask about this building?
  17. 17. Making the Decision Four options: • Certificate of Appropriateness • Denial • Notice to Proceed • Postpone to a date certain
  18. 18. Making the Decision Certificate of Appropriateness • Does the work meet “The Secretary of the Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings?”
  19. 19. The Secretary of the Interior’s Standards (1) A property shall be used for its historic purpose or be placed in a new use that requires minimal change to the defining characteristics of the building and its site and environment. (1) Every reasonable effort shall be made to provide a compatible use of a property which requires minimal alteration of the structure or site.
  20. 20. The Secretary of the Interior’s Standards (2) The historic character of a property shall be retained and preserved. The removal of historic materials or alteration of features and spaces that characterize a property shall be avoided. (2) The distinguishing original qualities or character of a structure or site shall not be destroyed. The removal or alteration of any historic material or distinctive features shall be avoided.
  21. 21. The Secretary of the Interior’s Standards (3) Each property shall be recognized as a physical record of its time, place, and use. Changes that create a false sense of historical development, such as adding conjectural features or architectural elements from other buildings, shall not be undertaken. (3) All buildings shall be recognized as products of their own time. Alterations that have no historical basis and which seek to create an earlier appearance shall be discouraged.
  22. 22. The Secretary of the Interior’s Standards (4) Most properties change over time; those changes that have acquired historic significance in their own right shall be retained and preserved. (4) Changes which may have taken place in the course of time are evidence of the history and development of a building and its environment. These changes may have acquired significance in their own right, and this significance should be recognized and respected.
  23. 23. The Secretary of the Interior’s Standards (5) Distinctive features, finishes, and construction techniques or examples of craftsmanship that characterize a historic property shall be preserved. (5) Distinctive stylistic features or examples of skilled craftsmanship which characterize a building shall be treated with sensitivity.
  24. 24. The Secretary of the Interior’s Standards (6) Deteriorated historic features shall be repaired rather than replaced. Where the severity of deterioration requires replacement of a distinctive feature, the new feature shall match the old in design, color, texture, and other visual qualities and, where possible, materials. Replacement of missing features shall be substantiated by documentary, physical, or pictorial evidence. (6) Deteriorated architectural features shall be repaired rather than replaced whenever possible. If replacement is needed, the new material should match the material being replaced in color, composition, texture, design and other visual qualities. Repair or replacement of missing features should be based on accurate duplications of features or pictorial evidence rather than on conjectural designs or the availability of different architectural elements from other sources.
  25. 25. The Secretary of the Interior’s Standards (7) Chemical or physical treatments, such as sandblasting, that cause damage to historic materials shall not be used. The surface cleaning of structures, if appropriate, shall be undertaken using the gentlest means possible. (7) The surface cleaning of structures shall be undertaken with the gentlest means possible. Sandblasting and other cleaning methods that damage the building materials shall not be undertaken.
  26. 26. The Secretary of the Interior’s Standards (8) Significant archeological resources affected by a project shall be protected and preserved. If such resources must be disturbed, mitigation measures shall be undertaken. (8) Contemporary design for alterations and additions to existing properties will not be discouraged when such alterations and additions do not destroy significant historical, architectural or cultural material and such design is compatible with the size, scale, color, material and character of the property or neighborhood.
  27. 27. The Secretary of the Interior’s Standards (9) New additions, exterior alterations, or related new construction shall not destroy historic materials that characterize the property. The new work shall be differentiated from the old and shall be compatible with the massing, size, scale, and architectural features to protect the historic integrity of the property and its environment. (9) Whenever possible, new additions or alterations to structures shall be done in such a manner that if such additions or alterations were to be removed in the future, the essential form and integrity of the structure would be unimpaired.
  28. 28. The Secretary of the Interior’s Standards (9) New additions, exterior alterations, or related new construction shall not destroy historic materials that characterize the property. The new work shall be differentiated from the old and shall be compatible with the massing, size, scale, and architectural features to protect the historic integrity of the property and its environment.
  29. 29. The Secretary of the Interior’s Standards (10) New additions and adjacent or related new construction shall be undertaken in such a manner that if removed in the future, the essential form and integrity of the historic property and its environment would be unimpaired.
  30. 30. Evaluating the application • Review application – take note of what’s important about the resource • Assess current condition, is the material original? Is it repairable? • What are the qualities of the proposed materials? • What do the Secty Interior Stds say? • Are there extenuating circumstances? • Don’t be afraid to say no!
  31. 31. Porches • Add a metal railing to the steps
  32. 32. Siding • Want to install vinyl siding
  33. 33. Windows • Want to install vinyl replacement windows
  34. 34. Windows • Want to replace these windows
  35. 35. Making the Decision Denial • The work does not meet “The Secretary of the Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings” • Issue a denial • Applicant can re-apply with new information/changed application; or • Appeal to the State Historic Preservation Review Board
  36. 36. Making the Decision Notice to Proceed • Application does not meet “The Secretary of the Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings” • Meets condition for a Notice to Proceed • (1) The resource constitutes a hazard to the safety of the public or the structure’s occupants. • (2) The resource is a deterrent to a major improvement program that will be of substantial benefit to the community and the applicant proposing the work has obtained all necessary planning and zoning approvals, financing and environmental clearances. • (3) Retaining the resource will cause undue financial hardship to the owner when a governmental action, an act of God, or other events beyond the owner’s control created the hardship, and all feasible alternatives to eliminate the hardship, which may include offering the resource for sale at its fair market value or moving the resource to a vacant site within the district, have been attempted and exhausted by the owner. • (4) Retaining the resource is not in the interest of the majority of the community.
  37. 37. Notice to Proceed – Hazard to Public Safety What would be required to determine if this structure is a hazard to the safety of the public or the occupants?
  38. 38. Notice To Proceed - Deterrent to Major Improvement Program The proposal is to demolish these houses to build a school on the property.
  39. 39. Notice To Proceed Economic Hardship Refer to document from SHPO Key Points: 1. Economic Hardship – SOI Standards 2. Economic Feasibility – Ordinance specific – prevents reasonable use 3. Financial Hardship – Justification for demolition
  40. 40. Notice To Proceed Economic Hardship What kind of evidence do you need to justify Economic Hardship?
  41. 41. Making the Decision Postpone to a date certain Can postpone the application for the following: • More information about the application. • Clarify information provided. • Cannot get a motion passed Be careful of 60 days, to be safe get a written extension from the applicant.
  42. 42. Before the Meeting Ensure applications are complete – develop application guidelines Ensure given proper notification for meetings – Agenda set ahead Ensure reviewing applications within 60 day time frame Do your homework! Review the applications BEFORE you get to the meeting! Visit the site.
  43. 43. Perception - During the Meeting • Ensure public can hear – microphones if possible – no sidebar conversations! • Ensure recording meeting, in case of appeal • Ensure taking notes for minutes and in case technology fails • Explain what’s going to happen – script for chair • Treat public with kindness and respect – they might be nervous and afraid!
  44. 44. After the Meeting • Written decisions sent to applicants - Why application approved or denied - If denied: reason, how to correct, how to appeal - Must be sent within 60 days - Good idea to send denials registered mail and 1st class • Decisions are communicated to Building Department • Minutes are prepared
  45. 45. Violations of the Ordinance Property owners who do work before getting a permit or do not do what the Commission approved. Law allows for the Commission to order work corrected if it does not meet “The Secretary of the Interior’s Standards.” If work not corrected Commission can get a court order to enter property, correct work, and put a lien on the property.
  46. 46. Demolition by Neglect Gives Commission powers to correct situations where property owners are neglecting their historic properties.
  47. 47. Demolition by Neglect Commission can order repairs made. If owner does not make repairs Commission can get a court order to enter property, make repairs, put a lien on the property.
  48. 48. Demolition by Neglect Successes Property owner sold property that they could not care for, or made necessary repairs.
  49. 49. Demolition by Neglect Failures Property owner continues to put the Commission off by promising repairs and never making them, or ignoring the Commission altogether.
  50. 50. Design Guidelines • Helpful for common types of work • Must be approved by the State Historic Preservation Office • Make them easy for the public to understand • Get comments from public before adopting so there is buy-in
  51. 51. Helpful HDC Education Hints • Year-end wrap up – slide show of before & after of applications; evaluate HDC’s work – what can be improved? Invite elected officials • Send agendas with results to elected officials so they can see you’re approving most applications • Meet annually with elected officials • Celebrate Preservation Month – ice cream social with HDC – Open House
  52. 52. HDC Staff Duties • Varies from community to community • Generally Staff is the day-to-day face of the Commission – directed by the municipality - answers questions, reviews applications, meeting agendas, field work, reports/recommendations, decision letters, violations, demo by neglect
  53. 53. Questions? Thank you!
  54. 54. Historic Preservation Tax Incentives
  55. 55. State Historic Preservation Office Michigan Historical Center Michigan Department of History, Arts & Libraries
  56. 56. Historic Preservation Income Tax Incentives  State – Michigan Business Tax  State – Section 266 of the Income Tax Act of 1967 (PA 70)
  57. 57. STATE TAX CREDITS  Encourage investment in Michigan’s historic resources  Administered by the State Historic Preservation Office, Michigan Historical Center, Michigan Department of History, Arts and Libraries and the Michigan Department of Treasury  25% credit on state income tax
  58. 58. STATE TAX CREDITS QUALIFIED TAX PAYER  Owner  Long-term lessee  Residential 27.5 Years  Non-residential 39 years
  59. 59. STATE TAX CREDITS HISTORIC RESOURCES  The resource must be 50 years of age or older  The resource must retain its integrity  The resource can be a building, structure, site, object, feature, or open space
  60. 60. STATE TAX CREDITS HISTORIC RESOURCES  If the resource is in a unit of government with a population less than 5,000 the resource must meet one of the following three criteria:  Listed in the National Register of Historic Places (Located within the boundaries of a National Historical Park)  Listed in the State Register of Historic Sites  Located in a local historic district established under an ordinance that is compliant with PA 169
  61. 61. STATE TAX CREDITS HISTORIC RESOURCES  If the resource is in a unit of government with a population greater than 5,000 the resource must meet the following criteria:  Located in a local historic district established under an ordinance that is compliant with PA 169
  62. 62. STATE TAX CREDITS ELIGIBLE RESOURCES  Owner-occupied residences  Income-producing commercial, industrial or residential resources
  63. 63. STATE TAX CREDITS ELIGIBLE PROJECTS  Rehabilitation expenditures must be equal to or greater than 10% of the State Equalized Value (SEV)  Rehabilitation must be in conformance with The Secretary of the Interior’s Standards for Rehabilitation
  64. 64. STATE TAX CREDITS ELIGIBLE EXPENDITURES  Expenditures can be incurred over a maximum period of five years  Expenditures must have been made no more that five years prior to the submittal of the application
  65. 65. STATE TAX CREDITS ELIGIBLE EXPENDITURES  Expenditures eligible for the tax credit include:  Mechanical, plumbing, electrical  Roof work  Painting  Architect/Engineer fees, Application fees  Kitchens and bathrooms
  66. 66. STATE TAX CREDITS ELIGIBLE EXPENDITURES  Expenditures not eligible for the tax credit include:  Acquisition costs  Furnishings  Window coverings  Building additions  Appliances
  67. 67. STATE TAX CREDITS TAX CREDIT APPLICATION  Part 1 – Evaluation of Eligibility  Part 2 – Description of Rehabilitation  Part 3 – Certification of Completed Work
  68. 68. STATE TAX CREDITS TAX CREDIT APPLICATION  Part 1 – Evaluation of Eligibility  Brief description of resource  Statement of significance  Location map  Declaration of Location  $25 processing fee  Photographs, both interior and exterior
  69. 69. STATE TAX CREDITS TAX CREDIT APPLICATION  Part 2 – Description of Rehabilitation  Work description  Plans and specifications  Estimated cost of rehabilitation  Verification of SEV form  Photographs of areas of work  Amendment sheet
  70. 70. STATE TAX CREDITS TAX CREDIT APPLICATION  Part 3 – Certification of Completed Work  Photographs of completed work  Application fee – determined by the amount of rehabilitation expenditures  Credit can only be claimed in the year that the Part 3 is certified
  71. 71. STATE TAX CREDITS PROJECT REVIEW  State tax credit application review is separate from local review  State tax credit application review is for the entire resource, including both interior and exterior
  72. 72. STATE TAX CREDITS USING THE CREDIT  Credit is claimed the year work is completed and certified by the SHPO  Credit can be carried forward up to 10 years  Credit is subject to a recapture period of 5 years
  73. 73. STATE TAX CREDITS APPLICATION CERTIFICATION  Certifications made by the SHPO  Applicants have the right to appeal certification decisions  The SHPO will notify the Department of Treasury of certifications  Credits are claimed on state tax returns, Historic Preservation Tax Credit Claim (Form 3581)
  74. 74. STATE TAX CREDIT PROJECT 506 E. KINGSLEY, ANN ARBOR  Remove asbestos shingle siding  Repair porch structure  New paint color scheme
  75. 75. STATE TAX CREDIT PROJECT 506 E. KINGSLEY, ANN ARBOR  $71,345 Final Project Cost  $17,836 Tax Credit
  76. 76. STATE TAX CREDIT PROJECT 506 E. KINGSLEY, ANN ARBOR
  77. 77. STATE TAX CREDIT PROJECT HUGH H. RICHARD BUILDING, 505 WILDWOOD AVENUE, JACKSON  Repair slate roof  Repoint masonry  Exterior paint  Porch restoration  Total project cost: $28,285  Tax credit: $7,071
  78. 78. STATE TAX CREDIT PROJECT HUGH H. RICHARD BUILDING, 505 WILDWOOD AVENUE, JACKSON
  79. 79. STATE TAX CREDIT PROJECT 339 COLLEGE AVENUE, GRAND RAPIDS, HERITAGE HILL HISTORIC DISTRICT  Reconstruct grand staircase  Repair plaster  Replace missing trim  Repair and refinish hardwood floors  $20,375 State income tax credit
  80. 80. STATE TAX CREDIT PROJECT HUGH H. RICHARD BUILDING, 505 WILDWOOD AVENUE, JACKSON
  81. 81. STATE TAX CREDIT PROJECT 921 W. LOVELL, KALAMAZOO  Remove asbestos shingle siding  Reconstruct front porch  New paint color scheme  Interior Rehabilitation  Total cost $67,000
  82. 82. FEDERAL TAX CREDITS  10% Credit – Rehabilitation of non- historic buildings:  Built prior to 1936  Non-residential  20% Credit – Rehabilitation of historic structures:  Property must be depreciable  Rehab must be “substantial”  Building must be a“certified” historic resource
  83. 83. 20% FEDERAL TAX CREDITS CERTIFIED HISTORIC STRUCTURE  Individually listed in the National Register of Historic Places  Contributes to the character of a registered historic district
  84. 84. 20% FEDERAL TAX CREDITS APPLICATION PROCESS  State Historic Preservation Office – Reviews all Michigan projects  National Park Service – Makes all final determinations  Internal Revenue Service – Monitors credits
  85. 85. STATE TAX CREDITS COMBINED WITH FEDERAL TAX CREDITS  Must apply for federal tax credits if eligible  20% federal credit + 5% state credit  Complete the federal application form only  Declaration of Location Form  Verification of the SEV Form
  86. 86. CONTACTS AND ADDITIONAL INFORMATION  Federal or Combined Applications Robbert McKay 517/335-2727 McKayR@michigan.gov  State Applications Bryan Lijewski 517/373-1631 LijewskiB@michigan.gov

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