No one ever said it would be easy…

The Role of Historic District Commissioners

Farmington Hills Historic District CommissionJanuary 9, 2008

Kristine M. Kidorf

Kidorf Preservation Consulting

Detroit, Michigan

www.mhpn.org

Michigan Historic Preservation Network

Your statewide historic preservation non-profit

• Education: conference, workshops, newsletter, essay contest, Randolph School, Partners for Sacred Places

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 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

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

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.

Making the DecisionWhat 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.

Making the DecisionQuestions 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?

Making the DecisionQuestions to Ask - Significance

Making the DecisionContributing vs. Non-

ContributingDoes this building contribute to a commercial

district with buildings constructed from the 1890s

through the 1930s?

Making the DecisionContributing vs. Non-Contributing

• Does this still contribute to the district?

Making the DecisionQuestions 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

Making the DecisionQuestions to Ask

What are the key features of this resource?

Making the DecisionQuestions 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?

Making the DecisionQuestions to Ask – Case Study

The proposal is for vinyl replacement windows, what are the questions we need to ask about this building?

Making the Decision

Four options:

• Certificate of Appropriateness

• Denial

• Notice to Proceed

• Postpone to a date certain

Making the DecisionCertificate of Appropriateness

• Does the work meet “The Secretary of the Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings?”

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.

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.

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.

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.

(5) Distinctive features, finishes, and construction techniques or examples of craftsmanship that characterize a historic property shall be preserved.

The Secretary of the Interior’s Standards

(5) Distinctive stylistic features or examples of skilled craftsmanship which characterize a building shall be treated with sensitivity.

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.

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.

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.

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.

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.

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.

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!

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 DecisionDenial

• 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

Making the DecisionNotice 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.

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?

The proposal is to demolish these houses to build a school on the property.

Notice To Proceed - Deterrent to Major Improvement Program

Notice To ProceedEconomic Hardship

Refer to document from SHPOKey Points:1. Economic Hardship – SOI Standards2. Economic Feasibility – Ordinance specific – prevents

reasonable use3. Financial Hardship – Justification for demolition

What kind of evidence do you need to justify Economic Hardship?

Notice To ProceedEconomic Hardship

Making the DecisionPostpone 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.

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.

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!

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

Violations of the OrdinanceProperty 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.

Demolition by NeglectGives Commission powers to

correct situations where property owners are neglecting their historic properties.

Demolition by NeglectCommission 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.

Demolition by NeglectSuccesses

Property owner sold property that they could not care for, or made necessary repairs.

Demolition by NeglectFailures

Property owner continues to put the Commission off by promising repairs and never making them, or ignoring the Commission altogether.

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

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

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

Thank you!

Questions?

Historic Preservation Tax Incentives

Michigan Historical CenterMichigan Department of History, Arts &

Libraries

State Historic Preservation Office

Historic Preservation Income Tax Incentives

State – Michigan Business Tax

State – Section 266 of the Income Tax Act of 1967 (PA 70)

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

STATE TAX CREDITSQUALIFIED TAX PAYER

Owner

Long-term lessee

Residential 27.5 Years

Non-residential 39 years

STATE TAX CREDITSHISTORIC 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

STATE TAX CREDITSHISTORIC 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

STATE TAX CREDITSHISTORIC 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

STATE TAX CREDITSELIGIBLE RESOURCES

Owner-occupied residences

Income-producing commercial, industrial or residential resources

STATE TAX CREDITSELIGIBLE 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

STATE TAX CREDITSELIGIBLE 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

STATE TAX CREDITSELIGIBLE EXPENDITURES

Expenditures eligible for the tax credit include:Mechanical, plumbing, electrical

Roof work

Painting

Architect/Engineer fees, Application fees

Kitchens and bathrooms

STATE TAX CREDITSELIGIBLE EXPENDITURES

Expenditures not eligible for the tax credit include:Acquisition costs

Furnishings

Window coverings

Building additions

Appliances

STATE TAX CREDITSTAX CREDIT APPLICATION

Part 1 – Evaluation of Eligibility

Part 2 – Description of Rehabilitation

Part 3 – Certification of Completed Work

STATE TAX CREDITSTAX CREDIT APPLICATION

Part 1 – Evaluation of EligibilityBrief description of resource

Statement of significance

Location map

Declaration of Location

$25 processing fee

Photographs, both interior and exterior

STATE TAX CREDITSTAX CREDIT APPLICATION

Part 2 – Description of RehabilitationWork description

Plans and specifications

Estimated cost of rehabilitation

Verification of SEV form

Photographs of areas of work

Amendment sheet

STATE TAX CREDITSTAX 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

STATE TAX CREDITSPROJECT 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

STATE TAX CREDITSUSING 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

STATE TAX CREDITSAPPLICATION 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)

STATE TAX CREDIT PROJECT506 E. KINGSLEY, ANN ARBOR

Remove asbestos shingle siding

Repair porch structure

New paint color scheme

STATE TAX CREDIT PROJECT506 E. KINGSLEY, ANN ARBOR

$71,345 Final Project Cost

$17,836 Tax Credit

STATE TAX CREDIT PROJECT506 E. KINGSLEY, ANN ARBOR

STATE TAX CREDIT PROJECTHUGH 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

STATE TAX CREDIT PROJECTHUGH H. RICHARD BUILDING, 505

WILDWOOD AVENUE, JACKSON

STATE TAX CREDIT PROJECT339 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

STATE TAX CREDIT PROJECTHUGH H. RICHARD BUILDING, 505

WILDWOOD AVENUE, JACKSON

STATE TAX CREDIT PROJECT921 W. LOVELL, KALAMAZOO

Remove asbestos shingle siding

Reconstruct front porch

New paint color scheme

Interior Rehabilitation

Total cost $67,000

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

20% FEDERAL TAX CREDITSCERTIFIED HISTORIC STRUCTURE

Individually listed in the National Register of Historic Places

Contributes to the character of a registered historic district

20% FEDERAL TAX CREDITSAPPLICATION PROCESS

State Historic Preservation Office –Reviews all Michigan projects

National Park Service – Makes all final determinations

Internal Revenue Service – Monitors credits

STATE TAX CREDITSCOMBINED WITH FEDERAL TAX

CREDITS

Must apply for federal tax credits if eligible

20% federal credit + 5% state credit

Complete the federal application form onlyDeclaration of Location Form

Verification of the SEV Form

CONTACTS AND ADDITIONAL INFORMATION

Federal or Combined ApplicationsRobbert McKay

517/335-2727

McKayR@michigan.gov

State ApplicationsBryan Lijewski

517/373-1631

LijewskiB@michigan.gov