Best Practices, How-tos, and FAQs

Whether the house you are interested in is within a historic district or not, it is always good advice to investigate all aspects of the neighborhood before purchasing a home. But, purchasing a home in a historic district has its own set of particulars to consider. These include, “Is the historic district a local historic district or is it a state or national one?“ “Is the house I like considered to be contributing to the district?” “Will I have to get permission to paint my door and plant a tree?” “Is there anything good about living in a historic district?” In reality, there are many misconceptions about what it means to live in a historic district, and the benefits historic districts can provide are numerous but unknown to many.

Historic districts are designations of a group of buildings that together form a historically or architecturally significant area. The designation is intended to preserve the character of the significant area, but not freeze it in time. The first historic district was created in Charleston, South Carolina in 1931.

Historic Districts that are listed on the National Register of Places are honorary and come with no restrictions as to what a homeowner can do to his or her property. Being in a National Register Historic District does, however, allow for the use of historic rehabilitation tax credits and other tax benefits.

Most state governments have a list that is similar to the National Register of Historic Places that can have similar benefits including tax incentives. The only historic districts that require homeowners to get permission before they alter the appearance of their houses, are local historic districts.

Local historic districts are created by local governments that make land-use decisions such as zoning regulations and overlay districts. Depending on the local ordinance or state laws, property owners’ permission may be required to create a historic district; however all owners are notified and given the chance to share their opinions.

For most minor changes to buildings in local historic districts, homeowners can consult with the local preservation planner and receive prompt permissions. Major changes however, require homeowners to get approval from a historic preservation commission or architectural review board.

Architectural review boards review all applications and compare them to a set of pre established guidelines. Members of local architectural review boards are tasked with using the local guidelines to assist homeowners in making the appropriate alterations to the exterior of their homes that maintain the character of the historic district, not to prevent them from making any alterations.

Local Review boards are able to veto changes that do not adhere to the guidelines, which can be frustrating for some people, however ninety-nine percent of all applications to architectural review boards receive approval. It is the 1 percent of difficult cases that always seem to make the news and convince people that they have to jump through hoops to make any changes to their properties. Good architectural review boards are able to work out difficult solutions and find creative ways to make the homeowners happy and also abide by the guidelines.

So, what are the benefits of living in a local historic district? While living in a national or state historic district can provide tax benefits, living in a local historic district provides real protection for you and your neighbors. Studies have also shown that houses in historic districts have higher resale values than houses in similar neighborhoods. Additionally, living in a historic district means that you are going to have neighbors who have a strong sense of community and care about you and your property, because they care about the neighborhood as a whole.

Many people love living in historic districts, but it’s not for everyone. Talk with your real estate agent, local planning departments and local historical societies to find out more about historic districts to make sure you understand all of the aspects before buying your new home.

Section 106 is a review process that is an integral component of the National Historic Preservation Act (NHPA) of 1966. The review process requires federal agencies to identify and assess the effects that federal undertakings will have on significant historic resources. Federal undertakings can be projects or activities which are funded, permitted, licensed, or approved by any federal agency, and can take place either on or off federally owned or controlled property.

The process is overseen by the Advisory Council on Historic Preservation (ACHP), and it has lasting benefits because it relies heavily on public input from various consulting parties, including State Historic Preservation Offices, Tribal Historic Preservation Offices, state and local preservation and history organizations, and other interested or concerned individuals.

If it is determined that the federal project will have adverse effects on the historic resource, the federal agency must begin to explore ways– in consultation with the other parties– to prevent, minimize, or mitigate the adverse effects. This type of checks and balances system found within the Section 106 review process has helped prevent and mitigate the loss of many significant historic sites across the nation.

Most grants are available only to nonprofits or governmental entities, but each year, Preservation Virginia actively fights for the continuation and expansion of historic tax credit and easement programs, which can provide substantial financial assistance to private property owners’ preservation projects. Preservation Virginia has also made it a priority in its Vision 2020 Comprehensive Fundraising Campaign to create a community action fund, which would allow us to make grants or loans to property owners in Virginia. However, this is part of a long term plan, which will take a few years to establish, so for now, property owners must explore the options listed below for their preservation purposes.

Tax Incentives
Historic Rehabilitation Tax Credit Programs
Private property owners can benefit from tax incentives including historic rehabilitation tax credits, which in many cases allow for a significant return on investments. Virginia has one of the best state Historic Rehabilitation Tax Credit Programs in the nation. If your property is income-producing, you are also eligible for Federal Rehabilitation Tax Credits. For more information, please contact the Virginia Department of Historic Resources at http://www.dhr.virginia.gov/tax_credits/tax_credit.htm or the National Park Service at https://www.nps.gov/tps/tax-incentives.htm.

Easements
By donating a historic preservation easement, or a land conservation easement on a property, private property owners are eligible for tax incentives. The Virginia Department of Historic Resources manages historic preservation easements. For more information see https://www.dhr.virginia.gov/easements/. For information about land conservation easements, see the Virginia Department of Conservation and Recreation at https://www.dcr.virginia.gov/land-conservation/land-con-programs.

Tax Exemptions
Some local governments in Virginia offer qualified historic properties partial property tax exemptions. Please contact your local government financial office for more information.

Grants
Federal Grants
Federal preservation grant opportunities are available through the National Park Service and the National Trust for Historic Preservation.

The National Park Service grants, including the African American Civil Rights Grants, Save America’s Treasures, the Paul Bruhn Historic Revitalization Grant, the History of Equal Rights Grants, Semiquincentennial Grants, HBCU Grants, Underrepresented Communities Grants, Tribal Heritage Grants, and Disaster Recovers Grants. All NPS grants are funded from the Historic Preservation Fund. For more information see NPS’s website at https://www.nps.gov/subjects/historicpreservationfund/project-grants.htm.

The National Trust for Historic Preservation, the nationwide, privately funded, historic preservation nonprofit organization, has been the leader in the country for over 70 years in saving America’s historic places. NTHP has 13 different grant programs, for preservation research, planning, and bricks-and mortar projects; as well as the African American Cultural Heritage Action Fund. See https://savingplaces.org/grants#.Ydh1Rf7MJPZ for more information.

State Grants
The Virginia Department of Historic Resources administers several grants for preservation research, maintenance, planning, and bricks-and-mortar projects. See https://www.dhr.virginia.gov/grants/ and https://www.dhr.virginia.gov/pdf_files/fig.pdf for more information. These grants include the African American Cemetery and Graves Fund, which provides funds for the care and maintenance of African American cemeteries and graves, which are established prior to January 1, 1900.

Revolutionary War Graves and Cemeteries Fund: For more information, see Frequently Asked Questions about the Revolutionary War graves fund at https://www.dhr.virginia.gov/archaeology/cemetery-preservation-frequently-asked-questions/#RevolutionaryGraves.

DHR also administers Certified Local Government (CLG) Grants for local governments. Local jurisdictions must be a Certified Local Government to be eligible to apply for CLG grants. For information on CLG grants, please visit the CLG webpage at https://www.dhr.virginia.gov/certified-local-government-clg/.

Cost Share Grants: DHR’s Survey and Planning Cost Share Program assists local governments in meeting their preservation planning goals through identification of historic resources. For more information regarding the survey program, see these Frequently Asked Questions at https://www.dhr.virginia.gov/survey-planning/cost-share-grant-program/.

Other grants administered through the Virginia Department of Historic Resources include the Threatened Sites Grant Program, Virginia Battlefield Preservation Fund, and ESHPF Disaster Relief Assistance Grants.

The Virginia Land Conservation Foundation, grants to cultural projects seeking to preserve a variety of resource types including battlefields, viewsheds, and historic buildings. For more information, contact the the Virginia Department of Conservation and Recreation at https://www.dcr.virginia.gov/virginia-land-conservation-foundation/.

As part of the Virginia Main Street Program, communities can use the traditional assets of downtown, such as unique architecture and locally owned businesses, to work as a catalyst for economic growth and community pride. The Virginia Main Street Program is administered by the Department of Housing and Community Development. See https://www.dhcd.virginia.gov/vms for more information.

Local Grants and Financial Assistance

Many localities in the Commonwealth are serviced by Community Foundations, which often provide grants for local or regional preservation projects. Some private and corporate foundations in Virginia provide funds for preservation projects. Please check for local foundations in your area, or see https://www.dhr.virginia.gov/pdf_files/fig.pdf.

Some local Businesses such as Home Depot, Lowes, Walmart, and other retail stores often provide grants for preservation projects, especially if the project benefits the overall community. Service organizations and clubs such as the Kiwanis, Garden Club, Ruritan, Lions, and Rotary also provide grants if the project will benefit the overall community. Another potential opportunity are educational institutions. Some universities and colleges need preservation projects for students.

Links for more information on financial assistance for preservation projects:
The National Park Service’s Historic Preservation Tax Incentives (Technical Preservation Services)
The National Park Service’s Historic Preservation Grants Program

Since the inception of the Federal rehabilitation tax credit program in 1977 and the Virginia tax credit program in 1997, over 3,500 deteriorated historically significant buildings in Virginia have been rehabilitated and returned to productive use, representing a private investment of over $5.7 billion.

Both the federal and state tax credit programs are administered in Virginia through the Department of Historic Resources. State tax credits are available for owner-occupied, as well as income- producing historic buildings. If your property is income-producing, you may also be eligible for federal tax credits.  See http://www.dhr.virginia.gov/tax_credits/tax_credit.htm and http://www.nps.gov/tps/tax-incentives.htm for more information.

Preservation Virginia’s restoration craftsman provide fee-for-service projects, and can help with many hands-on preservation-related questions. Please see https://preservationvirginia.org/resources/hire-our-craftsman/ for more information.

The Virginia Department of Historic Resources provides many technical assistance reports for help with hands-on historic rehabilitation and maintenance projects, including information on asbestos, lead paint, and repairing historic windows. For more information see https://www.dhr.virginia.gov/publications/technical-reports/.

The National Park Service Technical Preservation Services develops historic preservation standards and guidance on preserving and rehabilitating historic buildings. See https://www.nps.gov/tps/index.htm for more information.

The park service also administers the Secretary of the Interior’s Standards for the Treatment of Historic Properties, which are common sense historic preservation principles in non-technical language, to help promote historic preservation best practices. See https://www.nps.gov/tps/standards.htm.

The National Park Service also has published over 40 “how-to” Preservation Briefs on everything from repairing log buildings and wooden windows to reducing lead-paint hazards. For a complete list of Preservation Briefs see http://www.nps.gov/tps/how-to-preserve/briefs.htm. A variety of public educational videos are available online, which can be very helpful for preservation projects.

Information on restoring and rehabilitating historic buildings can also be found at the National Trust for Historic Preservation’s website at https://savingplaces.org/stories/10-on-tuesday-restore-vs-rehabilitate-which-is-right-for-your-historic-house#.YdhYl_7MJPY.

There is no single method that will guarantee that a historic structure will be saved; but there are tools available to assist and approaches you can take. When a historic building or site is endangered it is crucial to gather all of the important information about the site and to communicate to others the educational, economic, and social benefits of protecting the site.

Historic Designation
Designating a historic site as significant by listing it to state, local, or federal historic registers provides validity that your site is historic, and may provide some limited protections. Listing on historic registers is also a requirement to receive some grants. See below for more information historic registers.

Recruiting Others
Very often it takes the work of a community, using resources at all levels, to save a historic site. It is important to broaden your constituency and include as many neighborhood associations, historical societies, preservation organizations, students and experts in the field as possible. It is also important to include other active people in your community, not specifically associated with historic preservation such as civic organization members, local government staff, elected officials, and developers. Churches are also a great place to discuss, and get support on important preservation issues.

Form Nonprofit or a Friends Group
Forming a Friends Group with a specific purpose is an effective way to organize your efforts. If your Friends Group becomes a 501c3 it adds legitimacy to the effort and it makes it easier to acquire grants.

Public Action
Letter writing, petitions, letters to the editors, public rallies, and communicating with the press are all good ways to raise awareness and increase support for your preservation project.

Funding
Saving a historic site often means acquiring or raising funds to perform studies. See above for information on funding for preservation projects.

For more information, contact us or see the National Trust for Historic Preservation’s “How to Save a Place” toolkit series at https://savingplaces.org/stories/preservation-tips-tools-how-to-save-a-place-apply-for-historic-designation#.X634NshKhPY and https://savingplaces.org/stories/preservation-tips-tools-how-to-save-a-place-manage-your-personal-expectations#.X636EshKhPZ.

There are many benefits to historic preservation. Some of the more intangible and personal benefits are often downplayed and under-recognized, but many people feel a deep-seated connection to old places, and enjoy being in places which have experienced years and years of history.

Tom Mayes, Chief Legal Officer and General Counsel at National Trust for Historic Preservation, has spoken widely on this subject. He is the author of the book “Why Old Places Matter”, which explores the deep attachments people have with old places, and the fundamentally important feelings of belonging, continuity, stability, identity and memory, which old places can provide. Regrets go only one way. Rather, over the years, I’ve heard regrets expressed about tearing a building down. “We just didn’t know” that a neighborhood was on the cusp of revival, that an old building was so significant, that an old building might have profitable new uses, or that what resulted turned out to be less valuable than what was lost. Other benefits of preserving historic places include the following:

Quality and Substance
Old buildings are reminders of a place’s substance and complexity. Without historic buildings, visitors, and even longtime residents, can find it difficult to discern the character of a place. Old buildings are vital to providing a sense of permanency and a sense of identity. Another benefit of historic preservation is quality― the superior quality of historic buildings, and the loss of quality when historic places are destroyed. Quality of place also remains a key factor in where people choose to live and businesses choose to open their doors.

Buildings that were created before 1900 were often made of superior and rare materials, such as heart pine wood, which is incredibly hard to find today due to over-harvesting. These materials were meant to withstand the harshest weather conditions, and the fact that many still stands is a testament to the workmanship and attention to detail these builders exemplified. Buildings that are created today are typically made from standard materials such as concrete, brick, poor-quality wood, and commonly found metals.

It is also almost impossible to find someone who can perform the type of high-quality craftsmanship which expert stonecutters, masons, and woodcarvers performed on on historic buildings.

Educational Benefits
Historic buildings are a record of ourselves and our communities, and preserving important historic resources creates a visible connection with the community’s history and culture. Historic places also preserve and promote the human stories of people who built, lived, or worked in them.

Historic places can provide many educational opportunities, which can’t be provided by strictly classroom-held lessons. Physically visiting, touching, and experiencing historic places can spark peoples’ imaginations in ways that in-class learning cannot.

Economic Benefits
In 2015, Virginia Commonwealth University completed a study, commissioned by Preservation Virginia, with support from the Virginia Department of Historic Resources, on the economic benefits of historic preservation. It found that the benefits of bringing old buildings back to life ripples across the economy and through local communities to contribute billions to the state’s economic health. See https://preservationvirginia.org/press_release/vcu-study-finds-historic-preservation-contributes-to-virginias-economy-by-u/ for more information and links to the studies.

Rehabilitation of older buildings produces higher-paying jobs than new construction and the money tends to stay in the local economy. Preserving historic resources also provides stability of property values, and show stronger appreciation over the long term. Economic incentives such as historic rehabilitation tax credits and tax deductions can provide strong financial opportunities to owners of historic buildings.

Heritage tourism is an important driver of Virginia’s economy, generating over 7 billion a year, according to the study commissioned by Preservation Virginia and conducted by Virginia Commonwealth University. Old places are tourism destinations, and have been so for millennia. The economic benefits of heritage tourism are unparalleled, heritage visitors stay longer, spend more per day, and, therefore, have a significantly greater per trip economic impact. See https://preservationvirginia.org/resources/publications/ for this and other reports.

For more information of economic benefits of historic preservation see https://www.achp.gov/sites/default/files/guidance/2018-06/Economic%20Impacts%20v5-FINAL.pdf and www.placeeconomics.com.

Environmental Benefits
Preservation is good for the Environment. Preserving older buildings is a wise use of infrastructure, land, and non-renewable resources. Preservation entails an investment in the existing built environment rather than using land and resources to build new. Preserving and reusing existing buildings makes better use of tax dollars by reducing the need for new roads, sewers, and utilities. Avoiding demolition reduces landfill waste. Historic preservation is an important part of “smart,” or sustainable, growth.

Old Buildings Attract People and Businesses
American’s downtown revivals suggest that people like old buildings. When downtowns began to turn around, it happened mostly in old buildings. Historic preservation provides well-built and human-scaled environments that are attractive places to live, work, or visit. They also to preserve traditional development patterns, denser business districts, and walkable neighborhoods. Many new, innovative businesses prefer older buildings because they are individualistic, unique, interesting, and inspiring, and because they draw people. Many people are choosing to live in apartments and condos in old buildings downtown, to be closer to transportation, shopping and other people. But there is a finite supply of older buildings, and every time one is torn down, the supply is smaller, and places become less appealing, and less marketable.

For more information, see https://forum.savingplaces.org/blogs/forum-online/2015/04/16/why-do-old-places-matter-economics.

The Virginia Landmarks Register and the National Register of Historic Places are administered by the Virginia Department of Historic Resources. The process involves a two-part application. Some individuals complete the application themselves, while others hire consultants to do the nomination for them. Please see the Virginia Department of Historic Resources at https://www.dhr.virginia.gov/programs/historic-registers/ for more information and application forms.

Virginia’s historical marker program is the oldest such program in the nation. The Virginia Department of Historic Resources and the Virginia Department of Transportation jointly administer the program. See https://www.dhr.virginia.gov/programs/highway-markers/ for more information and application forms.

Listing a historic house on any of the ‘historic houses for sale’ websites is a good way to showcase your historic property for sale. The National Trust for Historic Preservation also lists historic properties for sale on their website. See http://historicrealestate.preservationnation.org/ for more information. It is recommended that if the property is listed on the state and national registers, that sellers mention this in any ads. Potential buyers are eligible for historic tax credits which can be a big incentive for many people looking to buy historic homes.

The National Register is the nation’s official list of historic structures, focusing on sites and properties that are more than 50 years old. Most states have state historic registers as well. In Virginia, the state register is known as the Virginia Landmarks Register. These designations are mostly honorary, however being listed on the national and state registers is required to obtain historic rehabilitation tax credits, and is a criteria to obtain some grants. Being listed on historic registers also lends legitimacy to a historic site. Additionally, it can provide some protection from activities such as federally-funded infrastructure projects.

Currently, the funding has run out for grants to restore historic tobacco barns. For more information on Preservation Virginia’s Tobacco Barns Program see https://preservationvirginia.org/our-work/tobacco-barn-preservation-project/. For other questions on restoring tobacco barns or agricultural buildings, please contact us.

If you think you know of a Rosenwald School or another historic school, please refer to Preservation Virginia’s website and the Rosenwald School survey map here: https://preservationvirginia.org/our-work/architectural-rosenwald-school-survey/. You can zoom-in on areas of the state on the map, and click on the icons to get information on each school. If you have further questions about Rosenwald Schools, please contact us.

Virginia law protects all cemeteries from willful and malicious damage. If you own a historic cemetery you are not obligated to do anything with it as long as you leave it alone. You may maintain the cemetery if you wish, or allow descendants or others to do so. Owners of historic cemeteries are also required to allow access to the cemetery for visitation and genealogical research. If you wish to move a cemetery there are requirements and permits that must be obtained. For more information and links to state cemetery laws, see https://www.dhr.virginia.gov/programs/cemetery-preservation/.

The Department of Historic Resources has a Citizens Cemetery Recordation Form. It can be accessed here: https://www.dhr.virginia.gov/programs/cemetery-preservation/. Contact DHR staff for questions and assistance.

A consistent inquiry received by Preservation Virginia regards the availability of funding for the preservation of privately-held historic properties. Unfortunately there’s no easy answer to this question, as a perennial fund for preservation does not exist outside of foundation support for nonprofit organizations. However, there are some options that may help in addressing the need for funding to preserve the many privately-owned irreplaceable historic resources in Virginia:

Department of Historic Resources and the National Park Service

Virginia’s Department of Historic Resources does not have a grant program for private home owners, however there are opportunities funded by the National Park Service and/or FEMA that are often administered by DHR. For example, if your historic building suffers damage from a natural disaster, FEMA, the National Park Service and DHR will often host grant programs to address damage to historic resources and mitigate future problems. DHR also administers a “Threatened Sites Program” focusing on archaeological sites facing threat of destruction. These funds are strictly used for archaeological documentation. The National Park Service has several grant opportunities through its Historic Preservation Fund, but these programs are often restricted to 501c3 nonprofits or government entities.

Historic Tax Credit and Easement Programs

Depending on the tax situation of property owners, historic tax credits could allow for a significant return on investments made through tax alleviation. Certified rehabilitation of a historic building through the Virginia Department of Historic Resources can be eligible for an income tax credit on 25% of eligible expenses through the Virginia Rehabilitation Tax Credit Program. An additional 20% credit can also be used through the Federal Rehabilitation Tax Credit Program, though those properties must be income-generating businesses, not private homes.

Easements allow for property owners to continue ownership while seeing historic buildings and landscapes preserved for future generations. The benefits to easement donation include federal charitable gift deductions of up to 50% of adjusted gross income, which may be carried forward for an additional 15 years. There are also land preservation tax credits for taxpayers who donate a conservation easement with a Virginia state income tax credit equal to 40% of the value of the easement. This results in a dollar-for-dollar reduction in tax liability. Also, placing a conservation easement on historic properties may result in a reduction of estate taxes.

Local Tax Incentives

Some localities offer qualified historic properties partial local property tax exemptions or abatements. Check with the city or county in which you reside.

Loans

Some private homeowners may be eligible for renovation loans, such as the FHA 203K rehab loan. The Department of Housing and Urban Development’s Section 203(k) insurance enables homebuyers and homeowners to finance both the purchase or refinancing of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home. Read more about the types of properties and projects eligible on the Department of Housing and Urban Development’s website.

Establishing a 501(c)3 Nonprofit and Grant Programs

The creation of a nonprofit entails significant work on the front end, including the setting up of a Board of Directors to coordinate the new organization, but doing so then allows for contributions to be made toward preservation work. For example, there are many public and private foundations that make donations and grant awards to historic sites and museums. However, in most cases these locations must be open and accessible to the public and used for education purposes.

The Future of Preservation Funding

Each year, Preservation Virginia actively fights for the continuation and expansion of historic tax credit and easement programs.

In the long term, Preservation Virginia made it a priority in its Vision 2020 Comprehensive Fundraising Campaign to create a community action fund, which would allow us to make grants or loans to property owners in Virginia. However, it may be years before such a program is in place, so for now, property owners must explore the options listed above for their preservation purposes.