Funding Resources for Historic Properties

Transcription

1 Funding Resources for Historic Properties

2 Grants Two grant programs: Historic Preservation Fund (HPF) Educational programs and documentation projects Heritage Trust Fund (HTF) Bricks and Mortar, physical repair or preservation of historic buildings, structures, sites, or landscapes

3 Historic Preservation Fund (HPF) Federal funds distributed to SHPOs annually SHPOs must pass through a minimum of 10% to Certified Local Governments (CLGs) Some years additional funds are distributed to non-clg applicants as well Applicants must be local governments, non-profit organizations, or universities. Private individuals are not eligible applicants. Program requires a 40% match on grant funds. Match can be contributed in-kind with volunteer labor or donated services as well as cash.

4 Examples of HPF-funded projects Any preservation-related activity resulting in a tangible product: Surveys (archeology and other cultural properties) National Register Nominations Preservation Plans Disaster Plans for historic properties Educational programs for students Conferences and trainings Brochures featuring heritage tourism Development of design review guidelines Applications are due in March 2015.

5 Heritage Trust Fund (HTF) Funding from all counties SHPO distributes all money collected each year Typically about $1 million Requests average $3-$4 million each year Must be listed in National Register or Register of Historic Kansas Places or contribute to a district Applicant must have 20% cash match at the time of application. In-kind match is not eligible. Grant reimburses 80% of project cost up to $90,000 All work must meet the Secretary of the Interior s Standards for the Treatment of Historic Properties

6 Heritage Trust Fund (HTF) grant Applicants may be private home owners, business owners, local governments, or even corporations. Applicant must own the historic property Owner must be able to maintain ownership for 5 years following the grant Projects that address preservation of the exterior envelope of a building usually compete better. Can include sculptures, landscapes, and archeological sites as well as buildings.

7 HTF Grant Workshops for 2015 Grant Round June 23, 2014 HAYS Public Library - 1pm 5pm July 8, 2014 TOPEKA - Kansas Historical Society 1pm 5pm Preliminary applications due August 31, 2014 Final applications due November 3, 2014

8 Federal & State Tax Credits What is a tax credit? A tax credit pays the income taxes that you owe. It is different from a deduction. A deduction causes you to pay lower taxes, a tax credit pays the tax liability for you. Who can apply and use the programs? Owners of any listed buildings A contributor to a registered historic district

9 State Tax Credits State Tax Credits (STC) A 25% state income tax credit Commercial, residential, civic, non-profits, church buildings qualify Listed in the SR or NR before project begins Reviewed by the SHPO only (30 days) Carried forward 10 years No deadlines, no time frames Can be sold & transferred Must spend at least $5, on the rehab A certified 501c3 may receive a 30% state credit

10 The Nuts & Bolts of Rehabilitation All work must meet the Secretary of the Interior s Standards for Rehabilitation. All plans and specifications are reviewed by the SHPO Work should be reviewed before it begins to ensure that it meets the Standards. KDOR / IRS determines qualified costs For a breakdown of the the Standards for Rehabilitation visit:

11 Qualified Expenditures (examples) Exterior Repairs Masonry Repairs Roof Repairs Window Repair Walls Partitions (if built into the structure) Ceilings Lighting Electrical Plumbing HVAC Systems Fees (Architect, Engineering, etc.) Construction Loan Interest Definition: Items that are built into or mechanically tied into the structure or are considered real property for tax purposes. Qualified expenses can vary based upon the use of the building.

12 Landscaping Retaining Walls New construction Demolition (removal of a historic structure) Moving a building Fencing Parking Lots/Paving Sidewalks Signage Appliances Furniture Window Treatments Grant money (matching portion is qualified!) Insurance Money Non-Qualified Expenditures

13 Steps for Applying for Tax Credits Step #1 Evaluate needs of the building What are the building s needs? - Immediate/Necessary Repairs? - Maintenance Needs? Determine what funds are available and what the rehabilitation plan is going to be. (What are we going to fix right now?) Develop a scope of work for your rehabilitation project that outlines your repairs.

14 Steps for Applying for Tax Credits Step #2 Submit an application to KSHS Submit the tax credit application along with documentation for review. Be sure to include: photos, drawings, plans, samples, etc. KSHS will review your application -If the forms are incomplete or we need more detail, we will ask State Project SHPO approves work, you are ok to move forward with project Federal Project SHPO forwards to NPS with recommendations NPS Reviews, may request more info, approves

15 Steps for Applying for Tax Credits Step #3 Do the Repair work Contact the SHPO if work plans changes or any additional work becomes necessary. Amendment forms are used to get these changes approved.

16 Steps for Applying for Tax Credits Step #4 Close Out Project Submit closing forms to KSHS when the work is complete. -include total costs, photos showing completed work, KDOR Schedules State SHPO evaluates, certifies, approves KDOR audits costs, approves KDOR allows credits on tax return Federal SHPO reviews, recommends, forwards to NPS NPS reviews, certifies, approves IRS allows the credit when you file taxes

17 Steps for Appling for Tax Credits Step #5 Make use of your credits Use them to pay your state/federal tax liability Sell state credits to recover a portion of your costs. More work to be done in the future? Repeat steps 1-5!

18 Hopkins House, Leavenworth, KS Tax Credit Project Case Study #1: STC Project #1, 2008 Estimated Expenses: $8000 Repairs: New HVAC system for the house. STC Project #2, 2009 Estimated Expenses: $7,500 Repairs: Replacement of deteriorated trim and paint with historic colors. The Homeowner

19 Tax Credit Project Case Study #1: The Homeowner Hopkins House, Leavenworth, KS State Tax Credits awarded 2008 : $2,000 State Tax Credits awarded 2009 : $1,875

20 Tax Credit Project Case Study #2: Protection High School, Protection, KS STC Project #1, 2007 Estimated Expenses: $50,000 Repairs: brick repointing STC Project #2, 2008 Estimated Expenses: $120,000 Repairs: steel windows STC Project #3, 2010 Estimated Expenses: $127,000 Repairs: wooden windows Civic Properties (School)

21 Tax Credit Project Case Study #2: Civic Properties (School) Protection High School, Protection, KS STC Project #1, 2007 Credits Awarded: $12,500 Sold For: face value! STC Project #2, 2008 Credits Awarded: $30,000 Sold For: face value! STC Project #3, 2010 Credits Awarded: $31,750 Sold For: face value!

22 Tax Credit Project Case Study #3: ATSF Motive Power Building Topeka, KS Project 2011 Total Expenses: $7.5 million Conversion of historic railroad office building to senior housing FTC Credits $1,500,000 STC Credits $1,875,000 For Profit Development

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24 Questions?

25 Contact Information kshs.org Cultural Resources Division ext. 240 Matthew Holtkamp Tax Credit Reviewer ext. 256 Katrina Ringler Grants Manager, CLG Coordinator ext. 215 Kristen Johnston Tax Credit Coordinator ext. 213