HRAB 09-19-89 Meeting AgendaCOUNTY of FREDERICK
Department of Planning and Development
703/665-5651
FAX 703/667-0370
MEMORANDUM
TO: Historic Resources Board Members
FROM: RCT, Deputy Director
DATE: September 14, 1989
RE: September 19, 1989 Meeting and Agenda
There will be a meeting of the Historic Resources Board Tuesday
September 19, 1989, at 7:30 p.m., in the conference room of the Old
Court House, 9 Court Square, Winchester, Virginia.
Please let me know if you are unable to attend.
In addition to materials conected to the agenda I have enclosed the
following items for your information: (1) a list of the proposed
work items for the Board developed by the planning staff; (2) a
copy of the 1989 Frederick County Comprehensive Plan; (3) a copy
of "Virginia's Heritage, A Property Owners Guide to Resource
Protection" (4) a map of Frederick County at the scale of 1"= 1
mile; (5) a copy of the memo which was sent to the Planning
Commission with your recommendation on the Caleb rezoning
application. (6) a copy of a memo sent to the Board of Supervisors
regarding length of terms; (7) a summarry of "Federal Legislation
Affecting Historic Preservation" and "Legal and Financial Tools
used to Preserve and Enhance Historic Resource" appeddix from
"Guidelines for Lcal Surveys: A Basis For Preservation"
AGENDA
1. Presentation on Frederick County Zoning.
2. Discussion of standards for designation of historical resources
within Frederick County.
3. Other
9 Court Square - P.O. Pox 601 - Winchester, Virginia - 22601
PROPOSED WORK ITEMS FOR THE
FREDERICK COUNTY HISTORIC RESOURCES ADVISORY COMMITTEE
RECOGNITION
Develop standards for classifying sites.
Use standards to recognize particular sites.
Develop particular recognition procedures involving notifi-
cation and publicizing.
Notes: The Committee needs to make sure that the important sites
are recognized in a public fashion. The Committee should concen-
trate on the important sites, and standards are needed to deter-
mine what is important. The Committee will need to develop the
stand ards and apply them to the information from the survey to
determine what should be recognized.
PRESERVATION
Develop recommendations on methods to preserve recognized
sites
Review particular proposals referred to committee by staff,
Planning Commission or Board
Notes: The information in the historic sites survey is intended
to be used to help develop a preservation strategy. Conditional
zoning will play an important role in the preservation strategy.
The committee might develop standards to be used in impact evalu-
ation and the comprehensive plan concerning what should be
expected in the preservation of historic resources. Also, it
would be appropriate to require preservation plans to be included
with master development plans that include recognized sites. An
important issue will be preserving rural sites. Leaving a site
in rural zoning does not guarantee preservation Other methods
might be developed. The committee should make recommendations
concerning the overall strategy for historic preservation and
concerning particular methods and regulations.
01-1
Develop recommendations on the use of historic resources in
association with tourism, economic development, and educa-
tional efforts
Notes: In the case of some sites, special efforts may be appro-
priate to better allow the citizens of the County and the general
public experience the heritage of Frederick County. The
Committee could make recommendations on such efforts.
COUNTY of FREDERICK
Department of Planning and Development
703/665-5651
FAX 703/667-0370
MEMORANDUM
TO: Planning Commission Members
FROM: KCT, Deputy Director
DATE: August 16, 1989
RE: Caleb Rezoning; Historic Resources Board Recommendation
At there meeting of August 15, 1989 the Historic Resources Board
considered the Caleb rezoning application which was referred to
them by the Planning Commission. Following a lengthy discussion
it was the consensus of the Board that their recommendation, to
the Planning Commission would be as follows.
The Historic Resources Board recommends denial of the Caleb
rezoning based on the national and local historical
significance of the site. The remaining core area of the
Third Winchester B ttlefield s on this s t:� pax ticularly
between two wooded areas wooded a prominent h�i i. The results
of the battle had a significant influence on the re-election
of president Lincoln, and led to the loss of the Shenandoah
Valley by the Confederacy and the early termination of the
war. On this hallowed ground there were 500 confederate
casualties and 2000 Union, 18 medal of honor recipients
fought here.
The Board also wished the attached information on the Third
Battle to be forwarded to the Planning Commission along with
their recommendation.
9 Court Square - P.O. Box 601 - Winchester, Virginia - 22601
SEGMENT FROM "CIVIL WAR SITES INVENTORY FOR FREDERICK COUNTY
AND WINCHESTER, VIRGINIA" BY ALLEN TISCHLER
On that day of September 19th, 1864, the Confederate and Union armies
covered an area in combat, measuring six miles long (from Stephenson Depot to
Carper's Valley Golf Club) by four miles wide (from Star Fort to County Road 656).
Cavalry movements by the Union army began miles away at the crossings of the
Opequon on the Leetown Road and at the Berryville Pike crossing. Even allowing
deviation in map comparisons with the 1873 Battlefield Map drawn under the
supervision of Bvt. Lt. Col. G. L. Gillespie, it can be stated that an area of
four square miles was where the two armies fought from 5:00 a.m, to nightfall,
about 6:30 p.m. Computed at 640 acres in one square -mile, this equals 2,560
acres.
Best tabulations of the respective armies give the affective field strength
of Maj. Gen. P. H. Sheridan's Army of the Shenandoah at 40,000 men and Lt. Gen.
Jubal Early's Army of the Valley District at 12,500 to 14,000 men.
On the Battlefield east of the city, all of the Union infantry, about
30,000 men, engaged the Confederate lines of infantry of near 7,000 men. Notable
scenes of combat between brigade -sized units from the armies took place in the
famous First and Second Woods. All of the field and timber land between the woods
was especially witness of sustained and vigorous attacks, retreats, and
counter-attacks.
Over 2,000 Union men fell in the attacks through the First and Second Woods
and to Hackwood and matched to about 500 Confederate losses in the same area.
President A. Lincoln sent to Sheridan this wire:
"Have just heard of your great victory. God bless
you all, officers and men. Strongly inclined to
come up and see you."
Other duties kept the Chief Executive in Washington.
The successful conclusion of the battle was a first in that finally, the
Union army had control of the Lower Valley, which was in the midst of cultivation
and putting away for the upcoming winter. President Lincoln was running for
re-election to be decided on November 8th, 1864 and had been boosted in the minds
of the voting public in the northern states with the occupation of Atlanta on
September 2, 1864 by Maj. Gen. William Sherman. Around Richmond and Petersburg,
the main Union army with Lt. Gen. U. S. Grant in command and the main Confederate
army with General R. E. Lee in command, had come to a military stalemate. Lincoln
needed a victory to sustain the early September ray of hope seen from Georgia and
the conclusive battle outside of and partially inside of Winchester gave the
presidential bid for re-election a vigorous boost.
MEMORANDUM
To: Board of Supervisors
COUNTY of FREDERICK
Department of Planning and Development
703/665-5651
FAX 703/667-0370
From: RCT, Deputy Planning Director
Re: Historic Resources Board, Membership and Length of Term
Date: August 17, 1989
As the County staff person to the Historic Resources Board I would
like to suggest that a liaison member from the Planning Commission
and perhaps the Board of Supervisor's as well, be appointed to the
H.R.B. The liaison members) would not necessarily have to have
a vote on the Board, but simply be available to express the
Planning Commission's and or Board's position/concerns on various
items of business.
I would also like to suggest that Maral Kalbian be appointed to
the H.R.B. as an advisory member. Ms. Kalbian is the Architectural
Historian working under contract with the Frederick County
Historical Society to document the historic sites throughout the
County. I feel Ms. Kalbian would be able to contribute unique and
valuable input to the Board.
Finally, the present members of the H.R.B. have requested
information as to the lengths of their terms on the Board, as well
as a direction statement concerning the role of the HRB.
9 Court Square - P.O. Box 601 - Winchester, Virginia - 22601
Agenda Item #1
AN OUTLINE OF
FREDERICK COUNTY ZONING, THE COMPREHENSIVE PLAN
AND THE URBAN DEVELOPMENT AREA
What follows is a very brief and simplified overview of the zoning
within. Frederick County along with the format and intent of the
Comprehensive Plan, including the Urban Development area.
Zoning
Like nearly all jurisdictions, the County's zoning is based on
general principals of land use. An effort has been made to mitigate
the effects that non -compatible uses might have on one another
through regulating the location and scale of all uses.
Within the county there are 15 categories of zoning, or districts.
Each district has a specific set of regulations which establish and
govern permitted uses.
Zoning Districts
Rural areas (RA)
Residential Performance (RP)
Residential Planned Community (R-4)
Residential Recreational Community (R-5)
Mobile Home Community (MH -1)
Business, Neighborhood (B-1)
Business, General (B-2)
Industrial Transition (B-3)
Business, Shopping Center (B-4)
Light Industrial District (M-1)
Industrial General (M-2)
Extractive Manufacturing (EM)
Higher Education (HE)
Airport (AP -1)
Flood Plain (FP)
The basic assumption used in formulating districts is that some
types of uses are compatible with certain others, but that all uses
are not compatible with each other. An attempt is therefore made
to create districts which allow uses traditionally thought to be
similar, in terms of external impacts, together.
Regulations such as setback requirements, height limits, buffering
requirements, minimum lot size etc. are used within districts to
try and insure that permitted uses do not adversely impact upon
neighboring uses. These requirements vary in some cases depending
upon the nature of the adjoining use and or zoning.
Comprehensive Plan
In determining what zoning district should be applied to any given
area, many factors are considered. A key element in the decision
making process is the Comprehensive plan. A comprehensive plan
should develop a picture of what the jurisdiction's residents see
as the desireable future for their community. The plan attempts to
identify the issues facing a locality, and prescribe a course of
action for addressing these issues.
Jurisdictions within Virginia are required to have a comprehensive
plan which is traditionally updated at least every five years. It
is the policy within Frederick County that the comprehensive plan
be updated annually. The development trends within the county have
fluctuated significantly in recent years, making a five year review
and update of the plan inadequate.
The formate of the plan establishes general _goals the county would
like to achieved, strategies which describe general means of
achieving the goals, and implementation methods which describe
specific actions. The goals are categorized within the plan under
general headings such as population and housing, economy,
environment, etc.
Urban Development Area
Within the comprehensive plan, a major land use concept is the
urban development area. The urban development area delineates the
limit of the area in which the County will extend sewer and water
services.
The reason for establishing such a limit is that there is a need
to designate some area of the county that is recognized and
accepted as being suited for urban type development. In attempting
to limit the residential growth in the rural areas of the county
is in a sounder legal position.having an area designated for urban
type development. By establishing this area the county can expect
to relieve some development pressure in the rural areas of the
county. Planning for infrastructure improvements such as roads and
utilities is made easier by having a geographic area that can be
reasonable consider the extent of the area to be served in the near
future.
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Agenda Item #2
The following criteria are those established by the National Park
Service for evaluation of the historic significance of properties,
sites etc. considered for nomination to the National
Register. It may be possible to adapt these to the county's needs
in terms of standards for designation of sites of county wide (or
greater) significance. At the least they may be usefull as an
example.
Criterion A: Properties may be eligible for the National register
if they are associated with events that have made
a significant contribution to the broad patterns of
our history.
guidelines 1. A property may be associated with either of two
types of events; a specific event marking an
important moment in American history; or a series
of events that made a significant contribution to
the development of a community, a state, or the
nation. a property may also be associated with both
types of events.
2. The significant contribution of any specific event
or series of events to the broad patterns or themes
of the national, state, or local history must be
demonstrated.
3. A property associated with an event or events must
b a goQd representative of the event o events nd
o the Larger theme or broad pattern of which t ey
are a part.
4. It must be possible to document through accepted
means of historical research that the property under
consideration did exist at the time of a specific
event or series of events and that the property was
associated with those events.
Criterion B: Properties may be eligible for the National Register
if they are associated with the lives of persons
significant in our past.
guideline 1. Persons "significant in our past" means individuals
whose activities have been important within
significant themes in the national, state, or local
history.
2. The individual(s) must be specifically identified.
3. A property's association with an individual must be
documented by accepted methods of historical
research that can include written or oral history.
4. Each property associated with a significant
individual should be compared to other properties
with the same associations to identify those
properties that are good representatives of the
individual's historic contribution. Properties that
best illustrate an individual's contributions are
generally properties associated with the
individual's adult or productive life. Properties
associated with an individual's formative years may
also qualify if it can be demonstrated that the
individual's activities during this period had
historical significance.
5. Length of association should be identified and may
be an important factor when many properties with
similar associations survive.
6. Properties associated with living persons are
generally considered not eligible for inclusion in
the National Register.
7. A basic test of the integrity of a property
significant under Criterion B is whether the
important person would recognize the property as it
exists today.
Criterion C: Properties may be eligible for the National Register
if they embody the distinctive characteristics of
a type, period, or method of construction, or that
represent the work of a master, or that possess the
high artistic values, or that represent a
significant and distinguishable entity whose
components may lack individual distinction
guideline 1. The features or traits of a design or construction
that tended to recur in particular types, periods,
or methods of construction can be said to
characterize those kinds of properties or
construction practices in the past. To "embody
distinctive characteristics" a property must clearly
represent the type, period, or method of
construction. That is, it must enhance our
understanding of the class of resources of which it
is a part. A significant property clearly
illustrates (1) the pattern of what was common to
the class of resources; (2) the individuality or
variation that occurred within the class; (3) the
evolution of that class over a period of time; or
(4) the transition between that class and others.
2. The phrase "type, period, or method of construction"
refers to properties related by cultural tradition,
or function; by date of construction or style; or
by choice of materials and technology.
3. High artistic values may be expressed in many ways,
including areas as diverse as community design or
planning, engineering, and sculpture.
4. A master is a figure of generally recognized
greatness in a field, a known craftsman of
consummate skill, or an anonymous craftsman whose
work is distinguishable from others by its
characteristic style or quality.
5. A district must be a significant entity. It must be
important for historical, architectural,
archeological, engineering, or cultural values.
Therefore, districts which are significant will
usually meet the last portion of Criterion C plus
Criterion A, Criterion b, other portions of
Criterion C, or Criterion D.
6. A district must be a distinguishable entity. The
district as a whole must have a character or a
coherence that makes it an identifiable historic
environment and differentiates it form adjacent
areas.
7. A district is different from the other categories
of historic properties because a district may be
significant as a whole even though it may be
composed of components, sites, buildings,
structures, and objects that lack individual
distinction. A district's identity results from the
groupings of features and from the relationships
among those features. These relationships convey the
sense of the historic environment. A district may
be a grouping of archeological sites related
primarily by their being common components in a
defensible research design, and often will not
visually represent a specific historic environment.
8. A property can be significant under Criterion C
either for the way it was originally constructed or
crafted, or for the way it was adapted at a later
point in time; or for the way it illustrates
changing tastes, attitudes, and uses over a period
of time in the past.
9. A property may be significant because it represents
either an unusual or a widely practiced type or
method of construction. It may have been innovative
or influential, or it may have been traditional or
vernacular; the significance of the property is
determined by considering the property within its
context.
Criterion D: Properties may be eligible for the National Register
if they have yielded, or may be likely to yield,
information important in prehistory or history.
guideline 1. The verification of a human origin, modification,
or utilization of the property must be part of the
consideration of the property's ability to qualify
under Criterion D.
2. In general, the property's cultural affiliation
and/or period of creation or use should be
identifiable.
3. While most often applied to archeological sites,
Criterion D may sometimes apply to districts,
- buildings, structures, and other objects that
contain important information. In order for
properties to be eligible under Criterion D, the
properties themselves must be, or must have been,
the principal source of the important information.
4. Properties that yielded important information in the
past and that no longer retain additional research
potential (such as completely excavated
archeological sites) must be assessed essentially
as historic sites like properties eligible under
Criterion A, significant for associative values
related to: (1) the importance of the data gained,
or (2) the impact of the property's role in the
history of the development of
anthropology/archeology or other relevant
disciplines. As is the case for other historic
sites, the site must retain the ability to convey
its association as the former repository of
important information, the former location of
important events, or the representative of important
trends.
S. The current existence of appropriate physical
remains must be ascertained in considering the
property's ability to yield important information.
Properties that have been partially excavated or
otherwise disturbed, and that are being considered
for their potential to yield additional important
information must be shown to retain that potential
in their remaining portions.
6a. Important information is that which can be shown to
relate constructively to a research design
addressing such areas as current data gaps, or
defensible new models or theories; priority areas
identified under state or federal agency management
plan; or corrections of misapprehensions in our
understanding of history or prehistory. The
importance of information which a property may yield
must be evaluated within the appropriate comparative
context- i.e., what is already known from similar
properties or other pertinent information sources.
The information likely to be obtained from a
particular property may be important if, for a given
area, the information is unavailable elsewhere; or
because it would confirm or supplement in an
important way information obtained from other
sources. In some cases however, the existence of
other information sources, such as modern historic
written accounts or other documentation, o
scholarly analyses of other similar properties in
the area, may render the information contained
within the property loss �maportant, 'w- "- the result
that the property will not be eligible under
Criterion D.
b. Having established the importance of the information
that may be recovered, it is necessary to be
explicit in demonstrating the connection between the
important information and a specific property. One
approach is to determine if specific important
research questions may be answered by the data
contained in the property. Research questions may
be related to property -specific issues, to broader
questions about a large geographic area, or to
theoretical issues independent of any particular
geographic location. These questions may be derived
from the academic community or from preservation
programs at the local, regional, state, or national
level. Research questions are usually developed as
part of a "research design" which specifies not only
the questions to be asked, but also the type of data
needed to supply the answers, and often the
techniques needed to recover the data.
c. To support the assertion that a property has the
data necessary to provide the important information,
the property should be investigated with techniques
sufficient to establish the presence of relevant
data categories. What constitutes appropriate
investigation techniques would depend upon the
specific circumstances including the property's
location, condition, and the research questions
being addressed, and could range from surface survey
(or photographic survey of buildings) to the
application of remote sensing techniques, or
intensive subsurface testing. Justification of the
research potential of a property may be based on
analogy to another better known property if
sufficient similarities exist to establish the
appropriateness of the analogy.
7. The assessment of integrity for properties
considered for information potential depends on the
data requirements of the applicable research design,
and may differ from the evaluation of properties
considered under Criterion A,B, or C. A property
possessing information potential does not need to
visually recall an event, person, process, or
- construction technique. Instead it is more important
that the significant data that the property contains
remain in a sufficiently intact condition to yield
the expected important information, if the
appropriate study techniques are employed.
Appendix II:
Federal Legislation Affecting Historic Preservation
A large number of Federal laws affect historic preser-
vation in various ways—by authorizing Federal sup-
port for preservation programs, by establishing such
programs and defining their functions, by establishing
procedures relevant to different kinds of preservation
activities, and by creating particular opportunities for
the preservation of different kinds of resources. This
appendix briefly outlines the major pertinent legisla-
tion in existence as of 1985, with particular attention
to the statutes most directly pertinent to local 'historic
preservation programs.
Since Federal law is constantly changing, communities
interested in current information on applicable
statutes should check with their State Historic Preser-
vation Officer rather then relying on the following in-
formation to be comprehensive.
Statutes directly pertinent to local preservation programs
National Historic Preservation Act of 1966, as amend-
ed (Public Law 89-665) 16 U.S.C. 470-470w
This Act is the centerpiece of the national historic
preservation program. As amended in 1980, it
authorizes the Secretary of the Interior to expand and
maintain the National Register of Historic Places, and
establishes procedures for doing so; provides for
gubernatorial appointment of State Historic Preserva-
tion Officers and specifies their duties; specifies how
local governments are to be certified for participation
in the program; authorizes grants-in-aid by the
Secretary of the Interior to States and local govern-
ments for preservation purposes; sets forth respon-
sibilities for Federal agencies in historic preservation;
establishes the Advisory Council on Historic Preserva-
tion and specifies its responsibilities; and directs the
Secretary of the Interior and the Advisory Council to
conduct various studies and provide various types of
guidance and regulations. Section 106 of the Act re-
quires Federal agencies to consider the effects of their
activities on historic properties, and to give the Ad-
visory Council an opportunity to comment on such
activities. Importantly for local communities, as
amended in 1980, the Act also provides for the cer-
tification of local historic preservation programs for
special participation in the activities authorized by the
Act.
The full text of the Act with all amendments, in a
convenient brochure form, can be obtained free of
charge from the Advisory Council. Pertinent regula-
tions implementing various portions of the Act in-
clude 36 CFR Part 60, dealing with National Register
nominations and determinations of eligibility, 36 CFR
Part 61, providing procedures for approved State and
local government historic preservation programs, and
36 CFR Part 800, providing procedures for compliance
with Section 106.
Federal Tax Law
Federal tax law supports historic preservation in two
major ways. First, investment tax credits are provided
for the substantial rehabilitation of historic commer-
cial, industrial, and rental residential buildings, pro-
vided that both the historic significance of the
building and the professional quality of the rehabilita-
tion have been certified by the Secretary of the In -
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The Railroad Exchange Building (The Santa Fe Building), Chicago,
Illinois, has undergone a successful rehabilitation that is consistent
with the Secretary of the Interior's Standards for Rehabilitation.
The owners were able to take advantage of the tax incentives pro-
vided by the Economic Recovery Tax Act of 1981. (Courtesy of
Santa Fe Railway)
Federal Legislation
75
terior. Second, the law permits income and estate tax
deductions for the charitable donation of interest in
historic properties, including certified historic struc-
tures and land areas (e.g., archeological and other
historic sites).
The availability of investment tax credits for historic
rehabilitation has been a major factor in engendering
financial support for many local historic preservation
programs, and has been important in defining survey
priorities in many cases. Recent tax legislation sup-
porting historic preservation has included the Tax
Treatment Extension Act of 1980, Economic Recovery
Tax Act of 1981, Tax Equity and Fiscal Responsibility
Act of 1982, and Tax Reform Act of 1984. Changes to
the tax laws occur frequently, and current information
should be obtained from the State Historic Preserva-
tion Officer or the National Park Service when con-
sidering how Federal tax law may affect a particular
program at a particular time.
National Environmental Policy Act of 1969 (Public
Law 91-190) 42 U.S.C. 4321 et seq. (1970)
This legislation obligates Federal agencies to consider
the environmental costs of their projects as part of the
Federal planning process. It provides for the prepara-
tion and review of environmental assessments and im-
pact statements during the planning of projects.
The Council on Environmental Quality promulgates
regulations for implementation of this act; these are
found at 40 CFR Part 1500 and subsequent sections of
the Code of Federal Regulations.
Housing and Community Development Act of 1974,
as amended (Public Law 93-333 as amended) 42
U.S.C. 5300 et seq.
Like the tax laws, the housing and community
development laws change frequently, and since 1974,
many provisions have been included that affect
historic preservation. In 1974, the existing law was
changed to combine a number of categorical grant
programs into a single program under which the
Department of Housing and Urban Development
(HUD) provides Community Development Block
Grants (CDBG) to local governments, which have
broad discretion in their use. CDBG funds can be
used to support historic preservation activities, as well
as activities that may damage historic properties. The
1974 act also authorized HUD support for programs
of urban homesteading, which can provide the basis
for rehabilitation of historic residential buildings.
Subsequent amendments created such special grant
programs as the Urban Development Action Grant
(UDAG) and Housing Development Action Grant
(HoDAG) programs.
Among the unusual features of the Housing and Com-
munity Development Act, as amended, are the fact
that CDBG. funds can be used as though they were
non -Federal funds to match historic preservation
grants from the Department of the Interior, and the
fact that, for purposes of the CDBG, UDAG, and
HoDAG programs, the local government that receives
the grants, not the Department of Housing and Urban
Development, is responsible for compliance with the
National Environmental Policy Act and Section 106 of
the National Historic Preservation Act. Special provi-
sions dealing with historic preservation were included
in amendments dealing with the UDAG and HoDAG
programs, and have resulted in special regulations
published by the Advisory Council on Historic Preser-
vation at 36 CFR Part 801 (dealing with UDAG) and
by HUD at 24 CFR Part 850 (HoDAG).
Participation in a local government's housing and
community development program, including the pro-
vision of planning assistance in its compliance with
the National Environmental Policy Act and Section
106 of the National Historic Preservation Act, is an
important activity for many local preservation pro-
grams, which provides a context for the application of
survey data to local planning.
Statutes that may provide special opportunities for local preservation programs
"Surplus Real Property Act," 1972 Amendment to the
Federal Property and Administration Services Act of
1949 (Public Law 92-362) 40 U.S.C. 484(K)(3)
This act authorizes the General Services Administra-
tion to convey approved surplus Federal property to
any State agency or municipality free of charge, pro-
vided that the property is used as a historic monu-
ment for the benefit of the public. To qualify for this
provision, the structure must be included or eligible
for inclusion in the National Register. This act is also
applicable to revenue-producing properties if the in-
come in excess of rehabilitation or maintenance costs
is used for public historic preservation, park, or
recreation purposes and the proposed income-
producing use of the structure is compatible with
historic monument purposes, as approved by the
Secretary of the Interior. The act includes recapture
provisions under which the property would revert to
the Federal government should it be used for purposes
incompatible with the objective of preserving historic
monuments.
Public Buildings Cooperative Use Act of 1976 (Public
Law 94-541) 90 STAT. 2505, 40 U.S.C. 175
This act makes it national policy to acquire structures
of historic or architectural significance for Federal of-
fice buildings, to encourage the public use of such
76 Federal Legislation
buildings by accommodating commercial, cultural,
educational, and recreational uses of them both dur-
ing and outside regular Federal working hours, and to
provide the handicapped access to them.
AMTRAK Improvement Act of 1974 (Public Law
93-496) as amended by the Rail Transportation Im-
provement Act of 1976 (Public Law 94-555) 45 U.S.C.
501
These acts authorize the Department of Transporta-
tion and the National Endowment for the Arts to
develop National Register listed railroad stations for
use as inter -modal transportation centers, or civic or
cultural centers, while preserving their historic in-
tegrity.
Emergency Home Purchase Assistance Act of 1974
(Public Law 93-449) 12 U.S.C. 1723e
This act authorizes Federal insurance for loans to
finance the restoration or rehabilitation of residential
structures listed in or eligible for the National
Register.
The Department of Transportation Act of 1966
(Public Law 89-670) 23 U.S.C. 138
Among other things, this act directs the Secretary of
Transportation not to approve any program or pro-
ject that requires the use of land from a historic site of
national, State, or local significance as determined by
Federal, State, or local officials having jurisdiction
thereof unless 1) there is no feasible and prudent alter-
native to the use of such land, and 2) such program
includes all possible planning to minimize harm to
such historic property. This means that the Federal
Highway Administration, the Federal Aviation Ad-
ministration, the Urban Mass Transportation Ad-
ministration, and the U.S. Coast Guard must give
special consideration to the potential effect of their
projects on historic resources whether or not the
historic resource affected is in or determined to be
eligible for the National Register.
Archeological and Historic Preservation Act of 1974
(Public Law 93-291) 16 U.S.C. 469a -c
This act provides for the recovery of archeological
data that would otherwise be lost as the result of
Federal construction or other federally licensed or
assisted activities. It authorizes Federal agencies to
recover such data when their activities will lead to its
loss, and authorizes the Secretary of the Interior to
conduct such recovery operations on behalf of other
agencies and where such agencies do not do so
themselves.
Archeological Resources Protection Act of 1979
(Public Law 96-95) 16 U.S.C. 470aa-11
This act prohibits the unauthorized disturbance of ar-
cheological resources on Federal and Indian lands,
prescribes criminal penalties for such disturbance, and
authorizes the establishment of regulations setting
forth procedures for obtaining permits. Significantly
for local preservation programs, it also prohibits in-
terstate traffic in antiquities obtained illegally from
any lands, public or private, providing a basis for
prosecution in the Federal courts of parties who ex-
cavate archeological material in contravention of local
statutes or trespass laws and move such material
across State lines.
Federal authorities of secondary interest to local preservation programs
Antiquities Act of 1906 (Public Law 59-209) 16 U.S.C.
431-33 (1970)
This act authorizes the President to designate National
Monuments and provides for the protection of historic
and prehistoric ruins and objects of antiquity located
on Federal lands.
Historic Sites Act of 1935 (Public Law 74-292) 16
U.S.C. 461-67 (1970)
This act gives the Secretary of the Interior the power
to make historic surveys and to document, evaluate,
acquire, and preserve archeological and historic sites
across the country.
Executive Order 11593, Protection and Enhancement
of the Cultural Environment, 16 U.S.C. 470 (Supp. 1,
1971)
This order directs Federal agencies to take leadership
in preserving, restoring, and maintaining the historic
and cultural environment of the Nation. Federal agen-
cies must survey, inventory, and nominate all historic
resources under their jurisdiction or control (to the ex-
tent that the agency substantially exercises the at-
tributes of ownership) to the National Register. Until
these processes are completed, agency heads must ex-
ercise caution to assure that potential qualified Federal
property is not inadvertently transferred, sold,
demolished, or substantially altered. Many of the pro-
visions of this order were incorporated into the Na-
tional Historic Preservation Act by amendments in
1980.
Federal Legislation 77
Appendix III:
Legal and Financial Tools Used to Preserve and Enhance
Historic Resources
As discussed in Chapter IV, a community's preserva-
tion efforts will be best served if it adopts a com-
prehensive historic preservation plan. Such a plan
serves to guide both the community's preservation ef-
forts per se—its survey, its program of evaluation and
inventory, its programs to restore and rehabilitate
historic properties and to provide for their study, ar-
cheological salvage, and adaptive use, and its pro-
grams to encourage rehabilitation and reuse by the
private sector—as well as its efforts to ensure that
preservation concerns are addressed in development
and land -use planning. The purpose of this appendix
is to list and briefly discuss the legal and financial
tools that can be incorporated into a preservation
plan. It should be recognized that this list is by no
means exhaustive, and that new and creative uses of
financial and legal tools are being developed con-
stantly.
Legal Tools
A wide variety of legal approaches to preservation
can be tailored to meet the needs and goals of a par-
ticular community; however, any local ordinance
must recognize State constitutional restrictions, com-
mon law requirements, and existing legislation dealing
with preservation and related areas. The existence of
State enabling legislation for historic preservation can
provide a legal framework in which local governments
can base their preservation programs, commissions,
and zoning ordinances. A thorough investigation of
State and local laws, with the assistance of legal ex-
perts, is essential in determining which legal mech-
anisms are best suited to fulfilling local preservation
needs.
1. Community Historic Preservation Ordinances
Community historic preservation ordinances cover an
entire city, county, or other political subdivision.
They are often called landmarks commission or-
dinances because one of their major features is the
establishment of a board of review, often called _-
landmarks
landmarks commission, to oversee the community's
preservation program and make judgements about the
significance of resources. This terminology may be a
little misleading, however, since it implies a concern
only with landmarks rather than with the general
historic, architectural, and cultural fabric of the com-
munity. Increasingly, more general terms like historic
preservation commission are being used to describe
the bodies that oversee local preservation programs.
Historic preservation commissions are generally
responsible for designating significant individual
resources or districts in accordance with criteria
established by the ordinances under whose authority
they operate. Such ordinances also often give them
some measure of authority to control the alteration or
demolition of designated properties, and sometimes to
review the quality of new design in the vicinity of
such properties, or within historic districts. Commis-
sions sometimes are provided with staff which they
oversee in carrying out the community's overall
preservation program; in other cases, commissions are
advisory to planning departments or other agencies of
local government whose personnel carry out the day-
to-day work of the program. The degree of authority
granted to such commissions varies widely; in some
cases, properties may not be designated as historic
without the permission of their owners; in other cases,
designation depends solely on the judgement of the
commission. Some ordinances place great power in
the hands of the commission to control alteration or
demolition of designated resources, while others place
none, and still others require that the views of the
commission be taken into account in decisionmaking,
but not necessarily heeded.
Local governments seeking certification to participate
in the national historic preservation program under
Section 101(c) of the National Historic Preservation
Act must establish historic preservation commissions
by ordinance, and give them responsibilities and
authorities mirroring and coordinating with those of
the State Historic Preservation Officer with respect to
survey, nomination of properties to the National
Register, preservation planning, grants administration,
consultation with Federal, State, and local agencies to
help them avoid damaging historic properties, and
provision of education and information to the public
(36 CFR Part 61.5[c][21).
Guidelines for ordinance development can be found in
A Handbook on Historic Preservation Law (see
Bibliography), which also contains a model ordinance
and sample ordinances, and can be obtained from the
National Trust for Historic Preservation.
2. Historic District Ordinances
Historic district ordinances protect specific designated
districts—commercial, industrial, rural, or residential
areas—within a community. Such ordinances general-
ly define specific boundaries, limit development or
otherwise protect the district, and establish a review
board or commission to oversee compliance with the
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78 Legal and Financial Tools L(
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protective clauses. As is the case with community
historic preservation commissions, the degree of
authority granted to historic district commissions
varies widely; they may act simply as advisory
boards, reviewing and making recommendations on
applications for building permits for proposed altera-
tions, or the legislation may enable them to stay,
grant, or deny demolition, alteration, and new con-
struction. Generally, the ordinance also establishes
procedures for appealing decisions of the historic
district commission.
The discussion of ordinance creation in A Handbook
on Historic Preservation Law will be useful for those
considering creation of historic district ordinances,
and sample district ordinances are available from the
National Trust for Historic Preservation.
3. Zoning
It is particularly important that a community's
historic preservation plan is coordinated with its zon-
ing ordinance. If permissible under local and State
law, it is advantageous to create an historic preserva-
tion classification within the local zoning ordinance.
Alternatively, an ordinance could provide for the
overlay of preservation review, with reference to ar-
chitectural design or modification of existing struc-
tures, on the existing zoning of historic districts. The
important thing to strive for is to minimize conflict
between preservation and existing zoning. However
urgently a community's historic preservation plan
.. wn
W
The National Park .Service has acquired scenic easements to protect
the unique rural character of the Old Natchez Trace, Attala Coun-
ty, Mississippi, and to restrict undesirable commercial development.
(Courtesy of National Park Service)
Legal and Financial Tools
seeks to promote retention and rehabilitation of
historic structures, if the underlying zoning permits
conflicting uses that have the potential for higher
economic return, in the long run preservation will lose
out. Conversely, if preservation planning and zoning
are coordinated, they can vvork together to promote
the beneficial use of historic.. resources.
4. Easements
Easements are acquired interests in property owned by
another. Since an easement is less than a total or fee
interest in property, it may be a cheaper means of
controlling use than outright purchase. Acquisition of
an easement which precludes a property owner from
making nonconforming alterations to the facade of his
or her historic house, for example, is a common and
often effective preservation tool. Preservation or con-
servation easements are of three general types.
a. Open Space, Conservation, or Scenic Ease-
ments—Open space, conservation, or scenic easements
are a well recognized general form of land use control
which has been used for many years in the United
States to conserve undeveloped land areas. An exam-
ple of the use of this type of easement is the National
Park Service program to acquire scenic easements to
restrict development and maintain the picturesque
qualities of Iands along the Blue Ridge and Natchez
Trace Parkways. This type of easement has also been
used to control the development of lands surrounding
historic properties and to keep archeological sites safe
from development of the lands in which they exist.
b. Exterior or Facade Easements—Exterior or facade
easements restrict the development, use, or alteration
of the exterior portions of a building or structure.
Such easements are particularly useful where the
architectural or visual quality of the exteriors of
buildings is a major concern, for example, in historic
districts where the ambiance of streetscapes is impor-
tant.
c. Interior Easements—Interior easements can be writ-
ten to prevent alteration of interiors of buildings or
structures. They can apply to an entire building in-
terior or to particular elements, for example, pro-
viding that the detailing in a particular room not be
altered without permission, or prohibiting the removal
of a staircase.
Potentially, easements have several advantages over
other types of less -than -fee controls:
• They may be assignable to other parties—trans-
ferred from the original purchaser to another.
• They may run with the land—be binding on subse-
quent purchasers of the property affected.
79
• They may be acquired through gift or purchase.
Donors of easements, and those who sell them for less
than their appraised value, may be able to deduct the
value of their donations from Federal and State in-
come and estate taxes. In addition, the sale or dona-
tion of an easement may substantially reduce the fair
market value of a property, thus allowing possible
decreases in local property taxes and other Federal,
State, and local taxes.
Implementing an easement program is not a simple
operation. The legal instruments that convey ease-
ments must be carefully drawn up, and easements re-
quire conscientious policing by their holders to insure
that the property owners are complying with them.
The following preliminary steps are important:
• Investigation of relevant Federal and State laws and
passage of enabling legislation, where necessary.
• Meticulous drafting of the legal instrument creating
the easement, accompanied by adequate documenta-
tion describing the exact qualities or conditions of the
property to be preserved.
• Careful identification of appropriate organizations
to receive, hold, and police easements. Such organiza-
tions may be agencies of local government—for exam-
ple, local preservation commissions or parks depart-
ments—or private organizations such as historical or
archeological societies. Decisions about easement re-
cipients should be explored with legal counsel,
because in many jurisdictions, the protection afforded
a property will depend on who holds the easement.
Legal counsel is vital in the development and ad-
ministration of an easement program, because of the
need for the documents conveying each easement to
be sound and appropriate under Federal, State, and
local law. The validity of the entire easement program
will depend on its relationship to the existing frame-
work of State property laws.
Despite its advantages, an easement program may not
necessarily be the most effective tool for preservation
nor the most financially expedient in the long run.
Although purchase of an easement is often cheaper
than acquiring the entire fee, in some cases, the value
of the development rights of a property, for example,
may constitute the major portion of a property's fair
market value, so that the acquisition of an easement
restricting these rights would be almost as expensive
as purchasing the property itself and woald require
policing.
5. Covenants and Reverter Clauses
Covenants are contractual agreements between private
parties that run with the land, thereby restricting uses
that may be made of the property. Reverter clauses in
deeds stipulate that unless certain conditions are
followed, ownership of the property involved will
return to the conveyor or to a designated third party.
Both may be used to maintain the historic integrity of
a property. When properly drafted, they may also
bind subsequent owners to abide by the conditions
contained in them.
These legal tools may be useful in purchase and resale
or leaseback arrangements where properties have been
acquired and will be later disposed of subject to the
conditions of convenants. They may be useful in
situations where property has been acquired through
eminent domain and will be later disposed of subject
to the condition of a covenant.
An advantage in using covenants is that specific pro-
visions for penalties or other remedies may be includ-
ed in them to come into effect if the terms of the
agreement are broken.
Reverter clauses lack this flexibility, providing only
for reversion of title to the conveyor or the
conveyor's designee in event of a breach of the condi-
tions agreed to. Their use could be an inappropriate
means of attempting to enforce compliance with
preservation goals where reversion of ownership
would be a financial burden to the original seller, for
example.
It should be noted that unless covenants or reverter
clauses are very carefully drafted and contain the
precise legal elements appropriate in the jurisdiction in
which they are to apply, they may not run with the
land, i.e., be binding on subsequent purchasers. In ad-
dition, they may be difficult to enforce over a long
period of time, particularly if conditions present at the
time of the agreement have changed. -
6. Transfer of Development Rights
By permitting a property owner to sell the air rights
over his or her property to another, a community can
create the basis for compensating an owner who is not
permitted to develop a parcel to what would ordinari-
ly be its maximum potential. A local ordinance per-
mitting transfer of development rights can make it
possible, for example, for the local government or a
preservation organization to exchange the right to
develop a nonhistoric parcel for the air rights over an
historic building, where otherwise a high-rise building
could be constructed if the historic structure is
demolished. Appraising the value of air rights when a
sale or exchange is proposed may be complicated, but
providing the opportunity for such transfers in the
design of local ordinances can make a useful tool
available for preservation in many circumstances.
7. Tax Advantages
Federal tax law at present encourages preservation
and rehabilitation of historic properties by allowing
corporate and individual taxpayers to deduct the
value of the donation of conservation easements from
their income taxes and by providing investment tax
credits (ITCs) to taxpayers who carry out certified
80 Legal and Financial Tools
rehabilitation projects on income-producing certified
historic buildings. Many communities have found that
the Federal tax laws provide a powerful tool for local
preservation, both to encourage rehabilitation in par-
ticular parts of the community and to help build part-
nerships with developers and property owners who
might othewise be hostile to, or at least unresponsive
to, preservation concerns.
Because of the fluid nature of Federal tax law, com-
munities should be sure to have the most up-to-date
available information on Federal tax incentives before
relying heavily on them to help build a local program.
The State Historic Preservation Officer and the
regional offices of the National Park Service can pro-
vide current information.
It should also be recognized that over -reliance on
Federal tax incentives can lead to some distortion in a
local preservation program's priorities. The fact that
Federal ITCs are available only for the rehabilitation
of income-producing property has caused some com-
munities to concentrate their attention on commercial
areas and on historic contexts relevant to commercial
buildings at the expense of other aspects of the com-
munity and its heritage. Care should be taken to
avoid ignoring other important preservation problems
and opportunities in the face of enthusiasm over the
tax advantages of rehabilitating income-producing
properties.
State and local tax laws have traditionally worked to
discourage the preservation and rehabilitation of
historic and cultural properties. This is rapidly chang-
ing in many parts of the Nation, but in formulating
preservation plans, communities should carefully
study the local and State tax codes to identify poten-
tially useful amendments. Listed below are tax incen-
tives which can work to encourage preservation:
• Tax credits or deductions on State income or prop-
erty taxes for rehabilitation and maintenance of
historic properties or for donations of easements for
preservation purposes.
• Tax credits or deductions on local property taxes.
• Abatement or partial abatement of property taxes,
i.e., partial or complete exemptions on qualified prop-
erties.
• Alternate methods of valuation, i.e., assessment of
property value on the basis of existing use or other
than fair market value.
Alternate valuation of historic and cultural properties
can help to alleviate the development pressures on
historic properties and other undeveloped areas
caused by their assessment at fair market value.
Where a property has substantial development poten-
tial, its fair market value is often much greater than
the value of the property at its existing use. If a basis
other than fair market value can be established for
valuation, the pressure created by taxation to convert
the property to its highest and best use can be
alleviated.
Effective use of alternate methods of valuation re-
quires accurate means of assessing the value of
historic resources. These means must be developed
carefully to insure fairness and objectivity.
Tax incentives for preservation need not always be
applied on a community -wide basis, or in perpetuity.
For example, it may be appropriate to target a par-
ticular area containing a concentration of historic
buildings in need of rehabilitation, and reduce the
assessed valuation of or provide tax credits to
rehabilitated buildings in the area for a specific period
of time. The time period established and the amount
of the reduction or credit should be sufficient to
stimulate significant investment in the area; at the
same time, care must be taken to ensure that the in-
centive program is fair and does not work to the
detriment of other parts of the community.
Development of State and local programs for tax
credits, deductions, or abatement should include con-
sideration of the following factors:
• Criteria for the recognition of properties eligible for
tax credits, deductions, or abatement, such as Na-
tional Register listing or inclusion in the community
inventory.
• Definitions of activities for which credit or deduc-
tions would be allowed (kinds of rehabilitation,
maintenance, etc.).
Amount of credit or deduction allowed per proper-
ty, per activity, or per period of time.
• Length of time for amortization of allowable ex-
penses.
• Relationship between State and local tax benefit
programs, and between these programs and the
Federal program.
8. State and Local Environmental Laws
Many States have adopted laws designed to ensure
that both the natural and cultural environments are
considered in government decisionmaking; these can
provide an important basis for the integration of
historic preservation into local planning. Such laws
are usually modelled on the National Environmental
Policy Act (NEPA) and are referred to as State En-
vironmental Policy Acts or-SEPAs in the legal
literature. SEPAs typically require the preparation of
an environmental impact report or statement
whenever a State or local goverment agency proposes
an action that might affect the environment—for ex-
ample, approval of a subdivision, issuance of a major
grading permit, provision of financial assistance to a
development, or undertaking capital construction. The
environmental impact document involves identifying
Legal and Financial Tools 81
those aspects of the environment that may be af-
fected, projecting the effects, and analyzing alter-
natives. It is then up to the government decision-
maker—the State agency, the city council, the plan-
ning board—to use the environmental document in
deciding whether to proceed with the action and if so,
whether to adopt conditions on the action to mitigate
its effects on the environment.
Virtually every. SEPA includes historic properties in its
definition of the environment that it seeks to protect,
so SEPAs can provide a powerful tool for use by local
governments and preservation organizations to ensure
that preservation is considered in planning. What is
often a problem in making SEPAs work for preserva-
tion is ensuring that historic properties and preserva-
tion issues are actually identified in the environmental
impact document. Here, of course, the availability of
survey data can be very important. On the other
hand, if a preservation agency or organization has a
good working relationship with the local decision -
makers who require and review environmental docu-
ments under a SEPA, it can work to ensure that
studies undertaken to prepare the environmental
documents do identify historic properties and do so in
a manner that contributes to the survey data base.
Once accurate information on historic properties and
preservation issues has been presented in an en-
vironmental document, the next problem is to en-
courage the relevant decisionmakers to consider
preservation alternatives in a positive light. Such con-
sideration will be most likely if the community has a
comprehensive historic preservation plan in place,
providing access to some or all of the preservation
tools discussed in this appendix..
Where a SEPA exists, community preservation agen-
cies and organizations will find it useful to become
familiar with its terms and how they are interpreted
by local and State decisionmakers. It should then be
possible to incorporate the use of the review process
prescribed by the SEPA into the community's historic
preservation plan. Local ordinances can also be
developed to build on the provisions of the SEPA. If
no SEPA exists, the community might consider adopt-
ing a similar law itself. The Handbook on Historic
Preservation Law (see Bibliography) provides a useful
discussion of SEPAs and their uses, with references to
the rapidly growing literature on the topic that will be
helpful to those designing or using such laws.
9. Social Impact Ordinances
In order to minimize conflict between development
and other community interests, and to maximize
citizen participation in decisionmaking, some com-
munities have adopted ordinances providing for
analysis of the social impacts of proposed actions, and
for organized participation by affected social groups
in decisions about development and land use. Often
these ordinances provide for negotiation between af-
fected groups and development interests or govern-
ment agencies, or for mediation of disputes. The City
of Honolulu, for example, adopted an ordinance in
1981 that required the preparation of social impact
analyses in advance of development projects, in con-
sultation with affected neighborhood groups and other
interests, and the conduct of meetings with all con-
cerned parties to resolve conflicts (see Bibliography),
Social impact analysis and negotiation to resolve en-
vironmental disputes are being used increasingly at
State and Federal government levels as well, both in
the United States and in other nations (see Baldwin,
Kent, Social Impact Assessment, Susskind and Wein-
stein, and Talbot in Bibliography).
Because neighborhood concerns about development
and land use changes often focus on perceived injury
to neighborhood character, cultural values, and prop-
erty value, they often are closely related to, or in-
coporate, historic preservation interests. A communi-
ty's preservation agency or organization can benefit
from exploring ways to ensure that preservation in-
terests and alternatives are fully considered in social
impact analysis and the negotiation of solutions to
conflicts between development and neighborhood con-
cerns.
10. Regulating Consultant Quality
Environmental documents prepared under SEPAs,
under the National Historic Preservation Act, and
with reference to the National Historic Preservation
Act are usually done by or with the aid of profes-
sional consultants. A community can help ensure that
preservation issues will be properly c-onsidered in its
own planning and in that carried out by State and
local agencies if it finds ways to regulate the quality
of the consultants who prepare such documents.
At a minimum, consultants who prepare the historic
preservation elements of environmental documents
should be required to meet the professional qualifica-
tion standards in the Secretary of the Interior's Stand-
ards and Guidelines for Archeology and Historic
Preservation, and should have a demonstrated record
of doing good historic preservation work of the type
for which a consultant is needed. For archeologists, a
community may wish to consider requiring certifica-
tion by the Society of Professional Archeologists
(SOPA). SOPA reviews the qualifications of ar-
cheologists and certifies them in various specialities,
also requiring them to abide by a code of ethics and
professional standards equivalent to, but more de-
tailed than, the relevant parts of the Secretary of the
Interior's Standard and Guidelines.
Agencies and organizations interested in regulating the
quality of consultants should discuss options carefully
with legal counsel. There are strong legal strictures on
requiring consultants to be members of particular
organizations, but in most jurisdictions it is legal to
82 Legal and Financial Tools
require that an individual's professional qualifications
be certified by an organization of peers. Alternatively,
formal licensing by the local government might be
considered.
Financial Tools
1. Revolving Funds
Revolving funds are designed to provide a preserva-
tion organization with the financial capacity to buy,
sell, and maintain property without large sources of
long-term financing. They have proven to be effective
preservation techniques in a wide range of situations.
As the name implies, funds in a revolving fund
revolve; they are invested in a property, re-
covered—ideally at a profit, and invested in another.
Organizations with preservation revolving funds can
respond quickly to emergencies by purchasing en-
dangered sites or buildings directly rather than look-
ing for a sympathetic buyer or trying to raise funds
for special purchase. By buying endangered proper-
ties, the organization buys time. Buildings and struc-
tures may be rehabilitated, easements may be placed
on them, and they may be resold or leased to parties
who will maintain them. Alternatively, properties can
be transferred and rehabilitated by the new owner ac-
cording to agreements accompanying the sale. Ar-
cheological sites may be sold with covenants restrict-
ing excavation or permitting only certain kinds of
land use, or might be subjected to a program of
research excavation and then sold without restrictions
once their important data have been extracted. When
the properties are sold, the money returns to the
revolving fund and can be used again to save other
properties.
Use of revolving fund techniques places the communi-
ty or preservation organization in the real estate
market. As the organization begins to buy and sell
property, local business people begin to take note,
and if the program is successful they can develop
respect for preservation as a new economic force in
the community. Properties bought and sold gain in
value as they are rehabilitated, and the rehabilitation
itself generates other economic activity. When several
properties in an area have been bought and
rehabilitated, the area is likely to become more attrac-
tive to private investors. Bank loans may be more
easily obtained, and other property owners in the area
may begin to rehabilitate their property. The net
value is increased property values and an increased
tax base for the community—proof that historic
preservation can be good business.
The problems involved in establishing and operating a
revolving fund are to obtain the money to make the
initial purchases, to turn these around quickly enough
to generate momentum rather than allowing the fund
to stall with its first few projects, and to operate the
fund in a businesslike manner. Some communities use
Community Development Block Grants to establish
Legal and Financial Tools
revolving funds, while others have obtained initial
funding through community-based fundraising efforts,
local appropriations, grants from private foundations,
and bequests. Revolving funds may also be estab-
lished on a statewide basis. The advantage of State
revolving funds is that they have a broader base of
support.
For additional information on revolving funds see
Revolving Funds for Historic Preservation, by Arthur
Ziegler, Leopold Adler, and Walter Kidney (see
Bibliography).
2. Grants
Community Development Block Grants and certain
Federal categorical grants available through the U.S.
Department of Housing and Urban Development are
popular sources of funding for preservation activities.
Block grants have few limitations that apply to their
use, and can be applied to survey, operation of a
general historic preservation program, establishment
of revolving funds, direct rehabilitation projects, and
a wide variety of other preservation functions.
Categorical grants are typically more limited in their
application.
The State Historic Preservation Officer may be a
source of grant funds from the Historic Preservation
Fund managed by the National Park Service. The Na-
tional Historic Preservation Act provides for the pass-
through of Historic Preservation Fund money to local
governments whose preservation programs have been
certified by the State Historic Preservation Officer and
the Secretary of the Interior; these funds can then be
used at the local government's discretion for historic
preservation purposes, within guidelines established
by the National Park Service. The basic procedures to
be followed by certified local governments are
published in the Code of Federal Regulations at 36
CFR Part 61. The State Historic Preservation Officer
can also provide matching grants from the Historic
Preservation Fund for particular preservation ac-
tivities, including those carried out by local govern-
ments that have not been certified in accordance with
36 CFR Part 61, and often administers grant programs
established by the State as well.
State Arts and Humanities Councils and folklife pro-
grams are possible sources of funding for particular
preservation -related projects, and may be able to offer
advice about other sources. Other State funding op-
portunities are likely to be available from time to
time, often in connection with economic development
programs; it is wise to maintain contact with State
legislators to keep track of potentially useful legisla-
tion.
Grants may also be available from such Federal agen-
cies as the National Endowment for the Art% !ham Na-
tional Endowment for the Humanise- .1r,:._�-. :*
agencies of the Departments of Housing and Urban
Development, Agriculture, Commerce, and Transpor-
tation, for particular project and program activities.
The availability of grants for particular purposes
changes from year to year as Congress approves new
programs and allows others to expire or remain in ex-
istence without appropriations. The State Historic
Preservation Officer should be consulted for current
information.
Private sources of grant funds can also be important.
The National Trust for Historic Preservation main-
tains a variety of grant programs, and should be con-
tacted directly to determine what is currently
available. A wide range of private foundations offer
support for activities related to preservation, ranging
from research to restoration, and some local philan-
thropic organizations specialize in supporting worth-
while projects in particular communities. The local
library or university grants office is a good place to
consult directories of foundations and other potential
private sources of grant support.
3. Contracts
Some local preservation programs contract with
Federal, State, and local agencies, private developers,
and regulated industries to carry out the surveys,
evaluations, and other studies that may be required of
them under the National Historic Preservation Act,
the National Environmental Policy Act, or relevant
SEPAs. This has several advantages; it ensures that
the work done on such studies is consistent with the
standards and policies of the local preservation pro-
gram, builds up the survey data base, can usually be
done efficiently, and helps support the local program
by covering overhead costs. The practice can lead to
real or perceived conflicts of interest if the local pro-
gram is also involved in review of the undertakings
on which it does studies. Care should be taken, and
the advice of legal counsel sought, in establishing any
such contracting operation.
4. Syndication
Syndication is an increasingly popular way of financ-
ing rehabilitation projects; it involves bringing
together investors and preservation interests into
legally constituted syndicates for the purpose of carry-
ing out a project or projects from which all will
theoretically benefit. Several large private firms now
specialize in syndication; the State Historic Preserva-
tion Office may have information on such specialists,
and may be able to advise about the applicability of
syndication to a particular project.
5. Development Bonuses
A community can encourage rehabilitation of historic
buildings or preservation of historic open space by
providing development bonuses. For example, a cor-
poration that agrees to rehabilitate certain historic
buildings as part of a development in an historic
district might be given an increase density allowance
for another part of the development. Such arrange-
ments typically involve zoning variances and are one
good reason for close coordination between historic
preservation planning and zoning.
6. Land Cost Subsidies
A community can provide a strong incentive to
rehabilitation by purchasing historic properties and
then selling them to developers at a reduced price.
Particularly in large cities with a high level of
economic activity, land prices are often among the
biggest expense items faced by a developer, and may
be a major factor in making rehabilitation less cost-
effective than demolition and construction of a larger,
taller building with greater marketable floor space. By
reducing the cost of the land through a partial sub-
sidy, the community can reduce, or even reverse, the
differential between rehabilitation and new construc-
tion.
7. Reduction in Interest Rates
Another way to encourage the private rehabilitation
of historic buildings is to reduce the interest rates on
construction loans or mortgages. Some local govern-
ments use Community Development Block Grants or
other grant funds to provide developers with low-
interest loans, while others use their revenue bond
powers to raise the necessary capital.
The use of such techniques as syndication, reduction
in interest rates, and land cost subsidies requires a
high level of cooperation among preservationists,
local government, funding sources, and the develop-
ment community. An effective community historic
preservation plan should be developed in consultation
with such interests so that these and other innovative
approaches to financing historic preservation activities
can be fully explored.
84 Legal and Financial Tools