Historic Preservation Funding Sources

1. Historic Preservation Funding Sources

Introduction

Historic preservation is a multifaceted endeavor requiring significant financial investment. Preserving our built heritage – from grand architectural landmarks to humble vernacular buildings – isn’t merely about aesthetics; it’s about maintaining cultural identity, fostering economic development, promoting sustainability, and safeguarding tangible links to the past. However, the costs associated with restoration, rehabilitation, and ongoing maintenance can be substantial. This article provides a comprehensive overview of the diverse funding sources available for historic preservation projects, geared towards beginners navigating this complex landscape. Understanding these options is crucial for property owners, preservation organizations, and local governments alike. This guide will cover federal, state, and local sources, as well as private funding mechanisms, and offer advice on navigating the application processes. We will also address the evolving trends in preservation funding, including the increasing emphasis on sustainable practices and community engagement. A strong understanding of Preservation Planning is often the first step towards successful funding acquisition.

Federal Funding Sources

The federal government plays a significant role in historic preservation funding, primarily through the Historic Preservation Fund (HPF). Administered by the National Park Service (NPS), the HPF distributes grants to State Historic Preservation Offices (SHPOs), Certified Local Governments (CLGs), and directly to certain preservation projects.

• Historic Preservation Fund (HPF) Grants:* The HPF is funded by offshore oil royalties, and its allocation varies annually depending on revenue. Grants fall into several categories:

   *Preservation Planning Grants: Support comprehensive historic resource surveys, development of preservation plans, and design guidelines.  These are often the first step in initiating a preservation program.  Historic Resource Surveys are a critical component of effective preservation.
   *Certified Local Government (CLG) Grants: Provide funding to CLGs for projects that align with their preservation goals, such as rehabilitation projects, architectural and archaeological documentation, and public education programs.  Becoming a Certified Local Government unlocks access to these dedicated funds.
   *Save America’s Treasures Grants: A highly competitive grant program focused on nationally significant historic properties and collections.  Projects must demonstrate a substantial public benefit.  More information is available at [1].
   *Paul Bruhn Historic Revitalization Grants: These grants focus on the revitalization of historic commercial districts and downtowns, supporting small business development and community economic growth.  Details can be found at [2].

• Tax Incentives:* Federal tax incentives are arguably the most significant form of federal preservation funding.

   *Rehabilitation Tax Credit:  This credit encourages the rehabilitation of income-producing historic buildings. Property owners can claim a credit of up to 20% of qualified rehabilitation expenses.  Detailed guidance can be found at [3].  Understanding Rehabilitation Standards is crucial for qualifying.  A thorough Technical Analysis of the building's condition is also required.
   *Facade Improvement Tax Credit:  In some cases, a smaller tax credit is available for facade improvements to historic buildings.
   *Easement Donation Tax Deduction:  Donating a preservation easement on a historic property can result in a charitable income tax deduction.

• Other Federal Programs:* Several other federal programs can indirectly support historic preservation.

   *Community Development Block Grant (CDBG):  Administered by the Department of Housing and Urban Development (HUD), CDBG funds can be used for a wide range of community development activities, including historic preservation projects.  [4]
   *Transportation Enhancement Funds:  Funds allocated for transportation projects can sometimes be used to preserve historic transportation infrastructure, such as bridges and railroad stations.
   *Land and Water Conservation Fund (LWCF): Can support the preservation of historic landscapes and archaeological sites. [5]

State Funding Sources

State governments offer a variety of preservation funding programs, often complementing federal initiatives. The specific programs available vary significantly from state to state.

• State Historic Preservation Office (SHPO) Grants:* SHPOs administer grants funded by the HPF, as well as state-specific funding. These grants often focus on survey and planning activities, archaeological investigations, and the rehabilitation of historically significant properties. Contact your local State Historic Preservation Office for details.
• State Tax Credits:* Many states offer tax credits similar to the federal Rehabilitation Tax Credit, providing additional incentives for historic preservation. These credits can often be "stacked" with federal credits, increasing the overall financial benefit. [6] provides a directory of state tax credit programs.
• State Bond Issues:* Some states periodically issue bonds specifically earmarked for historic preservation projects.
• Endowment Funds:* A few states have established dedicated endowment funds to support ongoing preservation efforts.
• Targeted Programs:* States may also offer targeted programs for specific types of historic properties, such as barns, courthouses, or Main Street districts. Main Street Programs often have access to state-level funding.

Local Funding Sources

Local governments play a crucial role in historic preservation, providing funding and regulatory support.

• Local Historic Preservation Funds:* Cities and counties may establish dedicated funds for preservation projects, often funded through property taxes or dedicated revenue streams.
• Community Development Funds:* Local community development funds can be used for historic preservation projects that contribute to community revitalization.
• Tax Increment Financing (TIF):* TIF districts can be used to finance public improvements, including the rehabilitation of historic buildings, within a designated area.
• Facade Improvement Programs:* Local governments may offer grants or loans to property owners for facade improvements to historic buildings.
• Design Review Boards:* While not directly funding sources, design review boards can ensure that preservation projects adhere to appropriate standards and guidelines, protecting the integrity of historic resources. Design Review Guidelines are essential for navigating this process.

Private Funding Sources

Private funding sources are essential for supplementing public funding and supporting projects that may not qualify for government assistance.

• Foundations:* Numerous foundations support historic preservation, including the National Trust for Historic Preservation, the J.M. Kaplan Fund, and the Gaylord and Dorothy Donnelly Foundation. Researching and identifying appropriate foundations is crucial. [7] is a valuable resource.
• Corporate Sponsorships:* Corporations may provide funding for preservation projects, particularly those that align with their corporate social responsibility goals.
• Individual Donations:* Fundraising campaigns and individual donations are vital for many preservation organizations. Fundraising Strategies are key to success.
• Preservation Easements:* Selling or donating a preservation easement to a qualified organization can provide tax benefits and secure long-term protection for a historic property.
• Loans:* Low-interest loans specifically for historic preservation are available from some lenders.
• Crowdfunding:* Online crowdfunding platforms can be used to raise funds for smaller preservation projects. [8] is a popular platform.

Navigating the Application Process

Successfully securing funding for historic preservation projects requires careful planning and a thorough understanding of the application process.

• Research:* Thoroughly research all potential funding sources and their eligibility requirements.
• Planning:* Develop a detailed project plan, including a budget, timeline, and scope of work. A well-defined Project Scope is critical.
• Documentation:* Gather all necessary documentation, including property records, architectural plans, and photographs. Architectural Documentation is often a requirement.
• Application:* Complete the application accurately and completely, following all instructions carefully.
• Follow-Up:* Follow up with funding agencies to check on the status of your application and answer any questions they may have.

Emerging Trends in Preservation Funding

The field of historic preservation funding is constantly evolving. Several key trends are shaping the future of preservation finance.

• Sustainability:* Increasing emphasis on incorporating sustainable practices into preservation projects, such as energy efficiency upgrades and the use of environmentally friendly materials. Sustainable Preservation is gaining traction.
• Community Engagement:* Greater focus on involving local communities in preservation planning and decision-making. Community Engagement Strategies are vital.
• Adaptive Reuse:* Encouraging the adaptive reuse of historic buildings for new purposes, promoting economic development and reducing the need for new construction. Adaptive Reuse Case Studies provide valuable insights.
• Resilience:* Recognizing the role of historic buildings in enhancing community resilience to climate change and other environmental challenges. Resilience Planning is becoming increasingly important.
• Digital Technologies:* Leveraging digital technologies, such as virtual reality and 3D modeling, to promote historic preservation and enhance public understanding. Digital Preservation is a growing field.
• Impact Investing:* Attracting investment from impact investors who prioritize social and environmental returns alongside financial returns.
• Measuring Impact:* Developing metrics and indicators to measure the economic, social, and environmental impact of historic preservation projects. Impact Indicators are crucial for demonstrating value. Analyzing Preservation Trends helps anticipate future funding opportunities.
• Focus on Equity:* Increased emphasis on ensuring that preservation efforts benefit all members of the community, including marginalized groups. Equity in Preservation is a growing area of concern.

Preservation Law Historic Tax Credit Programs National Register of Historic Places Archaeological Preservation Architectural Conservation Preservation Technology Preservation Education Preservation Policy Historic Landscape Preservation Preservation Economics

[9] - National Park Service Historic Preservation [10] - National Trust for Historic Preservation [11] - Advisory Council on Historic Preservation [12] - HUD CDBG Program [13] - NPS Tax Credit Program [14] - Preservation Foundation [15] - Historic Preservation Foundation [16] - Saving Places [17] - Aspen Institute - Historic Preservation [18] - Land Trust Alliance [19] - Cultural Heritage Partners [20] - Smithsonian Magazine - Preservation and Climate Change [21] - Brookings Institute - Preservation and Community Development [22] - Urban Institute - Preservation and Economic Development [23] - American Planning Association - Historic Preservation [24] - ArchDaily - Historic Preservation [25] - Architectural Record - Preservation and Sustainability [26] - Architectural Magazine - Preservation Perspective [27] - Designboom - Adaptive Reuse [28] - Planetizen - Preservation Funding [29] - Next City - Adaptive Reuse Funding [30] - Governing - Preservation Funding [31] - Bloomberg - Preservation as Climate Solution [32] - Fast Company - Preservation and Housing

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