PRESERVATION INCENTIVES
BEST TO PRESERVE
OTHERWISE BETTER TO BURN OUT THEN FADE AWAY
What is the true cost of (not) owning a historic home?
On the surface, the downsides to owning historic seem to outweigh the benefits. The necessary commitment and endless care reconstructing, restoring, restrictions from changes, unexpected problems of antiquated concerns (like odd layouts and smaller spaces for strictly Victorian quality of life) and monies necessarily invested.
However, the charm, character and opportunity to immerse yourself in the beauty of quality craftsmanship amidst mature landscaping, and a supportive, like-minded neighborhood reminds us of the how far we've come and how far we have yet to go. A measure of progress and preservation of our former selves, owning a historical home means being a part of a specific place; a snapshot of a fleeing moment in time. Arguably the cost not owning a historic or architecturally home is missing out on a very personal, unique source of inspiration. An elevated level of pride of ownership you will never experience in owning a home. And the possibility that you may never meet the best you.
But more importantly homes in historic districts tend to on average appreciate more.
According to an independent study, values of historic properties can be increased up to 33.3 percent more than for homes without the "historic" designation.
Though no immediate statistics are available regarding Los Angeles Historic Preservation Overlay Zones (HPOZs), Historic districts nationwide tend to have steady property values and an active neighborhood association invested in the quality of the area as evidenced in relevant regional studies produced by the Los Angeles Conservancy.
In addition, locally designated historic neighborhoods were considered more stable, with less homeowner turnover that in non-historically designated areas among increased community involvement and mobilization, fostering pride of ownership as well as insulation from extreme market fluctuations.
The following are local, regional and national level programs that can offset the tax costs of owning a home:
tax relief - la la land LOCAL level designation
THE MILLS ACT (HISTORICAL PROPERTY CONTRACTS)
Owners of neighborhood-contributing homes and meet further qualifications enter a contract with the city to receive a substantial tax subsidy for maintaining, restoring or repairing their home.
A formal proposal and agreement is made The contract is entered into for 10 years and automatically extended on a yearly basis. The rights and responsibilities of a designated Mills Act property are transferred with subsequent ownership.
Deadline for 2018 applications will be posted in early January.
CONSERVATION EASEMENT
Pertaining to owner of historic properties on the National Register of Historic Places (or in a National Register Historic District), A contract is entered into by a qualified non-profit historic preservation organization and the owner. This contract is a substantial, one-time income tax deduction that prohibits demolition or drastic alteration and remains on the property even with the change of owner.
national level designation
THE FEDERAL HISTORIC TAX INCENTIVE PROGRAM
For certified historic structures in the National Register of Historic Places, this program (provides) a credit equal to 20% toward rehabilitation costs.
Prerequisite
HISTORIC CULTURAL MONUMENT STATUS
This designation establishes local, regional or national recognition of historical importance. This allows for eligibility of the Mills Act Program and use of the California Historical Building Code.
regulatory relief
THE CALIFORNIA HISTORICAL BUILDING CODE (CHBC)
This performance-based relief allows owners to use alternative standards and/ or materials that don't conform to current California Building Code to arrive at reasonable levels of safety.
CA HISTORICAL BUILDING SAFETY BOARD
PRESERVE YOUR LEGACY.
YOUR PERSONAL HALLMARKS ARE FOREVER LEFT WITH A HOME'S HISTORY.