There are two types of historic districts in the City of St. Louis - Local and Federal. It is critically important to understand the difference between the two andwhether your renovation project falls into one or the other (or neither). The location of your project will determine whether it potentially qualifies for Historic Tax Credits and what exterior work you can legally perform.
Local Historic Districts
A local historic district is created by the St. Louis City Board of Aldermen by passing a local ordinance. This local ordinance has legally enforceable provisions regarding permitting, materials, and design of all exterior renovation work. "Legally enforceable" means that if the proper permits are not obtained and/or the design does not meet the standards in the ordinance, you can be made to remove any offending work - windows, roofing, a garage, a retaining wall, a fence, a porch, painting, a deck, glass block infill, etc.
The reasoning behind the creation of local historic districts is twofold. First, they are a means of preserving a public good (the historic character of a unique architectural district). Since the continuity of design is a key component to a historic district, there would be no means of preserving the architectural heritage without a locally enforced historic ordinance. Second, it is an economic stimulus. Several studies have determined that property in designated historic districts tends to increase both in monetary value and perceived value at a rate higher than other property. Most buildings in local historic districts qualify for State and Federal Historic Tax Credits.
The local historic districts are administered by the Cultural Resources Office (1015 Locust, 11th floor, 622-3400), a department of the city government. Anyone performing exterior work in a local historic district MUST get approval from this office. If you are performing exterior work as a component of a full renovation, you must take the drawings to the CRO office and have them approved (stamped) by a staff member prior to applying for the general building permit. If you are performing only exterior work that does not require a building permit (such as replacing a window) you must still get the drawings approved by the Cultural Resources Office.
Federal Historic Districts
The National Parks Services maintains the National Register of Historic Places and can determine that an individual building or a defined district has enough historic architectural significance to the United States to be listed on this register. This listing carries no enforcement provision - listed properties become eligible for State and Federal Historic Tax Credits but unless you receive these tax credits, you can still do whatever you want to the building, including demolition.
Several state and Federal programs offer tax credits to qualifying renovation projects. A tax credit may be used to pay down taxes owed. For example, the Missouri State Historic Tax Credit applies to substantial renovation projects in qualifying neighborhoods. At the time of this writing, it is equal to 25% of the total renovation cost and may be carried forward ten years and back three. For example:
Total Renovation Cost - $100,000 (qualifying expenditures)
MO Historic Tax Credit - $25,000 (100,000 x .25)
If your annual state income tax is $1,000 (total of $13,000 – forward 10, back 3) then even after ten years, you would not be able to take advantage of the full amount. Taking inflation into account, it may be worthwhile to explore “selling” your tax credits. Businesses with enough tax liability to take advantage of the credits may be willing to purchase them at a discount (they make money by purchasing credits at less than their face value and you get cash in hand). A tax credit “clearing house” will generally pay between $.80 and $.90 on the dollar for your tax credits.
Construction Estimate Excel Worksheet - Download a Microsoft Excel worksheet for developing a construction budget. This worksheet takes potential State Historic Tax Credits into account for projects that qualify.
Using government money (tax credits) to help finance a project brings with it several considerations. The Missouri Department of Natural Resources administers the State Historic Tax Credit Program. In order to approve tax credits for a renovation project, work must be performed in compliance with the Secretary of the Interior’s Standards for Rehabilitation. A descriptive booklet with illustrations and examples can be obtained from the DNR web site for a nominal fee.
The other major tax credit program available for owner-occupants in St. Louis is the Neighborhood Preservation (NPA) tax credit program. Projects receiving NPA credits are not required to meet the Secreary's Standards. NPA tax credits are sometimes referred to as the “lottery” because the total amount distributed is capped by legislation. Projects are drawn from the pool of complete applications until all the money is distributed – last year the State only funded approximately one in ten NPA applications. Applications are usually due in November.
Designated Historic Districts
In order to qualify for Historic Tax Credits, a building must be listed on the National Register of Historic Places or be a contributing building in a recognized historic district. For general information (this method is not exact and may produce some errors) you can look up individual addresses at the Community Development Administration’s Cultural Resources Office web site. For a difinitive answer, contact the Missouri Department of Natural Resources.
http://stlcin.missouri.org/history/beta1a/index.cfm
Most locally designated historic districts qualify for historic tax credits. However, local historic districts also carry additional requirements. In a local district, the Cultural Resources Office must approve all exterior changes on primary facades (typically the front, and anything visible from the street. You cannot apply for a building permit until a CRO official has approved the drawings. Each local district has its own local ordinance with its own requirements. Your architect should research or be familiar with the appropriate requirements.
For more information on Tax Credits, visit the following links:
If you decide to pursue tax credits, make sure your architect has experience with tax credit projects and is aware of your intention. He or she can provide advice, application assistance, and make sure that required items are included in the plans.
Standards for Historic Rehabilitation
In order to receive either State or Federal Historic Tax Credits, a project must conform to the Secretary of the Interior’s Standards for Historic Rehabilitation. Applications are reviewed in detail by knowledgeable staff in accordance with these standards. This section is adapted from the Illustrated Guidelines (1997) published by the National Park Service. The full text is available online at: http://www2.cr.nps.gov/tps/tax/rhb/.
The following is a summary of the Secretary's Standards.
- Properties will maintain their current use or be given a new use compatible with any distinctive features or spaces
In most cases a conversion (2-family to single family home or warehouse to loft condos for example) will be considered acceptable if the character defining aspects of the building are maintained.
- The historic character of the property will be preserved - Spaces and architectural features that are deemed to be essential to the overall historic character of the building must be retained, repaired, or replicated.
- Buildings will be recognized as a physical record of its time, place and use - Adding conjectural elements or artifacts from another building is discouraged.
- Changes to a property that have acquired their own historical significance will be preserved - If a later addition or renovation is determined to be significant in its own right, it will be considered character defining.
- Distinctive materials, features, finishes, and construction techniques or examples of craftsmanship that characterize a property will be preserved - Typically this can include moldings, windows, doors, built-in cabinetry, porches and dormers, cornices, and other historic elements.
- Deteriorated historic features will be repaired rather than replaced - In cases where the original feature is too far deteriorated, it must be documented and replicated.
- Treatments that cause damage to historic materials will not be used - It is necessary to use the gentlest means possible when cleaning or treating any historic element.
- Archeological resources will be protected and preserved in place.
- Additions, exterior alterations, or related new construction will not destroy historic materials, features, or spatial relationships that characterize the property - New construction must be differentiated in design from the original historic property and should be designed and constructed in a way to protect the integrity of the historic property.
- New additions and adjacent or related new construction will be undertaken in such a manner that, if removed in the future, the essential form and integrity of the historic property and its environment would be unimpaired.
Historic tax credit applications are reviewed “as a whole.” No single action in and of itself will cause an application to be rejected. The question that the reviewer asks him or herself is whether the project as a whole meets the Secretary’s guidelines. The guidelines recognize the need for some alterations to be made in order for most projects to be successful – any changes must be made without negatively impacting the building’s overall historic character.
It is important if you intend to pursue historic tax credits, that you find an architecture firm and contractor who is familiar with these requirements.
