Historic Preservation Tax Exemption Program Public Meeting of the proposed changes to the Historic Tax Exemption Program
Dec 27, 2015
Historic Preservation Tax Exemption Program Public Meeting of the proposed
changes to the Historic Tax Exemption Program
Purpose
Review the proposed amendments to the current Historic Preservation Tax Exemption ProgramDivision 51A-11 of the Dallas
Development CodeProgram sunsets December 31, 2015Minor amendments clarify, improve and
extend the program in order to more effectively accomplish the goals of the program
History
The Historic Preservation Incentive Program (ordinance #21874) was passed by the city council in October of 1993
Amended in April of 1998Amended in April 2001Amended in April 2004Amended in November 2007Sunsets in December of 2015
Existing Historic Preservation Tax Exemption Program
Historic buildings are Dallas’ link with the past. They connect us to our heritage and enrich the quality of life.
They help give a community a sense of identity, stability and orientation.
These exemptions reward private investment in rehabilitating historic properties.
Existing Historic Preservation Tax Exemption Program
The rehabilitated buildings provide needed housing (in many cases, low- and moderate-income housing), and office, retail, and other commercial space.
The communities benefit from property improvement, blight removal, and increased occupancy of buildings in historic core neighborhoods.
Existing Historic Preservation Tax Exemption Program
Goals of the Historic Preservation Tax Exemption Program are to: Revitalize older neighborhoods to build and capture a stable tax base. Support the private sector investment in historic properties. Encourage home ownership. Promote pedestrian oriented, ground floor retail in the Urban Historic
Districts. Support new uses for vacant and deteriorated historic buildings. Encourage low and moderate income families to invest in Revitalizing
Historic Districts.
Eligibility
To be eligible for the program, a building must be a contributing or a potentially contributing historic structure in a City of Dallas district or individually listed.
Schedule Landmark Commission public
hearing
If greater than$50,000 schedule a City Council hearing
Begin the project and
save the receipts!
Historic Preservation Tax Exemption Process
Step 1Application
Applicant completesThe project
Applicant providesproof of
expenditures, andadditional requiredinformation to staff
Applicant filesCommitment toRepay on theproperty deed
Staff and legalreview of the
documentation
City receives a copyOf the filed
documentation
Letter of VerificationSent to DCAD
City annually verifiesthe property meetsthe requirementsof the ordinance
Step 3Exemption
Applicant mustannually
submit theirrenewal
application to DCAD
Step 2Verification
Historic Preservation Tax Exemption Program
The location of the structure and the amount of expenditures being spent determine how much will be exempt.
Types of Exemptions Exemption on the added
value of the city portion of the property taxes
Exemption of 100% of the city portion of the property taxes
Historic Preservation Tax Exemption Program
In total there are about 96 historic properties receiving exemptions in the program.
The total value of the exemptions for 2014 was $205,932,688
Existing Historic Preservation Tax Exemption Program
Currently there are three categories of exemptions availableUrban Neighborhoods
Map to follow this slideRevitalizing Neighborhoods
Junius Heights, Lakecliff, Peak’s Suburban, South Blvd/ Park Row, 10th St, Wheatley Place, and Winnetka Heights
CitywideAll properties not in the Urban
or Revitalizing NeighborhoodsMunger Place, State Thomas,
and Swiss Avenue historic districts
Existing Historic PreservationTax Exemption Program
Urban Historic DistrictsType of Exemption Required
ExpendituresAmount
Duration Renewable
Based on Rehab 75% 100% 10 years Yes
Based on Rehab 50% Added Value
10 Years Yes
Residential / ground floor conversion
50% must be converted to residential and 65% of ground floor must be converted to retail
100% 5 Years No
Exemptions may be renewed if additional expenditures meet the threshold for rehabilitation. This is to encourage the continued rehabilitation and use of our historic properties.
Proposed Changes to the Existing Program
Only change will increase the length of the exemption from 10 to 15 years (Based on Rehab) and from 5 to 10 years for the Residential/Ground floor conversion.
Revitalizing Historic Districts
The Revitalizing Neighborhoods include: Junius Heights, Lake Cliff, Peak’s Suburban, South Blvd/ Park Row, and Winnetka Heights.
Existing Historic Preservation Tax Exemption Program
Revitalizing Historic DistrictsType of Exemption Required
Expenditures
Amount Duration Renewable
Based on Rehab 25% 100% 10 Years Yes
Maintenance 3% Added Value
3 Years Yes
Exemptions may be renewed if additional expenditures meet the threshold for rehabilitation. This is to encourage the continued rehabilitation and use of our historic properties.
Proposed Changes to the Existing Program
Only change will increase the length of the exemption from 10 to 15 years (Based on Rehab) and from 3 to 8 years for the Maintenance.
Citywide Historic Districts
The Citywide Neighborhoods include: Munger Place, State Thomas, and Swiss Avenue. Typically these are considered districts that are stable or near stabilization.
The Citywide category covers all properties outside the Urban and Revitalizing Historic Districts.
Existing Historic Preservation Tax Exemption Program
CitywideType of Exemption Required
Expenditures
Amount Duration Renewable
Based on Rehab 50% Added Value
10 years Yes
Rehab of an Endangered Structure
25% 100% 10 years Yes
Exemptions may be renewed if additional expenditures meet the threshold for rehabilitation. This is to encourage the continued rehabilitation and use of our historic properties.
Proposed Changes to the Existing Program
Created a new category of exemption: Endangered Districts. This provision is intended for structures deteriorating
within our least stable historic districts. Would allow a 100% exemption for 25% expenditures
on the property
Increase the length of the exemption from 10 to 15 years for every type of exemption in this category.
Endangered Districts
The Endangered Districts would include: 10th St and Wheatley Place.
The exemption would remain the same as the ‘Revitalizing Neighborhoods’, with the ‘Endangered’ listed meant to provide emphasis that these neighborhoods need more focus to reach stability and redevelopment.
Existing Historic Preservation Tax Exemption Program
Other Incentives
Non-Profit Must be a Recorded Texas Landmarks that operates a not-for-profit that is open to the public.Receives a 100% exemption on the city portion of the property taxes for long as long as it remains a not-for profit open to the public
Conservation Easement
Transfer of Development Rights
Proposed Changes to the Existing Program
Other incentivesNo changes to the not-for-profit,
conservation easement or transfer of development rights programs
Overview of Proposed Incentives Program
Category Type Required Expenditures Amount Duration Renewable
Urban Neighborhood
Based on Rehab 75% 100% 15 years Yes
Based on Rehab 50%Added
Value15 years Yes
Residential / ground floor conversion
50% must be converted to
residential and 65% of ground floor must be
converted to retail
100% 10 years No
Revitalizing Historic Districts
Based on Rehab 25% 100% 15 years Yes
Maintenance 3%Added
Value8 years Yes
“Citywide”
Based on Rehab 50%Added
Value15 years Yes
Endangered Property and Districts
25% 100% 15 years Yes
Non-profit Non-profit
Be a not-for-profit with a designated historic landmark that is open
to the public
100%
As long as the
building remains a not-for-
profit that is open to the public
Annually
Conservation Easement
Transfer of Development Rights
Proposed Timeline
August/September - Landmark Commission Public Hearing
September/October (tentative) – Any applicable Council Committees
November (tentative) – City Council Hearing