Rehabilitation Tax Credit Application Process Getting it Right Kathleen S. Kilpatrick Virginia State Historic Preservation Officer November 7, 2007.

Rehabilitation Tax CreditApplication Process

“Getting it Right”

Kathleen S. Kilpatrick

Virginia State Historic Preservation Officer

November 7, 2007

Federal Program• Established 1977• Over 34,000 projects certified nationally since

1977• More than $4 billion invested in FY’06• 1,253 projects approved in FY’06

Virginia Program• Established in 1997• Modeled on Federal Program• NPS FY’06: Virginia ranks #2 for projects certified =

$172 million invested• $1.4 billion invested since 1997• Over 1,200 state projects certified

Atlantic Motor Company, Richmond

Before After

Benefits of Program

• Historic Preservation

• Economic Development

• Urban Revitalization

• Environmentally Sound

• Social Cohesion

Part 1: Evaluation of Significance

Part 1• Establishes that property can participate in

program:– Individually listed in National Register of

Historic Places (NR)

Reynolds Metals International Headquarters, Richmond

Part 1• Establishes that property can participate in

program:– Contributing resource within Historic District

listed in NR

Part 1

Basic Property Information:

• Address

• NR Status

• Project Contact

• Ownership

• Physical Description (Pg. 2)

• Why is it significant? (Pg. 2)

Part 1Property evaluated as it currently exists:• Include general photos of property

• Include map of property, and location in Historic District

Seidenburg & Company, Petersburg

Things to remember:

• Part 1 must be submitted before project is completed

• May receive preliminary certification, but property must be listed within 30 months

• If multiple resources, address them all

• 5 year “shelf life” for an application

Part 2:Description of Rehabilitation

Part 2

• Basic property information

• Project contact and ownership

• Data on rehabilitation– Square footage

before/after project– Proposed use– Project start date– Phases

Part 2

• Insert Part 2 page 2 • Description of existing conditions

• Include comprehensive set of photos, esp. deteriorated elements

Part 2

• Insert Part 2 page 2 • Description of proposed work– Detail all changes– Include drawings of

existing and proposed floorplans

– Product specifications

Existing Proposed

Things to remember:

• Submit Part 2 prior to beginning work, if possible

• Phased project must be proposed up front

• All work must be consistent with the Standards for Rehabilitation

• Consult NPS guidance documents

• All work on property must be reviewed

Amendment

Used for:• Additional information• Change in scope of

work• Respond to

conditions established by SHPO and NPS

Part 3:Request for Certification of

Completed Work

Part 3

• Property information• Project start date• Rehabilitation

completion date• Estimated rehabilitation

expenditure• Costs associated with

new construction, site work

Part 3

• Original signature• Correct information

– Ownership– Taxpayer ID Number

• Comprehensive set of photos of completed project

Tips for a Successful Application

• Build the best professional team

• Become familiar with Standards for Rehabilitation

• Do your homework – will the project respect the historic character and spaces?

• Consult with NPS/SHPO early and often

• Follow progress carefully – make sure things going as proposed

• Accurate, thorough applications will be easier for NPS/SHPO to review

Leads to . . .

A Peaceable Kingdom