historic preservation tax exemption program public meeting of the proposed changes to the historic...

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.


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.


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

Types of Exemptions OfferedExisting and Proposed

Programs


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

Urban 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.

Urban Neighborhood Properties

SoCo Urban Lofts (Santa Fe Building) Republic Tower

Titche Building

Urban Neighborhood PropertiesAwalt Building

Davis BuildingSouthside on Lamar

Revitalizing Historic Districts


The Revitalizing Neighborhoods include: Junius Heights, Lake Cliff, Peak’s Suburban, South Blvd/ Park Row, and Winnetka Heights.


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



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

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.


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



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.

Other Exemptions Offered


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


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 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



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

Questions?

historic preservation tax exemption program public meeting of the proposed changes to the historic...

Documents

historic properties

historic structure

historic core neighborhoods

stable tax base

city portion

city of dallas district

proposed amendments

city council