save money on historic properties

Save Money Restoring Historic Buildings

A recent Historic Macon Foundation restoration

Saturday, January 22, 2011

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Our Mission

Our Mission is to advocate for Macon’s

historic and architectural heritage,

to facilitate preservation efforts in our community, and to

educate and inspire appreciation for our

unique city. Historic Macon Foundation’s headquarters



Save on home repairs

Save 25% to 40% of the cost of making basic

home repairs and updates such as new kitchens, baths, roofs or even

repainting.



Buy a home

Tax incentives for home ownership are included with every Historic Macon home. These

incentives mean that a $130,000 home only costs about $400 per month.



Earn more income

Using tax credits for income producing properties can increase income by 40% to 60% or reduce costs or even create enough equity to

enable zero cash deals.



What’s the catch?



What’s the catch?

At least 50 years old



What’s the catch?


Listed on the National Register of Historic Places



What’s the catch?



Complete a substantial rehabilitation



What’s the catch?



Complete a substantial rehabilitation

Work must comply with rehabilitation standards


986 ADAMS ST.


986 ADAMS ST.BUILT LATE 1800S


1211 ROSS ST.


1211 ROSS ST.BUILT 1862


GLASS HOUSE


GLASS HOUSEBUILT 1949, New Canaan, CT


1310 TWIN PINES LN.


1310 TWIN PINES LN.BUILT 1947


HAPP BROTHERS


HAPP BROTHERSBuilt late 1800s, now Broadway Lofts


SHAVER HOUSE


SHAVER HOUSEBuilt1937 by Ellamae Ellis League in Gray, GA


Over 6,000 buildings in Macon are already on the National Register

Macon has 12 historic districts

Other 50-yr-old buildings may be added

NATIONAL REGISTER


Outside of historic districts, listing on the National Register is time consuming, difficult

and can be expensive

Historic districts



Programs

8.5 year property tax freeze at pre-rehabilitation value



Programs

Homes




20% federal tax credit for buildings listed on the National Register of Historic Places (no maximum)

25%-30% state tax credit ($300,000 max)


Programs

CommercialHomes





Incentives for homes

Georgia’s state income tax rate is 6%. A household with $50,000 in income pays about $3,000 in state income tax each year. Historic Macon

Foundation’s houses come with $30,000 in tax credits, meaning buyers with $50,000 in income would not pay taxes for ten years.


Homes in Macon are charged property tax every year. For a $135,000 home, that tax is nearly $2,260 a year ($188/month). Historic Macon homes have

values that are frozen, decreasing your property taxes drastically.



Incentives for homes

Georgia’s state income tax rate is 6%. A household with $50,000 in income pays about $3,000 in state income tax each year. Historic Macon

Foundation’s houses come with $30,000 in tax credits, meaning buyers with $50,000 in income would not pay taxes for ten years.



Homes in Macon are charged property tax every year. For a $135,000 home, that tax is nearly $2,260 a year ($188/month). Historic Macon homes have

values that are frozen, decreasing your property taxes drastically.


CASE STUDY

Purchase a home with tax credits in place


Homes


Restored homes from Historic Macon Foundation

include tax credits

Homes



include tax credits

This home at 980 Maple St. included frozen property taxes at $200 per year and $30,000 in state income tax

credits.

Homes



include tax credits

This home at 980 Maple St. included frozen property taxes at $200 per year and $30,000 in state income tax

credits.

The net monthly cost to own this $130,000 home is

$450 per month

Homes


HomesHistoric home

Any other home

House Price $135,000 $135,000

Down Payment $4,725 $4,725

You Get a Raise! $2,700/year $0

Reduced Property Tax $205 $2,260

Total Savings $44,480 $0

Total Monthly Cost $500 $1,160


Down Payment Assistance



The City of Macon offers down payment assistance up to $25,000 for people of low

to moderate incomes




to moderate incomes

Mercer University offers $20,000 to all employees for

down payments




to moderate incomes

Mercer University offers $20,000 to all employees for

down payments

Georgia Dream can offer $5,000 to $7,500 to help with

down payment and closing costs



Basic Preservation Theory




1. Do as little as possible to ensure the future of the building




1. Do as little as possible to ensure the future of the building

2. Whatever changes you do make should be reversible



Requirements



Requirements

You must retain original architectural features, especially historic windows



Do not replicate or mimic missing historic features

Requirements



Requirements

• Additions should be clearly modern, not blended with the

building, but• Additions should not substantially alter the appearance of the building



Requirements


• Existing building at 503 Fifth St.• Owner would like to add an exterior

deck for entry


Requirements



Requirements


• Original deck design was decorative wood with a lattice

screen• Looked faux-historical and obscured the building’s lower storey


Requirements



Requirements


• Deck at 503 Fifth St. had to be redesigned in steel

• New design is clearly modern, but preserves the building’s industrial

identity


Requirements


You encounter an (ugly) 1960s wood front door on a 1910 bungalow.

What do you do?

A) Repair in place and retainB) Replace with a salvaged door of

the correct periodC) Replace with a new door of the

correct style


Quiz


You encounter an (ugly) 1960s wood front door on a 1910

bungalow. What do you do?

A) Repair in place and retainB) Replace with a salvaged door

of the correct periodC) Replace with a new door of the

correct style


Quiz


You would like to make a small addition to an 1870s Victorian Cottage. How do you add on?

A) Match the original truss design and roof lines, use salvaged siding to blend with original

B) Use modern cement-board siding and step in the addition an inch to differentiate slightly

from the originalC) Use vinyl or aluminum siding

to differentiate and date the modern addition

D) Construct the addition in a modern contrasting style


Quiz



Quiz

You would like to make a small addition to an 1870s Victorian Cottage. How do you add on?

A) Match the original truss design and roof lines, use salvaged siding to blend with original

B) Use modern cement-board siding and step in the addition an inch to differentiate slightly

from the originalC) Use vinyl or aluminum siding

to differentiate and date the modern addition

D) Construct the addition in a modern contrasting style


• Completed appropriate addition at 1295 Ross St.


Quiz


Your house has two front doors. You would like to restore one as a window. What do you do?

A) Use a modern aluminum or vinyl window of a similar style to differentiate the addition

B) Use a salvaged wood window of the correct period and styleC) Build a new wood window of the correct style to match existing

windowP.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Quiz



Quiz

Your house has two front doors. You would like to restore one as a window. What do you do?

A) Use a modern aluminum or vinyl window of a similar style to differentiate the addition

B) Use a salvaged wood window of the correct period and styleC) Build a new wood window of the correct style to match existing

window


D) Find the window used as cabinet doors in the laundry room and re-install on front

of house

Quiz


Your Victorian house is missing its original mantels. How do you

frame the fireplaces?

A) Salvage wood mantels of the correct period and install them

B) Build new wood mantels to replicate the correct style

C) Cover the fireplaces with drywall to screen them

D) Build new wood mantels with little ornament to appear new


Quiz


Quiz

Finished mantel at 1295 Ross St.




1295 Ross St. Before



1295 Ross St.


CASE STUDY

Invest in a rental property with historic tax credits



955 Walnut St.


CASE STUDY

Rehabilitate a major commercial building



Atlanta Gas Light


Needs$750,000 to convert the building into 7 loft apartments

StrategyHistoric Macon recruits two investors to fund the acquisition and development by

investing $375,000 each for one year

Tax CreditsBased on a $750,000 project budget

• Federal Credit at 20%- $150,000• State Credit at 25%- $187,500

ReturnsEach investor receives:

• $75,000 in federal tax credits and • $93,750 in state tax credits

45% Return for 1 year investment


Atlanta Gas Light


CASE STUDY

Raise equity for a multi-million dollar lofts project



Atlantic Cotton Mills


Needs• Need $12.5 million to convert mill into 103 loft apartments• $2.5 million down payment on debt

Tax Benefits• $10,800,000 in eligible expenses for tax credits• Federal Tax Credits (20%)- $2,160,000• State Tax Credits (25%)- $300,000 max• Property Tax Freeze- $1,250,000

Uses• Sell Federal tax credits for 93 cents on the dollar- $2,008,800• Raise <$500,000 in equity




Josh Rogers, Executive [email protected]

phone 478-742-5084 • fax 478-742-2008email [email protected] • site www.historicmacon.org


mailto:[email protected]




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