Secretary of Interior Standards Policy Impact on Tax Credit Projects by Susan Mead

7/31/2019 Secretary of Interior Standards Policy Impact on Tax Credit Projects by Susan Mead

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US/ICOMOS

June 3, 2011

Secretary of InteriorStandards Policy

Impact on Tax Credit Projects

Susan Mead

Jackson Walker L.L.P.


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Question: Is It Immoral For a

New Building Not to Look Like aNew Building?

ANSWER: Yes, if you want to use the

Historic Tax Credit


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THE CURRENT POLICYOF MODERNISM

The policy that was supposed to

encourage historic restorationhas been turned on its head andis being used to deny tax credits.


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THE HISTORY OF THE POLICY

A policy against replication began atthe Department of Interior in the

1970s, before the 20% tax creditwas available, when the policy wasapplied to large, publicly ownedbuildings and not new infill oradditional construction in historicdistricts.


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HISTORIC PRESERVATION TAXCREDITS

Two Tax Credits Are Available:

1. The 20% rehabilitation tax creditequals 20% of the amount spent ina certified rehabilitation of acertified historic structure.

2. The 10% rehabilitation tax credit

equals 10% of the amount spent torehabilitate a non-historic buildingbuild before 1936.


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The Secretary of the Interiors

STANDARDS FOR REHABILITATION

9. New additions, exterioralteration, or related newconstruction shall not destroyhistoric materials that

characterize the property. Thenew work shall be differentiatedfrom the old and shall becompatible with the massing,

size, scale, and architecturalfeatures to protect the historicintegrity of the property and itsenvironment.


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TRADITIONAL APPROACH RULE AGAINST CONFUSION

new additions should be designed andconstructed so that the character-defining features of the historic building

are not radically changed, obscured,damaged or destroyed in the process ofrehabilitation. New design should alwaysbe clearly differentiated so that the

addition does not appear to be part ofthe historic resource.


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REVISIONIST APPROACH - RULE IN FAVOR OF CONTRAST

2007 Revised Guidelines

From: Making a Good Program Better

Final guidance and implementationof National Park System AdvisoryBoard Recommendations for the

Federal Historic Rehabilitation TaxCredit Program


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In the past, the NPS approach to new additionsand new construction was understood asfavoring a particular style over another.That style was a simplified version of thehistoric building, rather than a franklymodern or more traditional approach. TheNPS has made clear that:

New additions and construction can bein any style modern, traditional, oran adaptation of the historic buildingstyle provided that the criteria inStandards 9 and 10 are met.



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Previously, the NPS has consideredsubordination of a new addition to ahistoric building to be an essentialcomponent of compatibility. To illustratean exception, NPS makes explicit that:

The compatibility of new additions andnew construction within urban or

densely built environments will beviewed in a wider context and mayallow greater flexibility of size anddesign than would be appropriate forstand alone buildings.



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Current Policy of ContrastsHas Delivered Bad and Good Results

Jefferson

Tower

Addition

Sixth Floor

Museum

Addition

Approved- but credits deniedwhen architect tried to addstring-coursing, tower, and

other architectural articulation,refinement or details, rather

than just compatible volumes.

Approved- with some architecturaldetailing but no window openings

or other articulation.


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Approved- addition is the mirror image of the existing housevolume-wise, but the new half was approvedwith brick string-coursing and tile gable end.


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The upper 2 floors ofthis early-20th centuryoffice building were

part of the originaldesign, but were notbuilt. During rehabi-litation, the 2 storieswere finally

constructed. Thistreatment does notmeet the Standardsbecause the additionhas given the buildingan appearance it

never had historically. (even though owner

used the originalplans)

Denial of Credits


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Jefferson

Tower

Addition

501 Elm

or

Sixth Floor

Museum

Addition

Approved- by locallandmarks commission,SHPO, and National Park

Service.


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Reevaluationof

Policies Relating to Tax Act ProjectsBut first:

Recognize that typically there are nonational standards in any country

except for federally owned or federallyfinanced projects being reviewed byfederal board

Recognize that before and immediately

following the passage of the NHPA, itwas more common for the localhistoric commission to determine thedesign guidelines for changes in a

historic district


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Reevaluationof

Policies Relating to Tax Act Projects

Recognize that great design cannot becreated through regulations

Recognize legal issues related to over-regulation using design standards

Recognize that all design standards

are negotiated solutions that arecontext specific and therefore local innature


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Potential Solution

Review of Tax Act projects shouldrely first and foremost on localnegotiated design solutions and

approaches in lieu of policy decisionsat a national level. The LocalLandmarks Commission and SHPO

recommendation more often than notreflects a contextual solution.


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Some saydemolition

mighthave beenbetter

Documents

Secretary of Interior Standards Policy Impact on Tax Credit Projects by Susan Mead