Funding Assistance for Historic Properties
New York City historic buildings undergoing repairs and restoration may be eligible for preservation grants, loans, and tax credits.
Among other things, New York City is known for its buildings, many of them steeped in history, culture, and architectural significance. Fortunately there are various groups and agencies dedicated to preserving the distinct character of such properties and sustaining the vibrancy they add to their communities and the city as a whole. To help owners of New York City historic buildings defray some of the costs of often expensive restoration and upgrade programs, many of these organizations offer funding and technical assistance in the form of grants, loans, and tax credit programs, including the following:
Historic Preservation Grant Program
Federal Investment Tax Credit Program
New York State Historic Tax Credit Program
New York State Historic Homeownership Rehabilitation Tax Credit
Real Property Tax Exemptions for Historic Properties
Historic Preservation Grant Program
The Historic Preservation Grant Program provides funds to homeowners and non-profits for restoring severely deteriorated (primarily street-facing) facades. Grants range from $5,000 to $25,000, and eligible work may include, but is not limited to, rebuilding masonry, repointing, repairing/replacing windows and front doors, and restoring cornices.
To qualify, the building must be a designated or proposed individual New York City landmark or be listed or eligible for listing on the National Register of Historic Places. Owners or tenants for residential buildings must not exceed federal limits for household income.For non-profits, the organization must be a charitable, scientific, literary, educational, or other entity organized under Section 501(c)(3) of the Internal Revenue Code and must own or hold a long-term lease on the designated property.
The Historic Preservation Grant Program, administered by the New York Landmarks Preservation Commission, is federally funded through New York City's Community Development Block Grant.
City Ventures Fund
The City Ventures Fund, administered by the New York Landmarks Conservancy, works with non-profit developers to retain the period details of non-landmark but architecturally significant buildings being converted to affordable housing and other services that benefit lower income communities. Grants range from $5,000 to $30,000 for building renovation projects and professional fees; priority is given to essential structural repairs and exterior work that have visual impact on the neighborhood. The grants can be supplemented by low-interest loans from the Historic Properties Fund.
Funding is accompanied by the project management services of the Landmarks Conservancy staff and consulting architects/engineers. They help define the scope of work and prioritize project components, identify appropriate contractors and craftspeople, and review contracts and bids.
Eligible organizations include non-profit housing corporations, community development organizations, social service agencies, homesteading groups, and mutual housing associations restoring historic buildings. The property does not need to be officially landmarked, only architecturally interesting.
Historic Properties Fund
The Historic Properties Fund, administered by the New York Landmarks Conservancy, provides low-interest loans and project management assistance to owners of historic residential, non-profit, religious, and commercial properties in the New York City, most of them in low- to moderate-income communities. Loans generally apply to exterior work or structural repairs and range from $20,000 to $300,000. Interest rates are generally below market rate with terms ranging from five to 10 years.
Eligible buildings must be individually designated landmarks, properties in historic districts, or buildings listed or eligible for listing in the State or National Register of Historic Places, and must be in one of the city's five boroughs. Applicants must show financial capability, and loans are secured through a first or second mortgage or other acceptable collateral.
Federal Investment Tax Credit Program
The Federal Investment Tax Credit Program provides owners of historic commercial, office, industrial, or rental residential properties a 20% federal tax credit toward the substantial rehabilitation of the building, both the interior and exterior. The final dollar amount is based on the cost of the rehabilitation. The preservation credit may be used in conjunction with state and federal rehabilitation grants for housing or facade work.
The qualifying property must be listed on the National Register of Historic Places or in a locally certified district, and the work performed must meet the Secretary of the Interior's Standards for Rehabilitation and be approved by the National Park Service. The credit is available only to owners of income-producing properties, so most private homes, even large multi-family dwellings, may not qualify.
Sacred Sites Program
The Sacred Sites Program, administered by the New York Landmarks Conservancy, provides financial and technical assistance for the maintenance, repair, and restoration of religious properties of all denominations throughout New York State. The program provides up to $10,000 for exterior restoration projects, with priority given to roofing and leakage repairs, masonry repointing and restoration, structural repairs, and stained glass window repair and restoration. The fund also provides funding for professional services, including conditions surveys, plans and specifications, project management, engineering reports, stained glass surveys, and laboratory testing of materials and finishes.
For large-scale church restoration projects, the Robert W. Wilson Sacred Sites Challenge offers matching grants from $25,000 to $100,000. Priority is given to large-scale, comprehensive projects, such as the significant restoration of steeples, roofs and related drainage systems, and exterior masonry walls.
In addition to funding, Sacred Sites staff helps religious institutions analyze building problems; refer congregations to qualified architects, engineers, contractors, and craftspeople; review specifications and bids; and develop long-term maintenance and restoration plans. The program also provides educational resources on restoration, energy costs, accessibility, and other topics.
Eligible religious institutions must be located in New York State, owned by a religious institution and actively used for worship, and listed on the State or National Register of Historic Places or registered a landmark building or in a historic district.
New York State Historic Tax Credit Program
Owners of historic income-producing properties that have been approved to receive the 20% federal rehabilitation tax credit also qualify for this additional New York State tax credit. Owners can receive 30% of the federal credit (i.e., 6% of rehabilitation costs) up to $100,000.
For non-historic, non-residential buildings placed in service before 1936, a 10% tax credit applies to rehabilitation costs. Rental housing does not qualify, but hotels do.
New York State Historic Homeownership Rehabilitation Tax Credit
Rehabilitation work on historic residential structures in New York State may qualify for a tax incentive. The credit will cover 20% of qualified rehabilitation costs, up to a credit value of $25,000. The project must spend at least 5% of the total on the exterior work. Houses must be owner-occupied residential structures and be individually listed on the State or National Register of Historic Places, or a contributing building in a historic district that is listed on the State or National Register of Historic Places. In addition, the house needs to be located in a "distressed" census tract, defined as "targeted areas" under Section 143 (J) of the Internal Revenue Code.
Real Property Tax Exemptions for Historic Properties
This tax exemption gives local communities in New York State the authority to delay increases in assessments that commonly result after an owner rehabilitates a property. After a five-year freeze, the increased property taxes are phased in over the following five years, so the full tax assessment does not take effect for 10 years. Rehabilitation work must be performed on properties designated as local landmarks or located in local historic districts, and work must be approved by the Landmarks Preservation Commission.
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