Private Owners

As a general rule, there are few sources offering preservation funding assistance to private property owners and to owner occupants in particular. Most public agency and private foundation historic preservation funding programs are for municipal or not for profit (NFP) owners. However, there are some other sources of funding available for private property owners.

Owners of residential and commercial properties may be eligible for federal, state or local funds distributed through municipal agencies. Assistance may be in the form of loans or grants and eligibility is dependent on locally established criteria consistent with public program policies. While age and condition of a property may be considered in these programs, the focus may be affordable housing, creating employment opportunities or investing in local communities rather than preserving historic and cultural resources. To find out more about these programs, contact your municipal departments of planning, community development or economic development.

In addition, private-lending institutions may offer assistance to target areas within older urban neighborhoods or rural agricultural districts. As with the public sources, these programs are not likely to focus on the historic nature of a subject property and selection criteria may reflect other priorities. Nevertheless, historic and cultural resources may benefit from such programs.

Owners of historic commercial, office, industrial or residential rental properties listed on the National Register of Historic Places may be eligible for a preservation tax credit if they are planning rehabilitation work. The federal historic rehabilitation tax credit program allows a 20% tax credit for the substantial rehabilitation of historic properties (substantial rehabilitation is determined using an Internal Revenue Service formula measuring the value of the building against the dollar amount of the proposed work). The final value of the credit is based on the cost of the rehabilitation; in effect, 20% of the rehabilitation costs will be borne by the federal government. The work performed (both interior and exterior) must meet federal preservation standards and be approved by the State Historic Preservation Office. For information, please contact the State Historic Preservation Office. More information is also available on the National Park Service's tax credit website at www2.cr.nps.gov/tps/tax/index.htm.

Two state programs provide assistance to owners of historic barns:

• The Farmer's Protection and Farm Preservation Act allows for an income tax credit equal to 25% of the cost of rehabilitating historic barns. The barn must be income producing, in non-residential use, placed in service before 1936, and work must not materially alter the historic appearance of the structure. For information, contact the State Historic Preservation Office.
• The New York State Barns Restoration and Preservation Program is a competitive grant program that provides grants for the rehabilitation of barns and other agricultural structures built at least 50 years prior to the date of application.

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