secretary of interior standards policy impact on tax credit projects by susan mead
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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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From: Making a Good Program Better
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.
REVISIONIST APPROACH - RULE IN FAVOR OF CONTRAST
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From: Making a Good Program Better
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.
REVISIONIST APPROACH - RULE IN FAVOR OF CONTRAST
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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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Current Policy of ContrastsHas Delivered Bad and Good Results
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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Current Policy of ContrastsHas Delivered Bad and Good Results
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