5 Myths of
Historic Renovation in Louisiana

AND HOW YOUR ARCHITECT CAN OVERCOME THESE MYTHS

by Michael Holly, AIA, NCARB, REFP and Jeffrey Smith, AIA, NCARB

Our inventory of historic architecture represents our cultural heritage frozen in time. How can we thaw these frozen assets and bring them back into commerce? Many architectural jewels from the past are suffering from neglect and do not meet current building codes and the technologies for building systems, i.e. electrical, mechanical, and plumbing. Many also lack floor plans that can be easily converted into new functional uses. Herein lies the challenge. The following are myth busters that your architect can use to adaptively reuse your historic properties and bring them back to commerce while also saving and celebrating our architectural heritage. What better way to preserve our history than repurposing our historic neighborhoods into functional communities for living, working, and playing. The concept of revitalization is the most sustainable approach to living in our built environment.

MYTH #1 - THE COST TO RENOVATE A HISTORIC STRUCTURE IS TOO HIGH

Admittedly, the cost of renovating a historic structure can be higher than the cost to build a new building. To overcome this concern and to avoid poorly conceived renovations and additions to historic structures, our federal and state governments have developed tax incentive programs to encourage the revitalization of historic structures for economic impact and to preserve our heritage. The federal government, administered through the National Park Service (NPS), offers a rehabilitation tax credit for 20% of the cost of construction for properties within certified National Register Historic Districts or for individual properties that are on the National Register of Historic Places. These incentives must comply with the National Park Service guidelines for historic rehabilitation. A 3-part application must be submitted through the local State Historic Preservation Office (SHPO) to the National Park Service for review and approval. The first approval certifies that the building qualifies for the tax incentives, the second approval reviews and approves the design for the rehabilitation and/or additions, and the third approval certifies that the construction complies with the approved plans and specifications. The State of Louisiana also offers rehabilitation tax credit incentives administered through the SHPO for 20% of the cost of construction. These historic rehabilitation tax credits are significant and greatly assist in offsetting the added costs incurred in the rehabilitation of older structures. Of course, meeting the NPS guidelines for historic rehabilitation and getting approval from SHPO is a rigorous process, and this is where your architect and/or historic preservation consultant can help.

MYTH #2 - THE EXISTING HISTORIC BUILDING
FLOOR PLAN IS NOT FUNCTIONAL

In many cases, the functionality of the existing building is not suited for contemporary use due to changes in building codes and building mechanical, electrical, and plumbing systems. Also, many buildings in historic districts in the past didn’t have a need for parking, and the footprints of the buildings were too large for commercial spaces without parking lots. This problem can be solved with clever adaptive reuse strategies such as carving out ground level parking within the building and/or creating open air courtyards on the ground floor to accommodate natural light and access to areas in the building. Balancing these concepts with the NPS guidelines is the key to getting approval for the tax credit incentives. Your architect must preserve as much of the facade and historical interior features as possible while still creating functional spaces that meet current building code requirements. This balance between historic preservation and building codes will require compromises and often concessions from the NPS/SHPO and code officials. Owners must be willing to compromise and accommodate the preservation requirements.  Your architect/historic preservation consultant can be of invaluable assistance with this process.

MYTH #3 - THE BUILDING IS NOT HISTORIC

Sometimes a building may be nondescript architecturally and so neglected that, on the surface, it may appear that it cannot be certified as an eligible structure for the rehabilitation tax incentives. There are many approaches to addressing this issue. The first and foremost is that a building located in a historic district listed on the National Register of Historic Places, even if it is not a contributing structure, may be eligible for tax credits. Additionally, Louisiana properties located within cultural districts or downtown development districts can qualify for state rehabilitation tax credits. It should be noted that in 2018 buildings that were constructed in 1968 or before are over 50 years old and can qualify for the tax incentive.

MYTH #4 – THERE ARE NO HISTORIC REHABILITATION TAX INCENTIVES FOR BUILDINGS OWNED BY A
NON-PROFIT ORGANIZATION

The State of Louisiana Rehabilitation Historic Tax Credit Program allows an individual who renovates a historic structure, meets the NPS guidelines, and has their certifications approved, to be able to sell the tax credits to willing buyers. This program has allowed non-profit organizations who own historic properties and has a desire to revitalize them to offset the cost of the renovation by selling the tax credits after the project is completed and approval is received from the NPS. This program has been instrumental in assisting cash-strapped non-profit organizations to renovate and modernize their historic structures, often for a new purpose. Depending on the scope and complexity of the particular project, the federal tax credits will require guidance from a tax attorney to fully understand requirements on the federal level.

MYTH #5 – THE PROCESS OF GETTING A HISTORIC PROPERTY APPROVED AND CERTIFIED BY THE NATIONAL PARK SERVICE IS TOO ARDUOUS

While it is required that approvals must be in accordance with the NPS guidelines for rehabilitation, historic property owners in Louisiana have at their disposal one of the most active SHPO's in the nation. NPS, in its 2017 Annual Report, showed that in the last 5 years prior to the report that Louisiana was 8th in the nation in the amount of federal rehabilitation tax credits earned and 1st in the nation in the number of projects receiving federal rehabilitation tax credits. This level of performance is indicative of the quality of support offered by Louisiana SHPO, a division of the Department of Culture, Recreation and Tourism. As architects and developers of projects, we can attest to their abilities and assistance in this process. Using code and technology upgrades as a reason for modifying original historic elements can be useful in the approval process. The process does require give and take to satisfy the NPS guidelines, so the more research the architect can do to help develop concepts that bridge pure preservation and adaptive reuse is critical.

H/S EXPERIENCE

H/S Architects has a long history in the design and development of the restoration or the adaptive reuse of historic properties within tax-eligible districts in Louisiana and Mississippi. Our team members are qualified myth busters that are capable of taking historic structures that seem improbable for revitalization and repurposing them into economic opportunities while maintaining our architectural heritage and preserving the past.