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
Queens Historic Properties Fund
New York State Historic Tax Credit Program for Income Producing Properties
New York State Historic Homeownership Rehabilitation Tax Credit
Real Property Tax Exemptions for Historic Properties
Federal Investment Tax Credit Program
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.
Historic Preservation Grant Program
The Historic Preservation Grant, provides funds to homeowners and non-profits for restoring severely deteriorated (primarily street-facing) facades. Grants range from $10,000 to $30,000, 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.
The Queens Historic Properties Fund
The Queens Historic Properties Fund offers low-interest loans and project management assistance to owners of historic residential, non-profit, religious, and commercial buildings in Queens. The fund is a partnership between the New York Landmarks Conservancy and the Queens Historical Society.
Loans generally apply to exterior work or structural repairs and range from $15,000 to $50,000. Interest rates are generally below market, and terms usually range from five to 10 years.
The loans are available only to owners of individually designated landmarks, properties in historic districts, buildings listed or eligible for listing in the State or National Register of Historic Places, or buildings considered contributing to an historic district.
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 Sacred Sites Grants
Sacred Sites grants provide congregations with financial aid for exterior restoration projects. Priority is given to essential repairs to the primary worship building. Highest consideration is given to projects such as roofing and drainage system repairs, masonry repointing and restoration, structural repairs, and stained glass window repair and restoration.
The Sacred Sites Fund also provides grants for professional services, including conditions surveys, plans and specifications, project management, engineering reports, stained glass surveys, and laboratory testing of materials and finishes. In the last three years, Sacred Sites grants have ranged in size from $1,000 to $50,000.
Consulting Grants
Consulting grants are a category of Sacred Sites grants. They assist congregations in the soft costs (architectural and engineering fees, project-management services, etc.) associated with planning a restoration or repair project. Eligible projects include conditions assessments, master plans, historic paint analysis, mural or stained glass conservation studies, plans and specifications or construction documents for exterior restoration, and engineering assessments of structural systems including roof trusses and foundations.
To be eligible for a Consulting grant, properties must be located in New York City, owned by a religious institution and actively used for worship, and listed on the State or National Register of Historic Places or designated pursuant to a local landmarks ordinance by New York State, either individually, or as a contributing component of a historic district.
Emergency Preservation Grant
The New York Landmarks Conservancy’s Emergency Preservation Grant Program (EPGP) is designed for repairing immediate exterior building hazards—such as new leaks, fire or structural damage, falling masonry—that threaten landmark buildings.
The property must be in one of New York City’s five boroughs; be owned and occupied by a private nonprofit organization (excluding religious properties used for worship and market-rate cooperatives or condominiums); and be an individually designated New York City landmark, listed or eligible for listing in the National Register of Historic Places, or a contributing component of a City or National Register Historic District.
The grants range from $2,500 to $25,000, with the average amount $10,000 to $12,000 per project. EPGP grants cannot be used for building-wide issues or major capital improvements that are part of a larger plan.
New York State Tax Credit Program for Income Producing Properties
Owners of income producing properties who have been approved to receive the 20% federal rehabilitation tax credit automatically qualify for the additional state tax credit if the property is located in an eligible census tract. Owners can receive an additional 20% of the qualified rehabilitation expenditures up to $5,000,000. The building must retain its overall historic character for the work to qualify for the historic preservation tax credits.
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 covers 20% of qualified rehabilitation costs, up to a credit value of $50,000. At least $5,000 must be spent on qualified work, and at least 5% of the total project must be spent 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 listed on the State or National Register of Historic Places. In addition, the house needs to be located in an eligible census tract.
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.
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 work performed (both interior and exterior) must meet the Secretary of the Interior's Standards for Rehabilitation and be approved by the National Park Service.
