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"The rising tide that raises all boats"

"This quote from the Preservation Alliance of Virginia's 1998 Affordable Housing award to OHHIC, describes how OHHIC's housing development in Oregon Hill has stimulated revitalization throughout the neighborhood."

OHHIC has restored 34 properties, given over 150 workshops on topics ranging from repairing credit to home repairs, installed smoke and carbon monoxide detectors in residents homes, and run an emergency repair program. OHHIC champions preservation and received the Preservation Award for Affordable Housing from the Preservation Alliance of Virginia in 1998, and from A.C.O.R.N. (Alliance to Conserve Old Richmond Neighborhoods) in 2000 for its quality historical housing effort. OHHIC has also been the recipient of two A.C.O.R.N. "Golden Hammer" awards, one in 2000 and most recently in 2005.

Preservation Tax Incentives

A tax credit differs from an income tax deduction. An income tax deduction lowers the amount of income subject to taxation. A tax credit, however, lowers the amount of tax owed. In general, a dollar of tax credit reduces the amount of income tax owed by one dollar. Current tax incentives for preservation, established by the tax reform act of 1986 include a 20% tax credit for the certified rehabilitation of certified historic structures, and a 10% tax credit for the rehabilitation of non-historic, non-residential buildings built before 1936.

  • Federal tax credit for rehabilitation of historic structures. This program, administered by the Department of Interior, National Park Service, with the assistance of the Virginia Department of Historic Resources, provides a federal income tax credit of 20% of qualified rehabilitation costs for investment properties. The rehabilitation must be accomplished in conformance with guidelines established by the Secretary of the Interior. Tax credits are dollar for dollar reductions in taxes pay. They can be carried back to prior tax years as well as forward to future years, until used up.

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  • State tax credit for rehabilitation of historic structures. Rehabilitation of historic structures in Virginia are also eligible for a state income tax credit of 15% of rehabilitation costs. The credit percentage will increase over the succeeding years until it reaches a maximum of 25 percent in 2000. The same rehabilitation guidelines apply. Personal residences as well as investment properties are eligible for this credit.

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  • State tax credit for real property improvement. The state also offers the state income tax credit for certain real property improvements within an official Urban Enterprise Zone. The credit is equal to an amount of up to 30% of qualified zone improvements with the maximum amount not to exceed 125,000 within a five-year period. Rehabilitation projects must cost at least $50,000 and be equal to the assessed value of the real property prior to the improvements being made, whichever is greater. Qualified improvements in new construction projects must cost at least $250,000. The credit is refundable to the extent that if the business state tax liability is less than the credit allocated, the remaining payment methods would be refunded. To qualify for the real property tax credit, the taxpayer must be a tenant or owner whose place of business is located on the promises in an enterprise zone and must make a minimum investment of at least $50,000 or an amount that equals the assessed value of the real property prior to the improvements been made (whichever is greater).

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  • Local incentives for rehabilitation of historic structures. Under the Urban Enterprise Zone program, the City of Richmond offers a five to ten-year abatement of real estate tax on the increased assessed value resulting from the qualified rehabilitation of a residence or investment property in certain areas.

SECRETARY OF THE INTERIOR’S STANDARDS FOR REHABILITATION

  • A property shall be used for its historic purpose or be placed in a new use that requires minimal change to the defining characteristics of the building and its site and environment.
  • The historic character of a property shall be retained and preserved. The removal of historic materials or alteration of features and spaces that characterize a property shall be avoided.
  • Each property shall be recognized as a physical record of its time, place, and use. Changes that create a false sense of historical development, such as adding conjectural features or architectural elements from other buildings, shall not be undertaken.
  • Most properties change over time; those changes that have acquired historic significance in their own right shall be retained and preserved.
  • Distinctive features, finishes, and construction techniques or examples of craftsmanship that characterize a historic property shall be preserved.
  • Deteriorated historic features shall be repaired rather than replaced. Where the severity of deterioration slots casino online requires replacement of a distinctive feature, the new feature shall match the old in design, color, texture, and other visual qualities and, where possible, materials.
  • Replacement of missing features shall be substantiated by documentary, physical, or pictorial evidence.Chemical or physical treatments, such as sandblasting, that cause damage to historic materials shall not be used. The surface cleaning of structures, if appropriate, shall be undertaken using the gentlest means possible.
  • Significant archeological resources affected by a project shall be protected and preserved. If such resources must be disturbed, mitigation measures shall be undertaken.
  • New additions, exterior alterations, or related new construction shall not destroy historic materials that characterize the property. The new work shall be differentiated from the old and shall be compatible with the massing, size, scale, and architectural features to protect the historic integrity of the property and its environment.
  • New additions and adjacent or related new construction shall be undertaken in such a manner that if removed in the future, the essential form and integrity of the historic property and its environment would be unimpaired.