Madison, WI - More than 23,000 Wisconsin
buildings have been listed on the National Register of
Historic Places since 1966. Listing can have real
economic benefits for owners by increasing property
values and providing significant tax breaks. In
addition, owners of listed properties can take pride
that they own an important piece of history.
Despite the long and successful presence of the
National Register program, negative information
circulating about the effects of listing is often
based on hearsay and not on facts. As a real estate
agent, you can sell those historic properties by
helping prospective buyers separate fact from fiction
and by showing them how to make historic building
status work in their favor.
For instance, owners of listed properties can recover
25 percent of certain rehabilitation costs as tax
credits if they get their project pre-approved.
Does listing in the National Register mean that a
property can never be changed?
For private property owners, listing in the National
Register in Wisconsin does not restrict what they do
with their property or its present or future use.
Listing does not mean that people can never remodel
their bathroom or that a house must be painted a
certain color. Many listed buildings have new
additions and have incorporated modern conveniences
and technology. Listed schools and factories have been
transformed into apartments and listed depots into
restaurants and offices. Some listed properties are
frozen in place and time as museums, but these are
only a tiny fraction of the buildings in the state
that have this designation. Most historic buildings
continue to be changed and adapted by their owners to
meet current needs and lifestyles.
But, it can’t be torn down, right?
National Register listed properties are lost each year
to demolition. In the case of privately owned
buildings, municipalities are required to hold the
demolition permits for 30 days and to notify the State
Historic Preservation Office to allow the building to
be photographed before demolition. Demolition cannot
otherwise be delayed or regulated by the state or the
federal government. In all cases of construction,
remodeling, or demolition, local zoning, review and
permitting procedures must be followed.
Does listing raise property taxes?
Listing does not automatically trigger an increase in
property taxes, nor does it lead to lower property
values. Houses listed in historic neighborhoods tend
to have at least stable, but usually increasing
property values. In many communities, National
Register listed neighborhoods (called historic
districts) are a highly desirable realty niche
attracting buyers looking for well-maintained and
well-preserved historic period homes. In many cases, a
proposed historic district is already recognized as a
highly marketable location with unique
characteristics. The National Register listing is a
formal recognition of the special qualities of the
neighborhood. In the case of commercial districts,
National Register listing can be a catalyst for
physical improvements to buildings, leading to a more
vibrant and commercially viable downtown.
If someone owns an older building, are they
automatically eligible to participate in the National
Register program?
Not all old buildings are eligible for listing in the
National Register. Listed buildings are the best
examples of their kind, retaining historic materials
and their original character. The standards are
somewhat lower in historic districts where buildings
are judged as part of a neighborhood or a downtown,
rather than individually.
Then, an owner shouldn’t apply unless their house is a
mansion.
The National Register recognizes the individual
importance of each property. One house may be eligible
for listing because it is the best example of a Tudor
Revival manor in a community, while another, very
modest house may be eligible because it was the long
time home of a noted writer. The National Register
recognizes our broad history, from entertainment to
education, from agriculture to industry.
If a property is listed, is there government money to
restore it?
While there are limited and highly competitive grants
available for units of government and non-profits,
there are no government grants for private owners.
However, National Register status does make owners
eligible for tax credits that can make the
rehabilitation and maintenance of historic properties
highly desirable. For income-producing properties, the
federal government offers a 20 percent credit on
approved rehabilitation work for owners qualifying for
the program. The state of Wisconsin is very generous
and provides a 5 percent piggyback for the program
when the work is pre-approved. Owners of historic
commercial real estate spend about $2 million each
year through the commercial tax credit program. The
state also has a 25 percent rehabilitation income tax
credit for pre-approved work for owners of qualifying
residential properties, who invest about $6 million in
updating their homes using the program.
So what does National Register designation mean?
For private individuals, the National Register is
primarily an honor bestowed by the state and the
federal government. It formally certifies what many in
the community already know, that a building, a
neighborhood, or a downtown is important to the
history and character of their town. For those who
chose to use the rehabilitation tax credit programs,
National Register listing puts money back into their
pockets when they rehabilitate a building and meet
work standards. So, the next time a buyer or seller
asks you about historic properties, be a historic
preservation myth buster and give your client the
facts about National Register listing.
Daina Penkiunas is National Register Coordinator for
the Wisconsin Historical Society.
For more information about the State and the National
Register program in Wisconsin
visit
www.wisconsinhistory.org/hp/register/index.asp.
More information on the rehabilitation income tax
credit program is available at:
www.wisconsinhistory.org/hp/owners.asp.
Published: 12/6/2005
