Historic Preservation Easements - San Diego
HistoricPreservationEasementsA DIRECTORY OF HISTORICPRESERVATION EASEMENTHOLDING ORGANIZATIONSHISTORIC BUILDINGSARCHEOLOGICALHISTORIC C VIEWS2003National Park ServiceU.S. Department of the InteriorHeritage Preservation Services
The mission of the Department of the Interior is to both protect and provide access to our Nation’s natural andcultural heritage and honor our trust responsibilities to tribes.The National Park Service preserves unimpaired the natural and cultural resources and values of the NationalPark System for the enjoyment, education, and inspiration of this and future generations. The Service cooperates with partners to extend the benefits of natural and cultural resources conservation and outdoor recreationthroughout this country and the world.COVER PHOTOS(top to bottom)The majestic c. 1900 Land Title Building is protected by a preservation easementassuring its place in the Philadelphia skyline for generations (photo NPS archives).This detached property built in the 1920s in the Federal style retains its significantarchitectural features and is protected by a historic preservation easement (photoNPS archives).An easement protects the Cedar Creek Battlefield site in Virginia, including theHeater House (Photo by Eric Long, courtesy of American Battlefield ProtectionProgram, NPS).An easement placed on the c. 1839 Field-Hodges House in North Andover, MAprotects the grounds, barn and fencing, as well as the majority of interior featuresand finishes of the house (photo courtesy of SPNEA).The ornate detailing of this oriel window is protected under a facade easement onthis late 19th-Century rowhouse in New York’s Central Park West Historic District(photo NPS archives).
HISTORIC PRESERVATION EASEMENTSA DIRECTORY OF HISTORIC PRESERVATIONEASEMENT HOLDING ORGANIZATIONSRevised edition byClaire SchofieldNational Park ServiceU.S. Department of the InteriorNational Center for Cultural ResourcesHeritage Preservation Services DivisionTechnical Preservation ServicesWashington, D.C.2003
ContentsWHAT IS AN EASEMENT? . 3Easements Granted in Perpetuity . 3RESPONSIBILITIES OF THE EASEMENT HOLDER (“GRANTEE ORGANIZATION”) . 3QUALIFIED PROPERTIES . 4Mortgaged Property . 4TAX BENEFITS AND VALUATION . 4Qualified Appraisals . 5Determining Value. 6Federal Tax Benefits . 6State Tax Benefits . 7FURTHER READING. 7ABOUT THIS DIRECTORY . 9NATIONWIDE ORGANIZATIONS . 10ORGANIZATIONS BY STATE . 11
Today, as in the past, neglect andincreased development threaten ournation’s irreplaceable historic andarcheological places. Even those whorecognize the significance of thesehistoric resources may be unaware ofall the tools available to protect them.Historic preservation easements arean important tool used to assure thatthe intrinsic value of historic properties will be preserved through subsequent owners.This directory provides information onhistoric preservation easements, regulations governing tax benefits on easement donations, and organizationsqualified to accept such donations.WHAT IS AN EASEMENT?An historic preservation easementis a voluntary legal agreement madebetween a property owner (donor)and a qualified easement holdingorganization (donee) to protect a significant historic property, landscape orarcheological site by restricting futurechanges to and/or development on thesite. Normally, a property owner willconvey a portion of his or her rights onthe property to a qualified organization,thereby allowing the organization thelegal authority to enforce the termsof the easement. Each easement istailored to the individual needs andrequirements set forth by the property owner and agreed upon by the accepting organization. The degree of therestriction may range from retention ofinterior details to prohibiting any construction on the site. An entire historicstructure, one or more facades, an interior room, feature or finish, or variousland areas may qualify for an historicpreservation easement. Easementdonations normally have important financial consequences to the propertyowner making the donation. Underthe Internal Revenue Service’s (IRS)Qualified Conservation Contribution,the owner of qualified real propertycan receive income tax deductionsequivalent to the value of the rightsgiven away to a qualified charitable orgovernmental organization. Additionalfinancial benefits may be available inthe form of reduced estate, gift, andlocal property taxes.Easements Granted inPerpetuityOnce recorded in the county recordsoffice, an easement becomes part ofthe property’s chain of title and usually“runs with the land” in perpetuity. Aneasement granted in perpetuity meansthat the easement lasts forever, thusbinding not only the owner who grantsthe easement but all future owners aswell. Federal tax benefits are onlyavailable for easements granted inperpetuity.Many holding organizations place a plaque onthe facade of a buildingthat holds an easement.The example to the leftshows the plaque usedby The L’Enfant Trust inWashington, DC.RESPONSIBILITIES OF THEEASEMENT HOLDER (“GRANTEE ORGANIZATION”)A qualified organization is recognizedby the IRS as one that is committedto protecting the historic preservationpurposes of the donation. It is generallya governmental organization or a charitable organization (501(c)(3)), such as acommunity land trust or historic preservation organization. A preservationeasement gives the organization thatholds it (the “grantee”) the legal authority to enforce the restrictions written inthe easement document. The granteeorganization monitors the property atleast once a year, maintaining writtenrecords of the visit, and ensuring thatthe terms of the easement are beingfollowed. A variety of restrictive conditions can be conveyed as part of theeasement. One example might be aprohibition against any facade alteration or new construction without firstconsulting the grantee organization.The organization may also require theowner to make specified improvementsto the property or maintain it in a certain physical condition. For example,the holding organization might requirethe owner to repair a deteriorated cornice within a specified time frame afterthe easement is conveyed.3
This grist and flour mill,built in the 1870s is partof a 412-acre conservationeasement, held jointlyby River Fields, Inc. andthe Kentucky HeritageCouncil. The easementwas instrumental in savingthe mill and its surrounding natural areas fromdestruction in this highlydeveloped area of JeffersonCounty, Kentucky (photocourtesy of River Fields,Inc., Louisville, KY).conveying the easement, or before theowner files a Federal income tax returnfor the year in which the easement isgranted.Historically important land areas include:Independently significant land areas,including any related historic resources, that meet National RegisterCriteria for Evaluation; orLand areas within registered historicdistricts, including buildings, that arecertified by the National Park Serviceas contributing to the significance ofthe historic district; orQUALIFIED PROPERTIESAn historic preservation easement orconservation contribution as definedby the IRS is “a contribution of qualified real property interest to a qualifiedorganization to be used only for conservation purposes.” Besides a certified historic structure, conservationpurposes include the preservation ofan historically important land area.Certified historic structures are anystructure or land area that are:Listed in the National Register of Historic Places, orLocated in a registered historic districtand certified by the National Park Service on behalf of the U.S. Departmentof the Interior as being historicallysignificant to the district.For easement purposes a “structure”may include a building or portion ofa building, a bridge, ship, railroadcar, dam, or other property eligiblefor listing in the National Register.For confirmation that a structure islisted or eligible for listing contactthe State Historic Preservation Office(SHPO). The property must be listedin the National Register or certifiedby the National Park Service prior to4Land areas next to a property listed inthe National Register of Historic Placeswhere physical or environmental features of the land area contribute tothe historic or cultural integrity of thelisted historic property.Common examples of historicallyimportant land areas include archeological sites, battlefields, historic cultural landscapes, designed landscapesand scenic views.Mortgaged PropertyWhen a mortgaged property is involved,the Mortgage Company subordinatesits rights in the property to the qualified organization’s right to enforce therestrictions of the easement in perpetuity.TAX BENEFITS ANDVALUATIONImportant Federal income, estate andgift tax benefits as well as potentialstate and local tax benefits are availableto an easement donor. As outlined bythe IRS, there are three requirementsthat must be met to qualify a donorfor the Federal income tax deduction:(1) an easement must be donated inperpetuity; (2) it must be donated to aqualified organization; and (3) it mustbe given “exclusively for conservationpurposes.” The property owner needsto determine the value of the easementafter establishing that a Federal tax
reduction is obtainable. A methodwhich is often used by appraisers todetermine the value of the easementinvolves establishing the differencebetween the fair market value of theproperty before conveyance of an easement and its value with the easementrestrictions in place.organizations or real estate firms forrecommendations. While the appraisaldocument may be made as early as 60days prior to the date of the contribution of the easement, the effective dateof the appraisal must be the date ofthe contribution. Furthermore, the IRSrequires the following information in aqualified appraisal:Qualified Appraisals-If the claimed deduction for a donatedproperty is more than 5,000, thedonor must get a qualified appraisalby a qualified appraiser. A qualifiedappraiser is an individual who: (1) performs appraisals on a regular basis;(2) is qualified to make appraisals ofthe type of property being valued; (3)is not excluded under any conditionoutlined by the Treasury Departmentsuch as being the donor or donee ofthe property; and (4) understandsthe legal ramifications of intentionally falsifying a valuation. Qualifiedappraisers may have specific trainingin the valuation of historic properties. Check with easement holding---A detailed description of the property;The physical condition of the property;The date (or expected date) of contribution to the donee (the easement holding organization);The terms of any agreement orunderstanding entered by or onbehalf of the donor that relates tothe donated property;The name, address, identifyingnumber and qualifications of theappraiser who signs the appraisal;A statement that the appraisal wasprepared for income tax purposes;The date on which the property wasSample Appraisal: Valuation of Loss Due to an EasementThe property is a c. 1892 three-story Victorian corner rowhouse with a front and side yard enclosed by a traditional wrought iron fence.The property is in an area zoned C-2-A (a low density strip retail zone) that permits new construction to a density of 2.5 times the landarea for mixed commercial and residential use. The building as it stands is at a density of 1.5, allowing for a 1.0 increase in density.The use of the building at the time of donation was residential. The highest and best use of the building is its conversion to office use,at least on the first and second floor. There has been a demonstrated demand for small blocks of office space in the area. After usingthe Cost Approach method and comparing the building to other sales in the area, the Before Valuation was established at 700,000.The fair market value of the property with an easement in place was determined to be 597, 000.Before Valuation Market Value after Easement Value of in-kind contribution(Easement) 103,000Other contributions and costs typicallyinvolved in Easement donation:Appraisal fees Lawyer fees Holding organization’s monitoringfee Donor’s total deductions 110,300Assume 35% Income bracket 700,000 597,000 2,000* 800* 4,500* 7, 300**The cash contribution is deductible as a charitable contribution (50% ofincome limit). The appraisal and lawyer’s fees are deductible, not as acharitable contribution, but are to be claimed as miscellaneous itemizeddeductions (see IRS Publication 526.)5
the property or land area;Prohibiting or limiting further construction on the site;Prohibiting industrial or commercialactivity;Quarrying, excavation, removal ofrocks or mineral development.Prohibitions on changes to exterior orinterior features on historic or architecturally significant structures.A preservation easementdonated to the NationalTrust for Historic Preservation on the late 19thCentury National Unionbuilding saved it from thefate of its neighbor. Whilethe National Union building, on the left, is mostlyintact, the historic buildings on the right retainedonly their street facades(photo courtesy of theNational Trust for HistoricPreservation, Washington,DC).-valued;The appraised fair market value ofthe property on the date of contribution;The method of valuation used to determine the fair market value andthe specific basis for valuation;In addition, the appraisal should include:-The appraised value of the propertywith the restrictions in place;The value of the easement.The IRS may accept the appraisalstatement or choose to make its owndetermination. It is important to notethat overvaluing an easement for taxpurposes can result in a strict penaltyimposed by the IRS.Determining ValueThere are three approaches to determining the value of the easement.They are: Sales Comparison Approach,Income Capitalization Approach, andCost Approach.Many factors affect the value of adonated easement, including:Local zoning restrictions and airrights laws.Restrictions on future developmentpotential of the property, such as:Prohibiting the demolition of thestructure;Prohibiting or limiting subdivision of6The unrestricted market value (or development potential) will be affectedby such factors as the use and size ofstructures allowed on a site by localzoning and the market demand for agiven building type or its location. Forexample, an easement given on a fivestory commercial structure located ina downtown area with intense development pressures would obtain a higher tax deduction than would a similareasement on a suburban residentialproperty. Similarly, an easement givenon a structure located in a local historic district that has tight restrictionson demolition and alteration probablywould have less value because the development potential would be limitedalready by local ordinance.Considerations of this sort make itclear that the process for determiningthe value of an easement is complex,and should be undertaken only by aqualified professional appraiser familiar with historic properties.Federal Tax BenefitsFor federal income tax purposes, a deduction in most cases may be takenfor the value of an easement donation to a qualified organization. Thededuction is limited, in any one taxyear, to a percentage of the taxpayer’sadjusted gross income for that year.The excess amount that the easementvalue exceeds the deductible limitationmay be carried forward for up to fiveyears. The federal estate tax obligationfor heirs of property encumbered bya historic preservation easement mayalso be lessened. When a property iseventually sold, the taxable capital gainmay be increased, since the taxpayer’scost basis on the property must bereduced by the proportional amount
that the easement prepresented of thetotal fair market value. A tax attorneyor accountant should be consultedregarding all tax requirements.State Tax BenefitsAlthough not every state has enactedlegislation facilitating historic preservation easements, many state taxcodes contain income and estate taxprovisions similar to federal law. Consequently, a reduction in the value ofproperty subject to an easement mayyield state and local tax benefits aswell. Many states also have enablinglegislation allowing local propertytaxes to be based on “actual” ratherthan “highest and best” use. Thismethod of assessment would allow aproperty encumbered by an easementto be assessed and taxed at its current, restricted use rather than at itspotential, fully developed use. Moreinformation about applicable statestatutes may be obtained from the appropriate State Historic PreservationOfficer or from any of the organizationslisted in this directory.From a historic preservation vantage,regardless of financial benefit, thegreatest gift to history is the protectionfor future generations of properties andland that result from easement donations.IA: Kendall/Hunt Publishing Co.,2001Boasberg, Tersh, Thomas A. Coughlinand Julia H. Miller. Historic Preservation Law and Taxation. 3 vols.New York, NY: Matthew Benderand Co., 1986.Boykin, James H. “Valuing ScenicLand Conservation Easements,”420 The Appraisal Journal, October2000.Byrne, Craig L. and Michael Minck.“Understanding the Evolution ofConservation Easement AppraisalThrough Case Law,” 411 The Appraisal Journal, October 2000.Diehl, Janet and Thomas S. Barret.The Conservation Easement Handbook: Managing Land Conservationand Historic Preservation EasementPrograms. Alexandria, VA: LandTrust Exchange and Trust for Public Land, 1988.Gustanski, Julie Ann and Roderick H. Squires, eds. Protecting theLand: Conservation EasementsPast, Present and Future. Washington, DC: Island Press, 2000Internal Revenue Service Publication526. “Charitable Contributions.”Internal Revenue Service PublicationFURTHER READINGAppraising Easements: Guidelinesfor the Valuation of Historic Preservation and Land ConservationEasements, 3rd ed. Washington,DC: Land Trust Alliance andNational Trust for Historic Preservation, 1999.A comprehensive preservation easement donated tothe Society for the Preservation of New EnglandAntiquities (SPNEA)protects both the exteriorarchitectural fabric as wellas the interior structure,woodwork, floorboards,plaster, doors, windows,and hardware of the c.1804 Sampson-GiffordHouse (photo courtesy ofSPNEA, Boston, MA).Barrett, Thomas S. and Stefan Nagel.Model Conservation Easement andHistoric Preservation Easement,1996: Revised Easement and Commentary. Washington, DC: LandTrust Alliance, 1996.Bick, Steven and Harry L. Haney, Jr.The Landowner’s Guide to Conservation Easements. Dubuque,7
561. “Determining the Value ofDonated Property.”Keating, David Michael. AppraisingPartial Inter
historic resources may be unaware of all the tools available to protect them. Historic preservation easements are an important tool used to assure that the intrinsic value of historic proper-ties will be preserved through subse-quent owners. This directory provides info
Agenda - North Dakota Easements and Rights of Way I. Definitions a. Dominant and Servient estates b. Easement, License, Profit a Prendre c. Rights of Way d. R.S. 2477 e. Appurtenant easements, Easements in Gross f. Affirmative and Negative Easements II. Creating easements a. Written easements i. Express Grant ii. Dedication iii. Reservation iv .
Preservation Easements Preservation easements are a tool often used to insure the preservation of the character defining features of a property for the public’s benefit. Some easements protect just the façade of a building. Other easements protect the larger preservation values including but not l
properties is the execution of historic preservation easements with property owners. Historic preservation easements restrict owners from demolishing historic property, and require the Commission’s review and approval for any alterations. While easements can be effective in ensuring the preservation of
52843 Francis Parker School San Diego CA 92111-7396 1001675 IvyMax Inc. San Diego Learning Ctr. San Diego CA 92130 997060 Mesa Verde Middle School San Diego CA 92129 52858 Mira Mesa High School San Diego CA 92126 52536 Rancho Bernardo High School San Diego CA 92128 C04849 San Diego Math Circle San Diego CA 92150-0091
Continuing Education o San Diego County, Housing and Community Development . City of San Diego o San Diego Reentry Roundtable o San Diego Regional Chamber of Commerce o San Diego Sheriff’s Department o San Diego State University, Institute for Public Health . o United Way of San Diego o Urban Street A
Easements After Tax Reforms (2017 & 2006) No change to conservation easements in 2017. Preservation easements are still an effective tool to protect historic places. Tax incentives were strengthened. Congressional reforms should be welcomed: they should have little impact on most strong
Our Lady of Grace El Cajon University High School San Diego St. Therese San Diego University of San Diego San Diego Blessed Sacrament San Diego Given permission for further studies St. Mary Magdalene San Diego St. Francis Seminary San Diego University of San Dieg
three main factors used for determining the premium rates under a life insurance plan are mortality, expense and interest. The premium rates are revised if there are any significant changes in any of these factors. Mortality (deaths in a particular area) When deciding upon the pricing strategy the average rate of mortality is one of the main considerations. In a country like South Africa .
