All Historic Districts Are Not Created Equal

From varying degrees of protection to different financial benefits, when it comes to support, not all historic districts are created equal.

By J. Randall Cotton

There is common confusion, even for those who live in a historic district, about the differences between national and local districts. Yet the differences can be significant, particularly regarding the degree of protection and financial benefits various types of historic districts provide.

What Defines a District?
Any community can identify an unofficial district by putting up some signs and promoting Ye Olde Historic District in its tourist brochures. This is often done to hype older neighborhood shopping areas and to entice out-of-towners to visit (and spend money!). Official historic districts, however, are created and sanctioned by governmental action, and they come in two basic types: National Register historic districts, and local historic districts.

 The federal government designates historic districts as part of its National Register of Historic Places program, established in 1966. The National Register (NR) is the federal government's official list of properties worthy of historic preservation. It is the responsibility of the National Park Service to maintain the program, including evaluating the eligibility of properties proposed for addition to the National Register. Each State Historic Preservation Office (SHPO) also reviews NR nominations.

In addition to tens of thousands of individual NR properties there are thousands of districts, which recognize the historic significance of a collection of buildings all within established boundaries. The collective significance of the district is often greater than the sum of each property's individual significance. An NR district (and a local district, as well) recognizes the thematic context-for example, a warehouse district, a Victorian residential neighborhood, a commercial center, or a planned commuter suburb-and this context helps determine the boundaries of the district. Within the district, each property is identified as either contributing or noncontributing to the significance of the district.

Where the Teeth Are
It is a surprise to many that an NR district offers little real protection for the historic resources within it. NR districts do not prevent owners from demolishing or severely altering the appearance of their historic properties. (In some situations, though, a mandatory review process may result in protecting an NR property that would be adversely affected by a project that is supported by federal funds or involves a federal agency.) Inclusion in an NR district does, however, open the door for possible financial benefits. Most local, state, or charitable foundation preservation grants require that eligible properties be listed individually on the National Register, or be a contributing part of an NR district.

The same is true for many other preservation incentives, such as real-estate tax abatements or federal tax deductions resulting from the donation of a preservation easement. Currently 45 states have some kind of restoration tax-incentive program. Perhaps most significant is a federal tax credit equal to 20 percent of qualifying restoration costs for income-producing properties (such as rental or commercial properties) in NR districts. Since 1976, some 29,000 NR properties have been rehabilitated using this Historic Preservation Tax Credit program.

The real muscle for protecting properties is primarily provided by local districts. Most state legislatures have passed enabling legislation that empowers local municipalities-cities, townships, counties-to create and regulate local historic districts.

The specific powers of local historical commissions to create and control local historic districts are further established by a local preservation ordinance; these powers vary widely from state to state, and even from town to town within the same state. A historical commission may have autonomous power to create and regulate local historic districts. In other cases, the historical commission only advises the governing body of the local municipality.

The real purpose of a local district is to protect the historic characteristics that make it worthy of preservation. This is achieved by granting the local governing body the power to regulate the demolition of, or changes to, the historic appearance of properties in the district.

Again, these regulatory powers vary widely. Some are very strict; others are much weaker. Owners planning changes to their historic properties usually must have their requests reviewed by a Historic Architectural Review Board (HARB), a step that is generally part of the building permit process. HARB decisions can be binding, or only advisory to the municipality's governing body. In turn, most HARBs are guided by the Secretary of the Interior's Standards and Guidelines for the Treatment of Historic Properties.

So how do you know whether you live in a local or National Register historic district-or maybe both? The easiest way is to ask your local government if local districts exist, or if your property is individually designated as historic. Local historical commissions often reside at the planning or zoning offices; larger cities may have independent historical commissions. They usually have publications that explain the boundaries, regulations, and the permit process of local districts. They may also be able to help you determine the existence and boundaries of National Historic districts. If not, call your State Historic Preservation Office or the National Park Service.

J. Randall Cotton is the interim president of the Preservation Alliance for Greater Philadelphia, www.preservationalliance.com.

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