1. Historic Preservation Tax Exemption Program
Public Meeting of the proposed changes to the
Historic Tax Exemption Program

2. Purpose
Review the proposed amendments to the current Historic Preservation Tax Exemption Program
Division 51A-11 of the Dallas Development Code
Program sunsets December 31, 2015
Minor amendments clarify, improve and extend the program in order to more effectively accomplish the goals of the program

3. History
The Historic Preservation Incentive Program (ordinance #21874) was passed by the city council in October of 1993
Amended in April of 1998
Amended in April 2001
Amended in April 2004
Amended in November 2007
Sunsets in December of 2015

4. Existing Historic Preservation Tax Exemption Program
Historic buildings are Dallas’ link with the past. They connect us to our heritage and enrich the quality of life.
They help give a community a sense of identity, stability and orientation.
These exemptions reward private investment in rehabilitating historic properties.

5. Existing Historic Preservation Tax Exemption Program
The rehabilitated buildings provide needed housing (in many cases, low- and moderate-income housing), and office, retail, and other commercial space.
The communities benefit from property improvement, blight removal, and increased occupancy of buildings in historic core neighborhoods.

6. Existing Historic Preservation Tax Exemption Program
Goals of the Historic Preservation Tax Exemption Program are to:
Revitalize older neighborhoods to build and capture a stable tax base.
Support the private sector investment in historic properties.
Encourage home ownership.
Promote pedestrian oriented, ground floor retail in the Urban Historic Districts.
Support new uses for vacant and deteriorated historic buildings.
Encourage low and moderate income families to invest in Revitalizing Historic Districts.

7. Eligibility
To be eligible for the program, a building must be a contributing or a potentially contributing historic structure in a City of Dallas district or individually listed.

8. Historic Preservation Tax Exemption Process
Step 1
Application
Schedule Landmark
Commission public
hearing
If greater than
$50,000 schedule a
City Council hearing
Begin the
project and
save the
receipts!
Applicant
completes
The project
Step 2
Verification
Applicant provides
proof of
expenditures, and
additional required
information to staff
Applicant files
Commitment to
Repay on the
property deed
Staff and legal
review of the
documentation
City receives a copy
Of the filed
Letter of Verification
Sent to DCAD
City annually verifies
the property meets
the requirements
of the ordinance
Step 3
Exemption
Applicant must
annually
submit their
renewal
application to
DCAD

9. Historic Preservation Tax Exemption Program
The location of the structure and the amount of expenditures being spent determine how much will be exempt.
Types of Exemptions
Exemption on the added value of the city portion of the property taxes
Exemption of 100% of the city portion of the property taxes

10. Historic Preservation Tax Exemption Program
In total there are about 96 historic properties receiving exemptions in the program.
The total value of the exemptions for 2014 was $205,932,688

11. Types of Exemptions Offered Existing and Proposed Programs

12. Existing Historic Preservation Tax Exemption Program
Currently there are three categories of exemptions available
Urban Neighborhoods
Map to follow this slide
Revitalizing Neighborhoods
Junius Heights, Lakecliff, Peak’s Suburban, South Blvd/ Park Row, 10th St, Wheatley Place, and Winnetka Heights
Citywide
All properties not in the Urban or Revitalizing Neighborhoods
Munger Place, State Thomas, and Swiss Avenue historic districts

13. Urban Historic Districts

15. Existing Historic PreservationTax Exemption Program
Urban Historic Districts
Type of Exemption
Required Expenditures
Amount
Duration
Renewable
Based on Rehab
75%
100%
10 years
Yes
50%
Added Value
10 Years
Residential / ground floor conversion
50% must be converted to residential and 65% of ground floor must be converted to retail
5 Years No
Exemptions may be renewed if additional expenditures meet the threshold for rehabilitation. This is to encourage the continued rehabilitation and use of our historic properties.

16. Proposed Changes to the Existing Program
Only change will increase the length of the exemption from 10 to 15 years (Based on Rehab) and from 5 to 10 years for the Residential/Ground floor conversion.

17. Urban Neighborhood Properties
Titche Building
SoCo Urban Lofts (Santa Fe Building)
Republic Tower

18. Urban Neighborhood Properties
Awalt Building
Southside on Lamar
Davis Building

19. Revitalizing Historic Districts

20. Revitalizing Historic Districts
The Revitalizing Neighborhoods include: Junius Heights, Lake Cliff, Peak’s Suburban, South Blvd/ Park Row, and Winnetka Heights.

21. Existing Historic Preservation Tax Exemption Program
Revitalizing Historic Districts
Type of Exemption
Required Expenditures
Amount
Duration
Renewable
Based on Rehab
25%
100%
10 Years
Yes
Maintenance 3%
Added Value
3 Years
Exemptions may be renewed if additional expenditures meet the threshold for rehabilitation. This is to encourage the continued rehabilitation and use of our historic properties.

22. Proposed Changes to the Existing Program
Only change will increase the length of the exemption from 10 to 15 years (Based on Rehab) and from 3 to 8 years for the Maintenance.

23. Citywide Historic Districts

24. Citywide Historic Districts
The Citywide Neighborhoods include: Munger Place, State Thomas, and Swiss Avenue. Typically these are considered districts that are stable or near stabilization.
The Citywide category covers all properties outside the Urban and Revitalizing Historic Districts.

25. Existing Historic Preservation Tax Exemption Program
Citywide
Type of Exemption
Required Expenditures
Amount
Duration
Renewable
Based on Rehab
50%
Added Value
10 years
Yes
Rehab of an Endangered Structure
25%
100%
Exemptions may be renewed if additional expenditures meet the threshold for rehabilitation. This is to encourage the continued rehabilitation and use of our historic properties.

26. Proposed Changes to the Existing Program
Created a new category of exemption: Endangered Districts.
This provision is intended for structures deteriorating within our least stable historic districts.
Would allow a 100% exemption for 25% expenditures on the property
Increase the length of the exemption from 10 to 15 years for every type of exemption in this category.

27. Endangered Districts
The Endangered Districts would include: 10th St and Wheatley Place.
The exemption would remain the same as the ‘Revitalizing Neighborhoods’, with the ‘Endangered’ listed meant to provide emphasis that these neighborhoods need more focus to reach stability and redevelopment.

28. Other Exemptions Offered

29. Existing Historic Preservation Tax Exemption Program
Other Incentives
Non-Profit
Must be a Recorded Texas Landmarks that operates a not-for-profit that is open to the public.
Receives a 100% exemption on the city portion of the property taxes for long as long as it remains a not-for profit open to the public
Conservation Easement
Transfer of Development Rights

30. Proposed Changes to the Existing Program
Other incentives
No changes to the not-for-profit, conservation easement or transfer of development rights programs

31. Overview of Proposed Incentives Program
Category
Type
Required Expenditures
Amount
Duration
Renewable
Urban Neighborhood
Based on Rehab
75%
100%
15 years
Yes
50%
Added Value
Residential / ground floor conversion
50% must be converted to residential and 65% of ground floor must be converted to retail
10 years No
Revitalizing Historic Districts
25%
Maintenance 3%
8 years
“Citywide”
Endangered Property and Districts
Non-profit
Be a not-for-profit with a designated historic landmark that is open to the public
As long as the building remains a not-for-profit that is open to the public
Annually
Conservation Easement
Transfer of Development Rights

32. Proposed Timeline
August/September - Landmark Commission Public Hearing
September/October (tentative) – Any applicable Council Committees
November (tentative) – City Council Hearing

33. Questions?