Using Historic Tax Credits in a Tough Economy

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A recent Historic Macon Foundation restoration

Using Historic Tax Credits in a Tough Economy Wednesday, March 30, 2011


National Register

6,000 HISTORIC BUILDINGS

Each dot represents one of Macon’s historic buildings listed on the National Register of Historic Places

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


National Awards

Historic Macon is best known for expertise in neighborhood revitalization, as proven by an Honor Award from the National Trust P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Neighborhood Revitalization

Historic Macon has rehabilitated more than 140 historic buildings •Creating over 2,000 construction jobs •Investing $10,000,000 in historic building restoration P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


The Environment 140 Buildings = 20,000 TONS of debris= The weight of…

1,810 school buses

Historic Macon helps save the environment •Rehabilitating old homes is better for the environment than building new •Saving houses has kept 20,000 TONS of debris from entering the landfill P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Economic Development Historic Macon’s projects

Average increase

$15,000,000.00 $11,250,000.00 $7,500,000.00 $3,750,000.00 Year 1

Year 2

Year 3

$0 Year 4

Year 5

Year 7

Year 8

Year 9

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Creating New Taxes

Additional $141,500.00 In property taxes EVERY year

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Reducing Crime Crime Eliminated Downtown Before Revitalization After Revitalization

100

75

Crime Rate

50

25 Huegenin Heights 0 Neighborhood

Tattnall Square Hieghts

Crime dropped 80% in Huguenin Heights and 50% in Tattnall Square Heights thanks to Historic Macon’s investments P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


842 Tatnall St.- Before

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


842 Tatnall St.- After

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


980 Maple St.- Before

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


980 Maple St.- After

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


972 Maple St.- Before

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


972 Maple St.- After

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


1295 Ross St.- Before

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


1295 Ross St.- After

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Households with Children Single person households

Households without Children

13%

48% 39%

U.S. Household Distribution in 1960 Wednesday, March 30, 2011


Households with Children Single person households

Households without Children

27%

28%

45%

U.S. Household Distribution in 2030 (projected) Wednesday, March 30, 2011


60

1960 45

2000 30

15

2030

Suburban 0

Households with Children

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Urban Small-lot Households without Children

Urban Loft Single Person Households


Summary

NEW URBANITY: THE RISE OF A NEW AMERICA, By ARTHUR C. NELSON, The Annals of The American Academy of Political and Social Science November, 2009 626 Annals 192

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Summary • Demographic changes in the U.S. will require a vast increase in urban housing options

NEW URBANITY: THE RISE OF A NEW AMERICA, By ARTHUR C. NELSON, The Annals of The American Academy of Political and Social Science November, 2009 626 Annals 192

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Summary • Demographic changes in the U.S. will require a vast increase in urban housing options • Between 2010 and 2030, four in five new homes needed to accommodate household growth will be for households without children

NEW URBANITY: THE RISE OF A NEW AMERICA, By ARTHUR C. NELSON, The Annals of The American Academy of Political and Social Science November, 2009 626 Annals 192

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Summary • Demographic changes in the U.S. will require a vast increase in urban housing options • Between 2010 and 2030, four in five new homes needed to accommodate household growth will be for households without children • To meet the emerging demand for the new urbanity, roughly 44.5 million new attached and small-lot detached units will need to be built between 2007 and 2020

NEW URBANITY: THE RISE OF A NEW AMERICA, By ARTHUR C. NELSON, The Annals of The American Academy of Political and Social Science November, 2009 626 Annals 192

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Summary • Demographic changes in the U.S. will require a vast increase in urban housing options • Between 2010 and 2030, four in five new homes needed to accommodate household growth will be for households without children • To meet the emerging demand for the new urbanity, roughly 44.5 million new attached and small-lot detached units will need to be built between 2007 and 2020 • Up to 27 million large-lot units may be surplussed by 2020

NEW URBANITY: THE RISE OF A NEW AMERICA, By ARTHUR C. NELSON, The Annals of The American Academy of Political and Social Science November, 2009 626 Annals 192

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Summary • Demographic changes in the U.S. will require a vast increase in urban housing options • Between 2010 and 2030, four in five new homes needed to accommodate household growth will be for households without children • To meet the emerging demand for the new urbanity, roughly 44.5 million new attached and small-lot detached units will need to be built between 2007 and 2020 • Up to 27 million large-lot units may be surplussed by 2020 • Most buyers would be willing to accept a home with smaller square footage for one with a higher level of finish NEW URBANITY: THE RISE OF A NEW AMERICA, By ARTHUR C. NELSON, The Annals of The American Academy of Political and Social Science November, 2009 626 Annals 192

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Beall’s Hill

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Walking Beall’s Hill

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Walking Beall’s Hill

• The number one reason that people buy downtown is walkability

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Walking Beall’s Hill

• The number one reason that people buy downtown is walkability – Walk to work- 45,000 people are employed downtown

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Walking Beall’s Hill

• The number one reason that people buy downtown is walkability – Walk to work- 45,000 people are employed downtown – Walk to entertainment- Bars, music, movies and restaurants all in walking distance

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Walking Beall’s Hill

• The number one reason that people buy downtown is walkability – Walk to work- 45,000 people are employed downtown – Walk to entertainment- Bars, music, movies and restaurants all in walking distance – Walk to culture- Symphony, theatre, sports, Mercer

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Walking Beall’s Hill

• The number one reason that people buy downtown is walkability – Walk to work- 45,000 people are employed downtown – Walk to entertainment- Bars, music, movies and restaurants all in walking distance – Walk to culture- Symphony, theatre, sports, Mercer – Walk to school- Macon’s best schools are intown

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Walking Beall’s Hill

• The number one reason that people buy downtown is walkability – Walk to work- 45,000 people are employed downtown – Walk to entertainment- Bars, music, movies and restaurants all in walking distance – Walk to culture- Symphony, theatre, sports, Mercer – Walk to school- Macon’s best schools are intown – Walk to the park- 15 parks including the Ocmulgee Heritage Trail (river trail)

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Walking Beall’s Hill

• The number one reason that people buy downtown is walkability – Walk to work- 45,000 people are employed downtown – Walk to entertainment- Bars, music, movies and restaurants all in walking distance – Walk to culture- Symphony, theatre, sports, Mercer – Walk to school- Macon’s best schools are intown – Walk to the park- 15 parks including the Ocmulgee Heritage Trail (river trail) – Walk to Church

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Misperceptions

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Misperceptions

• Downtown is the safest precinct in the City of Macon

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Misperceptions

• Downtown is the safest precinct in the City of Macon • Rehabilitated downtown homes are as efficient as newer homes

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Misperceptions

• Downtown is the safest precinct in the City of Macon • Rehabilitated downtown homes are as efficient as newer homes • The city has very few restrictions on what you do with your home (you can paint whatever color you want, for instance)

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Misperceptions

• Downtown is the safest precinct in the City of Macon • Rehabilitated downtown homes are as efficient as newer homes • The city has very few restrictions on what you do with your home (you can paint whatever color you want, for instance) • Being on the National Register does NOT restrict your property rights

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Misperceptions

• Downtown is the safest precinct in the City of Macon • Rehabilitated downtown homes are as efficient as newer homes • The city has very few restrictions on what you do with your home (you can paint whatever color you want, for instance) • Being on the National Register does NOT restrict your property rights • Houses downtown sell for more money per square foot than any other place in Macon

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Benefits

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Benefits

• Property values increase (even in the recession) • Neighbors know each other and community events are frequent • The streets have sidewalks, street trees and street lights • Many buyers drop to one car within the family • Many buyers seek a diverse community • Commute times and gas consumption drops significantly • Physical activity increases • Single-stream recycling is available for free

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Market

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Market • 72% of potential buyers are Millenials (20-29 year old) singles and couples without children

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Market • 72% of potential buyers are Millenials (20-29 year old) singles and couples without children • 17% are Empty nesters and retirees (50-59 years old)

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Market • 72% of potential buyers are Millenials (20-29 year old) singles and couples without children • 17% are Empty nesters and retirees (50-59 years old) • 68% of buyers are from outside Macon/Bibb County (they have no prejudices or preconceptions)

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Market • 72% of potential buyers are Millenials (20-29 year old) singles and couples without children • 17% are Empty nesters and retirees (50-59 years old) • 68% of buyers are from outside Macon/Bibb County (they have no prejudices or preconceptions) • 1,380 households per year are likely to consider downtown if they know its an option

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Market • 72% of potential buyers are Millenials (20-29 year old) singles and couples without children • 17% are Empty nesters and retirees (50-59 years old) • 68% of buyers are from outside Macon/Bibb County (they have no prejudices or preconceptions) • 1,380 households per year are likely to consider downtown if they know its an option • ONLY 14.3% of buyers in our region are married couples with children

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Market • 72% of potential buyers are Millenials (20-29 year old) singles and couples without children • 17% are Empty nesters and retirees (50-59 years old) • 68% of buyers are from outside Macon/Bibb County (they have no prejudices or preconceptions) • 1,380 households per year are likely to consider downtown if they know its an option • ONLY 14.3% of buyers in our region are married couples with children *Statistics from Zimmerman/Volk & Associates

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Why Build New?

52 Lots on first four blocks

Text Text Text

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011

18 extant historic homes


“Infill” Development

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


“Infill� Development 1) Building new in a historic neighborhood is called Infill development

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


“Infill� Development 1) Building new in a historic neighborhood is called Infill development 2) It is necessary because no one wants to own a home adjacent to swaths of untended vacant land

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


“Infill� Development 1) Building new in a historic neighborhood is called Infill development 2) It is necessary because no one wants to own a home adjacent to swaths of untended vacant land 3) We often use excess land to create larger yards and build parks

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


“Infill� Development 1) Building new in a historic neighborhood is called Infill development 2) It is necessary because no one wants to own a home adjacent to swaths of untended vacant land 3) We often use excess land to create larger yards and build parks 3) BUT urban neighborhoods also require density to work

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


“Infill� Development 1) Building new in a historic neighborhood is called Infill development 2) It is necessary because no one wants to own a home adjacent to swaths of untended vacant land 3) We often use excess land to create larger yards and build parks 3) BUT urban neighborhoods also require density to work 4) So that means we sometimes have to build new houses on vacant lots

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


“Infill” Development 1) Building new in a historic neighborhood is called Infill development 2) It is necessary because no one wants to own a home adjacent to swaths of untended vacant land 3) We often use excess land to create larger yards and build parks 3) BUT urban neighborhoods also require density to work 4) So that means we sometimes have to build new houses on vacant lots 5) If we build new houses, shouldn’t they be worthy of a historic district?

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


“Infill” Development 1) Building new in a historic neighborhood is called Infill development 2) It is necessary because no one wants to own a home adjacent to swaths of untended vacant land 3) We often use excess land to create larger yards and build parks 3) BUT urban neighborhoods also require density to work 4) So that means we sometimes have to build new houses on vacant lots 5) If we build new houses, shouldn’t they be worthy of a historic district? 6) Building new becomes a “necessary evil” to save the historic structures and set the neighborhood on a sustainable path

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Partnerships and Marketing

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Funding

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Funding

$200,000- Historic Macon Foundation (previous grants released from restriction)

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Funding

$200,000- Historic Macon Foundation (previous grants released from restriction)

$500,000- John S. and James L. Knight Foundation Revolving Fund for Beall’s Hill

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Funding

$200,000- Historic Macon Foundation (previous grants released from restriction)

$500,000- John S. and James L. Knight Foundation Revolving Fund for Beall’s Hill

$350,000- Hills and Heights Development Corporataion

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Funding

$200,000- Historic Macon Foundation (previous grants released from restriction)

$500,000- John S. and James L. Knight Foundation Revolving Fund for Beall’s Hill

$350,000- Hills and Heights Development Corporataion (low-interest loans managed by College Hill Alliance and contributed by the City of Macon, Mercer University and the Macon Housing Authority)

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Funding

$200,000- Historic Macon Foundation (previous grants released from restriction)

$500,000- John S. and James L. Knight Foundation Revolving Fund for Beall’s Hill

$350,000- Hills and Heights Development Corporataion (low-interest loans managed by College Hill Alliance and contributed by the City of Macon, Mercer University and the Macon Housing Authority)

Total of $1,050,000 available for Beall’s Hill projects P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Lay the Foundations

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Lay the Foundations 1) Understand the demographics, market and comparable sales

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Lay the Foundations 1) Understand the demographics, market and comparable sales 2) Develop a comprehensive master plan for the entire project including infrastructure, parks, rehabilitation opportunities, infill, partnerships, financing and absorption rates

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Lay the Foundations 1) Understand the demographics, market and comparable sales 2) Develop a comprehensive master plan for the entire project including infrastructure, parks, rehabilitation opportunities, infill, partnerships, financing and absorption rates 3) Marketing is almost more important that what you build

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Lay the Foundations 1) Understand the demographics, market and comparable sales 2) Develop a comprehensive master plan for the entire project including infrastructure, parks, rehabilitation opportunities, infill, partnerships, financing and absorption rates 3) Marketing is almost more important that what you build 4) Target your marketing at the demographics you can win

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Lay the Foundations 1) Understand the demographics, market and comparable sales 2) Develop a comprehensive master plan for the entire project including infrastructure, parks, rehabilitation opportunities, infill, partnerships, financing and absorption rates 3) Marketing is almost more important that what you build 4) Target your marketing at the demographics you can win 5) Build extremely highly finished, very efficient, affordable small houses

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Lay the Foundations 1) Understand the demographics, market and comparable sales 2) Develop a comprehensive master plan for the entire project including infrastructure, parks, rehabilitation opportunities, infill, partnerships, financing and absorption rates 3) Marketing is almost more important that what you build 4) Target your marketing at the demographics you can win 5) Build extremely highly finished, very efficient, affordable small houses 6) Use historic tax credits to make the project irresistible

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Programs

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Programs

Homes 25%-30% state tax credit ($100,000 max) 8.5 year property tax freeze at prerehabilitation value

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Programs

Homes

Commercial

25%-30% state tax credit ($100,000 max) 8.5 year property tax freeze at prerehabilitation value

20% federal tax credit for buildings listed on the National Register of Historic Places (no maximum) 25%-30% state tax credit ($300,000 max) 8.5 year property tax freeze at pre-rehabilitation value

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Incentives for homes

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Incentives for homes 25%-30% state tax credit ($100,000 max) Georgia’s state income tax rate is 6%. A household with $50,000 in income pays about $3,000 in state income tax each year. Historic Macon Foundation’s houses come with $30,000 in tax credits, meaning buyers with $50,000 in income would not pay taxes for ten years.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Incentives for homes 25%-30% state tax credit ($100,000 max) Georgia’s state income tax rate is 6%. A household with $50,000 in income pays about $3,000 in state income tax each year. Historic Macon Foundation’s houses come with $30,000 in tax credits, meaning buyers with $50,000 in income would not pay taxes for ten years. 8.5 year property tax freeze at prerehabilitation value Homes in Macon are charged property tax every year. For a $135,000 home, that tax is nearly $2,260 a year ($188/month). Historic Macon homes have values that are frozen, decreasing your property taxes drastically. P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Basic Preservation Theory

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Basic Preservation Theory

1. Do as little as possible to ensure the future of the building

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Basic Preservation Theory

1. Do as little as possible to ensure the future of the building 2. Whatever changes you do make should be reversible P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Requirements

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Requirements

You must retain original architectural features, especially historic windows P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Requirements

Do not replicate or mimic missing historic features

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Requirements

• Additions should be clearly modern, not blended with the building, but • Additions should not substantially alter the appearance of the building

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Requirements

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Requirements

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Requirements

• Existing building at 503 Fifth St. • Owner would like to add an exterior deck for entry

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Requirements

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Requirements

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Requirements

• Original deck design was decorative wood with a lattice screen • Looked faux-historical and obscured the building’s lower storey

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Requirements

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Requirements

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Requirements

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Requirements

Deck at 503 Fifth St. had to be redesigned in steel • New design is clearly modern, but preserves the building’s industrial identity

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Quiz

You encounter an (ugly) 1960s wood front door on a 1910 bungalow. What do you do? A) Repair in place and retain B) Replace with a salvaged door of the correct period C) Replace with a new door of the correct style

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Quiz

You encounter an (ugly) 1960s wood front door on a 1910 bungalow. What do you do? A) B) C)

Repair in place and retain Replace with a salvaged door of the correct period Replace with a new door of the correct style

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Quiz You would like to make a small addition to an 1870s Victorian Cottage. How do you add on? A)

Match the original truss design and roof lines, use salvaged siding to blend with original B) Use modern cement-board siding and step in the addition an inch to differentiate slightly from the original C) Use vinyl or aluminum siding to differentiate and date the modern addition D) Construct the addition in a modern contrasting style

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Quiz You would like to make a small addition to an 1870s Victorian Cottage. How do you add on? A)

Match the original truss design and roof lines, use salvaged siding to blend with original B) Use modern cement-board siding and step in the addition an inch to differentiate slightly from the original C) Use vinyl or aluminum siding to differentiate and date the modern addition D) Construct the addition in a modern contrasting style

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Quiz

•

Completed appropriate addition at 1295 Ross St. P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Quiz

•

Completed appropriate addition at 1295 Ross St. P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Quiz

Your house has two front doors. You would like to restore one as a window. What do you do? A) B) C)

Use a modern aluminum or vinyl window of a similar style to differentiate the addition Use a salvaged wood window of the correct period and style Build a new wood window of the correct style to match existing window P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Quiz

Your house has two front doors. You would like to restore one as a window. What do you do? A) B) C)

Use a modern aluminum or vinyl window of a similar style to differentiate the addition Use a salvaged wood window of the correct period and style Build a new wood window of the correct style to match existing window P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Quiz

D) Find the window used as cabinet doors in the laundry room and re-install on front of house

Wednesday, March 30, 2011


Quiz

Your Victorian house is missing its original mantels. How do you frame the fireplaces? A)

Salvage wood mantels of the correct period and install them B) Build new wood mantels to replicate the correct style C) Cover the fireplaces with drywall to screen them D) Build new wood mantels with little ornament to appear new

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Quiz

Your Victorian house is missing its original mantels. How do you frame the fireplaces? A)

Salvage wood mantels of the correct period and install them B) Build new wood mantels to replicate the correct style C) Cover the fireplaces with drywall to screen them D) Build new wood mantels with little ornament to appear new

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Quiz Finished mantel at 1295 Ross St.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Quiz Finished mantel at 1295 Ross St.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


CASE STUDY Purchase a home with tax credits in place

Wednesday, March 30, 2011


Homes

Wednesday, March 30, 2011


Homes

Wednesday, March 30, 2011


Homes Restored homes from Historic Macon Foundation include tax credits

Wednesday, March 30, 2011


Homes Restored homes from Historic Macon Foundation include tax credits

Wednesday, March 30, 2011


Homes Restored homes from Historic Macon Foundation include tax credits This home at 980 Maple St. included frozen property taxes at $200 per year and $30,000 in state income tax credits.

Wednesday, March 30, 2011


Homes Restored homes from Historic Macon Foundation include tax credits This home at 980 Maple St. included frozen property taxes at $200 per year and $30,000 in state income tax credits.

Wednesday, March 30, 2011


Homes Restored homes from Historic Macon Foundation include tax credits This home at 980 Maple St. included frozen property taxes at $200 per year and $30,000 in state income tax credits. The net monthly cost to own this $130,000 home is $450 per month

Wednesday, March 30, 2011


Homes

Wednesday, March 30, 2011

Historic home

Any other home

House Price

$135,000

$135,000

Down Payment

$4,725

$4,725

You Get a Raise!

$2,700/year

$0

Reduced Property Tax

$205

$2,260

Total Savings

$44,480

$0

Total Monthly Cost

$500

$1,160


Homes

Wednesday, March 30, 2011

Historic home

Any other home

House Price

$135,000

$135,000

Down Payment

$4,725

$4,725

You Get a Raise!

$2,700/year

$0

Reduced Property Tax

$205

$2,260

Total Savings

$44,480

$0

Total Monthly Cost

$500

$1,160


Down Payment Assistance

Wednesday, March 30, 2011


Down Payment Assistance The City of Macon offers down payment assistance up to $25,000 for people of low to moderate incomes

Wednesday, March 30, 2011


Down Payment Assistance The City of Macon offers down payment assistance up to $25,000 for people of low to moderate incomes Mercer University offers $20,000 to all employees for down payments

Wednesday, March 30, 2011


Down Payment Assistance The City of Macon offers down payment assistance up to $25,000 for people of low to moderate incomes Mercer University offers $20,000 to all employees for down payments Georgia Dream can offer $5,000 to $7,500 to help with down payment and closing costs

Wednesday, March 30, 2011


Homes

Wednesday, March 30, 2011


Homes Because tax credits are based on a percentage, they benefit more expensive homes more than less expensive homes

Wednesday, March 30, 2011


Homes Because tax credits are based on a percentage, they benefit more expensive homes more than less expensive homes

Wednesday, March 30, 2011


Homes Because tax credits are based on a percentage, they benefit more expensive homes more than less expensive homes Projects benefit most by starting with the worst homes

Wednesday, March 30, 2011


Homes Because tax credits are based on a percentage, they benefit more expensive homes more than less expensive homes Projects benefit most by starting with the worst homes

Wednesday, March 30, 2011


Homes Because tax credits are based on a percentage, they benefit more expensive homes more than less expensive homes Projects benefit most by starting with the worst homes High-income home buyers can benefit greatly by purchasing a home with tax credits

Wednesday, March 30, 2011


Homes

Wednesday, March 30, 2011

Historic home

Any other home

House Price

$355,000

$355,000

Down Payment (Mercer Stipend)

-$20,000

$4,725

You Get a Raise!

$7,500/year

$0

Reduced Property Tax

$1,520

$5,396

Total Savings

$107,000

$0

Total Monthly Cost

$1,300

$2,300


CASE STUDY Invest in a rental property with historic tax credits

Wednesday, March 30, 2011


955 Walnut St.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


955 Walnut St.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


CASE STUDY Rehabilitate a major commercial building

Wednesday, March 30, 2011


Atlanta Gas Light

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Atlanta Gas Light Needs $750,000 to convert the building into 7 loft apartments Strategy Historic Macon recruits two investors to fund the acquisition and development by investing $375,000 each for one year

• •

Tax Credits Based on a $750,000 project budget Federal Credit at 20%- $150,000 State Credit at 25%- $187,500

• •

Returns Each investor receives: $75,000 in federal tax credits and $93,750 in state tax credits 45% Return for 1 year investment P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


CASE STUDY Raise equity for a multimillion dollar lofts project

Wednesday, March 30, 2011


Atlantic Cotton Mills

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Atlantic Cotton Mills

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Atlantic Cotton Mills Needs • Need $12.5 million to convert mill into 103 loft apartments • $2.5 million down payment on debt Tax Benefits • $10,800,000 in eligible expenses for tax credits • Federal Tax Credits (20%)- $2,160,000 • State Tax Credits (25%)- $300,000 max • Property Tax Freeze- $1,250,000 Uses • Sell Federal tax credits for 93 cents on the dollar- $2,008,800 • Raise <$500,000 in equity

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


CASE STUDY Raise money for a non-profit to save a historic building

Wednesday, March 30, 2011


Church Conversion

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Church Conversion Needs • 1895 Church on College St. was abandoned and gifted to Mercer University • Mercer University would like to create a performing arts center that can be rented by the community • Must raise $2 million from donors for adaptive re-use Tax Benefits • $2 million in eligible expenses for tax credits • Federal Tax Credits (20%)- $400,000 • State Tax Credits (25%)- $300,000 max Uses • Ask a donor with a large tax liability to buy the tax credits dollar for dollar • Allows University to raise $700,000 and costs the donor NOTHING • Fulfills the donors desire to help Mercer and costs the donor exactly what paying taxes would have cost •Saves the historic building and provides the community with a performing arts center P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Our Mission Keep and monitor permanent easements or covenants on the property

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, March 30, 2011


Josh Rogers, Executive Director jrogers@historicmacon.org phone 478-742-5084 • fax 478-742-2008 email info@historicmacon.org • site www.historicmacon.org

Wednesday, March 30, 2011


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