Every building is designated an occupancy classification when built, however, as buildings age, the use may change and not be documented or permitted by the building officials. The result is a building that is not code compliant and there could be life safety hazards for its current use. Historic buildings are most likely not built to comply with current code, but a change of use will require that building to be brought into compliance, such as meeting required exiting, structural standards, and energy upgrades. PMA has consulted several clients on strategies to address change of occupancy of historic buildings. The following warehouse in Sellwood is a prime example of the complexity of this type of permit.
The warehouse, built in 1921, had previously been a battery manufacturing business and a carpet warehouse, and the newest tenants are using the space as an antiques warehouse and sales floor. Tenant improvements alerted the building officials of the building’s unpermitted change of use, from an industrial plant-factory (F-1) to mercantile (M).
PMA provided the owner with as-built drawings of the space and provided a code analysis to determine the minimum requirements needed in the change of use. For a 100’x100’ large historic warehouse space, seismic and energy upgrades were required in addition to new exiting and life-safety measures. Historic buildings are not exempt from energy code, which proved a challenge in a warehouse with original single-pane steel windows, concrete walls, and slab-on-grade floor. Change of use from an F-1 to M also requires a seismic ASCE 41 Teir 1 report and associated upgrade.
Tag Archives: commercial
State and Federal Historic Preservation Incentives Available in Oregon
Historic Preservation Incentives at the State and Federal level are either tax incentives or grants. PMA keeps up to date regarding these programs as incentives are ever-changing and apt to suddenly sunset or be revised. Following is a brief explanation of incentives offered by state or federal government or private agencies as of 2016. PMA has worked with multiple owners and agencies across the Pacific Northwest to take advantage of state and federal tax incentive programs, and we can provide expert experience in the latest interpretations of work that meets the standards for these incentives. A few other redevelopment incentive programs are also mentioned below, if they have been successfully combined with historic preservation incentive programs in Oregon.
FEDERAL AND STATE OF OREGON TAX INCENTIVES
Oregon Special Assessment
Federal Historic Tax Credit Incentives (HTC)
Federal Preservation Easement Tax Deduction
A preservation easement is a legal agreement to protect a historic property from changes, including neglect. The property must be individually listed on the NRHP or a contributing structure within a National Register-listed historic district or local historic district. If a property owner makes a voluntary donation to a trust such as the Historic Preservation League of Oregon (HPLO) of all or a portion of a property, the donation can qualify as a charitable tax donation. Only some of the rights associated with the property are being donated, and the donation permanently limits uses or changes as specified. The owner of the historic property may still use the property, and must maintain it. The owner may sell the property, but the restrictions will remain with the property. The preservation easement may be structured to include only the exterior of a building, or may include air rights, interiors, grounds, or other features.
OTHER INCENTIVES OR PROGRAMS
Private and Public Grants
Grants for historic preservation work vary widely as to eligibility rules, requirements, and amounts. While private-sector grant-making organizations are more apt to change grant programs or requirements year-to-year, they also are more likely to provide larger sums of money. Historic preservation grants are sometimes only available for preservation planning, survey, or designation work as opposed to “brick and mortar” projects.
The State Historic Preservation Office (SHPO) administers Federal grants directly to local government entities through the Certified Local Government (CLG) program. The SHPO also administers State grants through the Oregon Heritage Grants, Oregon Museums Grants, Preserving Oregon Grants, Diamonds in the Rough Grants, and Oregon Historic Cemeteries Grants. These are all competitive and offer relatively modest amounts of funding.
New Market Tax Credit
In December 2015, Congress approved an extension of the New Market Tax Credit (NMTC) program through 2019. There is an immediate opportunity for investors, low-income communities, and businesses to use this successful program in order to revitalize economically distressed areas and create jobs. The State also runs the Oregon New Market Tax Credit program, which is modeled on the same requirements as the Federal program.
The Blanchet House of Hospitality, a new (2012) building in a historic district in downtown Portland, used New Markets Tax Credits. NMTC and HTC have also been used together, such as in the Mercy Corps restoration/ expansion in the Skidmore Old Town historic district.
The NMTC is not available for loans or investments in projects involving residential rental housing alone, but may be used for mixed-use and some other housing projects. Investments must be made to designated Community Development Entities (CDEs), which in turn provide investments in low-income communities. The investment is claimed over a 7-year credit allowance period.
Low-Income Housing Tax Credits
The federal government allots a certain amount per state per year to be awarded to developers willing to provide low income housing. Residential rental properties only may qualify for the Low-Income Housing Tax Credits (LIHTC) program. A certain percentage of the units must be restricted to occupants making 50% or less (or 60% or less) of local median income, and the affordability restrictions must be maintained for a minimum of 30 years. LIHTC has been successfully combined with HTC in downtown Portland projects such as the Admiral Apartments, the Martha Washington, and the Bronaugh Apartments.
Written by Kristen Minor, Associate/Preservation Planner
Local Historic Preservation Incentives Available in Portland, Oregon
With a firm comprised of architects and planners, we understand and assist owners and developers navigate local historic preservation incentives made available by the City of Portland. The following is a comprehensive overview of incentives offered by the City, as of 2016, in the form of various use allowances, development rules “waivers,” and opportunities to transfer allowed but unused floor area to other property owners, creating an opportunity for a monetary benefit. We grouped the available historic preservation incentives available by the following: City of Portland Incentives, City of Portland/State of Oregon Building Code Allowances, and Portland Development Commission Programs.
The City of Portland’s Central City 2035 Plan (as well as other related City code projects) are currently under review. The Proposed Draft was published in June 2016 and is being reviewed by many City and non-City agencies, bureaus, and organizations. Proposed changes directly affect portions of the Portland Zoning Code, but the existing Zoning Code will remain in effect until adoption of the final Central City 2035 Plan, probably in late 2018. Increased transfer options are the major change proposed.
“Landmark” as defined by the City is a property individually listed on the National Register, or evaluated by the City of Portland as a local historic resource. Many incentives are also available to resources designated contributing to a National Register-listed Historic District or locally designated Conservation District.
CITY OF PORTLAND INCENTIVES
Additional density in Single-Dwelling zones. Landmarks in Single-Dwelling zones may be used as multi-dwelling structures, up to a maximum of one dwelling unit for each 1,000 square feet of site area. No additional off-street parking is required, but the existing number of off-street parking spaces must be retained. The landmark may be expanded and the new floor area used for additional dwelling units only if the expansion is approved through historic design review.
Additional density in Multi-Dwelling zones. Landmarks and contributing structures in historic districts located in multi-dwelling zones may be used as multi-dwelling structures, with no maximum density. No additional off-street parking is required, but the existing number of off-street parking spaces must be retained. The building may be expanded and the new floor area used for additional dwelling units only if the expansion is approved through historic design review.
Nonresidential uses in the RX zone. In the RX zone, except on certain sites which directly front on the Park Blocks, up to 100 percent of the floor area of a landmark or contributing structure may be approved for Retail Sales and Service, Office, Major Event Entertainment, or Manufacturing and Production uses through Historic Preservation Incentive Review.
Nonresidential uses in the RH, R1 and R2 zones. In the RH, R1 and R2 zones, up to 100 percent of the floor area of a landmark or contributing structure may be approved for Retail Sales and Service, Office, or Manufacturing and Production uses as follows:
Daycare is an allowed use in all residential zones in historic landmark or contributing structures. In non-historic structures, daycare uses in residential zones other than RX require a conditional use review.
Conditional uses in Residential, Commercial, and Employment zones. In these zones, applications for conditional uses at landmarks or contributing structures are processed through a Type II procedure, rather than the longer Type III procedure requiring a public hearing.
Exemption from minimum density. Minimum housing density regulations do not apply in landmarks or contributing structures.
Commercial allowances in Central City Industrial zones. National Register-listed properties or those contributing to a National Register-listed historic district have potential to include office and retail uses.
Commercial allowances in employment and industrial zones. Office and retail uses are allowed in landmarks in areas where those uses are otherwise restricted.
Increased maximum parking ratios in Central City. National Register-listed properties or those contributing to a National Register-listed historic district within the Central City Core parking area are allowed to increase parking ratios.
Commercial allowances in Guild’s Lake Industrial Sanctuary District. Increases allowances for office and retail uses in landmarks in an area where non-industrial uses are otherwise restricted.
The transfer of density and floor area ratio (FAR) from a landmark to another location is allowed in Multi-Dwelling, Commercial, and Employment zones. Historic properties with unused development “potential” therefore may find a market for the FAR.
Proposed Development transfer opportunities (potentially adopted in 2018):
Landmarks and contributing resources in historic districts will be able to transfer FAR City-wide, as long as the “sending” resource meets seismic reinforcement standards. Seismic work may be allowable in phases over a period of years. FAR to be transferred is not only the base amount unused by the existing historic structure, but also an additional 3:1.
PORTLAND DEVELOPMENT COMMISSION PROGRAMS
The Portland Development Commission (PDC) has operated several programs to benefit owners of existing buildings (not necessarily historic buildings). These programs have been suspended and will be replaced by the Prosperity Investment Program (PIP). Information about the PIP is not yet available, but the program may still provide benefits to owners, similar to the suspended Storefront Improvement Program.
For further information on how PMA helps owners consider reuse options, navigate the regulations, and take advantage of available benefits – please visit our website to review our multidisciplinary projects and comprehensive architecture, building envelope science, and planning services.
Written by Kristen Minor, Associate, Preservation Planner