Funding Resources


Tax incentive programs are powerful and prudent tools to encourage rehabilitation of historic buildings and promote economic revitalization. Various tax incentives have been adopted at the federal, state, and local level, and these incentives are often combined to make a historic rehabilitation project viable. In many cases, the economic viability of rehabilitation projects is dependent upon the combination of the federal historic rehabilitation tax credit with other federal and state programs. For example, investors in the rehabilitation of low-income rental housing properties may be eligible not only for the historic rehabilitation tax credit, but also for the low income housing tax credit and other incentives. The major financing options that may be considered in Bushwick Avenue study area have been identified as follows:

Federal Historic Rehabilitation 20% Tax Credit

· Must be used as an income-producing property for five years after rehabilitation
· Cannot use to rehabilitate an owner’s private residence
· Must be listed on the National Register of Historic Places or as part of a “registered historic district”
· Cost of rehabilitation must exceed the pre-rehabilitation cost of the building
· Must meet the Secretary of the Interior’s Standards for Rehabilitation and be consistent with the historic character of the property (see Maintenance section)

Federal Historic Rehabilitation 10% Tax Credit

· Must be a non-residential buildings
· Must have been in service before 1936
· Available for rehabilitation of buildings not listed on the National Register of Historic Places or as part of a “registered historic district”
· Must be claimed to IRS form 3468

New Markets Tax Credit

· Must be a property in historic business districts in low-income communities
· Available for taxpayers that invest money in certified Community Development Entities (CDEs)
· The CDEs must have a primary mission of investing in low income communities and persons
· Taxpayers can receive up to 39% of the investment paid out in a seven-year period

Low-Income Housing Properties Tax Credit

· Must be a residential rental property
· Must meet low-income occupancy threshold requirements
· Restricts rents, including utility charges, in low-income units
· Operates under the rent and income restrictions for 30 years or longer, pursuant to written agreements with the agency issuing the tax credits

New York State Historic Commercial Properties Tax Credit

20% state tax credit up to $5,000,000
· Must be used with the Federal Historic Rehabilitation Tax Credit Program
· Must be located in an eligible census tract (all of the Bushwick Study Area is eligible)

New York State Historic Homeownership Rehabilitation Tax Credit

20% state tax credit up to $50,000:
· Must be an owner-occupied residential building
· Must be listed on the State or National Register of Historic Places as part of a “registered historic district”
· At least $5,000 must be expended on qualifying work
· At least 5% must be spent on the exterior of the building
· All work must be approved by OPRHP prior to construction

New York State Parks Department Environment Protection Fund Grant

· Must be listed on the State or National Register of Historic Places
· Available to municipalities or not-for-profits with an ownership interest

New York Landmarks Conservancy Grants

Sacred Sites Grant
· Financial and technical assistance for maintenance, repair, and restoration of religious properties
City Ventures Fund Grant
· Available to non-profit developers of non-landmark yet architecturally significant buildings being converted to affordable housing and services that benefit low-income communities
Emergency Preservation Grant
· Available for non-profit organization owners of buildings with exterior problems that require immediate attention

New York Landmarks Conservancy Loans

· Available for owners of historic residential, non-profit, religious, or commercial properties in low- to moderate-income communities in New York City

New York Community Trust Neighborhood Revitalization Grants

· Available each fall for organizations with strong board and community involvement
· Supports local efforts to protect and expand neighborhood investments and link residents to a full range of services

Brooklyn Community Foundation Grant

· Supports local non-profits that work in the arts, community development, human services, youth development, education and the environment

Funding/Assistance Resources

The New York State Office of Parks, Recreation and Historic Preservation
Sloane Bullough Merrill Hesch (Grants Office)
518.237.8643, ext. 3252 212.866.2599
(New York State Historic Commercial Properties Tax Credit Information)
The New York Landmarks Conservancy
One Whitehall Street
New York, NY 10004
212.995.5260 (Preservation Hotline)
The New York Community Trust
909 Third Avenue, 22nd Floor
New York, NY 10022
Brooklyn Community Foundation
45 Main Street, Suite 409
Brooklyn, NY 11201
The Bushwiki
(Information compiled by Columbia University Historic Preservation students, 2011)