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HomeMy WebLinkAboutDRAFT_Historic Properties Incentive Ordinance_Feb2023 HISTORIC PROPERTIES INCENTIVE ORDINANCE Adopted XX,XX,XXXX 1 AN ORDINANCE TO REPEAL AN ORDINANCE ENTITLED “AN ORDINANCE TO PROVIDE PROPERTY TAX CREDITS FOR IMPROVEMENTS TO SPECIFIED HISTORIC STRUCTURES IN WASHINGTON COUNTY, MARYLAND” AND TO REENACT, WITH AMENDMENTS, THE WASHINGTON COUNTY HISTORIC PROPERTIES INCENTIVES ORDINANCE. RECITALS In recognition that historic preservation is an effective tool for managing growth and sustainable development, revitalizing neighborhoods, fostering local pride and maintaining community character while enhancing livability, the County has an obligation to create incentives to benefit owners of such properties and thus encourage them to enter that land into historic preservation programs. Historic landscapes and individual properties designated through this ordinance or through other Federal and State programs and inventories, have a level of integrity which convey historic associations or attributes that owners, residents, neighbors, and users of the designated properties should be prepared to maintain. The Board of County Commissioners of Washington County, Maryland (“the County”) adopted an ordinance entitled “An Ordinance to Provide Property Tax Credits for Improvements to Specified Historic Structures in Washington County, Maryland” on May 5, 1990 (the “1990 Ordinance”). The purpose of the 1990 Ordinance was to encourage preservation and protection of historic structures by granting a County Property Tax Credit on the improvements made to structures in the “HP” Historic Preservation zones and the “AO” Antietam Overlay Zones as defined in the Washington County Zoning Ordinance pursuant to Section 9-204, Tax-Property Article, Annotated Code of Maryland. A public hearing was held on XXXX,XX,XXXX following due notice and advertisement of a fair summary of the amendments proposed to the 1990 Ordinance. Public comment concerning the amendments proposed was received, reviewed and considered. NOW, THEREFORE, BE IT ORDAINED AND ENACTED that the Ordinance entitled“ An Ordinance to Provide Property Tax Credits for Improvements to Specified Historic Structures in Washington County, Maryland”, adopted May 5, 1990, is hereby repealed; and the following Historic Properties Incentive Ordinance is hereby adopted. 2 Table of Contents 1. Purpose of the Ordinance ................................................................................................................................... 4 1.01 The purpose of this Ordinance is to provide for the establishment of Historic Preservation Areas and associated property Tax Credits for Residential Historic Structures, Property Tax Credits for Improvements to Specified Historic Structures and the Historic Property Grant Program in Washington County, Maryland and to provide for the standards and guidelines under which real property in Washington County is eligible for inclusion or participation in these programs. ............................................. 4 2. Definitions of the Ordinance ............................................................................................................................... 4 2.01 For the purpose of this Ordinance, the following words shall have the following meanings: ............ 4 3. HISTORIC PRESERVATION AREAS ..................................................................................................................... 5 3.01 Establishment of a Historic Preservation Area. .......................................................................................... 5 3.02 Procedures for Historic Preservation Areas ............................................................................................... 5 3.03 Qualifying Criteria for Historic Preservation Areas .................................................................................... 7 3.04 Project Review for Historic Preservation Areas .......................................................................................... 8 3.05 Ordinary Maintenance Inspections in a Historic Preservation Area ...................................................... 10 3.06 Addition to an Existing Historic Preservation Area ................................................................................. 10 3.07 Continuation of a Historic Preservation Area ........................................................................................... 10 3.08 Termination and Alteration of a Historic Preservation Area ................................................................... 11 3.09 Real Property Tax Credit – Historic Preservation Areas .......................................................................... 12 3.10 Amount of Tax Credit – Historic Preservation Areas ............................................................................... 12 3.11 Severability – Historic Preservation Areas ................................................................................................ 13 4. PROPERTY TAX CREDITS FOR IMPROVEMENTS TO SPECIFIED HISTORIC STRUCTURES ...................... 14 4.01 Establishment of Real Property Tax Credits for Improvements on Historic Properties ...................... 14 4.02 Duration of Real Property Tax Credits for Improvements on Historic Properties ................................ 14 4.03 Eligibility for Real Property Tax Credits for Improvements on Historic Properties .............................. 14 4.04 Qualified municipalities for Real Property Tax Credits for Improvements on Historic Properties .... 15 4.05 Time for filing of application for Real Property Tax Credits for Improvements on Historic Properties 15 4.06 Calculation for Real Property Tax Credits for Improvements on Historic Properties .......................... 16 4.07 Qualifying Expenses for Real Property Tax Credits for Improvements on Historic Properties .......... 16 4.08 Application Review for Real Property Tax Credits for Improvements on Historic Properties ............ 17 4.09 Termination of Real Property Tax Credits for Improvements on Historic Properties .......................... 17 5. HISTORIC PROPERTY GRANT PROGRAM ....................................................................................................... 18 3 5.01 Establishment of the Historic Property Grant Program .......................................................................... 18 5.02 Grant Funding Source for the Historic Property Grant Program ........................................................... 18 5.03 Grant Amounts for a Historic Property Grant ........................................................................................... 18 5.04 Eligibility for a Historic Property Grant ..................................................................................................... 18 5.05 Procedures for Historic Property Grant .................................................................................................... 19 5.06 Historic Property Grant Subcommittee .................................................................................................... 20 5.07 Eligible Activities and Expenses for Historic Property Grants ................................................................ 20 5.08 Competitive Selection Criteria for Historic Property Grants .................................................................. 21 5.09 Inspections of a Historic Property Grant Program ................................................................................... 23 5.10 Grant Agreement for a Historic Property Grant ....................................................................................... 23 5.11 Disbursement of the Historic Property Grant Funds ............................................................................... 23 4 1. Purpose of the Ordinance 1.01 The purpose of this Ordinance is to provide for the establishment of Historic Preservation Areas and associated property Tax Credits for Residential Historic Structures, Property Tax Credits for Improvements to Specified Historic Structures and the Historic Property Grant Program in Washington County, Maryland and to provide for the standards and guidelines under which real property in Washington County is eligible for inclusion or participation in these programs. 2. Definitions of the Ordinance 2.01 For the purpose of this Ordinance, the following words shall have the following meanings: 2.01a “County” shall mean the Board of County Commissioners of Washington County, Maryland, its departments, divisions and assigns. 2.01b “Historic District Commission” shall mean the Washington County Historic District Commission. 2.01c “Planning Commission” shall mean the Washington County Planning Commission. 2.01d “Planning Department” shall mean the Washington County Department of Planning and Zoning. 2.01e “Ordinary Maintenance” shall mean work for which a building permit may not be required by ordinance, where the purpose and effect of such work is to correct any deterioration or decay of, or damage to, a structure or any part thereof to restore the same, as nearly as practical, to its condition before the occurrence of such deterioration, decay or damage and does not involve change of design, materials, or appearance. 5 3. HISTORIC PRESERVATION AREAS 3.01 Establishment of a Historic Preservation Area. 3.01a There is a historic preservation area established that qualifies property owners for County Real Property Tax Credits on historically valuable structures, as authorized by § 9-204 and §9-301 of the Tax-Property Article of State Code. 3.01b One or more owners of real property in Washington County that is listed on the Maryland Inventory of Historic Properties, individually or as a contributing structure to a district, may voluntarily file a petition with the Historic District Commission, in the form prescribed by the Commission, requesting the establishment of a Historic Preservation Area composed of the real property owned by the petitioners. All real property to be located within a Historic Preservation Area shall be titled the same. 3.01c If the petition is approved, the petitioners shall execute a Historic Preservation Area Agreement in the form prescribed by the Commission, agreeing, among other things, that the following covenants, conditions and restrictions shall run with the real property for so long as the Agreement remains in effect: i) The landowner agrees to the review, approval, or disapproval of any exterior changes proposed for the property as defined in Section 3.04. ii) The landowner agrees to the regular inspection and documentation of the property, including photography. iii) The landowner agrees to the Ordinary Maintenance and retention of the structures and landscape. 3.01d The landowner may apply for permanent easement programs for the land or structures within the Area. 3.02 Procedures for Historic Preservation Areas 3.02a After receipt of a petition to establish a Historic Preservation Area: i) The Historic District Commission shall inform the County Commissioners whether the proposed area meets the qualifications established in this Ordinance and associated regulations and whether the Historic District Commission recommends establishment of the area. 6 3.02b If the Historic District Commission recommends approval, the County shall hold a public hearing on the petition. Adequate notice of hearing shall be provided to landowners in the proposed area and to landowners adjacent to the proposed area. 3.02c If the Historic District Commission does not recommend approval, the petition may be taken to the Planning Commission for them to inform the County whether establishment of the area is compatible with existing and approved State and County plans, programs, and overall County policy, and whether the planning and zoning body recommends establishment of the area. If the Planning Commission recommends approval, the County shall hold a public hearing on the petition. 3.02d If neither the Historic District Commission nor the Planning Commission recommends approval, the petition shall be deemed denied and the County shall notify the landowner or landowners stating the reasons for denial. 3.02e The County may approve a petition for the establishment of a Historic Preservation Area only if: i) The area meets the qualifying criteria established under this Ordinance and any Regulations associated herewith; ii) Approval of the petition has been recommended by either the Historic District Commission or the Planning Commission; and iii) The County has held a public hearing. 3.02f Establishment of an area shall not occur until: i) The County approves the petition; ii) All parties have executed a Historic Preservation Area Agreement; and iii) The Historic Preservation Area Agreement is recorded, by the County, in the Land Records for Washington County. 7 3.03 Qualifying Criteria for Historic Preservation Areas 3.03a The criteria for qualification for Historic Preservation Areas are as follows: i) The property is listed in either the Maryland Historical Trust’s Inventory of Historic Properties or the National Register of Historic Places individually or as a contributing structure; or ii) The property possesses any or all of the historical or cultural significance defined below:;or (1) The historic resource should have significant character, interest, or value as part of the development, heritage, or cultural characteristics of the county, state, or nation; (2) The historic resource could be the site of a significant historic event (3) The historic resource should be identified with a person or a group of persons who influenced society; (4) The historic resource exemplifies the cultural, economic, social, political, or historic heritage of the County and its communities. iii) The property possesses any or all of the architectural or design significance defined below: (1) The historic resource embodies the distinctive characteristics of a type, period, or method of construction or architecture; (2) The historic resource represents the work of a master artisan, architect or builder; (3) The historic resource possesses high artistic value; (4) The historic resource represents a significant and distinguishable entity whose components may lack individual distinction; (5) The historic resource represents an established and familiar visual feature of the neighborhood, community, or County, due to its singular physical characteristics, landscape or historical event. (6) The historic resource is the only example ever existing or remaining of a particular period, style, and material or construction technique. 3.03b Amendments to qualifying criteria occurring after establishment of an area shall not cause the disqualification of the area so long as the Historic Preservation Area remains in effect. 8 3.04 Project Review for Historic Preservation Areas 3.04a The Historic District Commission shall have review, approval or disapproval of projects that affect the exterior of qualified structures or the site within Historic Preservation Areas. 3.04b Exterior changes to the property shall include, but not be limited to, any activity that requires the issuance of a building permit according to the currently adopted Washington County Building Code and subsequent amendments as adopted for use in Washington County and the procedures of the Division of Permits and Inspections. i) Exterior changes requiring a building permit shall provide for the review of appropriateness of the proposed activity, not to change the building permit application procedure. ii) Nothing in this Section shall be construed to exempt any activity from the requirement of a building permit. iii) All permits as required above shall be transmitted to the Commission by the Division of Permits and Inspections. iv) Activities requiring a permit can include but are not limited to construction, reconstruction, relocation, restoration, rehabilitation, modification, enlargement, conversion or demolition of all or any portion of the exterior features of the subject site or structure. 3.04c Any proposed exterior changes to the property shall be reviewed by the Historic District Commission before the start of work to ensure that the criteria under which the property qualified for the incentive are not compromised. 3.04d Exterior changes requiring issuance of a building permit shall be submitted to the Division of Permits and Inspections through the Divisions application procedures. Additional information may be requested from the applicant to obtain sufficient review materials for the Historic District Commission’s review of the permit. 3.04e Applications for Certificate of Appropriateness for exterior changes that do not require a building permit shall be submitted to the Department of Planning and Zoning in the form prescribed by the Historic District Commission. 3.04f The Historic District Commission shall render a decision on a completed application within forty-five (45) days of receipt of the completed application. Failure to act within the specified time period shall be considered an approval of the application by the Historic District Commission. The forty-five (45) day review period may be extended upon agreement by the Historic District Commission and the applicant. 9 3.04g A Certificate of Appropriateness application shall be approved by the Historic District Commission if it is consistent with the following criteria: i) The proposal does not substantially alter the exterior features of the structure including but not limited to: (1) Exterior Design Features or Finishes (2) Scale (3) Proportion (4) Texture (5) Distinctive Materials ii) The proposal is compatible in character and nature with the historical, cultural, architectural, or archeological features of the site, structure, or district and would not compromise the integrity or qualifying criteria for the site. iii) The proposal would enhance or aid in the protection, preservation and public or private utilization of the site or structure, in a manner compatible with its historical, archeological, architectural, or cultural value. iv) The proposal is necessary so that unsafe conditions or health hazards are remedied. v) The proposal is consistent with the Secretary of Interior Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings and subsequent revisions and; the Washington County Design Guidelines for Historic Structures and subsequent revisions. 3.04h In reviewing the plans for any such construction or change, the Commission shall give consideration to and not disapprove an application except with respect to the factors specified below. i) The historic or architectural value and significance of the site or structure and its relationship to the historic or architectural value and significance of the surrounding area. ii) The relationship of the exterior architectural features of the structure to the remainder of the structure and to the surrounding area. iii) The general compatibility of exterior design, scale, proportion, arrangement, texture, and materials proposed to be used. iv) Any other factors including aesthetic factors, that the Commission deems to be pertinent. 3.04i The Commission shall be strict in its judgment of plans affecting contributing structures to the Historic Preservation Area. The Commission shall be lenient in its judgment of plans involving new construction unless such plans would seriously impair the historic or architectural value of surrounding structures or the surrounding area. 10 3.04j The Commission shall deny an application if it finds, based on evidence and information presented to or before the Commission, that the exterior alteration for which the Certificate of Appropriateness is sought would be inappropriate or inconsistent with, (f), (g) or (h) above, or detrimental to the preservation, enhancement, or ultimate protection of the historic structure site or district or the purpose of this Ordinance. i) If the Commission determines that the application should be denied, it shall provide a written statement of the basis for denial with specific references to the goals of this Ordinance. The Commission may also, at its discretion, provide the applicant with suggestions or recommendations for revisions to the proposal. ii) A building permit shall not be issued if the Commission has disapproved the application. iii) Nothing shall prevent the applicant from modifying the application to address suggestions made by the Historic District Commission to meet the purpose of this Ordinance. 3.05 Ordinary Maintenance Inspections in a Historic Preservation Area 3.05a The Historic District Commission or its designee shall inspect the Historic Preservation Area before the signing of the Agreement to determine the status and integrity of the property and its architectural features. The inspection shall include, at minimum, the status of the following for each building, including outbuildings, in the Historic Preservation Area on a form prescribed by the Historic District Commission, including photos: i) Roof, Chimneys and Gutter systems ii) Walls and foundations iii) Windows and Doors iv) Porches and Awnings v) Landscaping, circulation systems 3.05b Subsequent inspections on the property will be compared to the initial to determine if Ordinary Maintenance is being undertaken. The failure to complete Ordinary Maintenance or provide a plan for maintenance to the Historic District Commission may result in termination of the Historic Preservation Area. 3.06 Addition to an Existing Historic Preservation Area 3.06a The procedures for adding property to existing areas shall be the same as for the initial establishment of areas. 3.07 Continuation of a Historic Preservation Area 3.07a Historic Preservation Areas shall continue in effect indefinitely unless terminated as approved in this Ordinance or Regulations associated herewith. 11 3.07b Nothing in this Ordinance shall preclude a landowner from selling land within a Historic Preservation Area. A landowner that sells land within a Historic Preservation Area shall notify the County within thirty (30) days after the sale. 3.08 Termination and Alteration of a Historic Preservation Area 3.08a After ten (10) years from the establishment of the district, a landowner may terminate the property’s inclusion in a Historic Preservation Area by giving written notice to the County. Notice of intention to terminate may be submitted to the County at the end of the tenth year of the area’s establishment or anytime thereafter. 3.08b If severe economic hardship occurs, the County may release the landowner’s property from a Historic Preservation Area at any time upon petition by the landowner. The petition shall be in a form prescribed by the County and the County may require such information necessary to determine whether severe economic hardship exists. If the County approves the petition to release the landowner’s property from an area, the County shall prepare the release. 3.08c If an area is terminated before the completion of the initial ten (10) year period, the current landowner shall be liable to reimburse the County for all of the property taxes that would have been due if the property tax credit had not been granted as well as applicable interest on those taxes. 3.08d Demolition of structures contributing to the Historic Preservation Area at any point during the agreement period, without the issuance of an approved Certificate of Appropriateness, shall require the current landowner to be liable to reimburse the County for all of the property taxes that would have been due if the property tax credit had not been granted as well as applicable interest on those taxes. 3.08e Failure to provide for Ordinary Maintenance at any point during the Agreement period will result in notification of the owner that termination and subsequent penalties may be applicable unless the maintenance is performed. 12 3.08f The County may approve alteration or abolishment of the area, if the following occur: i) The integrity, as defined by the evaluation of historical integrity for the National Register and discussed in the Design Guidelines for Historic Properties for Washington County, of the property, within the area has deteriorated causing the area to no longer meet the qualifications under this Ordinance or the Regulations associated herewith; ii) The County has assessed the potential impacts of alteration on the remaining lands in the area; iii) The alteration or abolition of the area has been recommended by the Historic District Commission and the County Planning Commission, and the County has held a public hearing; and iv) The alteration or abolition is approved by the County. 3.09 Real Property Tax Credit – Historic Preservation Areas 3.09a There is a defined credit from County Real Property Taxes levied on residential historic structures, if: i) The structures are included in a Historic Preservation Area as provided in this Ordinance and; ii) The landowner has executed a Contract with the County agreeing to remain in the Historic Preservation Area for ten (10) years; the Contract may be renewed in five (5) year increments after completion of the initial ten (10) years. And; iii) The landowner agrees to the Ordinary Maintenance of the structures within the area for a minimum period of ten (10) years from the date the Area Agreement is recorded in the land records of the County. 3.09b There is defined credit from County Real Property Taxes levied on residential historic structures, if: i) The structures are included in a Historic Preservation Area as provided in this Ordinance and; ii) The landowner has executed a Contract with the County agreeing to remain in the Historic Preservation Area for ten (10) years; the Contract may be renewed in five (5) year increments after completion of the initial ten (10) years. And; iii) The landowner agrees to the Ordinary Maintenance of the structures within the area for a minimum period of ten (10) years from the date the Area Agreement is recorded in the land records of the County. And; iv) The landowner agrees to the retention of the structures within the area for a minimum period of 10 years from the date the Area Agreement is recorded in the land records of the County or; v) The landowner has placed the property in a permanent easement program through the Maryland Historical Trust, that provides additional review and restrictions to the exterior appearance and maintenance of the historic structures as well as demolition protections. 3.10 Amount of Tax Credit – Historic Preservation Areas 13 3.10a The Amount of the credit granted under Subsection 3.09a of this Ordinance is 50% of the County Real Property Tax levied on the structures within the Historic Preservation Area, provided that the total credit may not exceed $3,000 per year, for a period not to exceed the term of the landowner’s Contract with the County. 3.10b The amount of the credit granted under Subsection 3.09b of this Ordinance is 100% of the County Real Property Tax levied on the structures within the Historic Preservation Area, provided that the total credit may not exceed $3000 per year, for a period not to exceed the term of the landowner’s Contract with the County. 3.10c The tax credits granted by this Ordinance are not cumulative, and in no event shall the total tax credit of the landowner exceed 100% of the County Real Property Tax for the property for each year. 3.11 Severability – Historic Preservation Areas 3.11a If any part of this Ordinance shall be held invalid, any such part shall be deemed severable and its invalidity shall not affect the remaining parts of the Ordinance. 14 4. PROPERTY TAX CREDITS FOR IMPROVEMENTS TO SPECIFIED HISTORIC STRUCTURES 4.01 Establishment of Real Property Tax Credits for Improvements on Historic Properties 4.01a A historic preservation tax credit from County Real Property taxes on historically valuable structures is authorized by § 9-204 of the Tax-Property Article of State Code. 4.01b The restoration, preservation, and new construction activities referred to in this Ordinance shall be in conformance with the Secretary of Interior’s Standards and Guidelines for Rehabilitation and subsequent revisions and with the Washington County Design Guidelines for Historic Structures and subsequent revisions. 4.02 Duration of Real Property Tax Credits for Improvements on Historic Properties 4.02a The owner of a historically valuable structure is eligible for the historic preservation tax credit and may apply for the credit for each year for a period of up to five years, provided the credit is not combined with other optional tax credits as permitted under Title 9 of the Tax- Property Article of the State Code or this Ordinance. 4.02b The tax credits granted by this Ordinance are not cumulative, and in no event shall the total tax credit of the landowner exceed 100% of the County Real Property Tax Bill for the property. If the tax credit for any one year exceeds the amount of the County Real Property Tax Bill for that year, the balance may be carried forward until depleted for up to five (5) years. 4.03 Eligibility for Real Property Tax Credits for Improvements on Historic Properties 4.03a There is a credit from County Real Property Taxes levied on a historically valuable structure for qualified expenses for preservation, restoration, and rehabilitation, if: i) The structure is listed on the Maryland Inventory of Historic Properties, or; ii) The structure is listed individually on the National Register of Historic Places or contributes to a National Register Historic or Landmark district, and; iii) The structure is located in a qualified municipality as defined in §4.04 of this Ordinance. 15 4.03b There is a credit from County Real Property Taxes levied on historic structures for qualified expenses for preservation, restoration, and rehabilitation, if: i) The structure is in the Antietam Overlay 1 – Battlefield Buffer or the Antietam Overlay 2 – Approach as defined by the Washington County Zoning Ordinance; and ii) The structure is listed with the Maryland Historical Trust on the Maryland Inventory of Historic Properties. 4.03c There is a credit from County Real Property Taxes levied on historic structures for qualified expenses for preservation, restoration, and rehabilitation, if: i) The structure is located in a Historic Preservation District as defined by the Washington County Zoning Ordinance. 4.03d There is a credit from County Real Property Taxes levied on historic structures for qualified expenses for preservation, restoration, and rehabilitation, if: i) The structure is in a County adopted Historic Rural Village; and ii) The structure is a contributing resource to the Historic Rural Village. 4.03e There is a credit from County Real Property Taxes levied on historic structures for qualified expenses for preservation, restoration, and rehabilitation, if: i) The structure has a permanent or term easement through the Maryland Historical Trust that provides additional review and restrictions to the exterior appearance and maintenance of the historic structures for the duration of the potential County credit. 4.04 Qualified municipalities for Real Property Tax Credits for Improvements on Historic Properties 4.04a For the purpose of this Ordinance, qualified municipalities shall be determined by: i) The municipality has exterior design review requirements, equivalent to those in place for the Historic Preservation District as defined by the Washington County Zoning Ordinance or the Historic Preservation Areas in this Ordinance §3.04, by Town Ordinance or by delegation to the County Historic District Commission of permit review through a recorded Memorandum of Agreement. 4.05 Time for filing of application for Real Property Tax Credits for Improvements on Historic Properties 4.05a An application for the tax credit created by this section shall be filed on or before April 1 immediately before the taxable year for which the credit is sought. If the application is filed after April 1, the credit shall be disallowed that year but shall be treated as an application for a tax credit for the next succeeding taxable year. 16 4.05b Applications for the tax credit created by this section must be submitted before the start of the work subject to credits. 4.06 Calculation for Real Property Tax Credits for Improvements on Historic Properties 4.06a The amount of the credit granted under Subsection 4.03a through 4.03e of this Ordinance shall be 25% of the property owner’s qualified expenses for preservation, restoration, and rehabilitation of historic properties that are residential or income-producing. 4.06b The amount of the credit granted under Subsection 4.03a through 4.03e of this Ordinance shall be 5% of the property owner’s qualified expenses for the construction of architecturally-compatible new construction attached to a qualifying structure. 4.06c The taxation of significant improvements to, and restoration or rehabilitation of, historic or heritage properties qualifying under subsection 4.03a through 4.03e shall be maintained, for a period of up to 10 years, at taxation levels not greater than those in place before the eligible improvements were made. 4.07 Qualifying Expenses for Real Property Tax Credits for Improvements on Historic Properties 4.07a Qualifying expenses that are eligible for consideration of tax credits for the purposes of this section of the Ordinance shall be: i) Construction activities that materially add to the value of the structure, considerably prolongs its useful life, or adapts it to a new use; and ii) Qualified Rehabilitation Expenditures (QREs) as defined by 26 USC 47(c)(2)(A). Examples include but are not limited to: (1) Roof Repair and Replacement (2) Chimney Repair and Replacement (3) Window Restoration (4) New Storm Doors/Windows (5) Masonry Repointing (6) Floor Refinishing (7) Structural Repairs (8) Plumbing, electrical and mechanical systems (9) Architectural/Engineering/Consulting Fees (10) Tool/Equipment Rental (11) Repair of historic outbuildings 4.07b Qualifying expenses may also include expenses for life safety (e.g. required sprinkler systems, lead paint remediation) and ADA-Required Improvements. 17 4.08 Application Review for Real Property Tax Credits for Improvements on Historic Properties 4.08a Application for the Real Property Tax Credits for Improvements on Historic Properties shall be made to the Historic District Commission and at minimum include: i) Sufficient application information for initial determination by the Planning Department to determine if the property is eligible for tax credits. The Planning Department may consult with experts, as necessary, to ensure the property meets applicable criteria and standards for historic significance and integrity before qualifying the structure for the credit. ii) A completed rehabilitation plan that must be approved by the Historic District Commission before commencement of rehabilitation work to ensure conformance with the Secretary of Interior’s Standards and Guidelines for Rehabilitation and subsequent revisions and with the Washington County Design Guidelines for Historic Structures and subsequent revisions iii) An application for request for certification of completed work must be reviewed by the Historic District Commission at project completion. (1) The request for certification of completed work will require inspection by designated staff. The inspection may include photography. iv) The Historic District Commission will forward the qualified expenses, determined by the review of the request for certification of completed work, to the County Treasurer within forty-five (45) days of receipt of the completed application. The Treasurer will process the forwarded application for tax credit. v) The Historic District Commission will not determine the dollar amount of the tax credit to be granted nor will it be judging whether the cost of the improvement paid by the property owner was appropriate. vi) The Planning Department and Historic District Commission may accept as equivalent documentation, for review, completed applications for tax credits at the local, state or federal level if those applications have sufficient information to meet the application criteria listed in this section. vii) The tax credit application shall not be finally approved until the appropriate documentation, on forms prescribed and provided by the Commission or equivalent as listed in this subsection, are supplied. The application must be accompanied by the oath or affirmation of the owner-taxpayer, that the records are those for the actual expenditures in connection with the rehabilitation of the structure or the qualifying new construction. 4.09 Termination of Real Property Tax Credits for Improvements on Historic Properties 4.09a The Tax Credit shall terminate if the property is altered by the owner and no longer complies with the standards by which it became eligible for the credit as a historic property. 4.09b If a tax credit is terminated under this section, the property owner shall be required to refund the entire amount of the tax credit, including applicable interest, from the date the credit was first granted, to the County. 18 5. HISTORIC PROPERTY GRANT PROGRAM 5.01 Establishment of the Historic Property Grant Program 5.01a There is a Historic Property Grant Program established to assist in the protection, preservation, and enhancement of Washington County’s rural historic properties as authorized by § 9-204 of the Tax-Property Article of State Code. 5.01b The rehabilitation activities referred to in this Ordinance shall be in conformance with the Secretary of Interior’s Standards and Guidelines for Rehabilitation and subsequent revisions and with the Washington County Design Guidelines for Historic Structures and subsequent revisions. 5.02 Grant Funding Source for the Historic Property Grant Program 5.02a The funding source and yearly allocated amount for this grant program shall be: i) Any listed below or combination thereof: (1) Recordation Tax (2) Ag Transfer Tax (3) General Fund ii) The yearly allocated amount for this grant program shall be a minimum of $150,000 or greater as determined by the County. 5.03 Grant Amounts for a Historic Property Grant 5.03a An individual grant shall be a minimum of $5,000. 5.03b An individual grant cannot exceed $50,000. 5.04 Eligibility for a Historic Property Grant 5.04a Eligible applicants include individual property owners and non-profit organizations. i) Applicants must not have outstanding County permit or zoning violations. ii) Non-profit organizations must be in good standing with the State of Maryland Department of Assessments and Taxation (SDAT), be qualified to do business in Maryland, and have the legal capacity and authority to incur obligations involved under the grant program. 19 5.04b Criteria of Eligible properties include: i) Located in unincorporated areas of Washington County; and ii) The property is in a Historic Preservation Area; or iii) The landowner has placed the property in a Maryland Historical Trust permanent easement, that provides additional review and restrictions to the exterior appearance and maintenance of the historic structures; or iv) The landowner has placed the property in a Historic Preservation District as defined by the Washington County Zoning Ordinance; or v) The property is located in the Antietam Overlay 1 – Battlefield Buffer or the Antietam Overlay 2 – Approach as defined by the Washington County Zoning Ordinance and listed with the Maryland Historical Trust on the Maryland Inventory of Historic Properties; or vi) The property is listed in the National Register of Historic Places, individually or as a contributing property in a National Register District; or vii) The property is determined to be eligible by the Maryland Historical Trust for National Register designation; or viii) The property is in a County adopted Historic Rural Village; and the structure is a contributing resource to the Historic Rural Village. 5.05 Procedures for Historic Property Grant 5.05a Applications will be accepted once a year from December through February and; i) Applications will be reviewed by Department of Planning and Zoning Staff for completeness and have the opportunity to resubmit a revised application. ii) Applicants may revise final applications through March 31 of each year. 5.05b After receipt of a final application for a Historic Property Grant: i) The Historic Property Grant Subcommittee shall review and rank the applications based on competitive selection criteria established in this Ordinance. ii) Award recommendations will be presented to the Historic District Commission for approval or revision and subsequent recommendation to the County Commissioners. iii) Final award recommendations will be presented to the County Commissioners for approval or revision. 5.05c If neither the Historic Property Grant Subcommittee nor the Historic District Commission recommends the award of grant funding, the grant application shall be deemed denied and the County shall notify the landowner or landowners stating the reasons for denial. 20 5.05d The County may approve a Historic Property Grant only if: i) The property meets the eligibility criteria established under this Ordinance and any Regulations associated herewith; ii) The grant application has been reviewed by the Historic Property Grant Subcommittee; iii) Approval of the grant has been recommended by the Historic District Commission; 5.05e Award of grant funding shall not occur until: i) The County approves the grant application; ii) All parties have executed a Historic Property Grant Agreement 5.06 Historic Property Grant Subcommittee 5.06a The Historic Property Grant Subcommittee may be appointed by the Historic District Commission (HDC) Chairperson and shall consist of five (5) members. The chairperson may invite representatives to serve on the committee or may use the HDC members as the committee. Members may be from, but are not limited to, the following: i) A staff member of the Department of Planning and Zoning ii) A staff member of the Division of Permits and Inspections iii) A member of the Historic District Commission iv) A member of the Historic Advisory Committee v) A staff member of the Office of Grant Management 5.07 Eligible Activities and Expenses for Historic Property Grants 5.07a Costs for work funded by grant funds are NOT eligible for the Washington County Property Tax Credits for Improvements to Historic Specified Historic Structures. 5.07b Eligible Activities include the stabilization, rehabilitation, restoration and/or preservation to the EXTERIOR of a historic property. Examples of Qualified Rehabilitation Expenses include, but are not limited to: i) Roof Repair and Replacement ii) Chimney Repair and Replacement iii) Window Restoration iv) Masonry Repointing v) Structural Repairs vi) Repair of historic outbuildings 21 5.07c Ineligible activities include, but are not limited to: i) previously completed rehabilitation work; or ii) rehabilitation work that is underway; or iii) new construction; or iv) Landscaping, with the exception of historic; or man-made objects or features (such as stone walls or fences); or v) projects that do not conform to the Secretary of Interior’s Standards and Guidelines for Rehabilitation and subsequent revisions and with the Washington County Design Guidelines for Historic Structures and subsequent revisions. 5.07d Eligible expenses for the grant will be those directly associated with the stabilization, rehabilitation, restoration, and/or preservation of the property. 5.07e Ineligible expenses are those expenses associated with predevelopment costs necessary to prepare the application, such as fees for architectural plans and/or structural and/or condition assessments, or other expenses not directly associated with the rehabilitation of the property. 5.07f Work must be completed by licensed contractors who have demonstrated preservation skills and/or experience, as applicable. 5.08 Competitive Selection Criteria for Historic Property Grants 5.08a The Historic District Commission, in coordination with the Historic Property Grant Subcommittee, may adjust the points to be awarded and the subcategories criteria before the call for applications each year through regular meeting vote; however, the Historic Property – Forty (40) points, Project - Forty (40) points, and Project Management - Twenty (20) points, shall remain overall categories and points for ranking. 5.08b A grant match is encouraged, but not required. Inclusion of a match will be considered during the evaluation and selection process. In-kind matches of labor and materials are permitted. 22 HISTORIC PROPERTY 0-40 points Historic and cultural significance of the resource(s) What is the historical and cultural significance of the property? Does it have local, state, or national significance? Does it contribute to a district? For example, a property with low to medium significance at a local level would score lower than a property with high significance at the local and state and/or national level. Urgency of need for financial assistance Is the property at risk because of development or deferred maintenance? Is there a special window of opportunity for the applicant to rehabilitate this property? Is it critical to the operation of the property? A property at risk of collapse, for example, could be scored at 10 points. 0-10 points 0-10 points Diversity of resource types Extent to which the property would expand the diversity of resource types within the current funding cycle. For example, if applicant pool is mostly houses but one consists of a barn, the barn application would score 5 points. Equitable countywide distribution of funds Extent to which the project would contribute to the equitable geographic distribution of the grants funds across the County within the current funding year. For example, if most grant awards or applications have been received from the southern part of the County but one or two applications are from the northern and eastern parts of the County, then those two applications could score 5 points. Continued use of resource Historic resource has an identified use and will not be left vacant 0-5 points 0-5 points 0-10 points PROJECT 0-40 points Retention of historically significant material or details If the property has extensive and/or original materials, features, and finishes, is extra effort being expended in their retention? For example, if the project involves retaining all the original materials in the resource, then the maximum number of points should be awarded versus a project that calls for the majority of materials to be replaced. Provision for long-term resource preservation Will this project provide long-term protection of the resource? For example, if the project will stabilize or weatherize a resource and protect it from further deterioration, then it should receive the maximum number of points. Leverages funding from other sources Does the applicant provide a match from personal sources or, for non- profits, from donations or other grant sources? Is the match in-kind and does it adequately reflect costs? 0-15 points 0-15 points 0-5 points Realistic and feasible budget Does the budget provide enough detail and rationale to complete the project? 0-5 points PROJECT MANAGEMENT 0-20 points Readiness to initiate and complete the project Can the project begin and finish on schedule? Administrative capability Does the applicant demonstrate a thoughtful and orderly approach to organizing information? Is the proposed project well-presented, and does it meet the goals of the program? 0-10 points 0-10 points 23 5.09 Inspections of a Historic Property Grant Program 5.09a All phases of the grant process are subject to photography and inspection of the exterior of the historic structure and its site by Washington County staff. 5.10 Grant Agreement for a Historic Property Grant 5.10a Successful grant applicants will be required to sign a grant agreement detailing the total award amount, scope of work that defines the final project products, expenses eligible for grant funding, and any additional obligations on behalf of the awardee. 5.10b Projects associated with awarded grant funding must be completed within two (2) years of the date of the grant agreement. 5.10c All work shall be in conformance with the Secretary of Interior’s Standards and Guidelines for Rehabilitation and subsequent revisions and with the Washington County Design Guidelines for Historic Structures and subsequent revisions. 5.11 Disbursement of the Historic Property Grant Funds 5.11a An initial disbursement of 25% to 50% of the grant funds, to be determined by the Historic District Commission, will be awarded at the signing of the grant agreement. 5.11b At 50% completion of the project, an additional 25% of the grant funds can be disbursed upon receipt of paid invoices. 5.11c The remainder of the award will be released upon completion and delivery of financial receipts and photo documentation. 5.11d If project costs are less than the award, the balance will be absorbed back into the Historic Property Grant Program.