[MassHistPres] Facade easments

[Dennis De Witt]

Ralph

The Brookline Preservation Commission has two facade easements (one  
in and LHD and one outside) with three others in the works.  To the  
extent that the easements do not require otherwise, I'm sure we would  
use our LHD guidelines with respect to any proposed changes.

Would we get into the business of federal tax deductions or offering  
easements for them?  I cannot imagine that.  What the individual  
wants to do on their own account is their own business.  As I assume  
you know, there has been much scrutiny of the "selling" of both  
facade and land preservation easements as tax shelters by congress  
and some concern on the part of traditional preservation entities  
like SPNEA that people "selling easement for the tax benefits" might  
endanger the ability of organizations like SPNEA to be able to offer  
easement for purely protection reasons.  I also understand that the  
IRS has or will adopt a policy of potentially subjecting anyone who  
claims a deduction on one of those easements to a tax audit.  That  
might make one think twice about it.

In a meeting with an organization pushing these types of easements,  
we have told them that if they sell any outside of an LHD we will  
want design review subject to LHD rules.  Given that the great  
attraction of a tax focused easement in an LHD is that it imposes  
nothing significant on the person granting it (and getting the  
subsequent deduction), I'd be surprised if we ever see any of these  
tax focused easements outside of an LHD.

Dennis De Witt
Brookline


On Dec 14, 2007, at 11:33 AM, <slater at alum.rpi.edu>  
<slater at alum.rpi.edu> wrote:

> Can a façade easement be used to get a privately-owned property  
> outside
> a local historic district under the control of a historical  
> commission?
>
> I have done a little reading on this, and I remember that people were
> sour on these a few years ago because people within historic districts
> were claiming them on high-priced properties, and there was no
> theoretical benefit to anyone since the properties were already
> controlled.
>
> According to an article I read, the façade value is equal to 11 to 15%
> of the appraised value of the home. There are some requirements,
> including an appraisal of the property and documentation of the
> features.
>
> The article I read mentioned that the easement had to be granted to a
> non-profit organization in order to be tax deductible, and that there
> was some rigor involved with that non-profit because they had to be
> "qualified to administer" the easement.
>
> I found some language that stated that the easement can be granted  
> to a
> governmental organization; Is that permissible in Massachusetts? If  
> not,
> and if only a 501(c)(3) corporation can be granted the restriction,  
> can
> that corporation cede control to a local historical commission?
>
> Thanks,
>
> Ralph Slate
> Springfield, MA
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