Historic Districts In Fox Point
Do you own, or are you considering buying a historic building? Is it in a historic district with possible tax credit incentives for exterior improvements? The issue can be confusing because there are three historical designations and sets of rules—City, State and Federal.
Transit Street in Fox Point – part of the College Hill Historic District.
The City of Providence’s Historic Districts
One way to simplify the three preservation efforts is to think of the state and federal programs as the carrots, while the city’s designation is usually the stick. The city’s program is overseen by the Historic District Commission, (HDC) and is a zoning designation, that prevents changes to the exterior of a building within the district without prior approval, (the stick). It has nothing to do with tax credits, (the carrots.) However, there may be financial incentives for improvements made in the HDC-controlled districts available from the state.
Generally, a house within a historic district sells for about 10 to 20 per cent more than a similar house not in a historic district. Also, there is the personal satisfaction and charm that comes from living on a street that appears much the way it did when authors H.P. Lovecraft and Edgar Allan Poe walked on it.
In Fox Point, there is a section of the neighborhood that is part of the College Hill Historic District. It has a main section of streets that include those east of the Providence River; west of Brook Street; north of Wickenden Street and south of Charlesfield Street, It then has two “arms,”—one that extends all the way down Benefit Street and another bordered by Power, Angell, Govenor, and Hope streets.
Having an area designated as a Historic District by the City of Providence has some trade-offs involved, particularly if you wish to change the exterior of your house in any way. However, there are city personnel to help you through the process, like Jason Martin, who can be reached at 401/351-4300, extension 517. Visit www.providenceplanning.org and find HDC under Boards & Commissions to review maps of the city's historic districts and find out more about the HDC goals.
Power Street in College Hill Historic District.
The National Register of Historic Places
However, there are two other historic designations that could apply to properties, both of which are administered by the State of Rhode Island’s Historical Preservation and Heritage Commission, (RIHPHC). These two programs are referenced as the “carrots,” because their regulations to maintain a building’s historical significance are not as restrictive—and because they offer the tax credits for renovations. (A tax credit is much better than a tax deduction because it is subtracted from the bottom line of a person’s tax liability—after all other deductions have been made.)
One designation is The National Register of Historic Places district, which in Fox Point is larger than the city’s historic district. It is bordered on the east by Governor Street, by the shorelines of the Narragansett Bay on the south and the Providence River on the west, and Olney Street on the north. If you live within this district, you can receive a 20-percent federal tax credit for approved renovations. So, if a building’s owner spends $10,000 on a home’s exterior there would be a $2,000 tax credit, which is the annual maximum credit. If you spend more than $10,000, another 20-percent tax credit can be carried over to the next tax year and following years.
Basically, the commission looks at the age of a building, but also how well it is historically preserved— also how well its neighboring structures are preserved. That regulation might explain why the area east of Governor Street to the Seekonk River was excluded from the National Register. Ironically, this small area of Fox Point includes equally old houses and has the supposed landing place of the city’s founder, Roger Williams. “Home improvements,” like vinyl siding, chain-link fencing and replacement windows are extensively found in those two blocks east of Governor Street to the river.
However, the owners of individual houses within this area still may apply for a listing on the National Register. If their house is historical for some particular reason, or they agree to follow the renovation guidelines set out by the commission, they may receive an individual designation. Again, the chances are better if the adjacent houses on the street have retained historical features, too. For more information and assistance on The National Register of Historic Places, contact www.preservation.ri.gov/register/assistance.php.
Rhode Island’s Historic Tax Credits
RIHPHC’s state program, which closely tracks the criteria and approval process associated with the National Register, offers a 22-percent tax credit for investment property and a 20-percent credit for homeowners. An example of a structure that might receive a state designation without already being on the National Register would be a one of particular historical significance to a community, like a train depot.
For investment property, the state’s program allows the recipient of the credit to sell it to developers and others, who are allowed to use ‘80 cents on the dollar’ of the 22 percent tax credit to offset taxable income.
If you are interested in tax credits, go to www.preservation.ri.gov to find out more about the criteria, and print out applications.
Another helpful source of information can be found on the web site of the Providence Preservation Society, (PPS)—www.ppsri.org.