by John Neiuber

The aesthetics of a beautiful home are not to be denied. The well-designed and well-maintained homes and neighborhoods of Claremont are one of its main attractions to residents and visitors alike. The trees in “the city of” contribute to the walkability of the neighborhoods. And the proliferation of parks within a short distance of every neighborhood enhances that walkability.

There is no denying the role preservation has played in protecting the built environment of the city while addressing the needs of the community for the present and the future. The National Trust for Historic Places is celebrating the power of place for this year’s preservation month. It is all about the countless ways, large and small, that preservation contributes to our shared community and culture.

It is obvious that preservation pays when considering a flourishing business environment. The more business, the more tax dollars flow to the city to maintain the streets, sidewalks, trees and other infrastructure that creates a desirable community. The vision of our city leaders, past and present, to establish and maintain the regulations and design guidelines for the historic Village and the Village expansion, as well as for other business areas, has created a vibrant economy that, again, attracts residents and visitors. It pays to preserve.

The Vortox building, shown here in an undated archival photo, on Indian Hill Boulevard just south of the MetroLink station, will be adaptively reused for Village South and is eligible for state and federal tax credits. Photo/courtesy of Claremont Heritage

However, it is not just the city coffers and the community that are impacted, it’s also individual homeowners. Owners of historic homes benefit from preservation. Historic homes typically see higher rates of appreciation, especially in areas of strong historical significance. They are less susceptible to market downturns, making them a more stable investment. Historic homes are often valued by as much as 26% more than other homes in the same neighborhood. Several studies indicate that homes in historic districts contribute to enhanced property values that can increase as much as 16%. It pays to preserve.

City, state and federal programs also benefit homeowners of historic properties. Claremont has adopted the Mills Act, a vital economic incentive in California for the restoration of qualified historic buildings by private property owners. The Mills Act grants participating cities and counties the authority to enter into contracts with owners of qualified historic properties who actively participate in the restoration and maintenance of those properties. In return, the property owners receive a reduced property tax. Claremont grants up to six Mills Act contracts a year and, on average, homeowners receive nearly a 50% reduction in property taxes. It pays to preserve.

The State of California has implemented the Historic Rehabilitation Tax Credit Program for the rehabilitation of eligible historic residential and income-producing properties. Projects may receive a tax credit of 20% of the qualified rehabilitation expenditures, or QREs. Some projects may qualify for a 25% tax credit if certain criteria are met.Residential projects costing less than $25,000 in QREs do not qualify for the tax credit. Residential projects with a QRE greater than $125,000 are limited to the $25,000 tax credit allocation cap. Funds for the State Historic Rehabilitation Tax Credit have been allocated into three categories: 1) A certified historic structure that is a qualified residence; 2) A certified historic building with qualified rehabilitation expenditures of less than $1 million; and 3) A certified historic building with qualified rehabilitation expenditure of $1 million or more. Applications are reviewed yearly until the allocated funds for that application category are depleted. It pays to preserve.

This house on Seventh Street was restored and rebuilt to its original design under a Mills Act contract. Photo/courtesy of Claremont Heritage

The Federal Historic Preservation Tax Incentives program encourages the rehabilitation of historic buildings in the private sector. The program provides historic commercial or income-producing property owners with a 20% federal tax credit on QREs. The program has become one of the nation’s most successful and cost-effective community revitalization programs. The program has benefited California by generating jobs, preserving historic places that give cities, towns, and rural areas their special character, creating moderate and low-income housing, reducing new construction waste, and enhancing property values.

The National Park Service and Internal Revenue Service administer the program in partnership with the California Office of Historic Preservation, which is the point of contact for property owners wishing to apply for the rehabilitation tax credit. The Office of Historic Preservation provides consultation and architectural review based on the Secretary of Interior’s Standards for the Treatment of Historic Properties. It pays to preserve.

The former Bentleys Market, shown here in 1969, has been adaptively reused as La Popular restaurant. Photo/courtesy Claremont Heritage

Programs for preservation assist homeowners and commercial property owners to restore and, in many cases, reuse our historic resources for years to come. Right here in Claremont we walk past homes where the owners have been awarded a Mills Act contract. Each day we visit businesses housed in adaptively reused historic structures, such as the Packing House, Harvard Square, La Popular, Petiscos, The Back Abbey, Wolfe’s Market/The Meat Cellar, and the Old School House.

Decidedly, it pays to preserve. In dividends.