Sen. Brown touts historic preservation tax credit

By State Senator Scott Brown
Guest Columnist

Massachusetts is facing an on-going affordable housing crisis. At the same time, many of our communities have older buildings going to waste, thus denying cities and towns of a vibrant economy and jobs, as well as revenue that these empty old mills, theaters and restaurants used to provide.

The Massachusetts Historic Rehabilitation Tax Credit is one way to tackle these issues by providing for the renovation of historic buildings that once played a vital role in the local Massachusetts economy. The renovations include converting the buildings into cost-effective apartments, office space, community centers, performing arts venues and restaurants. These renovations cannot likely occur without incentives from the State. This program which started in April of 2004 with just 14 applicants and $10 million available in tax credits, has exploded to nearly 60 applicants this year alone, with $50 million available in tax credits.

The Massachusetts Rehabilitation Program, administered by the Massachusetts Historical Commission, determines which projects will be targeted for the tax credit-backed renovation. Any historic building, from old mills and factories, to simple theaters, can be a part of this program. The likelihood of qualifying for a tax credit with the renovation project is an enticement for developers to take on these projects and revitalize properties. What used to be a mill can be turned into a low cost apartment complex, which would also brighten up the area where the formally decaying building stood.

Clearly, developers and communities across the State have come to realize the value of this program. In turn, the people of Massachusetts are seeing a total revitalization of many downtown areas, where once decrepit buildings now exist as low-cost housing, and commercial space.

This program also addresses the direst issue currently facing the state, job creation. By giving developers a strong incentive to rebuild historic city and town landmarks, multiple construction related jobs are created in an industry that has been one of the hardest hit by the recession and faces one of the largest levels of unemployment. The lower-cost commercial real estate could also spark the incentive for new business start-ups and restaurants to open. This would be a real jolt to the small business community in Massachusetts, which has had trouble finding low cost overhead.

In many parts of the state where abandoned buildings are located, there is a need for incentives to create housing and stabilize neighborhoods. The Historic Rehabilitation Tax Credit also goes a long way towards increasing the amount of affordable housing. It is mandated that 25% of the available tax credits must be allotted for affordable housing projects. Historic preservation also increases the affordable housing stock.

I have co-sponsored legislation that would advance the Historic Rehabilitation Tax Credit program by three measures. First, this bill would raise the cap from $50 million to $100 million. Second, the bill would extend this program’s sunset provision, which is currently set at 2011, to 2014. Lastly, it will clarify the existing laws of eligibility of completed projects or ones placed into service that have applied for historic rehabilitation tax credit allocations.
Currently this tax credit is in high demand across the state. In Bristol County, there is a $25.1 Million tax credit demand with $133.3 million in potential investment. The same goes for Norfolk County where there is a $10.2 million tax credit demand that could supplement $83.8 million in potential investment. In Middlesex County there is an even larger demand of $84.8 million which could spur $503.4 million in potential investment.

Over the last 2 decades, the Massachusetts Preservation Coalition has compiled an annual list of their top most endangered historic buildings or areas. In my district alone several buildings will require such assistance including other historic buildings across cities and towns that may peak the interest of the Massachusetts Preservation Coalition and this Historic Rehabilitation program.

Citizens should let their city and town officials know of any possible sites that may qualify for this program. It is a wining investment for cities and towns and residents. It creates jobs and revitalizes older decaying buildings as well as the overall image of the locality, while also carefully maintaining its historic feel and keeping a city or town’s history alive.

State Senator Scott Brown (R-Wrentham) represents the Norfolk, Bristol, and Middlesex District, which includes Needham and precincts B, F and G of Wellesley along with several other communities.