[Adopted 9-28-1999 by Ord. No. 99-18]
This article may be cited as the "Historic Properties
Tax Credit Program of Kent County, Delaware."
This article is adopted pursuant to the powers conferred upon the Levy Court of Kent County, Delaware in Article VIII, Section 1 of the Constitution of the State of Delaware, as amended, and in Delaware Code, Title 9, as amended.
The County of Kent County, Delaware, hereby
finds that the establishment of a tax credit program for qualifying
improvements to taxable historic properties is intended to help accomplish
the following purposes:
A.
Encourage preservation, restoration and/or rehabilitation
of historic properties listed in the National Register of Historic
Places individually or as a contributing property within a National
Register Historic District; and
B.
Encourage visible rehabilitation that will make the
County more attractive, focus attention on properties and improve
property values in the community, therefore enhancing their appeal
as places to live, to work, and/or to visit.
For the purpose of this article, the following
words and phrases shall have the meanings as set forth below:
A building which adds to the historical architectural qualities,
historic associations or archaeological values for which a district
is significant because:
Improvements to the architectural facade of the building
not including enlargements or additions (except where required to
comply with building and safety codes), excavation, grading, landscaping,
paving and site work. Qualified improvements include work necessary
to maintain the physical integrity of the building with regard to
safety, durability or weatherproofing.
A building which is individually listed in the National Register
of Historic Places or as a contributing property in a National Register
Historic District.
The list of districts, sites, buildings, structures or objects
significant in American history, architecture, archaeology, engineering
and culture on a national, state or local level as established by
the National Historic Preservation Act of 1966, as amended.
Costs associated with exterior improvements. Qualified costs
do not include soft costs. Soft costs are expenditures associated
with appraisals; architectural, engineering and interior design fees;
legal, accounting and realtor fees; loan fees; sales and marketing;
closing; building permits, use and inspection fees; bids; insurance;
project signs and phones; temporary power; bid bonds; and copying.
The act or process of applying measures to sustain the existing
form, integrity and material of an historic property.
The act or process of returning a property to a state of
utility through repair or alteration which makes possible an efficient
contemporary use while preserving those portions of features of the
property which are significant to its historical, architecture, cultural
and archaeological values.
The act or process of accurately recovering the form and
details of a property and its setting as it appeared at a particular
period of time by means of removal of later work or by the replacement
of missing earlier work.
Owners of historic properties located within
Kent County and listed on the National Register of Historic Places,
individually or as a contributing property within a National Register
Historic District, may be entitled to tax credits for preservation,
restoration and/or rehabilitation of the exterior architectural facades
of their buildings, subject to the following special procedures and
requirements:
A.
All qualifying improvements must be commenced on or
after the date of adoption of this article.
B.
Tax credits shall be applicable only for preservation,
rehabilitation and/or restoration of exterior architectural improvements
which are not covered by insurance claims due to recent damage of
the property.
C.
Tax credits shall be provided at 50% of the total
qualified cost of the approved preservation, restoration and/or rehabilitation
project up to a maximum credit of $6,000. The cost of the project
must be at least $1,200, resulting in a minimum tax credit for the
project of $600.
D.
Tax credits shall be prorated over the ten-year period.
For example, a credit of $6,000 shall be applied in increments of
$600 each year toward a property owner's County real estate tax. If
the credit is less than the annual tax due on a property, the owner
shall pay the difference to the County through the tax billing process.
If the credit is more than the annual tax due on a property, the owner's
credit shall be deemed equivalent to the annual tax due.
E.
The approved tax credit shall not transfer to new
owners of the property.
F.
The owners of a property may apply more than once
for tax credits; however, the total credit shall not exceed $600 per
year in any given year and a property may not receive a total abatement
of greater than $6,000 over a ten-year period.
G.
A single property owner is not eligible for more than
$600 in tax credits in a single tax year regardless of the number
of historic properties owned by such owner which may be eligible for
tax credits under this code, nor shall any single property owner be
eligible for more than $6,000 in tax credits for any ten-year period
regardless of the number of historic properties owned by such owner
which may be eligible for tax credits under this code.
H.
Nothing in this article shall relieve the property
owner or his agents from the responsibility of complying with all
other local codes and ordinances relating to construction contracting
permitting.
I.
[1]The tax credit shall be applied during the fiscal year
subsequent to the issuance of final approval by the Department of
Planning following review of the completed project. To be eligible
for the current fiscal year, Part 2 of the application must be submitted
by April 15.
J.
A tax credit pursuant to this article to a particular
property shall remain in effect for 10 years regardless of any change
in the authority of the County to grant such exemptions.
K.
Work must commence within one year following the date
of approval of a preconstruction application (Part 1 of the application).
The preconstruction application shall be considered to be in effect
as long as a building permit (if required by project activities) is
valid for the work specified on the property.
L.
Exterior improvement projects undertaken with the
use of community development block grants and other Housing and Urban
Development funds administered through the County Community Development
Program are not eligible for this tax credit program.
A.
Prior to the commencement of any preservation, restoration
and/or rehabilitation of any qualified historic property, the applicant
seeking to use the tax credit shall submit a tax credit for historic
properties application to the Department of Planning for review.
B.
The tax credit for historic properties application
shall consist of Part 1, Preconstruction Information, and Part 2,
Request for Review of Completed Work.
(1)
Part 1, Preconstruction Information, shall contain
the following information and materials:
(a)
Name of property owner, address and telephone
number.
(b)
Location of historic property.
(c)
Plans and specifications showing the impact
of the proposed work on the exterior architectural facade of the building.
(d)
Current color photographs of the property showing
the present condition, accurately representing the existing materials
and texture. All photographs shall be labeled indicating the direction
of view.
(e)
Other information as may be required to facilitate
review of the submittal.
(2)
Part 2, The Request for Review of Completed Work,
shall be submitted upon completion of the improvements. Part 2 shall
contain the following information and materials:
A.
The Historic Preservation Planner of the Department
of Planning shall review the submitted Part 1, Preconstruction Information,
including application, plans, photos and other supporting materials,
to determine if the property and the proposed project qualifies for
this program.
(1)
Determination of the property as a qualifying historic
property meeting the following:
(a)
Listed individually in the National Register
of Historic Places pursuant of the National Historic Preservation
Act of 1966, as amended; or
(b)
Buildings listed as contributing properties
within an Historic District listed in the National Register of Historic
Places pursuant of the National Historic Preservation Act of 1966,
as amended.
(2)
Determination of the proposed exterior improvement
project for a qualifying property for compliance with the following:
(a)
The proposed application constitutes an exterior
improvement project seen readily from a street, sidewalk, road or
public way which:
[1]
Sustains the existing form, integrity and material
of the building or structure, including stabilization work where necessary,
as part of ordinary maintenance and repair;
[2]
Returns the property to a state of utility through
repair or alteration which makes possible an efficient use of the
building, while preserving those portions or features of the property
which are central to its historic, architectural and cultural significance;
or
[3]
Accurately recovers the form and detail of a
property and its setting as it appeared at a particular period of
time in the past by means of removal of later work or by replacement
of missing earlier work.
(b)
The proposed application shall comply with the
Secretary of Interior's Standards for the Treatment of Historic Properties,
Standards for Rehabilitation and Guidelines for Rehabilitating Historic
Buildings.
(3)
Following review of the application for the proposed
project's eligibility and conformation with the requirements of these
sections, the Department of Planning shall issue a written statement
approving or disapproving the project for participation in the tax
credit program. Recommendations may be made to correct proposed work
deemed to be inconsistent with the standards cited above.
B.
The Historic Preservation Planner of the Department
of Planning shall review the submitted Part 2, Request for Review
of Completed Work application and other supporting materials requesting
a review of the completed work.
(1)
Determination of the completed exterior improvement
project for compliance with the following:
(a)
Verify that the preservation, restoration and/or
rehabilitation project of the historic property was completed in accordance
with the stated guidelines.
(b)
Verify that the written expense report includes
only qualified cost expenditures.
(c)
The Department of Planning reserves the right
to inspect the completed work to verify such compliance.
(2)
Following review of the application for completed
work, the Department of Planning shall issue a written statement approving
or disapproving the tax credit request.
(3)
The Board of Assessment shall be notified concerning
the approval of tax credits. The approved tax credits shall be applied
during the fiscal year subsequent to receipt of final approval from
the Department of Planning.
An applicant may appeal a tax credit disapproval
to the Board of Assessment following established appeal procedures.
The deadline for filing written appeals shall be May 15 prior to the
tax year for which the tax credit is sought.
The Department of Planning working with the
Historic Preservation Planner and other associated departments shall
establish written procedures providing for the administrative implementation
of this article.
