Preservation Research OfficeFrom Preservation Action
With still no FY 2011 spending bills passed, and the federal government operating on a continuing resolution that was set to expire today, late last night Congress passed yet another resolution extending FY 2010 funding levels until December 18th.
A permanent path for FY 2011 funding levels is still unclear. Between now and the 18th, Congress will continue to argue over several possible scenarios:
Governor Jay Nixon’s Tax Credit Review Commission has approved the recommendation that the Missouri State Historic Rehabilitation Tax Credit’s annual cap be lowered from around $161 million to $75 million. Other changes included in the final recommendations are disallowing combination of the historic tax credit with the Neighborhood Preservation and the Low Income Housing Tax Credit.
The Missouri Coalition for Historic Preservation and Economic Development has posted an article that outlines how these recommendations ended up being passed after the Subcommittee on Historic Tax Credits made completely different recommendations. Read that article here.
From the Coalition for Historic Preservation and Economic Development
The report contains the Subcommittee’s recommendations to the TCRC. Per the final report, the Sub-Committee’s methodology used to come to the report conclusions were as follows:
Over the course of its meetings, the Subcommittee collected and considered a significant amount of testimony, facts, assertations, and reports from economists, national organizations, DED, members of the development community, private and public leaders and the public themselves. The Subcommittee submits this Report in part as a response to the fifteen questions posed by the Co-Chairmen of the Commission in their memorandum to the commission dated September 16, 2010. The Subcommittee has also chosen to supplement its response to the Commission’s questions with specific recommendations to the commission for proposals to modify the program.
The HTC Subcommittee’s Final Report identified seven recommendations for the Tax Credit Review Commission to consider for its final report to the Governor.
1. The Annual Cap placed on the credit in 2009 to remain in place
2. Revision to HTC Carry back/Carry forward provisions
3. Revision to Deferred Developer Fee methodology
4. Reductions of Percentage of Credit when combined with LIHTC
5. Owner Occupied Cap reduction
6. Cost Certification Review – Create more efficiencies and quicker turnaround time
7. Program Efficiencies – work to clarify DED interpretations of the law and to direct issuance fee back to support the program
The Tax Credit Review Commission will be meeting November 5th in Jefferson City, MO to review all reports from the various Tax Credit Subcommittees. Once all reports have been reviewed by the TCRC they will draft their final report about all of Missouri’s Tax Credit Programs for Governor Nixon to review.
From Preservation Action
On Thursday of this week, before adjourning for the midterm elections, Congress passed a stopgap funding measure to keep the federal government operating until December 3rd. The 2010 Fiscal Year ended at midnight yesterday. As was expected, funding was extended, with a few exceptions, at FY 2010 levels.
The passage of the measure, usually referred to as a Continuing Resolution or “CR,” puts off what are expected to be particularly hostile spending decisions until after the midterm elections. However, while the Democrats are saying they plan on settling FY 2011 appropriations bills during the lame duck session (the period between the midterm elections and the beginning of the new legislative year), Republicans are hoping to further delay spending decisions until the next Congress when they may have control of one or both chambers.
With funding in the Administration’s proposed FY 2011 budget eliminated for Save America’s Treasures and Preserve America, and cut in half for National Heritage Areas, an extension at FY2010 levels is positive for preservationists. While Congress has been receptive to the notion of retaining funding for these programs in their subsequent spending bills, to date neither chamber has passed such a bill or given an indication of what the funding levels would look like.
Lame Duck Likely To Be Lame For Preservationists
With Congress adjourned after passing little more than the CR, and a full slate of spending bills that will need to be dealt with for FY 2011 upon their return on November 15th after contentious midterm elections, the jury is out on what else they will be able to focus on. Sources are telling us that the likelihood of the Senate taking up an energy bill, such as either S. 3663 or or H.R. 3534 (the CLEAR Act), are very slim. While the former contains full-funding for the Land and Water Conservation Fund (LWCF), the latter contains both full funding for the LWCF and the Historic Preservation Fund. Preservation Action and its partners have been advocating for the Senate passage of the CLEAR Act for several months.
In addition to appropriations, likely candidates for consideration are the extensions to the Bush era tax cuts, and “New Start,” a new arms control treaty with Russia. Any introduced bills that do not get signed into law before the end of 111th Congress will die and would have to be reintroduced in the 112th Congress, which begins January 3, 2011.
From Preservation Action
As we have been reporting for months, there has been very little progress to date on FY 2011 spending bills. With a polarized Congress gearing up for a major mid-term election season in which polls indicate that Republicans could take control of the House, few legislators have been willing to push for spending bills that could further agitate constituents concerned about federal spending.
While the House Appropriations Subcommittee on Interior, Environment and Related Agencies approved a draft $32.2 billion spending bill in July (the numbers for which have been kept secret, although committee members are saying funding for critical historic preservation programs that were proposed for cuts by the administration has been restored), the Senate subcommittee has yet to hold a hearing citing irreconcilable differences on additional spending and on climate change regulations.
Even if the Senate Appropriations Committee would approve a bill, neither the full House nor Senate will be able to take up any spending bill before the end of the fiscal year on September 30th.
In order to keep the Government in business, Congress will have to pass a Continuing Resolution (CR) next week. Recognizing Republican opposition to increased spending, Democratic leaders are trying to limit the measure to current FY 2010 funding levels, although there is significant pressure to include funding for some new programs. Sources say the CR will most likely extend funding until December, well after the elections.
Once Congress returns post-election, there could either be an attempt to create an omnibus spending bill that includes many or all individual spending bills, or an extension of FY 2010 levels through all of FY 2011.
Preservation Action is the national lobbying organization for historic preservation policy. Individuals can join and support its work for only $20; learn more at www.preservationaction.org
From the National Trust for Historic Preservation
The Missouri Historic Tax Credit is under review. Governor Nixon’s Tax Credit Review Commission (TCRC) has begun its review of Missouri’s tax credit programs. In addition to the full TCRC meeting which was held September 8, 2010 to debrief the Commission members on all of the tax credit programs, there are several smaller regional meetings to be scheduled throughout the State, at which time public testimony will be taken.
The Missouri State Historic Tax Credit program is under scrutiny by the commission. It is critically important at each of these public hearings for commission members to understand the great benefit of the historic tax credit to the state of Missouri!
So how can you help? The National Trust for Historic Preservation is urging you to attend the upcoming regional TCRC meetings to voice that more cuts to the existing Historic Tax Credit Program will only reduce state revenues and kill more jobs, and that surrounding states are increasing their historic tax credit caps to create jobs.
Upcoming TCRC Meetings:
Cape Girardeau
Monday, September 20th
John and Betty Glenn Convocation Center
Southeast Missouri State University, River Campus
One University Plaza
Cape Girardeau, MO 63701
3:00 p.m. – 9:00 p.m.
St. Louis
Tuesday, September 21st
Missouri Court of Appeals, Eastern District
En Banc Courtroom
One Post Office Square
815 Olive Street
St. Louis, MO 63101
3:00 p.m. – 9:00 p.m.
Please send an e-mail encouraging the continuation of the Missouri Historic Tax Credit. Write to the Tax Credit Review Commission today!
by Michael R. Allen
Although last year’s effort to pass an Illinois state historic rehabilitation tax credit did not pass the legislature, a very specific pilot program did pass and receive Governor Pat Quinn’s signature. Senate Bill 2534 created a one-time 25% tax credit against the income of the owners of the historic Pere Marquette Hotel in Peoria (1927). The $40 million rehabilitation project that the owners have started must follow the Secretary of the Interior’s Standards for Historic Rehabilitation in order to receive credits.
Yesterday the Peoria Journal Star published the article “Preservationists watching hotel pilot project in Peoria”, a good analysis of the pilot program and the larger effort to pass a statewide tax credit. There are obvious questions. Is the tax credit “pilot” really a pilot if the legislature does not pass the statewide credit? Why choose one $40 million project in a larger city instead of several smaller projects totaling $40 million across the state? Did the owners of the hotel make political headway that other owners will never make?
The “pilot” project is a good one, but there are so many others across the state equally worthy of the state’s consideration. All will create jobs and generate local sales and income tax revenues. The legislature should pass a credit open to all. If Illinois cannot afford a 25% credit, the legislature should look at a different figure that the state can. Missouri’s tax credit program is the model used by Illinois legislatures that crafted last year’s bill. One of the reasons the tax credit is a model is because it is open to all who qualify and the application process is not subject to approval by or the influence of elected officials. Illinois’ first attempt to create a historic tax credit greatly underscores that fact.
From Preservation Action
At the end of July, a statement from from the White House was quietly released (in fact so quiet, most of us completely missed it) in which the the President expressed his support for the CLEAR Act, H.R. 3534. In his “Statement of Administration Policy,” which includes support for several oil spill prevention and off-shore drilling measures, the very last paragraph states that “The Administration strongly supports funding for land and water conservation and historic preservation projects that prioritize the needs of the Nation based on competitive process.â€
While it is still unclear just how much of a priority historic preservation is to the Administration, this is a good starting point, and one we can use to bolster our arguments to the Senate for inclusion in their version of the CLEAR Act. For the president to understand the economic benefits of historic preservation that speak directly to “the needs of the Nation†during this difficult time is a huge boon to our campaign for full funding of the HPF.
The administration has not previously shown open support of historic preservation; demonstrated most clearly by the FY 2011 budget cuts to eliminate funding for Save America’s Treasures and Preserve America, and greatly reduce funding for National Heritage Areas. Preservation Action and our members need to continue working hard to make sure our voice is heard and kept on the executive radar. The best ways to act are continuing to provide feedback to the America’s Great Outdoors initiative, contact your Senators and ask them to support HPF in the energy bill, S. 3663, and to help broaden our network by reaching out and finding new members for Preservation Action.
by Michael R. Allen
The legal battle to to overturn Chicago’s 42-year-old landmark ordinance continues, with a chilling effect on designation in Chicago and cautious attention elsewhere. Two property owners in local historic districts sued the city a few years ago on the grounds that the ordinance was an “arbitrary and capricious” exercise of city police power. Last year, after the plaintiffs appealed a Circuit Court ruling against them, the Illinois Appellate Court ruled that the ordinance was indeed unconstitutional due to vague wording. The City of Chicago appealed to the Illinois Supreme Court, which denied the appeal and remanded the case to Circuit Court.
This week Chicago Tribune critic Blair Kamin reported that the case is headed for a hearing on August 27. There is a possibly hopeful twist: the circuit judge has split the case into two parts, one on the ordinance and one on the enabling ordinances for the two districts themselves. The August 27 hearing is on that second part only. The judge has placed the challenge to the Chicago landmark ordinance on hold.
by Michael R. Allen
Yesterday by a vote of 209-193 the United States House of Representatives passed the Consolidated Land, Energy, and Aquatic Resources (CLEAR) Act of 2010 (H.R. 3534), sponsored by Representative Nick Rahall (D-WV). The CLEAR Act is important to historic preservation efforts because it included the first-ever full annual appropriation of $150 million to the federal Historic Preservation Fund (HPF), one of the conservation funds funded by offshore oil lease revenues. The HPF and the Land and Water Conservation Fund (LWCF) have been funded through lease revenues since the 1980s.
The HPF provides federal money available to state and tribal historic preservation offices through matching grants for preservation planning, architectural survey, educational programs and other activities authorized in the Historic Preservation Act of 1966. Certified Local Governments — like St. Louis, Kirkwood and Chesterfield to name a few locals — can apply for funds through state historic preservation offices. The HPF, created in 1976, allows local budgets to stretch.
The U.S. Treasury Department estimated that the balance in funds that can only be appropriated to the HPF at $2.7 billion in Fiscal Year 2009. Previous Congresses have authorized anywhere from one-third to two-thirds of the $150 million annual appropriation that Congress authorized in 1974.