Preservation Action Alert

TomWheaton@AOL.COM
Tue, 18 Jul 1995 13:15:11 -0400

Over the past few months, ACRA and the archaeological community have been the
beneficiaries of help from Preservation Action in our lobbying efforts.
Publishing the following plea from Nellie Longsworth of Preservation Action
is an attempt to return the favor. Preservation Action and ACRA are
interested in obtaining tax credits for homeowners who rehabilitate historic
houses. This program actually ends up saving taxpayers money through
adaptive reuse, to say nothing of the enhancement of our towns and cities.
Please consider supporting Preservation Action by writing to your
representative. They helped us with the Advisory Council, let's help them
with something we can all support.

Tom Wheaton
Exec Dir - ACRA

(Downloaded From Preservation Plus, the online preservation network supported
in part by ACRA)

WAYS AND MEANS COMMITTEE :
Call for WRITTEN TESTIMONY to support action on the Homeowners tax credit (HR
1662) - Due July 27

Bill Archer (R-TX), Chair of the House Ways and Means Committee, held
hearings last week on Miscellaneous Tax Reforms representing a broad range in
tax measures, including the tax simplification measures recently introduced.
The Chair has encouraged written testimony in lieu of appearances due to the
large number of items that qualify for hearings. To accommodate those
interested in sending testimony, the record will be open until July 27th.

Among issues on the table is HR 1662, the Historic Homeownership Assistance
Act, the tax credit for rehabilitation of historic homes. Introduced by Clay
Shaw (R-FL) and Barbara Kennelly (D-CT), the measure has 36 co-sponsors from
both sides of the aisle, including Newt Gingrich (R-GA) and Richard Gephardt
(D-MO).

Since no one testified before the committee on behalf of HR 1662, it is
important that we have a number of submissions documenting how this tax
credit will be an economic stimulator in your community, your city, or your
state. Your written testimony does not need to be long but it needs to be as
specific as possible as to why this credit deserves to be in the major GOP
tax bill that will include changes in capital gains tax, a tax credit for
children, and the elimination of the marriage penalty. Do not forget that HR
1662 is a rehabilitation tax credit that assists owners of historic homes
(their primary residence only) and will encourage investment and
homeownership in our disinvested neighborhoods.

Please read the following carefully and do exactly as stated:
REQUIREMENTS FOR STATEMENTS SUBMITTED FOR THE RECORD TO THE WAYS AND MEANS
COMMITTEE OF THE HOUSE OF REPRESENTATIVES

Name and address of submitter with a list organizations, if any, supporting
the statement

Date of hearing (July 11,12, and 13, 1995)

6 copies

Legal sized paper, single spaced

No more than 10 pages

Address statements to: Phillip D. Moseley, Chief of Staff, Committee on Ways
and Means

US House of Representatives, 1102 Longworth House Office Blg.
Washington, DC 20515-6384

Include supplemental sheet with your name, address, and telephone number and
a topical outline or statement summary (which could be as short as "in
support of HR 1662")

And, lastly, please fax a copy of your testimony to Preservation Action -
202-659-0915.

IF YOU HAVE QUESTIONS, CALL PRESERVATION ACTION - 202-659-0915

H.R. 1662

THE HISTORIC HOMEOWNERSHIP ASSISTANCE ACT OF 1995
Introduced in the House by Clay Shaw (R-FL), co-sponsored by Barbara Kennelly
(D-CT)
To be introduced in the Senate by John Chafee (R-RI), co-sponsored by Bob
Graham (D-FL)

It's time to find a way to reverse disinvestment and blight in our older
residential neighborhoods and - THE HISTORIC HOMEOWNERS TAX CREDIT IS THE
ANSWER. This is NOT another large federal program but an incentive for
people committed to turning decaying buildings in primary residences. The
credit would reach out to current homeowners as well as the many middle class
families currently on the cusp of homeownership. Rehabilitation activities
would provide jobs for area residents of diverse incomes. Furthermore, this
reinvestment would bring back the tax base, take advantage of our cities well
developed infrastructure, and save taxpayer dollars.

QUALIFYING PROPERTIES: Single-family and multi-family residences,
condominiums, and cooperatives listed on the National Register would qualify
and the credit could be taken for a portion of a qualified building used as a
principle residence.

AMOUNT OF ALLOWABLE CREDIT: A 20% FEDERAL INCOME TAX CREDIT TO HOMEOWNERS WHO
REHABILITATE OR BUY a qualified rehabbed historic house. The credit is
limited to $50,000 for each principal residence. Expenditures must be
greater than $5,000 or the adjusted basis, with exceptions for buildings in
low income census tracts targeted as distressed, and Enterprise or
Empowerment Zones where the minimum would be $5,000. 5% of the
rehabilitation expenditure must be spent on the exterior.

THE "PASS THROUGH" FEATURE: A developer may rehab a qualifying property and
sell it to a homeowner with the credit. The homeowner may apply the credit
to tax liability over a number of years but, if the property is sold before 5
years, the credit is subject to ratable recapture.

LOWER INCOME FAMILIES CAN AFFORD REHABBED HOUSING : Taxpayers with little or
no tax liability may convert the credit into a mortgage credit certificate to
obtain a mortgage interest rate reduction from the lender.

STANDARDS FOR REHAB: The Secretary of Interior's Standards are required, but
the final certification will consider such factors as location in a "targeted
area", Enterprise Zone, or Empowerment Zone.

CO-SPONSORS TO DATE IN THE HOUSE: Goss (R-FL), Moakley (D-MA), Hutchinson
(R-AR), Gephardt (D-MO), Torkildsen (R-MA), Maloney (D-NY), Richardson
(D-NM), Hinchey (D-NY), Clyburn (D-SC), Nadler (D-NY), McCrery (R-LA), Neal
(D-MA), Zimmer R-NJ), Baker (R-LA), Hastings (D-FL), Bilbray (R-CA), Jacobs
(D-IN), Dias-Balart (R-FL), Jefferson (D-LA), Gingrich (R-GA), Kennedy
(D-RI), Johnson (R-CT), Mfume (D-MD), Livingston (R-LA), Mollohan (D-WV),
Wolf (R-VA), Oberstar (D-MN), Young (R-AK), Rangel (D-NY), Reed (D-RI), Sabo
(D-MN), Fraser (IND-VI), and Ward (D-KY). Sen. Chafee (R-RI) and Sen. Graham
(D-FL) will introduce the measure in the Senate.