Differences Between NYC & National Landmark Rules

Getting our house renovated feels like a never ending series of delays. We thought we had picked a contractor, but his final bid was 88% higher than his initial bid (!). We knew his initial bid was too low, but weren’t expecting such a huge increase. Now that his price is so much higher we’re re-examining our options and are back to getting other bids. We may wind up going with him, but the equation has changed.

Then there’s the tax credit incentives which I wrote up in a previous post. It’s yet another delay, but a delay that may put $100,000 in our pocket, so it’s worthwhile…

The first thing to realize is that the tax incentives follow federal (National Park Service) guidelines. Those are not the same as New York City Landmarking rules (as enforced by the Landmarks Preservation Commission). In some ways they’re more lenient, in other ways they’re stricter. Personally, I like the national standards better than the City’s standards.

When you get landmarked by New York City their objective is to restore the area to what it looked like in the past. As you do major work you’re required to put things back to what they used to look like. But the City is only worried about what things look like from the street (with the rare exception of landmarked interiors).

The federal government has a slightly different objective – they want to preserve and respect existing historic details. They’re more restrictive in that they care about everything – not just what can be seen from the street. However, they’re less restrictive in that if an original detail is missing they’re not quite so fussy about what replaces it. I spent a half hour on the phone with the woman from NY State’s Office of Historic Preservation in part trying to understand how that actually gets implemented. They have two options for replacing original details – 1) replicate the original exactly, or 2) put something contemporary in it’s place that’s generally “compatible” with the original design and more plain (less ornate) than what was there originally. Here are a few examples…

Front Doors – When we started thinking in terms of meeting the guidelines for the tax credit we wondered what we should do about the front door. Our original plan was to have two 8 foot (French) doors with a 2 foot transom over them. The doors would be wood and have the general proportions of the original doors with wood panels in the bottoms and glass in the upper portion.  Thing is, in looking at the picture of our house from 1940 we see there were solid wood doors that were the full 10 feet tall. We then went to Demolition Depot thinking we might be able to find an old door that would pass muster with the historic preservationists. We found some, but they had glass panels in them. When I was talking to the woman from NYS I realized I had it all wrong. They don’t want old doors, or even new doors that look like old doors, unless they’re the originals or identical to the originals. The doors we were planning on initially were almost perfect – clearly contemporary, similar proportions, less ornate than the originals, etc. We’ll probably need to get rid of the transom and make the doors full height. And they may push back on the the glass in the doors – we’ll see… But the point is they like new doors better than non-original old doors.

Stoop Newel Posts – Unlike NYC LPC, the state/federal guidelines don’t require us to do anything with the newel posts – we could just repair what’s there. If we were landmarked by the City LPC I’m pretty sure they’d would require us to restore them given the overall size of our project. We want to do more than patch up what’s there – we want it to be much closer to what was there originally. Our guidelines will be 1) generally similar to the original, 2) less ornate than the original. Our only problem is Dan wants cast iron posts and finding ones that meet the federal guidelines.

Ground Floor Security Gates – Like the newel posts, because the originals are missing we have some latitude. We can do something contemporary and compatible and less plain than the original. That’ll save us a lot of money…

Windows – Again, the state/federal government lean a bit more liberal when replacing details that aren’t there. The woman I spoke with was open to the idea of “fake double hung windows” – ones that look like double hung from the exterior, but are actually tilt-n-turn windows. She was also open to the idea of having color matched protective metal trim on the wood windows’ most vulnerable spots. But she emphasized “open” didn’t mean they’d get approved. Still, I don’t think LPC would even entertain the ideas.

BUT, there are ways in which state and federal guidelines are stricter than LPC’s guidelines. They care about things like rear façades which can’t be seen from the street. We don’t have any original details inside the building, but I think they’d care about them if we had them which could be a huge headache.

Our rear deck is probably going to be the biggest sticking point. For starters federal guidelines require an archeological survey if there’s ground disturbance. However, because that’s cost prohibitive for small projects they’ve never actually required it for homeowners. But they clearly don’t like the idea of ground disturbance. Because our deck is, in part, a fire egress for our unit they’re willing to consider it. We’ll see what feedback they have.

I’m also not sure how they’ll handle the bulkhead we’re putting on the building – we’ll see what they say about that. I think we can make a strong argument for how we’ve done it, but I sorta expect them to ask us to change something – I’m just not sure what that something will be.

Both the LPC and National Park Service guidelines are somewhat difficult. I’m really glad we only have to meet one of the two. If we were landmarked by the City we’d need to comply with both. I’m also really glad we don’t have a lot of original detail. The lack of it is really helping us. After talking to her I wondered what limitations there would be if you had original plaster walls – would you be allowed to tear them out and change your floorplan?

At least they pay you to put up with all the rules…

Our townhouse over the years…

The City of New York has old tax photos available from 1940 and 1980 for people who want to know what their building looked like in the past. Here are the photos of our building…

Here’s the building in 1940…

168 West 123rd Street Harlem Brownstone in 1940

There are a few things that are interesting here. First is the size of the windows. I was expecting to see smaller panes. Clearly the architect liked the idea of big huge panes of glass.

I also like the low wall along the street, though that wouldn’t be considered safe enough these days. We plan on putting in a low wall with some sort of fencing above to make it meet current standards.

The next item is that you can sorta see the front door in the house next to ours and it’s solid wood with no windows. That’s somewhat surprising (and dark).

I also love the newel posts at the bottom of the stoop – wish they were still there. Dan thinks they’re done in brownstone, I think they’re done in cast iron. Oddly cast iron was the less expensive option back then. We probably only have the money to recreate something like them in brownstone.

The other surprising thing was that the building 2 doors down already had a fire escape by 1940 (it’s still on the building).

And here’s the building in 1980…

168 West 123rd Street Harlem Brownstone in 1980

You can see that the building had sorta seen hard times by 1980s. City records tell us a vacate order was issued in 1966 (and never lifted). So the building’s problems most likely started in the early 1960s, if not sooner.

By 1980 windows had been replaced with less expensive windows – a smaller window on the parlor floor and smaller panes of glass in the top two floors. The front doors were gone and replaced by one that was far less expensive and with a lot less character. The wonderful newel posts were gone.

On the plus side we can see that the exterior had been painted. While this may not seem like a good thing, what’s good about it is that 30 years later it’s still in remarkably good condition – the only problems are the cornices. We were thinking of doing a major job on the exterior, but seeing how stable it’s been we’ve changed our plans and will just patch up and restore the painted surface.

Our building has a commercial overlay. We’re allowed approximately two floors of commercial space. You can see in the picture that the ground floor was “The Happy Game Room”…

The Happy Game Room - 168 West 123rd Street, NYC, 1980

I’m sure the Happy Game Room wasn’t a completely legal establishment. After all, our block was a drug block back in the day. I’m sure there was a fair amount of drug use, drug dealing and gambling going on…

And here’s the building today (actually November 2009)…

168 West 123rd Street Harlem Brownstone Shell, 2009

After 1980 a storefront was added to the ground floor.

Things got pretty bad in the mid-90s when the building became a drug flop house. We’ve talked to some of the neighbors who “lived” in the building at that time. There was a raid and a largely unsocialized (nearly feral) child was found in a closet. Then there was a fire and apparently people pretty much stopped “living” there after that. But the woes continued and the building was involved in a mortgage fraud scandal that delayed it’s being renovated.

But hey, it got a tree! That’s a small step forward… 🙂

It’s definitely time for the building to get a new lease on life…

The government will pay 40% of your renovation costs…

Did the title get your attention? Good… This is pretty important…

It’s amazing how much we didn’t know when we bought our place. I was doing TONS of research, thought I knew a fair amount, but first I didn’t know we were buying into the roughest block in the neighborhood, and now I find out there are government programs that will pay up to 40% of our renovation costs. 40% makes a REAL difference and we had no clue when we went into contract… If we had picked the “wrong” building we would have gotten nothing.

Last night I went to a “town hall forum” run by state senator Bill Perkins on tax credits for renovating historic buildings. Luckily (for us) our townhouse is in an area that’s on the National Register of Historic Places. Being in that area is what qualifies us for the tax credits. You also have to be in a census tract that is below the average income in New York State ($51,000). Nearly all of Senator Perkins’ district is below the NY state average income – some 1600 buildings qualify for these credits. HOWEVER, next year they’ll be changing over to 2010 Census data and there’s no guarantee that those buildings will qualify next year. So you should take action pretty quickly to get this money.

Here’s how it breaks down… There are state and federal programs and they’re divided into “homeowner” and “commercial”. “Commercial” means anything that produces income – including rental apartments in a townhouse. In general you can get 20% for homeowner and 40% for commercial. (There’s also a 10% credit for old, but non-historic buildings, but it can’t be used for residential buildings.) There is a max credit of $50,000 for the homeowner credit, and $5M for the state part of the commercial credit, but the federal commercial credit is unlimited.

In both cases there are stipulations… For starters these credits are for historic buildings so they’ll only pay for things that are done inside the historic building envelope. They won’t pay for the fence along the street, they won’t pay for a new sewer connection, the won’t pay for a deck on the back of the building, etc. But they will pay for pretty much everything else. The other big stipulation is that you must follow federal guidelines when doing the renovation (as defined by the Secretary of the Interior and the National Park Service). There are 10 guiding principles which are worth repeating here…

  1. A property shall be used for its historic purpose or be placed in a new use that requires minimal change to the defining characteristics of the building and its site and environment.
  2. The historic character of a property shall be retained and preserved. The removal of historic materials or alteration of features and spaces that characterize a property shall be avoided.
  3. Each property shall be recognized as a physical record of its time, place, and use. Changes that create a false sense of historical development, such as adding conjectural features or architectural elements from other buildings, shall not be undertaken.
  4. Most properties change over time; those changes that have acquired historic significance in their own right shall be retained and preserved.
  5. Distinctive features, finishes, and construction techniques or examples of craftsmanship that characterize a historic property shall be preserved.
  6. Deteriorated historic features shall be repaired rather than replaced. Where the severity of deterioration requires replacement of a distinctive feature, the new feature shall match the old in design, color, texture, and other visual qualities and, where possible, materials.  Replacement of missing features shall be substantiated by documentary, physical, or pictorial evidence.
  7. Chemical or physical treatments, such as sandblasting, that cause damage to historic materials shall not be used. The surface cleaning of structures, if appropriate, shall be undertaken using the gentlest means possible.
  8. Significant archeological resources affected by a project shall be protected and preserved. If such resources must be disturbed, mitigation measures shall be undertaken.
  9. New additions, exterior alterations, or related new construction shall not destroy historic materials that characterize the property. The new work shall be differentiated from the old and shall be compatible with the massing, size, scale, and architectural features to protect the historic integrity of the property and its environment.
  10. New additions and adjacent or related new construction shall be undertaken in such a manner that if removed in the future, the essential form and integrity of the historic property and its environment would be unimpaired.

Curiously, those are not exactly the same standards as the City’s Landmarks Preservation Commission (LPC) uses. The LPC is much more rules based, where the national system is much more interpretive and subjective so you can get approved by LPC and then rejected by NY State or the National Park Service.

In our case we don’t have to deal with the NYC LPC since we’re not landmarked by the City, so we just have to deal with the federal standards. One of the presenters last night worked for New York State Office of Historic Preservation and is the woman who will probably be the primary person making the decision on our project. I asked her a number of questions many of which were about windows. Her responses say a lot about their decision making process.

The windows we’ve been wanting are tilt-n-turn windows. Normally you wouldn’t think of tilt-n-turns on a historic building, but they can be mulled together in a way that makes them appear from the outside to be double hung window. We realized early on in the process that our window openings are so huge that we need “architectural” level windows. Those don’t come cheap, so we started investigating what our options were and looked beyond the standard choices (Marvin, Anderson, Pella) and had an architect recommend Gaulhofer. Gaulhofer is an Austrian company that only has one distributor in North America (located near Vancouver – if you’re interested, contact Eva and tell her Jay & Dan told you about them). Gaulhofer has VERY high quality windows – they don’t use cheap wood like American window manufacturers do – they use either end grain Spruce or Larch. The wood is stunning actually… I’ve heard a number of people this week talk about how their 100 year old wood windows still work. Well very few of the new American wood windows will be around in 100 years – they’re just not built how they used to be, but a Gaulhofer window just might be.

Gaulhofer wood windowOne of my questions was about the protective metal trim Gaulhofer puts on their wood windows (see the picture to the right). The woman answering my questions didn’t want to make a decision on the spot, but she recommended that we should submit plans with the metal trim in the same exact color as the wood. While she made it clear it would have to be discussed and she might say ‘no’, she said she liked the fact that the metal strips would make the window last longer. She also pointed out that even if she approves it, it could get rejected by the National Park Service. But the point here is that these aren’t preservationists who are inflexible. Unlike the LPC, she has the right to subjectively interpret the federal guidelines and use her best judgment.

My other major window question was about reflectivity of the glass. Modern “low-E” coatings have a reflective sheen and the National Park Service says at one point in their clarifications that you shouldn’t change the reflective quality of the glass, so I was wondering whether we would be limited in the glass we used in the windows. Well, it turns out changing the reflective nature of window only applies if you’re restoring an old window (or presumably putting a new window next to an original one). Like durability, energy efficiency is something they’ll bend the rules to accommodate – though only so far…

Because the previous owner gutted the building, we don’t have many original details to preserve so we’re allowed to be completely modern in the interior of the building and the federal and state tax credits will cover those modern renovations. In fact, you can see in the guidelines above that they prefer modern details over fake historical details. They want a differentiation between what’s new and what’s old. In our case we need to pay a lot of attention to our cornice and to our stoop – since those are some of the only original details that are left on our building. We will also need to replicate the original security gates (which will be expensive).

Back to the tax credits…

The homeowner tax credit is the easiest to get. It’s 20% of everything you spend on your property that’s inside the original building envelope. Review is also the easiest, especially if you’re like us and don’t need to go through LPC – it’s pretty much reviewed and approved by the woman I met – and she seemed completely reasonable to me. The homeowner tax credit can also be used for little things – like a new roof, new windows, or fixing up your stoop – as long as you’re spending $5,000 or more and at least 5% of the work is exterior work, you’ll qualify. But as I mentioned above the problem is that it’s limited to a max credit of $50K.

Things get more complicated, but potentially more profitable when you go for the commercial tax credit, especially if your building is a mix of an owner’s unit and rental apartments (like ours). For starters, to get the commercial credit you need to determine the current “adjusted basis” of the building. The adjusted basis is the current value of the property, minus any depreciation, minus the value of the land. Then you need to spend at least that amount on the commercial part of your property. The commercial credit is only for really major renovations. Spending the value of the building on just the rental units can be quite difficult – especially in a case like ours where only about 25% of the building will be rental. You do get to include a percentage of the common elements of the building (the roof, the façade, etc.) to your commercial renovation costs. The percentage you can use is the percentage of your building’s square footage that’s “commercial”. To pull all of this off, you’ll probably need an appraiser to determine the adjusted basis, and an accountant to handle all the cost breakdowns – it’s not easy, but you may get a substantial amount of extra money.

One other detail is that you must own the building for 5 years after completion for the commercial credit and two years for the homeowner’s credit – otherwise they’ll want at least some of their money back. However, if you don’t use the entire credit the first year, you an roll it over to subsequent years – up to 20 years on your federal taxes and indefinitely on your state taxes. You also aren’t allowed to change things during those 2 or 5 years – at least not details that were conditions of the tax credit.

These tax credits only help a bit when you get your mortgage. They are considered assets by the bank, not income, so you become a better credit risk, but it doesn’t change your debt-to-income ratio. So somewhat unfortunately you may need to do a more expensive renovation to get the tax credits, but those extra costs may put you beyond your loan limit based on your debt-to-income ratio.

So this is definitely the time to renovate a shell in a historic area. Below is a list of historic districts that are covered. Contact Kathleen Howe at the New York State Office of Historic Preservation (518/237-8643) if you’re not sure if your building is in one of these areas (the City’s landmark boundaries are not the same as the boundaries set by the National Register of Historic Places)…

  • Mount Morris Park
  • Manhattan Avenue (around 120 to 123)
  • St. Nicholas (Strivers’ Row)
  • Hamilton Heights
  • Sugar Hill
  • West 147-149
  • Audubon Terrace
  • Jumel Terrace

And make sure you start the application process soon. The 2010 Census data may disqualify areas that are currently qualified since Harlem changed so much over the past 10 years.

If you have any questions about these tax credits start by calling the New York State Office of Historic Preservation – 518/237-8643. They’re incredibly helpful and knowledgeable and want to see people using these programs to fix up old buildings.

[And yes, I do understand there’s a certain contradiction in not wanting to be landmarked, but making use of tax credits for historic buildings… More on that in another blog post.]

Different approaches to being “green” with tenants’ utilities

The other night when we were having drinks with Peter Holtzman, who owns one of the Astor Row townhouses and is an architect with The Downtown Group, the question of how to handle tenants’ utilities came up. His approach was to go all out for efficiency. He has one high efficiency boiler that provides heat and hot water for him and his two tenants. He doesn’t even have hot water heaters – just an insulated tank attached to his boiler. It’s worked for him – he’s got very low utility bills to show for it.

Our approach is different, but it’s only different – I don’t know that either of us can say our approach is better. We’re going to sacrifice a little bit of efficiency to emphasize conservation. To achieve this we’re having the tenants pay for many of their own utilities. For example we’ll meter the water separately. We figure if the tenants are aware of the cost of their water, they’ll use less of it. In a similar vein we’re giving them their own hot water heater which will be powered by their (separately metered) gas. Again, if they see the cost of their hot water they’re more likely to use less of it.

With heat it’s a bit more complicated. If we provide heat, NYC requires that it be up to a certain temperatures. We want our own unit cooler than the legal minimums – we like a little chill in the air. So we’re shooting for “a bit cool” but not so cool that our hands will get cold. To us that temperature is invigorating. For other people it just feels cold. We’ll extend the concept of awareness leading to conservation by giving our tenants combo heating/cooling units so they can raise the temperature in their unit even higher if they like a warmer apartment. But the supplemental heat will be electric heat and the cost of the additional heat will show up in their electric bill.

There’s another difference between Peter’s approach and our approach – ours requires a lot more equipment. We’ll have a boiler, two water heaters, as well as mini-split units for supplemental heat for the tenants. He just has a boiler. If you’re strict in your approach to being green you do need to consider the carbon footprint of making and maintaining that extra equipment (we’re not that fussy in our approach).

Where we agreed with Peter was on using closed cell foam to insulate all the exterior walls. The 2 1/2 inches of closed cell foam, plus everything else in the wall will give our exterior walls an r-value of R20. That will drive down utility bills for everyone, require a smaller heating and cooling system, etc. But it’s beyond that point where you need to figure out which you like better – maximum efficiency, or slightly less efficiency with an emphasis on conservation.

But… We don’t want to be landmarked…

Generally I’m a big advocate of landmarking – certain places just need special protection. But these days most of those places have been identified and now some of the places they’re trying to landmark don’t really warrant landmarking.

Case and point is the Mount Morris Park Historic District – there are pluses and minuses to the proposed expansion. The core of Mount Morris Park was landmarked by the City in 1971 – just a few short years after landmarking began in New York. The neighborhood was then put on the National Register of Historic Places in 1973. Then in 1996 the boundaries defined by the National Register of Historic Places were extended (see map below). Now residents are talking about changing the City’s landmark boundaries to reflect the national boundaries.

mount morris historic district map with extension shown

There are parts of the MMP extension that make perfect sense and should be landmarked. The Historic Districts Council shows examples on their website that demonstrate this perfectly. I want to be clear, I’m not against the expansion of the Mount Morris Park Historic District. BUT, not all the blocks in the proposed extension are as homogeneous as the ones they show. I think the boundaries of the extension need to be reconsidered. For example, our block is nothing like the blocks they show, yet they want to landmark it. Here are a few pictures of our block…

West 123rd Street between Lenox and Adam Clayton Powell
Variety of architecture on West 123rd Street

How is that something that should be landmarked? That’s not the streetscape of a historically significant area that needs landmarking. That’s just a nice street in Harlem. There are brownstones on the south side of the street, but I wouldn’t say they warrant landmarking either. It’s not like every brownstone in Harlem needs to be landmarked.

Brownstones on West 123rd Street between Lenox and Adam Clayton Powell

Landmarking is supposed to be reserved for things that are special – and we’re just not that special. The row of townhouses one block down that were designed by Francis Hatch Kimball – are a completely different situation…

Townhouses on 122nd Street designed by Francis Hatch Kimball

Those townhouses are incredible. They absolutely need to be landmarked, and everything adjacent to them that can be landmarked should be landmarked to preserve the general feel of the era when they were built (unfortunately, there’s a 1950s-era school across the street from them). But my point is, we’re not that special.

The other night we were walking around lower Manhattan. What struck me was the layers of history you could see in the buildings. New and old were mixed together and there were new interpretations and adaptations of old buildings. I liked the mix of it all. As you can see in the pictures above, our block is a bit like that. There are a few old brick townhouses with mansard roofs, there are classic brownstones in a few different styles, there are a couple churches on the block (both landmarked), and there are apartment buildings. One apartment building looks like it’s from the 1930s, others look like they’re more turn of the century. And then there’s the gleaming new condo – Windows on 123. We have that wonderful patchwork of different historical eras. Thing is, you don’t preserve a patchwork of eras by freezing it in time. You preserve it by letting the patchwork continue to evolve. For example, when new and old are co-existing so closely, why shouldn’t the old buildings have modern doors or windows? Yet that is what would be prevented if the block were landmarked.

Yes, there is something special about our block, but the best way to preserve it is through zoning, not through landmarking. Many of the old apartment buildings on our block are built over their currently allowed F.A.R. (floor area ratio) which means if they were torn down you’d have to build a smaller building in their place. That’s a huge incentive for their owners to keep them in tact and renovate them. Even  our townhouse – it’s currently at a FAR of 3.0. The max is 3.44, so you can’t even add another full floor to our building (though the previous owners did manage to fudge the numbers and get plans approved that included an additional floor).

If it were no big deal to own a landmarked building we wouldn’t really care. But it’s a huge headache to own a landmarked building. So many things are more complicated and more expensive. And there are certain things you’re just not allowed to do. For example, we’ll be putting in large tilt-n-turn windows that would not be allowed if the building were landmarked. I’m sure our doors wouldn’t meet with landmarks approval either – they’re modern interpretations of old doors – still wood, and similarly proportioned to the original doors, but lacking the details you would find on an old door. If I lived on a block that warranted landmarking I’d gladly put up with the headaches associated with being landmarked. But our block doesn’t warrant landmarking so neither Dan nor I feel we should have to deal with the hassles of owning a landmarked building.

There’s a community meeting this Tuesday evening (October 5th) at 7pm at the Rice High School library (74 West 124th Street). I plan on being there to see what the chances are of dropping 123rd Street from the proposed extension.