What is a Historical Preservation Ordinance (HPO)?

A Historical Preservation Ordinance is a law enacted by a local government to protect buildings, sites, and districts of historical, architectural, or cultural significance. The ordinance typically outlines guidelines for preservation, renovation, and demolition of structures, ensuring that important historical features are maintained for future generations.Why does a community adopt a Historical Preservation Ordinance?

Communities adopt Historical Preservation Ordinances to protect the cultural and historical integrity of their neighborhoods, buildings, and landmarks. It ensures that important historical or architectural features are preserved, contributing to community pride, tourism, and maintaining the area's identity and character.

How does the Historical Preservation Ordinance affect property owners?

Property owners within a designated historical district or owning a historically significant property may face restrictions on alterations, renovations, or demolitions. The ordinance often requires owners to obtain permits or approval from preservation commissions or boards before making significant changes to their properties. These rules aim to ensure that modifications are in line with historical preservation standards.

What kind of changes can be made to a historic property under an HPO?

Changes to historic properties must generally preserve the character-defining features of the building. Exterior alterations such as changes to porches or anything that would result in the removal of historical features such as corbels, decorative trims, pillars, doors, as well as the addition of new structures will require approval from the historical preservation commission. Internal changes to the home are not subject to review.

Are there any financial incentives for preserving historic properties?

Yes, there are financial incentives to property owners who maintain or restore historic buildings. These can include tax credits, grants, or low-interest loans. Federal or state programs may also be available for property owners who undertake preservation work in accordance with preservation standards.

A property owner who rehabs a primary residence may qualify for the Indiana Residential Historic Rehabilitation Credit if the house is at least 50 years old and listed in the Indiana Register of Historic Places either individually or as part of a district. The program allows an owner-occupant to take a credit against state income tax liability equal to 20 percent of “qualified” preservation or rehab expenses. The amount spent must exceed $10,000 and can’t include such items as the cost of enlarging an existing structure, paving, or landscaping. To determine what expenses qualify, property owners must submit a preservation or rehabilitation plan to DHPA for approval prior to beginning work. If approved rehabilitation expenses total $20,000, for example, a homeowner would qualify for a $4,000 tax credit. Work must be completed within a specified period, ranging from two to five years. If the credit exceeds a homeowner’s state tax liability, the remainder may be carried over for up to 15 years. The residential credit is subject to recapture by the state within five years of the work’s completion—triggered if the homeowner sells the property or completes any additional work that doesn’t meet the DHPA’s standards. With this credit, too, it pays to contact DHPA—and your accountant or tax attorney— well in advance.

For information about requirements of the federal Rehabilitation Investment Tax Credit, Indiana Residential Historic Rehabilitation Credit contact:

Indiana Division of Historic Preservation and Archaeology

402 West Washington Street, Room 274 Indianapolis, IN 46204

317-232-1646

in.gov/dnr/historic