One interesting incentive is the Historic Homes Rehabilitation Tax Credit. This past month I had an opportunity to sit down with Lucas Karmazinas, an independent consultant in the field of architectural history, to learn more about the tax credit and how it can benefit homeowners.

Tax Credit Basics
Owners of single-family through four-family homes in certain areas of Connecticut are able to apply for a tax credit to help maintain or renovate their properties. Examples of projects that may qualify for the credit include most exterior work (foundations, porches, walls, doors, windows, roof, gutters, chimney, etc.), mechanical systems (HVAC, plumbing, electrical), and interior work (structural systems, floor plans, floors, walls, ceilings, stairs, decorative elements, door/window casings, etc.).

Since Hartford is one of the “Targeted Areas,” and so much of the West End is in a Historic District, owners simply have to follow the application process and live in the property as their primary residence for at least five years after project completion in order to qualify.

The main benefit to working within the program is that a homeowner can receive up to 30% of the renovation costs back, with a cap at $30,000 per dwelling unit. Since there is also a minimum project size, the practical result is that the program targets renovations with total budgets of between $25,000 and $100,000 for a single-family home.

The “tax credit” language is a little misleading. Homeowners technically do receive a tax credit voucher at the end of the project, but it’s not one that they can apply to their personal tax liability. Only certain businesses are allowed to utilize the credits, so homeowners end up selling the vouchers and pocketing the cash independent of their tax filing.

Because the credits are not used directly by owners, they don’t receive the absolute maximum benefit. Mary Dunne, who helps oversee the program at the State Historic Preservation Office, conservatively estimated that vouchers generally sell for at least 80% (and often more) of their face value. She also noted that she has never heard of a homeowner who was unable to find a buyer among the 30+ vouchers that are distributed each year.

Applying for the Credit
The tax credit is managed through a written application that is broken down into different parts to reflect a project’s various stages. Part One simply confirms that a home qualifies for the program. The only noteworthy reason why an owner-occupied home in one of the West End Historic Districts would not qualify is that the building itself is not historic, that it doesn’t contribute to the historic character of the District.

Part Two describes the rehabilitation work in detail, capturing the current condition and articulating the proposed rehabilitation. Photos and drawings are encouraged. During our conversation, Lucas emphasized that in order for the renovation work to count towards the credit it must follow the Secretary of the Interior’s Standards for Rehabilitation. The application instructions summarize the criteria, while the website above provides illustrated guidelines for rehabilitating historic buildings. Part Two also includes the proposed project budget. Cost estimates must be from qualified pros, and qualified rehabilitation expenses are separated from non-eligible costs.

Mary said that her group is required to respond to an application within 30 days, though they try to turn them around in about 2 weeks. Ultimately it will depend on the scope and complexity of the project.

Part Three of the application is the request for certification of the completed work. In addition to demonstrating that the work was completed as planned, the other major component is the final accounting of the project costs. The tax credit is then calculated as 30% of either the approved budget or the actual expenses, whichever is less.

Application Assistance
Lucas assured me that it was possible for a homeowner to successfully work through the application process on their own. He said that the staff overseeing the tax credit was quite helpful, though it would take patience, time, and an interest in the subject matter since there are guidelines to learn and follow.

Some homeowners may not want to take on both a major renovation and the tax credit application/process. It’s possible that there are general contractors out there who would be willing to handle the application within their overall project management responsibilities.

Another option is to hire Lucas, or someone else like him, to help with the application process. Lucas said he is flexible in how he works with individual homeowners. In some cases it makes the most sense for him to charge a flat fee and handle all aspects of the application. In other cases the homeowner may want to do much of the documenting, describing, and photographing, so Lucas could bill hourly for his contributions — consulting as needed and interacting with the State Historic Preservation Office.

Resources
No matter how a homeowner approaches the credit, it’s a good way to take advantage of living within one of the West End’s Historic Districts. Here are some additional resources to help get started.

Historic Homes Rehabilitation Tax Credit

Secretary of the Interior’s Standards for Rehabilitation

Lucas Karmazinas, Historic Resources Advisor
FuturePastPreservation(at)gmail(dot)com, 860-428-7982

I’ll be honest, I couldn’t get through the whole thing in the first sitting, but when I finally did, it seemed worth the effort.

The Next Real Estate Boom: How Housing (Yes, Housing) Can Turn the Economy Around
Patrick C. Doherty and Christopher B. Leinberger
Washington Monthly, November/December 2010

Although gadgets are fun, we’re more about the real estate on this site. And this news piece definitely caught our attention – Steve Jobs is going to be building a new home! And the site plans are available on the internet!

The story of this property is too long and complicated for us to fully understand the details, but there seems to be two interesting themes – historic preservation and design.

Jobs bought the estate in 1984, lived in it for a while, rented it for a while, and let it sit vacant for a while. The existing structure is a 30 room Spanish Colonial Revival mansion with 14 bedrooms and 13.5 baths over multiple structures on 6 acres. Although Jobs has wanted to demolish the home for years, local preservationists have successfully intervened on the property’s behalf, working to either save the structure or move the home to a different site. In 2006 someone made their way onto the vacant property and took these pictures, which show significant neglect. There seems to have been rulings in favor of each side, with the most recent victory being for Jobs when the preservationists dropped their lawsuit seeking to prevent demolition. At this point, the demolition is on.

The other interesting subplot is about what the new home will look like. Jobs has the resources to build anything he wants, so what will it be? Conceptual plans for the new home were submitted to the Woodside Town Council, and they have reached the interwebs. I haven’t found images that I can zoom in on (please post a link in the comments if you find some), but these small images and the accompanying commentary give a good flavor for the space. The basic conclusions of those who have studied the plans in detail are that Jobs is sticking with the clean, simplified aesthetic popularized by Apple products. Also, that he won’t be throwing large parties at his house, it’s designed more as a peaceful retreat than a showpiece property.

Jobs has won the most recent battle with the preservationists, but will it be the end of the war? And if he actually follows through with his plan, will the final product truly be as restrained as the current plans? Only time will tell.

City and town building codes are in place for a reason. They keep us safe. Period. The purpose is to make sure that workmanship was performed in the proper manner and corners were not cut. Additionally, there must be appropriate egress points in all homes and going through the permit process ensures this.

When buyers are looking at properties and thinking about making modifications they often ask us if they need to pull permits for the work that they’d like to do. This question is typically asked because in many cases people are afraid their property taxes will increase if the town or city knows they’ve made improvements to their home. The majority of people seem to want to live in as nice a home as possible, or get as much rent as possible in a multi-family conversion, but pay as little in taxes as possible.

This reality causes some people to cut corners. They don’t pull the building permits themselves or tell their contractor not to pull the permits because they don’t want the town to find out about the work they’ve done. In cases where a home is increasing the number of apartments, there is typically a zoning approval process that should be followed as well. This also does not happen in certain cases because their plan would potentially not be approved for various reasons (improper egress points, neighborhood opposes, etc.) so they just circumvent the system and ignore the legal process they should follow.

The tragedy in this case is that it has to get to the point of people dying before a city or town chooses to take more aggressive actions to enforce their building and zoning codes. Municipalities are typically short staffed in these areas and efforts are focused on inspecting the jobs where people actually did pull permits and follow the law, rather than hunting down those that have chosen to evade it. It is frustrating, to say the least.

There are many folks out there that do follow the law and go through the necessary steps that need to be taken when doing renovations or trying to increase the number of units in a dwelling. These people should be applauded. They understand the system is there for a reason and go along with it even though it may cost them some more money or time down the line. Purposely ignoring building code and laws is just asking for trouble, whether it’s when you go to resell or if some type of tragedy occurs. In the end, will it really be worth it if something horrible happens?

We seem to be right on schedule, which is nice. The electrical and plumbing were laid out in their new locations and we passed our City permit inspections. Drywalling started shortly thereafter. That should be finished early this week. From there, we’ll paint the walls and ceilings.

Sadly the hardwood floors we discovered and were so excited about were not able to be salvaged. Years of wear and previous refinishing made them marginal for another refinishing. Given the information that they would not be able to be refinished any additional times, we made the long range decision to go with new floors. Some of the boards were salvageable though and our contractor will use them as patch pieces for future jobs he has that need them.

Our temporary kitchen is working out okay. By okay I mean that we are getting take out or eating cereal for dinner. Work has also been extremely busy lately, so cooking is near the bottom of our priority list. It actually seems like we planned the timing perfectly for the remodel. No time to cook now, so we might as well destroy the kitchen. We look forward to spending lots of time using it this summer during the slow real estate season.

Here are the previous posts about our adventure:
Remodeling Our Kitchen
Budgeting for a Kitchen Remodel
Designing a Kitchen
Our Before Kitchen
Our Temporary Kitchen
A Remodeling Surprise

As it turned out, there were a number of challenges that we did not foresee. The shape of the room was the first we encountered. We wanted to consider alternative layouts, but after doing some quick sketches it was clear that the room was not quite wide enough for many of the ideas. In addition, the many windows and doors also made alternative layouts tricky. Our current kitchen has more of a modern feel, and we forgot to consider the details, like moldings, when thinking about a traditional remodel. Designing a space that met our needs, while remaining within our budget, proved to be the final hurdle.

Fortunately, we’re not trying to do this project on our own. We know Christian Winkley of Oxford Builders quite well and have been impressed with the work he has done in the neighborhood. Christian introduced us to his brother, Josh Winkley, who designs and builds custom cabinetry as Maple Tree Cabinetmakers. Together they have guided us through the design process to make sure the remodeled room will be functional, look great, and come together smoothly.

Here are some of the specific issues that we’ve discussed in detail:

Changing the traffic flow through the three rooms in question will make a big difference in how the space feels and is used. Currently, we enter the home through the mudroom and then proceed directly to the butler’s pantry, where we can continue on to the dining room or turn into the kitchen. The butler’s pantry is essentially a pass-through with a shelf and drawers that collect random stuff. It isn’t integrated into either the kitchen or the dining room. After looking at the home’s original blueprints, Christian suggested that we restore the original doorway from the mudroom to the kitchen, and remove the door from the mudroom to the butler’s pantry. This will allow the butler’s pantry to be used in a more traditional manner with numerous cabinets and as a natural connection between the kitchen and dining room.

We were interested in a much larger opening between the kitchen and the butler’s pantry than the current standard door, and had convinced ourselves that removing the wall entirely would be the best solution. Josh was initially fine with the decision, since it made the cabinet layout easier, but quickly realized that it didn’t feel right to him. He mocked up a version that contained a framed door and asked if he could come back to talk about it. We went over the pros and cons, but at that point still kept the unframed opening in the plan. Fortunately, Josh didn’t give up. He consulted with Christian about the decision and came back a second time with both a stronger argument and a more refined mockup that addressed many of our concerns. We’re now planning to do a framed door to provide a distinct transition between the two rooms.

Josh has also been influential in numerous other design details, helping to make sure that the project will all come together at the end. We’ve talked about how the cabinets should look in the butler’s pantry, and how to do the chair rail in the kitchen. He’s figured out how to make the oversized sink we planning to get work from both a logistical and an aesthetic standpoint. And we’ve debated at length about where best to put the trash can in the finished room.

Our kitchen remodel would turn out very differently if we had not gone through a detailed design process with Josh and Christian. We’re excited about the project and very glad that we’ve had them making suggestions about how to do things better, and in many cases simply handling details that we would otherwise not notice. Being able to rely on their experience makes us much more confident that the final result will be both functional and beautiful.

John Gale, committee chairman, kicked off the meeting with a brief history of zoning in Hartford and the current zoning in the neighborhood. Most of the area north of Farmington Avenue is zoned for single family, though there are a few blocks that allow more density. South of Farmington Avenue is zoned for higher density residential buildings. From there he transitioned to a quick survey of recent WECA Planning & Zoning Committee topics and positions. The stated goal of the meeting was to start a conversation, and to begin the process of working towards a WECA policy on common zoning issues in the neighborhood.

A Wide Open Discussion, Or Not
Once the floor was opened to the attendees, the discussion quickly narrowed to “problem properties,” which were all multi-family homes. The group seemed most concerned about nuisance issues (noise, traffic, parking, …), and discussed the appropriateness of using zoning laws as a primary strategy for fighting back. Although the zoning laws are clear about what is allowed, they are implemented inconsistently. Ambiguities seem to arise from bureaucratic issues like the Assessor and Zoning departments classifying properties differently, and the policy of zoning enforcement on an “as needed” basis. As a result, owners currently have the flexibility to use their properties in ways that conflict with zoning laws as long as they do not upset their neighbors and get reported to the city.

Overall, the group seemed to like that the zoning laws were inconsistent. Multiple attendees noted that the nuisance neighbors were more often than not living in multifamily properties owned by absentee landlords and configured in ways that conflicted with zoning. Others spoke about the limited success that they have had in working with the police department to address “quality of life” issues. Reporting the properties for zoning violations was an effective way to get the attention of the owners, and ultimately address problems caused by the residents.

A minority of the group spoke out against the zoning ambiguity, primarily on the grounds that it was bad business. One attendee described the ordeal he has been through after purchasing a multifamily property. His good-faith efforts to bring it into zoning compliance and improve the property have been halted by confusion within the city about what is allowed. The property in question is categorized differently by the Assessor and Zoning departments, and research by his attorney has uncovered evidence that a third use may predate the city’s 1968 implementation of zoning laws. Other attendees also described their challenging experiences in securing permits.

As a real estate agent trying to sell homes in the West End, it is very important to accurately describe, and advertise, a property so that potential buyers and other real estate agents know exactly what uses are permitted. This is obviously a challenge if the official policy is that many current uses are technically illegal, though allowed through non-enforcement.

But What About Density?
The question of density was not truly the focus of the meeting, though it surfaced periodically and again divided the group. Those supporting increased density generally advocated recognizing existing 3-families and allowing both 3rd-floor rentals and accessory dwelling units. They argued that density is good for local businesses, property values, expanding public transit, and energy efficiency. Those opposed to increased density focused on the traffic and parking issues that already exist in some areas of the neighborhood. The majority seemed to support increased density in theory, though the link to absentee landlords and nuisance neighbors seemed to make many feel it would not be right in practice.

Larger questions about density went unaddressed because no one raised them as issues. The Committee has held meetings to discuss proposals for a vacant lot on Kenyon, the former Medical Society building on Scarborough, and the University of Hartford Asylum campus. Each meeting drew numerous West Enders with a direct interest. And each meeting ended with the neighbors in attendance against aspects of, or all of, the proposed project.

An Important Conversation
Working together as a neighborhood to find agreement on zoning and development issues is challenging, but important, work. Previous meetings have demonstrated that there is not a single consensus among all interested parties. Taking the time to find common ground will allow WECA’s representatives to head off unacceptable projects on the neighborhood’s behalf, which will hopefully reduce the number of emergency zoning meetings. Perhaps the conversation will also help identify uses to encourage for specific properties.

This meeting was the first to allow a forum for the West End to be proactive in addressing a subject about which many have very strong feelings. We encourage everyone to get involved in the discussion by participating in the next meeting and raising issues that are important to them. Ideally, the effort will be able to identify policies that represent the neighborhood’s collective opinion so that owners and potential owners know what to expect when looking to change the use of their property.

Historical Preservation Ordinances

If you live in an older home that is within a Town, State, or National Historic District, you may need to follow Historical Preservation Ordinance guidelines when performing exterior renovations. For example, most of the homes in my neighborhood in the West End of Hartford are included in a National Historic District. There are multiple historic districts in the neighborhood, each representing a different style, size or age property. In an effort to preserve the historic and architectural character of the community, the City of Hartford established the Historic Preservation Commission to review work done on homes that are within national, state or local historic districts. All projects that are visible from the street and require a building permit need to be approved by the Commission.

One of the goals of the Preservation Ordinance is to help homeowners understand their options for maintaining their property in keeping with its original character. The City put together a set of historic preservation guidelines recommending the type of work that should be done on Hartford’s historic buildings. They cover entrances, masonry, paint, porches, roofs, siding, sites and windows, and can be downloaded from the City website. Most projects are expected to be approved by the commission’s staff, and to be turned around in a few days. More complicated projects are heard at the monthly Commission meetings, where either the homeowner or contractor presents the plan. Minutes posted online from recent meetings show that the Commission is willing to require changes to “finished” projects, so property owners that do not get preapproval for their projects proceed at their own risk.

Despite the potentially heavy handed regulations, the ordinance should provide two primary benefits to West End homeowners. It will help extend the life of our homes, and will help maintain the unique feel of our neighborhood. The Ordinance also considers the possibility that historical preservation may be too costly in some cases, allowing economic hardships and precluding work to be required that raises the cost of an improvement by more than 20%. All of this information and more can be found here.

Check with your town’s Historic Preservation division for specifics related to your neighborhood and home.

Digging & Excavation

After the planning is complete, be sure to find out where the buried utilities are located before the project begins. State law requires that the utility companies be notified before anyone uses equipment to dig on their property.

The homeowner first marks the project area on the ground using white paint or flags. The utilities companies will then mark the locations of the various services in a color (the website has a key for the color coding). At least two full working days notice is required, so homeowners need to plan a little in advance.

In Connecticut the company to contact is called “Call Before You Dig” and can be reached at 800-922-4455.

City Licensing & Inspections

Finally, most renovation work (both external and internal) needs to be reviewed and approved by your town. Since contractors will (hopefully) apply for permits on the homeowner’s behalf, the important point to remember is that an inspection is needed to close out all permitted work. Try to get the inspection done as soon as possible so that there is no confusion or uncertainty months, or years, later. See your local town’s website for the details or call the town hall’s Licenses & Inspection division for more specific information related to your projects.

I’ve had a number of interesting conversations with both sellers and the folks at Hartford Licenses & Inspections as I tried to understand the official status of projects. After working through the process a few times, I would strongly recommend keeping a list of contractors that have done work at your property and the inspectors that closed out the job. This information could be very important when you eventually try to sell.

Regular home maintenance and periodic upgrades are a fact of life for any homeowner. As you think about your next project, make sure that you are following any necessary Historic Preservation Ordinances, the Digging & Excavation Laws and the Town/City Permitting Laws. It may require a little extra time up front, but it will save time, money and energy over the long run.

The L&I office has always been helpful whenever I’ve stopped by to check on permits for homes or just answer general questions I have about the L&I process. My recent conversation was a little frustrating though because the process seemed a little broken. Here’s how it went down…

Amy [on phone]: Hi, I’d like to get an understanding of what permits have been pulled for 123 XYZ Street and if they’ve been closed out.

L&I Employee [on phone]: Sure, let me check. But our computer system only goes back to 1990, so that’s as far as I’ll be able to tell you over the phone. Otherwise you’ll need to come in and do a record search.

Amy: That’s fine. Going back to 1990 is good enough for now.

L&I Employee: Okay. I see that there are 6 permits pulled, various building permits and plumbing permits, and they were pulled between 1992 and 2007.

Amy: Sounds good, I’m glad to hear that the permits were pulled. How many of them are closed out?

L&I Employee: None of them are closed. They all still show in an “open” status. But that doesn’t mean that they are necessarily open. The inspector may have gone out to check the work and the job card never got recorded to actually close out the permit.

Amy: Uh, so how am I supposed to tell if they are closed or not?

L&I Employee: Well, you can come down here and talk with the inspectors and see if they remember closing out the job.

Amy: But you said there are permits pulled from 1992. What are the chances the inspector still works in the department and that s/he will remember closing out a job from 1992?

L&I Employee: I can’t really comment on that. If you want to see if they’ve been closed out, you’ll need to come here in person and ask an inspector.

So there are a couple of takeaways from my phone conversation:

1. While the employees in Hartford’s Licenses and Inspections department are very helpful, it appears that they’re limited by the current recording process in order to get permits closed out. Inspectors could potentially be wasting a lot of time revisting jobs that have already been closed, but no record exists that they were actually closed. I think that is what is going to need to happen in my case.

2. As the homeowner, you should keep records of who performed the work at your home (which should be a licensed contractor) and the name of the inspector that comes to close out the job. That way if this situation happens to you, there is a paper trail to follow.

I’ll be headed to the Licenses & Inspections department today to do a little more investigation. Stay tuned for my dramatic conclusion…

UPDATE: So I stopped by L&I today. None of the permits were closed. I was told to call certain inspectors to see if they knew they had been closed, but not recorded as closed. More digging must be done. The people in the office assured me that there is a new process now, so this shouldn’t be happening anymore. It’s just older permits that might have this issue.