280-20-20 R.I. Code R. § 6.17

Current through June 20, 2024

Section 280-RICR-20-20-6.17 - Application Guidelines

A. Certifications of Significance and Rehabilitation - General.

1. Application. Request for designation of a building as a Certified Historic Structure and of a proposed Rehabilitation shall be made on the Historic Preservation Certification Application forms.

a. Part 1 of the application is used to request certification of historic significance and is filed with the Commission and shall contain such information as is required in § 6.17(B)(2) of this Part;

b. Part 2 of the application is used to request certification of a proposed Rehabilitation plan as meeting the Standards for Rehabilitation. Part 2 of the application must be filed with and approved by the Commission prior to entering into a Contract with the Division of Taxation and shall contain such information as is required in § 6.17(D)(1) of this Part;

c. Part 3 of the application is used to request certification of a completed Rehabilitation project by the Commission;

d. The Part 1, Part 2 and Part 3 applications are submitted to and reviewed by the Commission;

e. In order to obtain an Assignable Historic Preservation Tax Credit Certificate upon issuance by the Commission of the Certificate of Completed Work, the Owner shall file the Accountant's Certification with the Division of Taxation. The Owner shall also file with the Division of Taxation a complete and fully documented Rhode Island Form HTC-8016; and

f. The Owner must also have entered into a Contract with the Division of Taxation and paid the Processing Fee described in § 6.9(D) of this Part in order to qualify for tax credits.

2. Forms. Application forms are available from the Commission at the Old State House 150 Benefit Street, Providence, RI 02903; Tel: (401) 222-2678; website: www.preservation.ri.gov and from the Division of Taxation at One Capitol Hill, Providence, RI 02908; Tel. (401) 574-8970; website: www.tax.ri.gov.

3. Coordination with Federal Filings. If the Applicant also seeks to claim the federal historic Rehabilitation tax credit, application for the Rhode Island credit may be made on Parts 1, 2 and 3 of the Historic Preservation Certification Application used by the national park service, with such additional forms and certifications as may be requested by the Commission.

4. Commission and Division of Taxation Review. The Commission and the Division of Taxation generally complete reviews of certification requests within thirty (30) days of receiving a complete, fully documented application. Where adequate information is not provided, the Commission and/or the Division of Taxation will notify the Applicant of the additional information needed to complete the review. The Commission and the Division of Taxation will adhere to this time period as closely as possible, but failure to complete a review within the designated period does not waive or alter any certification requirement or imply approval. Notwithstanding the foregoing:

a. Within thirty (30) after receipt of a complete and fully documented application for a Certificate of Completed Work, the Commission must issue a written determination either granting or denying a Certificate of Completed Work; and

b. Within thirty (30) days after receipt of a complete and fully documented RI Form HTC-8016 and an Accountant's Certification and a Certificate of Completed Work, the Division of Taxation shall issue a written determination as to the amount of historic preservation tax credit for which a Substantial Rehabilitation qualifies, conditioned on the Commission issuing a Certificate of Completed Work.

5. Commission Decisions; Reliance on Application. Certifications of Part 1, 2, and 3 are only given in writing by the Executive Director or other duly authorized representative of the Commission. Certifications of the amount of the historic tax credit for which the Rehabilitation qualifies are only given in writing by the Division of Taxation. Decisions with respect to certifications are made on the basis of the information contained in the application form and other available information. The Applicant's signature on any application form is a representation to the Commission and to the Division of Taxation that the facts contained therein are true and correct, and the Commission and the Division of Taxation are entitled to rely thereon. If information comes to the attention of the Commission or the Division of Taxation at any time, up to and including the last day of the applicable Holding Period, that is materially inconsistent with representations made in an application, the Commission may deny the requested certifications or revoke a certification previously given or the Division of Taxation may terminate the Contract and any Processing Fees paid thereunder will be forfeited. Such denial or revocation may be appealed pursuant to the procedures set forth in § 6.18 of this Part.

B. Certification of Historic Significance.

1. Consultation. Any Owner may consult with the Commission to determine whether a property is a Certified Historic Structure.

2. Part 1 - Application. The Applicant shall submit Part 1 to the Commission. Such application form shall be filed according to the instructions accompanying the application.

3. Review of Application for Certification of Historic Structure.

a. Scope of Review. The Commission will determine if the property is:

(1) Listed individually on the national register of historic places;

(2) Listed individually on the State Register of Historic Places; or

(3) Located in a Registered Historic District and certified by either the Commission or the United States Secretary of the Interior as being of historic significance to the district.

b. Physical Integrity. The Commission will determine if the property possesses sufficient physical integrity to convey its historical significance.

c. Multiple Buildings or Complex. For purposes of a determination of historic significance, properties containing more than one building, where the Commission determines that the buildings have been functionally related historically to serve an overall purpose, such as a mill complex or a residence and carriage house, will be treated as a single certified historic building, whether the property is individually listed in the national register of historic places or the State Register of Historic Places or is located within a Registered Historic District. Buildings that are functionally related historically are those which have functioned together to serve an overall purpose during the property's period of significance.

d. Determination of Significance to District. Properties within Registered Historic districts will be evaluated to determine if they contribute to the historic significance of the district by application of the standards set forth in § 6.17(B)(3)(c) of this Part.

e. Preliminary Determination of Eligibility for Listing a Structure. Owners of properties that are not listed on the national register of historic places or the State Register of Historic Places may request a written opinion from the Commission as to whether the property meets the criteria for listing on the register. Owners of properties that the Commission considers to be eligible for listing may apply for preliminary certification of their properties, pursuant to § 6.17(B)(3)(c) of this Part. Preliminary certifications will become final, and the properties will become Certified Historic Structures, as of the date of listing on the national register of historic places or the state register. Issuance of preliminary certification does not obligate the Commission to nominate the property. Applicants proceed with Rehabilitation projects at their own risk; if the historic property is not listed prior to completion of the project, the preliminary certification will not become final.

f. Preliminary Determination of Eligibility for Registering a District. Owners of properties that are located in potential historic district may request a written opinion from the Commission as to whether the potential historic district meets the criteria for being listed as a Registered Historic District. Owners of properties located in districts that the Commission considers to be eligible for listing may apply for preliminary certification of their properties. Applications for preliminary certification of buildings within eligible historic districts must show how the district meets the criteria for being listed as a historic district, and how the property contributes to the significance of that district, pursuant to § 6.17(B)(3)(c) of this Part. Preliminary certifications will become final, and the properties will become Certified Historic Structures, as of the date of listing the district as a Registered Historic District. Issuance of preliminary certification does not obligate the Commission to nominate the potential district. Applicants proceed with Rehabilitation projects at their own risk; if the historic district is not listed as a Registered Historic District prior to completion of the project, the preliminary certification will not become final.

C. Standards for Evaluating Significance within Registered Historic Districts

1. Evaluations of Significance. Some historic districts are resources whose concentration or continuity possess greater historical significance than many of their individual buildings. These usually are documented as a group rather than individually. Accordingly, this type of documentation is not conclusive for the purposes of an evaluation of the significance of an individual component. The Applicant shall supplement this documentation using Part 1 of the Historic Preservation Certification Application, providing information on the significance of the specific property, as set forth in § 6.17(B)(2) of this Part.

2. Standards for Evaluation. The Commission evaluates properties located within Registered Historic Districts to determine if they contribute to the historic significance of the district by applying the following standards:

a. A property contributing to the historic significance of a district is one which by location, design, setting, materials, workmanship, feeling, and association adds to the district's sense of time and place and historical development.

b. A property not contributing to the historic significance of a district is one which does not add to the district's sense of time and place and historical development; or one where the location, design, setting, materials, workmanship, feeling and association have been so altered or have so deteriorated that the overall integrity of the building has been irretrievably lost.

c. Ordinarily buildings that have been built within the past fifty (50) years shall not be considered to contribute to the significance of a district unless a strong justification concerning their historical or architectural merit is given or the historical attributes of the district are considered to be less than fifty (50) years old.

3. If a non-historic surface material obscures a building's facade, it may be necessary for the Owner to remove a portion of the surface material before requesting certification so that a determination of significance can be made. After the material has been removed, if the obscured facade has retained substantial historic integrity and the property otherwise contributes to the significance of the historic district, it may be determined to be a Certified Historic Structure.

D. Certifications of Rehabilitation.

1. Certification of Proposed Rehabilitation or of Completed Work. Applicants requesting certification of a proposed Rehabilitation shall comply with the procedures listed in § 6.17(D)(1)(a) of this Part; Applicants requesting a Certificate of Completed Work shall comply with the procedures listed in § 6.17(D)(4) of this Part.

a. Part 2 - Application. An application for certification of a proposed Rehabilitation shall be submitted to the Commission prior to the Certified Historic Structure being Placed-in-Service. Applicants are strongly encouraged to request the Commission's review before beginning a Rehabilitation project. To request review of a proposed Rehabilitation, the Applicant shall submit Part 2 Application form according to the instructions accompanying the application. This documentation includes but is not limited to:

(1) Name and mailing address of the Owner and, if the Owner holds leasehold title to the Certified Historic Structure or an identifiable portion thereof, the name and mailing address of the holder of the fee interest;

(2) Name and address of the property;

(3) Color photographs of the property adequate to document the appearance of the building, both on the Interior and the exterior, and its site and environment before Rehabilitation;

(4) The Applicant's estimate of projected QREs and of Adjusted Basis in the Certified Historic Structure as of the date of application but no earlier than July 3, 2013;

(5) Signature of the Applicant and, if the Applicant is not the holder of the fee interest in the Certified Historic Structure, the signature of the fee Owner as to the Adjusted Basis in the Certified Historic Structure as of the date of application but no earlier than July 3, 2013;

(6) Other documentation, including but not limited to plans, specifications, surveys and/or structural reports may be required to evaluate Rehabilitation projects. Where necessary documentation is not provided, review and evaluation will be delayed and a denial of certification may be issued on the basis of lack of information. Because the circumstances of each Rehabilitation are unique, certifications that may have been granted to other Rehabilitations are not specifically applicable and may not be relied on by Applicants as applicable to other projects; and

(7) A reasonably detailed project timeline, including associated costs.

2. Part 3 - Application. To request certification of a completed Rehabilitation, the Applicant shall submit Part 3 of the Historic Preservation Certification Application, "Request for Certification of Completed Work," to the Commission according to the instructions accompanying the application, and provide documentation to the Commission that the completed project is consistent with the work described in Part 2. This documentation includes but is not limited to:

a. Name and mailing address of the Owner and, if the Owner holds leasehold title to the Certified Historic Structure or an identifiable portion thereof, the name and mailing address of the holder of the fee interest;

b. Name and address of the property;

c. Color photographs of the property showing the completed Rehabilitation work, including exterior and interior features and spaces, sufficient to demonstrate that the completed work is consistent with the Standards for Rehabilitation. Photographic views after Rehabilitation should correspond with photographic views submitted in Part 2;

d. Final costs attributed to the Rehabilitation;

e. The Placed-in-Service date; and

f. Signature of the Applicant.

3. Certification by Commission of Proposed Rehabilitation. The Commission shall issue to the Applicant a written determination either denying or certifying the proposed Rehabilitation.

4. Certification of Completed Work. Within thirty (30) days after the Commission's receipt of a complete and fully documented application for certification of completed work, the Commission shall issue to the Applicant a written determination either denying or certifying the Rehabilitation "Certificate of Completed Work."

5. Assignable Historic Preservation Investment Tax Credit Certificate.

a. To request one or more Assignable Historic Preservation Tax Credit Certificates, the Applicant shall submit to the Division of Taxation:

(1) Accountant's certification of the actual QREs attributed solely to the Rehabilitation of the certified historic building and the satisfaction of the Substantial Rehabilitation test;

(2) The Placed-in-Service date;

(3) A complete and fully documented Rhode Island Form HTC-8016; and

(4) The certification of completed work issued by the Commission.

b. Within thirty (30) days after the Division of Taxation's receipt of the Accountant's Certification, the Rhode Island Form HTC-8016 and the placed in-service date, the Division of Taxation shall issue to the Applicant a certification of the amount of historic preservation tax credit for which the Rehabilitation qualifies and shall issue a Assignable Historic Preservation Tax Credit Certificate pursuant to the procedures of § 6.21 of this Part; both of which are conditioned on the Commission issuing a Certificate of Completed Work.

6. Abandonment of Project.

a. For those projects that enter into a Contract with the Division of Taxation on or after August 1, 2013, and five (5) years have elapsed, the Commission and the Division of Taxation may require the Owner submit evidence that Substantial Construction has occurred which shall include the certification of an accountant licensed in the State of Rhode Island that at least ten percent of the estimated QREs have been incurred. If the project has not met the criteria of Substantial Construction the project shall be considered abandoned and shall forfeit the rights and entitlements to the tax credits and the Processing Fee.

b. At any time after payment of the Processing Fee and execution of a Contract, the Applicant may inform the Commission and the Division of Taxation in writing that it intends to abandon the project or to complete it without compliance with the Standards for Rehabilitation and that it relinquishes all claims to the tax credits and the Processing Fee.

E. Scope of Rehabilitation. For purposes of Commission reviews and certification, a Rehabilitation project encompasses all work on the interior and exterior of the certified historic building(s) and its site and environment, as well as related demolition, new construction or Rehabilitation work that may affect the historic qualities, integrity, site, landscape features, and environment of the property. The Commission will determine if such work is consistent with the Standards for Rehabilitation - whether or not a credit is claimed for those costs. However, only those costs that constitute QREs may be included in the calculation of the historic preservation tax credit. The Commission and the Division of Taxation may rely on the Accountant's Certification regarding the QREs actually incurred included with the application without independent investigation. However, the Division of Taxation reserves the right to request additional documentation and supporting detail to verify QREs, including but not limited to, the original documents of entry, vendor lists, payroll record, accounts, and other records.

1. All elements of the Rehabilitation project shall be consistent with the Standards for Rehabilitation. Portions of a project that are not in conformance with the standards may not be exempted from review. In general, an Applicant undertaking a Rehabilitation will not be held responsible for Rehabilitation work not part of the current project that occurred more than five (5) years before the current project began, or Rehabilitation work not part of the current project that was undertaken by previous Owners.

2. Consistency with the Standards for Rehabilitation will be determined on the basis of the application documentation and other available information by evaluating the property, as it existed before the beginning of the Rehabilitation.

F. Determination of Consistency with Standards for Rehabilitation. The Commission, on receipt of the complete application describing the completed Rehabilitation project, shall determine if the project is consistent with the Standards for Rehabilitation. If the project does not meet the Standards for Rehabilitation, the Commission shall advise the Applicant of that fact in writing. Where possible, the Commission will advise the Applicant of necessary revisions to meet the Standards for Rehabilitation.

G. Determination of QREs. The Division of Taxation, upon receipt of the complete and fully documented Rhode Island Form HTC-8016, shall determine if the costs attributed to the Rehabilitation meet the criteria of QREs. If any costs of a project are denied as QREs, the Division of Taxation shall advise the Applicant of that fact in writing briefly setting forth the grounds for said denial.

H. Changes after Determination. Once a proposed or ongoing project has been approved, substantive changes in the work as described in the application shall be brought promptly to the attention of the Commission and the Division of Taxation by written amendment to the application to ensure continued consistency to the Standards for Rehabilitation.

I. Standards for Rehabilitation. The Standards for Rehabilitation are the criteria used to determine if a Rehabilitation qualifies as a Certified Rehabilitation (36 C.F.R. § 67).

J. Application of Standards for Rehabilitation. The Standards for Rehabilitation shall be applied to specific Rehabilitation projects in a reasonable manner taking into consideration economic and technical feasibility (36 C.F.R. § 67).

K. Quality of Materials and Work. The quality of materials, craftsmanship, and related new construction in a Rehabilitation project should be commensurate with the quality of materials, craftsmanship, and design of the Certified Historic Structure in question. This standard will be applied in a reasonable manner taking into account economic and technical feasibility. Certain treatments, if improperly applied, or certain materials by their physical properties, may cause or accelerate physical deterioration of historic buildings. Inappropriate Rehabilitation measures include, but are not limited to: excessively abrasive paint removal; improper masonry repointing techniques; improper exterior masonry cleaning methods; improper introduction of insulation where damage to historic fabric would result; and incompatible additions and new construction on historic properties. In almost all situations, these measures and treatments will result in denial of certification.

L. Certified Historic Structure to stabilize and repair weakened structural members and systems. In these cases, the Commission will consider this extreme intervention as part of a Certified Rehabilitation if:

1. The necessity for dismantling is justified in supporting documentation;

2. Significant architectural features and overall design are retained; and

3. Adequate historic materials are retained to maintain the architectural and historic integrity of the overall structure.

4. These standards will be applied in a reasonable manner taking into account economic and technical feasibility.

M. All Available Information Used in Determination. The qualities of a property and its environment which qualify it as a Certified Historic Structure are determined by taking into account all available information, including information derived from the physical and architectural attributes of the building; these determinations are not limited to information contained in the State Register of Historic Places nomination reports.

280 R.I. Code R. § 280-RICR-20-20-6.17