Part 3: Protection of Historic Resources--The Historic Preservation Fund

An important mechanism to protect historic resources is the Historic Preservation Fund (HPF) grant program. Money is appropriated from the HPF by the U.S. Congress for matching grants to the States for preservation programs that will identify, evaluate, register, preserve, and protect historic properties. Major operational authority has been delegated by the National Park Service (NPS) to the States, including the selection of projects to fund.

State Eligibility for Funding from the Historic Preservation Fund

Only approved State programs are eligible to receive grants from monies appropriated by Congress for grants to States from the Historic Preservation Fund. In accordance with the National Historic Preservation Act, as amended, all States are presumed to have approved programs which are periodically reviewed by the National Park Service through the State Program Review process. State Program Review is an examination of state historic preservation offices to determine whether the State continues to meet the requirements of the National Historic Preservation Act, government-wide requirements for recipients of Federal grant funds, the adequacy of State reports, and any requirements added by Congress in appropriating the HPF grant funds. The State Program Review process is the National Park Service's primary means of oversight of State administration of their Historic Preservation Fund grants.

State Activities Eligible for HPF Funding

Subject to restrictions set in annual HPF appropriation acts, the Historic Preservation Fund Grants Manual, and other NPS guidance, activities generally eligible for funding by the Historic Preservation Fund include the identification, evaluation, registration, or protection of historic and archeological resources carried out in conformance with the Secretary of the Interior's Standards for Archeology and Historic Preservation. The list below includes many of the major types of eligible activities supported by the Historic Preservation Fund, but it is not exhaustive. This list is drawn primarily from Section 101(b) of the National Historic Preservation Act, as amended:

• Administering the State's HPF-funded historic preservation program;
• Conducting a comprehensive, statewide survey of historic properties;
• Maintaining a statewide inventory of significant properties and other survey information;
• Nominating significant properties to the National Register and reviewing Federal agency requests for the State's opinion on the National Register eligibility of properties;
• Preparing and implementing a State historic preservation plan;
• Cooperating with the Secretary of the Interior, the Advisory Council on Historic Preservation, and other Federal, State, tribal, and local governments, organizations, and individuals to ensure that historic properties are taken into consideration at all levels of planning and development;
• Reviewing requests for certification from property owners wanting to use provisions of Federal preservation tax incentives;
• Preparing feasibility studies, plans, and specifications;
• Providing public information, education, training, and technical assistance relating to Federal, State, tribal, and local historic preservation activities;
• Cooperating with local governments in the development of local historic preservation programs including the Certified Local Government (CLG) program. At least 10 percent of each year's grant must be passed on to CLGs, and
• Acquiring and repairing properties listed in the National Register.

Historic Preservation Fund Grants

NPS currently awards programmatic grants to States for a broad range of eligible historic preservation activities. There are, however, some old terms that are used occasionally. HPF grants to States formerly fell into two broad categories: 1) non-construction and 2) construction. Nonconstruction grants and activities were commonly referred to as Survey and Planning or "S&P." In addition to survey, inventory, and planning, S&P activities include processing National Register nominations, reviewing Federal agency requests and undertakings, administering the Certified Local Government program, and all other eligible activities that do not directly and physically affect historic properties. Construction was commonly referred to as Acquisition and/or Development or "A&D." Eligible A&D activities include those that acquire or physically stabilize, preserve, rehabilitate, or restore properties listed in the National Register of Historic Places

All activities financed with HPF assistance must conform to the administrative policies, procedures, and guidelines in the Historic Preservation Fund Grants Manual, the Secretary of the Interior's Standards for Archeology and Historic Preservation, and supplemental instructions.

A State's annual apportionment from the HPF must be matched by the State at a ratio of 60% Federal share to 40% non-federal. Because only an overall statewide program matching share is required by NPS, the amount of matching share for individual activities, projects, and subgrants is dependent on State policy, as long as the State's cumulative matching share requirement is met.

The State's matching share may be composed of State, regional, or local government funds, or private dollars, or donated goods, services, or property. Certain non-HPF Federal funds, e.g., Community Development Block Grant (CDBG) funds, may also be used in the matching share if the Federal program's legislation permits such use.

HPF Annual Grant Cycle

Each year States apply for HPF grant funds by informing NPS of planned activities and report on the State's accomplishments at the end of the year. The format, forms, content, and timing may change over time, but information on planned activities and annual accomplishments will always be present. Note also that the requirements described below are NPS's minimum requirements. States are always free to provide more information if they so desire.

HPF Annual Grant Application

The State annual grant application summarizes and provides estimates of activities the State wants to accomplish during the fiscal year. The standard instructions for completing the application may be found in the Historic Preservation Fund Grants Manual. If it seems likely that there will be an HPF appropriation, NPS will alert the States and issue any supplemental instructions necessitated by the appropriation act. The application for a regular appropriation normally consists of standard forms and certifications, a cumulative products table, and a reference to the major activities/projects that the State plans to undertake. The application is comprehensively reviewed by NPS. These elements are summarized briefly below:

• Standard Forms and Certifications. Standard Forms and Certifications include budget forms, obligating documents, reporting forms, federally mandated assurances, Review Board and State staff certifications, etc.
• Cumulative Products Table. The Cumulative Products Table consists of a statistical breakdown of the proposed State preservation program for the fiscal year, in terms of products as they apply to specified Program Areas. The actual breakdown of expenditures and completed projects is submitted with the End-of-Year Report (see below for description).
• Major Projects/Activities. The Application lists the major projects and activities to be undertaken by the State in the forthcoming year and relates these to the goals and objectives in the State's historic preservation plan.

End of the Year Report

The End-of-Year Report is a report of what the State has accomplished during the Federal fiscal year. It includes:

• Cumulative Products Table (a statistical report of products completed during the year reported by program area);
• A report on the status of major activities/projects undertaken by the State during the year; and,
• A list of sources of nonfederal matching share.

The End-of-Year Report is due to NPS after the end of the fiscal year. Data provided in End-of Year Reports are used: 1) to prepare an annual, national statistical report on State historic preservation office HPF-funded activities, 2) to prepare for questions in Congressional hearings, 3) answer public inquiries, and 4) on occasion for apportionment purpose.

USE OR LOOSE

HPF funds appropriated by Congress are available for spending for two years. At the end of two years, any unspent HPF money is recaptured and returned to the Treasury. To reduce the amount of money being returned to Treasury, NPS established the "Use or Lose" policy. At the end of the fiscal year, States must close out their books for that year. Completed activities are described in the End-of-Year Report. Funds committed to uncompleted subgrants and contracts may be carried over for use in the following fiscal year. States may also carry over uncommitted funds to be used for in-house purposes including administrative expenses, but uncommitted funds in excess of 25 percent of the State's Historic Preservation Fund appropriation are recaptured and redistributed to other States for their use.

Continuing Resolution Grant

Continuing Resolutions are enacted when Congressional action on appropriations is not completed by the beginning of a fiscal year. A Continuing Resolution is enacted to provide "stop gap" funding so that specific activities may continue operation until the regular appropriations are enacted. A Continuing Resolution Grant is awarded by the Secretary of the Interior to States to prevent disruption during this period. When a Continuing Resolution is passed, NPS may alter the usual application format depending upon the particulars of the situation. NPS will inform States what needs to be in applications for Continuing Resolution Grants.

Role of the Review Board in the HPF and the Comprehensive Statewide Historic Preservation Plan

The Board is responsible for advising the SHPO about the documentation associated with the State's HPF grant application prior to its submittal to the Department of the Interior. In their review, Board members should examine the application to determine if it adequately reflects, and if it will allow the State to achieve, the goals and objectives outlined in the State's historic preservation plan (see the section on Statewide Historic Preservation Planning). The Annual Grant Application, while serving as the format for applying for HPF funds (see previous section on HPF Grant Application), is also a planning document. The information it contains is designed to produce, or summarize, the annual work plan for the State office. The goals and tasks it outlines are derived from the State plan and should be directed toward achieving selected goals and objectives identified in it.

In its examination of the HPF grant application documents, the Board should also make sure that the nature of the State's past accomplishments, current activities, and future initiatives demonstrates consistency (over time and with the State Plan) and effectiveness. Over time, although not necessarily within one year, all types of historic and cultural resources (archeological, architectural, landscapes, etc.), all regions of the State, and various types of pressures facing the resources should be addressed in the application and in the State Plan. Review Board members can assist the SHPO in developing a list of professional organizations, educational institutions, media contacts, and other interested organizations that might be potential applicants.

The Review Board's function is to render a balanced, independent judgement concerning the conduct of and plans for the State's historic preservation program. The members' positions as dedicated professionals and citizen activists in preservation make their advisory role a vital one in the setting of annual priorities and the continuous shaping of a productive State historic preservation program.

SUGGESTED READING

National Historic Preservation Act, as amended

36 CFR Part 61

"The Secretary of the Interior's Standards and Guidelines for Archeology and Historic Preservation"

The National Register Programs Guideline (NPS-49)