Video
Advanced Training on Historic Preservation Certification Applications – Webinar #5
Transcript
(Brian Goeken) Hello, my name is Brian Goeken and I am the Chief of the National Park Services Technical Preservation Services Office. Thank you for joining us for the fifth and final webinar of this five webinar training series on the Historic Preservation Certification Application and the Application Submission Requirements. In this webinar, we will discuss amendments, phasing requirements, phase advisory determinations, and the Part 3 application. Presenting today are Raluca Filimon, Rebecca Shiffer, and Vincent Lake from the TPS office.
(Raluca Filimon) Good afternoon, my name is Raluca Filimon and today I'll be covering phasing requirements and considerations. By definition, a phase is a stage or component of work that constitutes a discreet and distinguishable portion of the overall scope of work. There are three reasons someone would choose to phase an HPCA project. The applicant intends to request an advisory determination from the National Park Service as to whether a completed phase meets the Secretary of the Interior's standards for rehabilitation. The applicant intends to request a 60-month measuring period instead of a 24-month measuring period from the IRS. Or simply, the applicant doesn't yet know detailed information for work in later phases.
The applicant should notify NPS of their intent to phase a project as part of the Part 2 submission. Under Section 2 of the Part 2 application, you will need to pay attention to two fields in particular. The first field will indicate to your NPS reviewer that the project is intended to be phased and specifies the number of phases in the project. Separately, if you are also intending to extend the IRS measuring period to 60 months, you will need to check the intent to apply box. Keep in mind it is possible to do a phased project without extending the IRS measuring period, but if you do choose to extend the measuring period, the project is required to be phased. When substituting a 60-month measuring period for a 24-month period IRS regulations state that, the rehabilitation may be reasonably expected to be completed in phases set forth in architectural plans and specifications completed before the rehabilitation begins.
So, what does that mean for NPS purposes and for the initial Part 2 application? It means that along with checking the intent to apply box on the Part 2 application, the applicant is required to submit a general description of each phase, the approximate start and end date of each phase, as well as any construction plans available at the time of Part 2 submission. When it comes to preparing the narrative, consider what your NPS reviewer will be asking themselves when they begin reviewing the Part 2 application. How many phases are proposed? There is no limit to the number of phases allowed in a project. What are the estimated dates for each phase? Keep in mind that phases can happen concurrently. What work is proposed for each phase? Does each phase meet the standards? Will the overall project meet the standards?
To be able to answer these questions, we need to understand the general intended treatments for all phases. Enough of the overall rehabilitation must be fully described in the initial Part 2 application for NPS to be able to preliminarily determine if a proposed rehabilitation meets the standards for rehabilitation. While some things may be unknown until plans for later phases are fully developed, the narrative must fully describe the scope of the overall rehabilitation, including identifying the number and order of phases, all work in those phases for which detailed information is available, and the general information on any phases for which less than complete information is available at the time of submission. However, a proposed project cannot be found to meet the standards if most of the work to be undertaken or work to features and spaces important to the historic character of the building is not fully described and is to be submitted for later review.
This will result in a determination that the application is incomplete and lacking the necessary information to be reviewed. You should be able to fully describe all features and spaces in all buildings associated with the project. This includes all exteriors and all floors, walls, and ceilings. If detailed information for individual phases is not available, whatever information is known about the scope of work must be provided. In some instances, the general treatment approaches to character-defining features, spaces, and materials may be sufficient to obtain a Part 2 approval of a phased project without having more detailed information or plans. So, what does that mean? Tell us all the information you already know, such as existing conditions within the historic building. You should be able to describe all spaces within a building and each building in a multi-building project. What is the general layout? What was the space used for? What is the flooring material? Are there plaster walls or is it exposed brick? What is the overall condition of the auxiliary buildings? Have there been changes to the historic plan, etc.? After that, you should be able to describe all known proposed work, including all best practices for historic finishes and character defining features.
For example, you may not know what the building will be used for at the Part 2, but you do know it has wood floors, and those wood floors are in good condition. The standards tell us that since those floors are in good condition, they should be retained and repaired. You may not know what that space will be used for but you will know which features and finishes will need to be repaired or replaced. The standards also require retention of character-defining spaces such as corridors, lobbies, executive offices, and these spaces should be retained. What you shouldn't do when putting together the narrative is only describe work for which completed plans are available. For example, in a multi-story building, if you only describe the work to the first floor, because a tenant has already been found and the upper floors will be part of a later phase, which will be submitted via an amendment, this may result in NPS not being able to issue a certification decision because a substantial rehabilitation of the building is not being described. In a multi-building project, all buildings should be described and not just the ones in Phase 1.
When it comes to documentation needed to accompany the narrative, the most important are the pre-rehabilitation plans and photos of all spaces and buildings with a photo key. It is also best practice to submit conceptual drawings if available. What is not required is a complete set of drawings for all future phases. Information may be submitted as it becomes available. For the purposes of a phase advisory, a phase constitutes work proposed to be undertaken to an entire feature or space. NPS cannot issue a phase advisory for partial work completed on the identified features or spaces, or if additional work to those features or spaces is expected later on. So, what are some examples which would constitute a phase for the purposes of a phase advisory? The entire exterior of the building. The entire interior of the building. An entire building. This is often in a multi-building project. An entire floor. This includes all features and finishes on that specific floor, including but not limited to floors, walls, ceilings, HVAC. Contiguous groupings such as floors 3 and 4 being a phase and floors 5 and 6 being a separate phase. Tenant spaces. New additions to the historic building. And new construction on the historic lot. What doesn't constitute a phase and therefore NPS will not be able to issue a phase advisory determination for? Demolition of contributing buildings. Portions of the exterior such as a select grouping of windows or just the storefront when the scope of rehabilitation includes other work that is planned for the exterior of the building. Electrical, doors, flooring, exploratory demolition, HVAC, hazmat remediation, plumbing.
Please keep in mind that if you do submit a phase advisory containing piecemeal work, which does not constitute a phase, we cannot issue a phase advisory for, we will not be putting the project on hold for revisions. Amendments will be discussed in more detail later. However, when it comes to phasing, amendments are used to both change the scope of work set forth at the Part 2 and further define future phases. Changes to the scope of work in defined phases, either via amendment during the course of the project or at the time of requesting a phase advisory determination should generally be minimal. NPS can only issue phase advisory determinations for phases of a project that were defined at the Part 2 and the IRS requires plans to be set forth before the project begins. Information detailing future phases may be submitted later using an amendment sheet and following the Part 2 format describing existing conditions and proposed work. Associated construction plans and any other information required to fully describe the work should be submitted as well. In the situations where a request is submitted via an amendment after a Part 2 approval has already been issued for a project to be changed to a phased project and PS will accept the amendment and will issue a comment sheet noting that while this updates the information on file the applicant should contact the IRS to make sure that doing so meets the applicable internal revenue code.
(Rebecca Shiffer) The next topic is amendments and phase advisory determinations. I'm Rebecca Shiffer, and the image on the screen is a portion of the landing page for the Historic Preservation Tax Incentives website. I'm going to discuss the form, the situations for which you should submit an amendment, and what to include in an amendment to facilitate a timely review. Then I'll also discuss requesting phase advisory determinations.
The form includes three pages as shown on the screen. You will always use the cover sheet on the left to list or summarize the topics of the amendment. You will usually need the continuation sheet shown in the center to present a detailed narrative of the topics of the amendment. And you will never need the notices page on the right. We are required to provide this, but please don't include this in your submissions.
So, let's get into when you should submit an amendment. First, you'll use the amendment sheet as the cover page when you provide information requested by the National Park Service for a project that is on hold. In this case, please check the first of the four boxes in Section 2 as shown on the screen and always submit a copy to the SHPO as well. When you respond to an NPS request for information for a project on hold, please do only that. Supply the information requested by the NPS. If you check the respond to hold box and another box, meaning that you've modified the scope of work. You are submitting new information not previously reviewed by the SHPO and this will hold up review of your response because the new information needs to be submitted through the SHPO.
The second scenario for which you should submit an amendment is when you need to update the applicant or project contact information or any of the basic project data, such as the beginning and ending dates or the QREs. For these amendments, please check the second of the four boxes in Section 2, as shown on the screen, and list the information to be updated in the summary block of Section 2. Our response will be to check the box at the bottom of the page that states that the amendment updates the information on file and does not affect the certification. We recently announced a change for these types of standalone amendments only. If the amendment only updates the basic information that I've described, you may submit it directly to the NPS at our general email box shown on the screen, which is NPS_TPS @nps .gov, always with a copy to the SHPO. If the amendment includes any other information, such as responses to conditions or changes to the scope of work, the amendment must be submitted through the SHPO as usual.
You will also submit an amendment when you're responding to NPS conditions for approval. In this case, you would check the third box in Section 2, stating that the submission amends the previously submitted Part 2. Regarding conditions, I want to remind everyone that it is not required to submit an amendment saying that you will meet a condition. We realize that many applicants and investors feel more comfortable with an approved amendment that clears the conditions, but it's not required. If the applicant fully intends to meet the condition as written by the NPS, it is not necessary to submit an amendment that essentially says condition will be met.
You will also submit an amendment when you need to revise the scope of work for an approved project. You should do this when you need to propose new work that was not included in an approved Part 2, when you need to describe changes to approved work that developed during the project, or when you need to provide complete descriptions of work for phases that were not fully described in the original Part 2. You will again check the third box on the amendment form as highlighted on the screen, and these amendments will be submitted through the SHPO. Submitting an amendment when you modify rehabilitation treatments is critical, which is why I've highlighted it in yellow on the screen. One of the primary causes for denial of certification at Part 3 is completed work that does not meet the standards and for which no amendment was submitted. Without an amendment, the SHPO and the NPS cannot offer guidance on how the work could meet the standards. And once work is complete, it's often too late to make changes or undertake remedial work that will enable the project to meet the standards.
When you need to amend the scope of work, it's important to be specific and complete. The green check mark in the circle on the left points out best practices. Once again, please be sure to list the work items included in the amendment on the cover sheet and provide the detailed narrative on the continuation sheets. Focus only on the items being revised and submitted for review. As an example, a track changes version of an entire Part 2 does not facilitate a timely review and response from the NPS. At the same time, you need to ensure that the amendment is complete, meaning that all work you are submitting for review is described in the narrative.
The application signed by the applicant always takes precedence over other materials that are submitted along with it. So, if the drawings show changes that are not described in the narrative, these changes cannot be assumed to be approved. The red X in the circle on the right indicates how not to fill out the amendment cover sheet. See attached is essentially like asking us to sign a blank check because it provides no information on what the amendment is about. If the topics of the amendment sheet are not listed on the cover, the SHPO or the NPS will likely ask you to revise and resubmit the cover sheet. And see plans as the summary on the amendment cover sheet will lead to the review being placed on hold with a request for a specific summary and a complete narrative describing the changes to the scope of work.
What I'm going to discuss now is not required, but I and my colleagues have found that it greatly facilitates review of an amendment, especially those that may come a year or two after the Part 2 , and memory of the project details has faded. It's very helpful for an amendment responding to conditions or modifying the scope of work to key the narrative and any additional photos back to the Part 2 narrative and photos. Reiterating or summarizing the original work item description and then describing the new scope of work is also very helpful. I have found that an amendment is easier to review when it states something like my examples on the screen, which summarize the original treatment and then describe the new treatment based on a condition or based on additional investigation during the rehabilitation work. As I said, this is not required, but it greatly facilitates review of an amendment, which means that you receive our response more quickly.
The final scenario for which you will submit an amendment is to request an advisory determination as to whether a completed phase meets the standards. You will check the fourth box and provide the information on the number of the phase, the completion date, and the estimated QREs associated with the phase. The cover sheet must list the work items in the phase for which approval is sought. The NPS staff will review the application materials to confirm that the request tracks with the phases outlined in the approved Part 2 and any subsequently approved amendments. A request for an advisory determination must provide photos that completely document the work completed in the phase. And if the work was the subject of conditions for approval, be sure to include photos documenting that the conditions have been met.
As you heard in the Raluca’s presentation, a phase is a stage or component of work that constitutes a discreet and distinguishable portion of the overall project's scope of work. The NPS can issue advisory determinations only on the phases of a rehabilitation project that have been defined at the start of the project in the approved Part 2 application and only for work completed in the defined phase. Meaning that we can't issue an advisory determination on phase two and a part of phase three that just happens to be complete at the same time. All features and spaces that comprise that phase must have been fully rehabilitated and all work to them must be complete. If further work is expected to those features and spaces, the phase is not complete. The work in the phase must meet the standards in and of itself. There are no conditional phase advisories. And the cumulative effect of the overall project is not taken into account in the approval of an advisory determination for an individual phase. And finally, approval of a phase is just that advisory only. And it will be superseded if the overall rehabilitation does not meet the standards. So, what happens if the phase is not complete or does not meet the standards? If the work is not complete the request remains on hold in our office until the work is complete and photos of the remaining work are submitted.
If the work completed in the phase does not meet the standards but remedial work could bring it into conformance with the standards, we will recommend that. If the applicant opts to do the remedial work, the request remains on hold until the work is complete and photos submitted to our office. There are situations where we are not able to issue the requested phase advisory determination because the work in the phase does not meet the standards in and of itself. My example on the screen is taken from a real request for an advisory determination that I reviewed. The work completed in the phase did not meet the standards due to some incompatible windows, and we were not able to approve the request for a phase advisory determination. However, we felt that the incompatible windows might not preclude final certification if all the rest of the work in the overall project was completed as proposed and approved and therefore met the standards. The paragraph on the screen was part of our response that the phase itself did not meet the standards but that the work would be evaluated in the context of the entire project at the Part 3. In this case, ultimately the project was otherwise completed as proposed and approved, and it did receive final certification. This scenario is also an example of what I said earlier. Cumulative effect is not considered in the review of a specific phase, but it is considered in the review of the overall project.
Now, I'll turn the program over to Vincent Lake and after their presentation we will take questions.
(Vincent Lake) The goal for Part 3 applications is a quick process. We always look forward to Part 3s and getting to see photos of successful rehab projects. We recognize that you need to close out construction loans so we want to get these reviewed quickly and back to you. In this session we'll go over what constitutes a complete Part 3 application, which helps ensure the review is straightforward and fast.
When TPS approves a Part 3 application, the reviewer checks a box certifying that the rehabilitation project meets the standards. The box we check depends on whether or not the property is already listed in the National Register. If the property is already listed, the rehab becomes a certified rehabilitation when we sign the form. If the property is not yet listed, the project becomes a certified rehabilitation once the property is listed. For question 1 on the Part 3 application form, if the property has not yet been listed in the National Register on the form, check "No" in the spot circled on the slide. This is true even if there is an assigned Part 1 for a preliminary determination. Only check "Yes" in the spot circled on the form if the property is already listed, either individually or as a contributing building in a listed district. If the property was listed before you submitted to Part 1, you can fill in either date. If the Part 1 was a preliminary determination, but the property was listed prior to submitting the Part 3 application, indicate the date the property was listed in the spot on the form marked with the arrow.
Beyond filling out the form accurately, we'll now go over four primary topics related to Part 3 submissions that can help keep the process moving. Question 1 is Work Complete? NPS can only review the Part 3 if work is complete. Photos need to illustrate that the rehabilitation project is done, including all items outlined in conditions. Photos should show that the property is no longer an active construction zone, with work finished and the property ready to be placed in service. The photo on the left showing incomplete drywall installation was submitted with a Part 3 application, demonstrating that work was not quite done. The project was placed on hold until work was complete and photos of the finished work were submitted, as seen in the photo on the right.
Question 2, are the photos sufficient? Part 3 photographs should be comparable to the photographs submitted at the Part 2 to allow for reasonable comparison. You need to include photographs of all areas of the property. Be sure to include photos of all buildings, interior spaces, the site, and landscape features, even areas where no work was undertaken. The photo on the left illustrates the pre-rehabilitation condition of the primary elevation of the Atmore Hardware Company and the Strand Theatre. The photo on the right is taken from the same location after rehabilitation, which allows for comparison of conditions before and after the project. Photos of completed work should illustrate that all conditions have been met. Some conditions may request specific photos of a particular item, such as masonry or street -level views of rooftop additions. Including these requested photos with the Part 3 application ensures that we have the information we need to complete our review. For example, for the project seen in these photos, which show work underway, the applicant will need to submit comparable overall photos of the front elevation as well as close-up photos of the masonry after paint is removed.
Question 3, do historically finished spaces remain finished? The historic character of the property should be preserved as part of the historic rehabilitation project, whether a building historically had an industrial character, like in the photo on the left, or was a historically finished space, like in the photo on the right. Historically-finished spaces that were finished at the start of the project should remain finished. Spaces that were not finished at the start of the project may remain unfinished. In some instances, tenant spaces may be left in a white box condition at project completion when a future tenant has not yet been identified. In general, white boxing is only acceptable in commercial and office spaces that are secondary. Spaces appropriate for White boxing are typically those that were finished at the start of the project, but were lacking historic features and finishes, such that only their character as finished spaces remained. Future tenant fit out within the five -year recapture period must be submitted for review by amendment.
White boxing typically consists of taped drywall ceilings and walls that are ready to receive paint, with concealed MEP systems or limited exposed MEP systems that are painted to blend. The image on the left is the protective life building, consisting of a multi-story tower and a two-story historic addition to the left of the tower. The addition had no historic interior finishes at the start of the project, so it was appropriate for the ground floor of this space to remain in a white box condition at the end of the project, as seen in the photo on the right. Current NPS guidance regarding white boxing was drafted in 2016 and can be found at the link on this slide. This guidance allows, in limited instances, unfinished conditions in some historically finished secondary spaces if they are minor, not highly visible, and relatively incidental in the context of the specific floor or floors and the overall building generally. We are in the process of revising the current guidance and have been actively seeking input from industry representatives through a series of listening sessions so we can identify possible areas where we can bring added flexibility.
Question 4, is completed work the same as what was approved? Next, we'll discuss what happens when completed work isn't the same as what was approved in the Part 2 application. Minor clarifications can be described in the Part 3 application. The photo shows a historic wall map found when non -historic finishes were removed. This treatment was explained in a brief narrative comment from the applicant at the Part 3. Although the wall map was not what was proposed at the Part 2, the brief explanation and photo made it obvious that this change in scope met the standards. If the project is complete and the work differs substantially from what was approved in the Part 2 and subsequent amendments, Submit supplemental information with the Part 3 application. Although it's always ideal to submit changes in scope of work by amendment before work is complete, we recognize that sometimes this isn't possible.
The purpose of submitting supplemental information with the Part 3 application is to decrease the likelihood of our needing to place the review on hold to request additional information. The supplemental information should describe the work that was proposed and approved, what was actually completed, and the features impacted. You should also submit any photos and drawings that will help us understand the work that was completed. For example, window drawings or documentation of deterioration of historic features. Our goal is to understand the completed work. Just because the work is different from what was approved in the Part 2, does not necessarily mean remediation will be required. Work that meets the standards will be approved, and in some cases individual work items that don't meet the standards may still be acceptable within the context of an overall project. The photos on this slide show property in its pre -rehab condition on the left and post -rehab on the right. NPS approved concealed MEP at the Part 2, so the exposed duct work at the Part 3 constituted a change in the approved scope of work. The applicant returned the ceiling of this space to its historic height, but this meant that there was not enough interstitial space to conceal the ductwork, so it was left exposed. Because the historic ceiling height was restored, the ductwork was held above the window openings, and the historic arched window sashes were re-exposed, NPS agreed that the treatment of this space met the standards within the context of this project.
But what happens if work doesn't meet the standards? If work substantially differs from what was approved and does not meet the standards, NPS will outline remedial work if it is necessary and achievable. We recommend that the applicant submit a proposal for remediation before beginning work. At the hotel seen in these photos, exposed plumbing and mechanical systems were installed throughout primary spaces on the ground floor, in many cases impacting decorative trim and having a strong visual impact on the historic character of the space. This work did not meet the standards and NPS required remediation. Remediation included rerouting plumbing and mechanical lines where possible, installing ceiling clouds in secondary areas to obscure mechanical systems that could not be moved and painting those lines that had to remain in place. The completed work is seen on the right and resulted in an approved Part 3. Everyone's goal is for the Part 3 process to be simple and quick. In order to ensure a streamlined review, make sure the Part 3 application form is filled out correctly. Work is complete when photos are taken and that photos show all parts of the property and everything asked for in the Part 2 conditions. Historically finished spaces should still be finished or should be white boxed if appropriate and work should be completed as approved or documented with supplemental information that demonstrates that it meets the standards. These are the pieces reviewers are looking for and we're all pleased when we can sign an approval on a successful rehab project.
(Brian Goeken) Thank you for listening to the fifth and final webinar of this five webinar training series on the HPCA application. We hope you found the information in this training series helpful. The other webinars that are part of the series as well as the HPCA application form, the application instructions, contact information, and how to subscribe for news and updates from our office are all available on the main page of our website.
Description
This webinar discusses the requirements and considerations for phased rehabilitation work, amendments to Part 2 applications and phase advisory determinations, and the Historic Preservation Certification Application Part 3 – Request for Certification of Completed Work.
Duration
34 minutes, 11 seconds
Date Created
05/20/2025
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