What is the National Register of Historic Places?
The National Register of Historic Places is a list of properties acknowledged by the Federal Government as worthy of recognition and preservation for their significance in American history and culture. National Register properties include districts, sites, buildings, structures, and objects of significance to their local community, state, or the nation. The National Register program is part of a national policy to recognize and protect the country's historic and cultural heritage. The National Register is maintained by the Secretary of the Interior and administered by the National Park Service.
What is the Chicago Bungalow Multiple Property Listing?
The Chicago Bungalow Multiple Property Listing on the National Register is a document that sets up the historic context and the historical significance of the residential building type known as the "Chicago Bungalow." The Multiple Property Listing IS NOT the same as a National Register Historic District. Instead, it serves as an "umbrella" under which districts of Chicago bungalows and individually significant Chicago bungalows can be nominated for listing on the National Register.
What is a National Register Historic District?
A National Register Historic District is a concentration of historic buildings, structures, sites or objects united historically or aesthetically by plan or physical development. Any one property in the district may not be particularly significant individually, but as a collection they are significant. Most Chicago bungalows nominated for listing on the National Register will be nominated as part of a district.
What are the benefits of being in a Historic District listed on the National Register?
There are several benefits of being located within a Historic District.
- Honor – It is a great honor for a property to be listed on the prestigious National Register of Historic Places.
- Protection – The National Register program also provides a measure of protection from federally-assisted projects.
- Financial – The State of Illinois has a Tax Freeze program available for rehabilitating and restoring owner-occupied homes.
Will restrictions be placed on my bungalow if it is listed on the National Register?
No. The Federal Government, the State of Illinois nor the City of Chicago will not place any restrictions on the property as a result of listing, or dictate the colors or materials used on your bungalows.
Will I need to apply for approval every time I want to make a change on my bungalow?
No. You are not required to preserve or seek approval of the Federal Government, the State of Illinois, or the City of Chicago unless you apply for and accept special federal or state tax or funding benefits, such as the Tax Freeze.
What is the State of Illinois Tax Freeze?
The Property Tax Assessment Freeze Program provides tax incentives to owner-occupants who rehabilitate their homes. The homes must listed on the National, State or Local Register of Historic Places. Through the Property Tax Assessment Freeze Program, the assessed valuation of the historic property is frozen for eight years at its level the year rehabilitation began. The valuation then is brought back to market level over a period of four years.
The following is an example of how a property would be affected. The savings to the owner of a bungalow that has been rehabilitated with and without designation is illustrated in Columns II and III below.
|
Original |
Rehabbed w/o tax freeze |
Rehabbed with tax freeze |
Property value |
$150,000 |
$200,000 |
$150,000 |
Assessment level |
x .16 |
x .16 |
x .16 |
Assessed Value |
$2400 |
$3200 |
$2400 |
Equalization Factor |
x 2.2505 |
x 2.2505 |
x 2.2505 |
Equalized Assessed Value |
$54,012 |
$72,016 |
$54,012 |
Homeowner Exemption |
-$4500 |
-$4500 |
-$4500 |
Adjusted Equalized Value |
$49,512 |
$67,516 |
$49,512 |
Sample Rate |
x .1000 |
x .1000 |
x .1000 |
Tax bill in dollars |
$4,951.10 |
$6,751.60 |
$4,951.10 |
Assuming no change in market value and no increase in equalization and tax rate the homeowner in the rehabbed house with a historic designation would save $1804 annually in real estate taxes. In the 12 year period for which the freeze is in effect, the owner would save more than $17,100.
What is the difference between a National Register Historic District and a Local Historic District?
A locally designated historic district is more restrictive. It requires the city's Landmark commission to review all changes, new construction or demolitions in the district. As discussed above, a National Register historic district is NOT restrictive unless you take advantage of federal or state tax or funding incentives.
Is having a certified Historic Chicago Bungalow the same as being listed on the National Register?
No. A certified Historic Chicago Bungalow is determined by the Historic Chicago Bungalow Association, administrator of the Historic Chicago Bungalow Initiative, which is a city based program. The National Park Service, a federal agency, determines if the property is eligible to be listed on the National Register.
If you would like to learn more about how to get your bungalow community nominated for listing on the National Register, please contact Emily Ramsey at 312-642-9900.
If you would like to learn more about the State of Illinois Tax Freeze please visit their website at www.state.it.us/hpa/PS/taxfreeze/htm or call (217) 785-4512.