Harrison Explores Historic Preservation Funding Opportunities

Harrison, AR. - City officials in Harrison are expressing strong enthusiasm following a recent Historic Tax Credit Seminar, which highlighted significant financial incentives available for restoring historic structures. Held on Monday, February 23rd, the event featured experienced professionals Gabe Holmstrom and Steve Gardner from Little Rock, who shared invaluable insights into accessing state and federal tax credits for preservation projects.

The seminar emphasized crucial considerations for property owners before embarking on restoration. Discussions revolved around the fundamental incentives for saving a building, evaluating the time and expense involved, defining project goals, and exploring potential repurposing. Attendees were encouraged to seek guidance from local historians, the Main Street Board, and the Historic District Commission. Holmstrom and Gardner often prefaced their advice with the practical caveat, "It depends", or "Well, maybe"' acknowledging the nuances of such projects.

A key recommendation from the presenters was the use of a consultant, particularly for first-time applicants, to navigate the complex paperwork and application process. Gardner shared his own experience, stating, "I did a lot of work for years, without using the available tax credits... I'll never skip the tax credits again. It is free money and very worth it."

Both speakers stressed the importance of developing a comprehensive plan and securing cost estimates before commencing work. They also noted flexibility within the process: if an approved plan requires modification, documenting the reasons in writing and maintaining receipts allows projects to proceed. "Don't let it scare you," they advised.

While many banks may be hesitant to issue construction loans due to the potential for state and federal credits, some institutions are willing to establish a "pledge" of credit to accommodate this funding structure. Critical terms introduced included "Qualified Rehab Expense" (QRE), which defines eligible expenditures, and "Era of Significance" (ERS), typically requiring a structure to be over 50 years old.

Mayor Jackson expressed satisfaction with the seminar's turnout, noting that "at least five people attending already own a historic building and are interested in doing some updating and applying for the tax credits."

Once the local Historic District Commission receives state approval, it will serve as a primary resource for answering questions, reducing the need to wait for responses from Little Rock. Until then, Harrison's City COO/Engineer Wade Phillips will serve as the point of contact via email at wphillips@harrisonar.gov. Inquiries can also be directed to the speakers at gabe@capitolandmain.com and steve@stevegardnerhomes.com, or a Historic District Commissioner.