Article V — PRESERVATION INCENTIVES

Sec. C17-24. - Incentive programs.

In order to further the goal of historic preservation in Santa Clara County and the purposes of this Chapter, the HHC shall develop economic and other incentive programs to support the preservation, maintenance, and appropriate rehabilitation of designated landmarks and recommend to the Board of Supervisors the adoption and implementation of such programs. Such incentives may include:

A.

Zoning Ordinance modifications.

1.

Allow for greater flexibility or exemptions from ordinance provisions such as parking requirements, use, setbacks, or landscape improvements.

2.

Allow flexibility in size limit of secondary dwellings in order to preserve the historic integrity of a designated landmark proposed for use as a secondary dwelling.

3.

Provide development incentives that promote cluster development to direct new development away from sensitive designated landmarks and their landscapes.

4.

Provide for the transfer of development rights.

B.

Reduction or waiver of fees for the appropriate permits required to carry out proposed improvements to a designated landmark;

C.

Expedited processing of permit applications involving a designated landmark;

D.

Promotion of landmarks through listing in the heritage resource inventory, brochures or other forms of media;

E.

Recognition and plaque program (honorary and educational activity, with no legal ramifications)

1.

The HHC may recommend and the Board of Supervisors may formally recognize by resolution historic resources that materially benefit the cultural, historic, architectural or aesthetic character of the local community; represent a type of building or are associated with a use which was once common but is now rare in the local community; and/or possess a distinctive location or physical characteristics that represent an established or familiar visual feature to the local community. Recognition would be accompanied by the presentation of a plaque to be placed on the exterior of the recognized historic resource.

2.

Plaques, or other symbols of recognition, may also be awarded for exemplary rehabilitation of designated landmarks.

F.

Historic preservation technical assistance including workshops and education material made available to owners of designated landmarks.

(Ord. No. NS-1100.96, 10-17-06)

Sec. C17-25. - Mills Act contracts.

Owners of designated landmarks and historic resources located in -h Historic Preservation Combining Districts may make application to the County for a Mills Act contract. Such owners may qualify for property tax relief if they pledge to rehabilitate and maintain the historical and architectural character of the property for a minimum ten-year period. Owner-occupied single-family residences and income-producing commercial properties may qualify for the Mills Act. The Mills Act is state-sponsored legislation granting local governments the authority to directly participate in the historic preservation program. Contracts are automatically renewed for one year each year and are transferred to new owners when the property is sold.

(Ord. No. NS-1100.96, 10-17-06)

Sec. C17-26. - State Historical Building Code.

The County implements the State Historical Building Code, hereafter known as SHBC, through the adoption of Santa Clara County Code Section C3-1. The SHBC provides alternatives to the standard building regulations for the preservation, rehabilitation, relocation, related construction, change of use or continued use of a qualified historical building or property. Such regulations are intended to provide alternative solutions for the preservation of a qualified historical building or property, to provide access for persons with disabilities, to provide a cost effective approach to preservation, and to provide for the reasonable safety of the occupants or users. The SHBC is applicable to the issuance of building permits for changes to the interior and exterior of said qualified historical building or property.

(Ord. No. NS-1100.96, 10-17-06)

Sec. C17-27. - Other government-sponsored incentive programs.

The County shall make available information to owners of historic resources regarding where to find more detailed information to pursue the following programs:

A.

Federal Historic Preservation Tax Incentives Program. Administered jointly by the U.S. Department of the Interior and the Department of the Treasury, the Federal Historic Preservation Tax Incentives Program makes available a rehabilitation tax credit that equals 20 percent of the amount spent in a certified rehabilitation of a certified historic structure (listed or eligible for listing in the National Register of Historic Places) or ten percent of the amount spent to rehabilitate a non-historic building constructed before 1936. The rehabilitated structure must be an income-producing property, such as a residential rental property or commercial property.

B.

Affordable Housing Tax Credits. The Tax Reform Act of 1986 (IRC Section 42) established an investment tax credit for the acquisition, construction or rehabilitation of low-income housing. The credit is approximately nine percent per year for ten years for each unit acquired, constructed or rehabilitated without other Federal subsidies and approximately four percent for ten years for units involving the 20 percent federal rehabilitation tax credit, federal subsidies or tax-exempt bonds. Units must meet tests for cost per unit and number of units occupied by individuals with incomes below area median income. The law sets a 15-year compliance period. Credits are allocated by State Housing Credit Agencies.

C.

Historic preservation easements. A preservation easement is a voluntary legal agreement that protects a significant historic resource - an entire structure, or just the facade or interior, or a historic landscape. Under the terms of an easement, a property owner grants a portion of, or interest in, their property rights to a charitable or governmental organization whose mission includes historic preservation. Once recorded, an easement becomes part of the property's chain of title and usually runs with the land in perpetuity binding the owner who grants the easement and future owners. When the owner donates an easement he/she can claim a charitable deduction on federal income tax. The value of the easement is based on the difference between the appraised fair market value of the property prior to conveying an easement and its value with the easement restriction in place. Federal estate taxes for property heirs also may be reduced because the fair market value of the property was reduced during the donor's lifetime by the easement restriction.

(Ord. No. NS-1100.96, 10-17-06)