New Michigan State Historic Preservation Tax Credit Bill Introduced

Join and get involved with the MI Impact Coalition, as we work to bring back Michigan’s State Rehab Tax Credit.  Both Senate (SB 469) and House Bills (HB 5117 and HB 5178)have been introduced to reinstate the Michigan Historic Preservation Tax Credit. These bills would reinstate the popular program that offers a credit of up to 25 percent of rehabilitation expenses against state income tax.

Revolving Loan Programs


Preservation Fund – Predevelopment Loan

The MHPN Predevelopment Loan Fund provides financial support for projects rehabilitating historic buildings in Michigan. The loan fund covers reasonable third party costs that occurs in the early stages and are necessary in making the project happen.

 Property Eligibility

The property must be commercial, 50 years of age or older and be located in Michigan.

Applicant Eligibility

Non-profit and for-profit.

Eligible Activities

All reasonable third-party pre-development costs including accounting, application fees, financing fees, appraisals , architectural and engineering, development consultants, environmental assessment, historic consultants, legal fees, licenses and permits, market and feasibility studies, marketing, option payments, schematic or other drawings, survey, title clearance, zoning approvals. Acquisition will be considered.

Loan Range

Up to $50,000.

Term

Earlier of 24 months or project financial closing.

Interest Rate

5% per annum.

Fees

$250 Non-refundable Application Fee (submit with application).

Applicant is responsible for any third party costs for processing the predevelopment loan whether or not the loan is approved.

Criteria

Applications will be evaluated and scored according to criteria that include: Development Team’s experience and qualifications, quality of proposal, financial viability, architectural and historic significance, benefits to the community, etc.

Application and Approval Process

Applications for funding are available by contacting the Michigan Historic Preservation Network (MHPN).  Applications will be reviewed and acted upon within 60 days of receipt of all applications.

Consult with Michigan Historic Preservation Network staff before submitting an application.

Information Sheet (current to 10.4.2017)

Intervention Program

The MHPN Preservation Fund ‐ Intervention Program provides $1,000 ‐ $15,000 loans for repairs to historic buildings. The primary aim of this program is to stabilize historic properties that are threatened by one or more failures of major building systems.  Further, this program is designed to align with, and support, other more comprehensive efforts to rehabilitate the building.

Property Eligibility

The property must be 50 years of age or older and be located in Michigan.

Applicant Eligibility

At the onset, applications will only be accepted from non‐profit organizations, municipalities, Downtown Development Authorities (DDA), and religious organizations. The property must be owned by the applicant or be within the mission of the applicant to be supported by this program.   The applicant will be the responsible entity for compliance with the program and repayment of the loan.

Eligible Activities

The Intervention Program Funds are intended for the repair and replacement building systems that threaten the integrity of historic buildings, including things like HVAC, roofing, foundations, plumbing, structural elements and electrical systems.   Eligible activities may also include moth‐balling or rehabilitation of the building, if the requested funding contributes to a comprehensive rehabilitation plan.   All work must be compliant with the Secretary of the Interior’s Standards for Rehabilitation.

Availability of Funds

Program funds are limited so applications will be evaluated and scored according to criteria that include: historic significance, long‐term viability, comprehensive plan for rehabilitation, impact on the community and capacity for repayment.

Application and Approval Process

Applications for funding are available by contacting the Michigan Historic Preservation Network (MHPN). Applications will be acted upon within 60 days of receipt of all the requested information. If the project is approved, a Loan Agreement will be signed by MHPN and the successful applicant.

Performance of Construction Activities

All work that is funded by the Intervention Program must be completed by a licensed and insured contractor. Project scope is reviewed for conformance with Secretary of the Interior’s Standards for Rehabilitation by MHPN. The construction contract will be executed between the applicant and the contractor.

Recovery of Funds ‐ Repayment Agreement

The Intent of the Intervention Fund is to have the awarded funds repaid to facilitate the perpetuation of the overall Fund. A loan agreement will be developed executed by MHPN and the successful applicant. Terms of a loan agreement are intended to be favorable and will be determined on an individual case‐by‐case basis.

For More Information

Contact MHPN at 517‐371‐8080 or email at bao@mhpn.org

One-Page Information Sheet
Intervention Loan Brochure

Application_Form_-_MPF_Intervention_Program_2014.2.13