A facade easement is a conservation easement that preserves a building’s historic facade. The owner agrees not to make changes without confirming their impact on historic value. The easement is donated to a non-profit organization for tax benefits, but abuse has led to government regulations and audits. Eligibility depends on the building’s historic value and location. Consultation with an attorney and reputable organization is advised.
A facade easement is a type of conservation easement designed to maintain the historic character of a building’s facade. When a facade easement is made, a building owner agrees not to make any changes to the facade without confirming that they will not affect its historic value. The easement is donated to a non-profit organization that accepts conservation easements and holds them in foster care. Numerous cities have organizations that manage historic preservation easements.
For the building owner, the benefit of a front easement is that it entitles the building owner to a tax break. Easement limits the development of the property’s facade and government agencies recognize that this can reduce the value of the property. Therefore, people can use the easement as a tax deduction to reduce their property tax, treating the easement as a charitable contribution.
In several countries, the use of facade easements as tax deductions has veered into the realm of abuse. For this reason, some governments have established specific rules on the operation of historic preservation easements, with the goal of reducing abuses. Individuals with such easements are also subject to audits to verify claims made in the easement contract, including audits to verify that the facade is left in historic condition, with no modifications that could violate the terms of the easement.
To be eligible for a facade easement, a structure must be of historic value. However, if the home is in a historic district with development restrictions, it cannot receive an easement. This is because, whether or not the houses in the neighborhood have easements, their facades must be left intact to comply with development limits. Thus, the owner of a property does not need to put it into an easement to preserve its historic character, and a facade easement does not devalue the structure for resale because development of the entire neighborhood is limited.
Conservation easement laws vary from country to country and it is advisable to consult an attorney for specific advice. As a general rule, if the intent behind an easement is a genuine desire to protect the historic character and value of a structure, and such protections are not in place in the area where the structure is located, the easement is likely legal. . Applying for an easement with the aim of reducing your tax burden, however, can ensnare people in trouble. It is also wise to work with a well established and reputable organization that accepts conservation easements, ideally one that works in the community, rather than one located elsewhere.
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