What Is An Easement?
An historic preservation easement is a voluntary legal agreement made between a property owner and a qualified, non-profit, easement-holding organization, such as the Conservancy. Its purpose is to protect a significant historic property, landscape, or archaeological site by restricting future changes to or development on the site.The Conservancy accepts historic preservation easements on buildings and sites of historic value in the five boroughs of the New York City.
What Is the Benefit of An Easement?
Easement donations normally have important financial consequences to the donor. Under the Internal Revenue Service’s (IRS) Qualified Conservation Contribution, the owner can receive an income tax deduction equivalent to the value of the rights given to the Conservancy. Building owners wishing to donate easements are encouraged to speak with their tax advisors if they wish to claim a tax deduction for the value of the easement contribution.In order to qualify for tax deductions, a preservation easement must be for a certified historic structure. This means that the structure must be listed in the National Register of Historic Places or located in a registered historic district and certified by the National Park Service as being historically significant to the district. Local landmark designation is not required.
How Does An Easement Work?
A property owner will convey a portion of his or her rights on the property to the Conservancy, allowing the Conservancy the legal authority to enforce the terms of the easement. The degree of restriction may range from the retention of exterior details to prohibiting the use of any unused development rights.Each easement is tailored to the individual property. The degree of restriction may range from the retention of interior details to prohibiting any further development on the site. Generally, an easement binds all current and future owners to preserve the property and mandates cyclical inspections of the property to ensure that the facades or interior spaces in question are properly monitored and maintained in good condition. In some cases, the property owner will donate grants in conjunction with an easement to defray the costs of administering, inspecting, and enforcing the easement in perpetuity.
When a mortgaged property is involved, the Mortgage Company must subordinate its rights in the property to the Conservancy’s right to enforce the restrictions of the easement in perpetuity.
Once recorded in the county records office, an easement becomes part of the property’s chain of title and ‘runs with the land’ in perpetuity. Thus an easement binds not only the owner who grants it but all future owners as well.
Are There Costs for Granting An Easement?
The Conservancy retains the right to accept fees in conjunction with an easement donation. These fees shall be sufficient to defray the costs of administering, inspecting, and enforcing the easement in perpetuity. Portions of the fee may also be used to assist in the general operations of the Conservancy and may be allocated to the Conservancy’s Endangered Buildings Fund.The Conservancy will determine these fees on a case-by-case basis. Considerations include the size of the building, the number of principal facades that will need inspection, and if any interior spaces are involved.
How Is An Easement Enforced?
Easement enforcement involves regular inspections and review of proposed alternations. Conservancy staff conducts annual visual inspections of all easement properties. If any defect is noted, the owner receives a notice informing them of the defect and instructing them to address or repair it. In buildings greater than six stories in height, the Conservancy will request a copy of the most recent Local Law 11 facade inspection.In addition, the Conservancy contracts a preservation architect or engineer to conduct a more in-depth inspection of each property every five years. The Conservancy sends a copy of the resulting written report with photographs to the owner and highlights any repairs or restorations that need to be done to maintain the building in good condition. The Conservancy will work in collaboration with the owner to address the repairs. We can provide low-interest loans to qualified owners, as well as technical assistance and contractor referrals.
When evaluating the appropriateness of proposed alterations, the Conservancy adheres to widely accepted preservation standards, including the Secretary of the Interior’s Guidelines for Historic Preservation and the Title 63 rules of the New York City Landmarks Preservation Commission (LPC). For properties that fall under the jurisdiction of the LPC, the Conservancy works in conjunction with the LPC to ensure that preservation standards are met. The Conservancy staff annually updates its list of easement properties and share it with the LPC.
If the Conservancy and property owner cannot reach an understanding about implementation or enforcement of the conditions of the easement, the Conservancy reserves the right to initiate legal proceedings to address these issues and secure its rights.
