Goals and Objectives of PLT/A: Real Estate and Finance
Goals
The proper balance between risk and reward is the financial test to be met in the rehabilitation of historic properties. This training examines the economic considerations in redeveloping a historic structure, the standards that must be met and their effect on the cost of the project, influences on the market for historic properties, and financial incentives available for rehabilitation and preservation. Participants will follow the progress of a prototype historic redevelopment project including examples and explanations of pro formas, financial considerations, and have the opportunity to apply this knowledge to projects located in the host community.
Educational Objectives
- Understanding where historic preservation policy fits in the broader scheme of economic activity, including perceptions about risk, market and non-market factors that affect historic preservation decisions.
- Understanding how historic preservation as an intervention strategy/policy impacts local economic development, influences local market activity and stimulates/dampens historic preservation activity and preservation “neighborhood” markets such as historic districts.
- Understanding tax credits (federal, state, local) for rehabilitating historic buildings.
- Understanding how a real estate developer approaches a historic building development -- the decisions, compromises and the positive/negative impacts the decisions have on the project and ultimately the community.
- Understanding basic historic preservation real estate development project pro forma analysis -- “the numbers” and why some historic preservation strategies and/or projects work better than others and why some projects don’t work at all.
- Understanding how ownership, legal, and tax issues influence both preservation policy and implementation decisions, and impact economic development, local project development and local markets.
- Understanding various financial techniques used in preserving and rehabilitating historic buildings; and identifying a wide variety of financial “tools” available for a wide variety of historic preservation efforts.
- Understanding advantages/disadvantages that federal, state, local legislation (including tax law at federal, state, local levels) has on historic preservation and why local policies such as design standards and zoning affect the cost and value of historic properties.
- Participants are expected to complete any readings, assignments, and to participate in session discussions.
