Kelsey & Associates | Facade Easement Donations

Kelsey & Associates, Inc.
"Preserving Architectural Heritage"

SPECIAL ALERT!

In 2006, the federal historic facade easement program was thoroughly reviewed by various Congressional Committees, and a new, revised version of the legislation was signed by the President in August of that year. The new bill provided much needed guidelines for qualified and independent appraisers, processors, and donation organizations.

As in the past, you should always be very suspicious of easement processors that are overly aggressive or financially connected in any way with an appraiser or the donation organization, and verify their independence.

We are proud to process easements in Washington, DC only for the well respected L'Enfant Trust, which has been accepting them for nearly 30 years (www.lenfant.org), and for the Foundation for the Preservation of Historic Georgetown (www.preservegeorgetown.org) for properties located in the old Georgetown Historic District. We also process easements for historic homes located in historic districts in the State of Maryland only for the Maryland Historical Trust (www.marylandhistoricaltrust.net/easement.html )

We are the only firm in town that can provide you, the IRS, and the donation organization with a professionally researched and illustrated house history. Other processors simply do not have the capability of our documented work and nearly twenty years of archival research experience.

We encourage you to begin this process early in the year to allow ample time for the various components to be completed, including historic research, detailed architectural description, photographic documentation, review and notarized signatures from your mortgage holder, and official historic certification from the Department of the Interior. It's a very time consuming process that generates a substantial amount of paperwork for a qualified easement.

In addition, the L'Enfant Trust offers discounts on their fair share contribution (FSC) for donations made before June 30, 2007, and September 30, 2007. The final deadline for donating is December 21, 2007.

For a sample of the tax savings you can enjoy with a façade easement donation, please see our Sample Savings Document >>

Façade Easement Donations

An easement is a way to ensure that a home will retain its historical appearance, while the homeowner benefits from a substantial federal income tax deduction. Condominiums and cooperatives are also eligible for easement donations.

An easement donation is deductible as a charitable contribution and is a voluntary, legal agreement between the homeowner and a non-profit organization. As such, it involves future review and approval of changes to the exterior elevations of the home by the grantee, in the same way a homeowner is already subject to by the local and city Historic Preservation Review Board as a homeowner in a historic district in Washington.

As with any legal agreement, there are considerable paperwork and approvals for a façade easement donation. Kelsey & Associates will guide your application through all the necessary steps to ensure acceptance by your mortgage holder, the façade easement grantee and the IRS.

Kelsey & Associates is the only Washington area firm completing easement donations that has both extensive experience in researching your home's past and presents you with a richly illustrated and detailed house history as part of our easement donation package!

Kelsey & Associates will coordinate a specialized real estate façade appraisal to determine the value of potential donation and complete the necessary application to have your home officially certified "historic" by the U.S. Department of the Interior. We will complete this requirement with historic research into your home's past and an analysis and description of your homes architectural style and its context within your historic neighborhood.

With our established relationship with myriad bankers, we also will coordinate deed recordation and legal compliance and subordination with your mortgage lender, as is required for an easement. We will then follow the application through all necessary steps in the process - completion of all IRS forms and the easement acceptance by the non-profit organization, including the writing of a justification and supplying necessary exterior and interior photographs.

In addition to the array of tax benefits, those who donate an easement to the L'Enfant Trust will receive a cast bronze plaque placed on the front wall of each property so that the homeowner can display their pride.

Prices for the coordination of an easement donation vary; however, the typical price for services for a Washington, D.C., townhome is approximately $2,500. This price does not include appraisal fees and the donation to the non-profit organization. Kelsey & Associates will be happy to supply more detailed information on the easement process, typical costs, along with a customized, personalized quote for your home if you would kindly fill out a Free Easement Quote Form >>

For More Information, click here to read an article by Paul K. Williams on Easements that appeared in the March 31, 2003 edition of the Legal Times.