What is the Revolving Fund for Endangered Properties Program?
The Georgia Trust for Historic Preservation established its Revolving Fund for Endangered Properties program in 1990 to provide effective alternatives to the demolition or neglect of architecturally and historically significant properties by promoting their rehabilitation and monitoring their preservation in perpetuity. The Revolving Fund accomplishes this goal by either accepting property donations or by purchasing options on endangered historic properties. The properties are then marketed nationally to locate buyers who agree to preserve and maintain the structures. Protective covenants, in the form of a preservation easement, are attached to the deeds to ensure that the historic integrity of each property is retained. Purchasers are required to sign rehabilitation agreements based on the work to be performed on the structure.

How does a property qualify for the Endangered Properties Program?
The Endangered Properties Program Committee of the Board of Trustees of the Georgia Trust selects properties for the program based on the following criteria:

1. Endangered: the property is threatened by development, demolition, or vacancy.
2. Significant: the property is either listed or is eligible for listing in the National Register of Historic Places.
3. Obtainable: the property's current owner is willing to sell or donate the property to the Endangered Properties Program.
4. Marketable: can a sympathetic buyer realistically be located for the property? Building type, condition, location and price are considered.
5. Locally supported: the project needs the support of local government and community groups who are willing to help market and safeguard the property.

How are properties acquired?
After approving a prospective property for participation, the Trust can acquire it by donation or bargain sale, by an option to purchase, or by a purchase in fee simple.

• Donations & Bargain Sales (sales of real estate to a non-profit organization at less than fair market value): these methods not only ensure that threatened historic properties are preserved, they also provide much-needed capital to the Endangered Properties Program. In addition, property donors and individuals who convey property by bargain sale to a non-profit are eligible for tax deductions.
• Options: if the owner is interested in selling a property, the Trust seeks to acquire an option to purchase it. An option is obtained for a normal fee and gives the Trust exclusive right to purchase the property during a specified period of time at an established price. This method assures the owner that the Trust will work to locate a qualified buyer who will agree to preserve the property for future generations.
• Fee simple purchase: such outright purchase of a property is done only in rare circumstances. Property ownership ties up the Endangered Properties Program's capital and may limit the Fund's ability to participate in other pressing projects.

How are properties marketed?
The Georgia Trust maintains a list of individuals interested in purchasing an historic property. These individuals will be notified each time a property becomes available. In addition, advertisements are placed in publications which cater to the preservation-minded. In this manner, the Trust provides a unique service by matching threatened historic structures with interested and qualified buyers.
In order for the Trust to make an educated selection, prospective purchasers are asked to submit a statement of intent, which includes a brief biography of the proposed owners in terms of their interest and experience in preservation, a summary and time line of rehabilitation plans, and financial information.

How are Endangered Properties Program properties protected?
To ensure proper preservation and maintenance of Endangered Properties Program properties, the Trust attaches protective covenants to the deed. If rehabilitation is required, the purchaser must sign a rehabilitation agreement based on the work to be undertaken. New owners are not asked to perform museum-quality restorations, but are obliged to follow the Secretary of the Interior's Standards for Rehabilitation. Both the protective covenants and the rehabilitation measures will be monitored by the Trust.
The Georgia Trust will accept preservation easements, much like the protective covenants placed on the properties it markets, from owners who are concerned about the future of their historic property. The Georgia Trust monitors these easements in perpetuity, ensuring preservation property for future generations.

Is special financing available?
The Trust does not offer grant money or special financing for rehabilitation projects at this time. However, there are  available through the federal government for structures rehabilitated for income-producing purposes. For income-producing properties (commercial and residential rentals), substantial rehabilitation work may qualify for federal and state tax incentives. For homeowners, the state tax credit and tax abatement programs may apply. Finally, gifts of historic properties are tax-deductible.

Does the Endangered Properties Program generate income?
While the Fund is not designed to be income-producing, any advertising or stabilization costs, up to an agreed-upon amount, are reimbursed by the seller at the time of sale. Any proceeds from the sale are returned to the fund, thereby "revolving" the use of the initial capital.

What is a Preservation Easement?
The Georgia Trust requires a preservation easement on every property coming out of its revolving fund. An easement is a partial interest in real property that is carried as a deed restriction that “runs with the land”; it is permanent. The property owner donates the interest to a qualified non-profit easement holder (such as The Georgia Trust) in order to protect important open spaces, building facades, and sometimes, interiors. In granting the easement, a specific set of rights are transferred which are designed to protect against inconsistent or incompatible alteration of a property. The Georgia Trust monitors these easements in perpetuity, ensuring preservation of the property for the next generation.

What are the benefits of granting a Preservation Easement?
By donating an easement to a nonprofit charitable organization like The Georgia Trust, the property owner may be qualified to take a tax deduction for the value of the donated easement.

What is a Rehabilitation Agreement?
If rehabilitation is required, the purchaser must sign a rehabilitation agreement which defines the guidelines of rehabilitation to be undertaken. New owners are not asked to perform museum-quality restorations, but are obliged to follow the Secretary of the Interior's Standards for Rehabilitation. A typical rehabilitation agreement identifies what needs to be done within a reasonable timeframe.

What is the benefit of having a Rehabilitation Agreement?
Rehabilitation Agreements insure that the historic property will be brought back to good condition and that its historic features will be preserved.

For more information, contact:
Anne Farrisee
Director, Preservation Services
Georgia Trust for Historic Preservation
1516 Peachtree Street, NW
Atlanta, Georgia 30309-2908
404-885-7804

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