Historic Preservation Easements
Please contact Dorothy Guzzo (DorothyGuzzo@gmail.com) for all easement related questions.
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Historic Preservation Easements are legal documents, filed and recorded with the deed, that stipulate that any work done to the property is first reviewed by Saving Historic Moorestown (SHM), or any other qualified entity having a similar mission. Easements can be donated to a qualified 501c3 charitable organization such as Saving Historic Moorestown, or the New Jersey Historic Trust, or they can be purchased outright, based on a value negotiated between the property owner and the entity to be holding the easement. Easements are the only legal way to protect historic property. Even with an ordinance and historic preservation commission in place, a town cannot preclude a property owner from eventually demolishing their house. A representative from the easement-holding organization may inspect the protected features of the property on a periodic basis to ensure ongoing preservation and help to identify future considerations.
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The easement specifies the ‘protected features’. Typically, easements protect the exterior of the building and the building lot. With certain architectural characteristics, there may be a desire to protect an interior feature, such as cabinetry, stair halls, or fireplaces. Historic Preservation Easements do not prevent home owners from adding additions, updating kitchens and bathrooms, building garages or introducing landscape features. But rather, easements ensure compatibility with historic character of the property and surrounding historic district. The easement ‘holder’ typically has expertise in historic preservation and the ability to assist a property owner in preserving, maintaining, and updating their property. Expertise can include historic architects, preservation professionals and/or contractors who routinely work with old buildings.
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Typically, the property is either listed or eligible for listing in the National Register of Historic Places, meaning that it meets the criteria for listing*. The property may also be a contributing property in a listed historic district. An easement may also be an appropriate tool to protect an important archaeological site. With this in mind, any property owner may voluntarily grant an easement to SHM. Depending on circumstances, and subject to legal requirements, easements are negotiated between the grantor (owner) and the grantee (SHM). The ‘value’ of an easement is based on a percentage of the appraised value and the features being protected. This may be adjusted by SHM based on circumstances.
*The criteria for listing in the National Register of Historic Places has been established by the National Park Service and is incorporated into New Jersey’s preservation regulations and often in local municipal ordinances. A property that is at least fifty years old must be significant for its architecture, association with an important person, characteristic of a property type such as in a historic district, and/or for its archaeological potential. A building or site may also be eligible as a ‘contributing’ property within an eligible or listed historic district. Most importantly, the building must have ‘integrity’ meaning that it retains its ability to convey that significance. For more information see:
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First and foremost, the property being protected can’t be torn down without prior review. Easements ‘run with the land,’ meaning that the easement remains on the property regardless of changes in ownership. Once an easement is placed, each subsequent owner is subject to the terms of the easement. Easements are perpetual, meaning that they cannot be extinguished without SHM approval, and then without repayment to compensate for the value of the easement. This would only be in an extreme case, such as catastrophic fire. In some cases, the easement, or ‘right to protect the property’ may be purchased from the property owner. This provides a financial infusion that can be used to rehabilitate and maintain the property. This type of program recognizes that it can be financially challenging to maintain and restore an historic property. The character and livability of our small towns are often reflected in its history and the tangible remains of that history. Recognizing Moorestown’s significance, and that preserving its history is part of its economic stability, SHM has designed its easement program to support preservation efforts.
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In the short term, easements may lower the value of the property because it is looked at as a restriction. However, in the long term, there is typically no impact on property value. Easements may decrease the number of people interested in buying the property, but also ensures that preservation minded people purchase the property. In the event that SHM dissolves, appropriate provisions are included to allow the easement and the protection it provided to be reassigned to another easement holding organization.
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SHM may also accept donations of easements, with a fee. In estate planning, and for those who have carefully restored and maintained their property, there may be a desire to grant an easement to SHM to preserve the property in perpetuity and/or for estate planning and tax considerations. It is recommended that you consult with a tax attorney to determine if your easement donation qualifies for tax benefits.
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The New Jersey Historic Trust is the state’s preservation organization that accepts donations, and has the ability to purchase easements. SHM’s program is similarly structured.
https://www.nj.gov/dca/njht/private/what-are/
The National Trust for Historic Preservation:
https://savingplaces.org/easements
National Park Service
https://www.nps.gov/orgs/1739/upload/brochure-easements-historic-properties.pdf
The Internal Revenue Service
https://www.irs.gov/pub/irs-utl/facade_easement_brief_june_2009_final_revision_08272009.pdf