| MAINE PRESERVATION Protecting our Heritage Introduction to Maine Preservation's Easement Program A preservation easement is a means whereby an owner of real property, whether land or structures, having special historic architectural or archaeological significance, can restrict the use of the property so as to maintain and preserve that significance in perpetuity. By donating a preservation easements to Maine Preservation, an owner may qualify for certain federal tax incentives, including a charitable deduction for the value of the easement donated. An endowment is required for all easements accepted by the organization. A preservation easement in real property is a limited interest that leaves the owner free to sell, bequeath, mortgage or lease the property subject to the easement. An easement may be accepted on property in its present condition or on a property that the owner plans to rehabilitate, in which case the plans for the rehabilitation become part of the easement agreement. Most commonly, a preservation easement restricts the appearance and maintenance of the exterior facade of individual structures. In some cases the restriction will extend to interior features and the surrounding landscape. Open spaces having special historic and/or archaeological significance may also be the subject or preservation easement restrictions. The conservation of open land lacking special historic or archaeological significance should be handled through the mechanism of a land conservation easement. Maine Preservation can refer interested persons to an appropriate land conservation organization; the Maine Land Trust Association is also an excellent resource for this information. Maintenance, repairs, restoration and alterations are subject either to the specific requirements set forth in the easement or to the prior approval of Maine Preservation. Standards for restoration and maintenance are those recommended in the Secretary of the Interior's Standards for the Treatment of Historic Properties. A sample preservation easement agreement and an application form may be obtained from Maine Preservation upon request. The terms of each easement and any special requirements will vary from property to property. Please contact Roxanne Eflin, Maine Preservation's Executive Director at (207) 775-3652 for more information
Harrison Homestead Protected with Easement In August, 2002, Maine Preservation accepted a preservation easement on the Scribner Mill Homestead in Harrison, Maine, donated by John and Marilyn Hatch. The c.1849 property, listed in the National Register of Historic Places, consists of the Greek Revival style house, attached two-story ell, woodshed, and attached barn. Also included in the easement are a chicken house and a corn house. Situated on the Crooked River in Cumberland County, it is a family homestead spanning many generations of the Scribner family who operated an early logging and water-driven sawmill operation. The Scribner Mill Homestead brings Maine Preservation's easements to four, each one unique and of inestimable value in maintaining a tangible record of the people and architecture of the state of Maine. Easements are also held on properties in Belfast, Cape Elizabeth and Yarmouth. _____________________________________________ Sprawl stops here By TESS NACELEWICZ, Portland Press Herald Writer Published in the Maine Sunday Telegram, August 14, 2005 NEW GLOUCESTER — Life at the Sabbathday Lake Shaker Village is rooted in faith and farming, unchanged in many ways from when the community was founded more than 200 years ago. But the Shakers today also must contend with a modern problem confronting all farmers in southern Maine: suburban sprawl driving up land values and property taxes. Click here for full story. _____________________________________________ A more in depth look at Maine Preservation's Easement Program
PURPOSE: The Maine Preservation Easement Program (the “Program”) is established to preserve Maine’s historical and architectural heritage by taking and administering preservation easements in significant historic properties. The statewide program is intended to complement those programs administered by other local or regional organizations. Maine Preservation, a charitable non-profit corporation, is qualified under Maine Law (33 M.R.S.A. 1551) to hold easements on historic properties. The preservation easement is a means whereby an owner of real property, whether land or structures, having special historic architectural or archeological significance, can restrict the use of the property so as to maintain and preserve that significance in perpetuity. In addition, by donating a preservation easement to Maine Preservation, an owner may qualify for certain federal tax incentives, including a charitable deduction for the value of the easement donated. A preservation easement in real property is a limited interest that leaves the owner free to sell, bequeath, mortgage or lease the property subject, however, to the easement. PROPERTY REQUIREMENTS: Any property having architectural, archeological or historic significance may be accepted by Maine Preservation . A preservation easement may be accepted on property in its present condition or on a property that the owner plans to rehabilitate, in which case the plans for rehabilitation become part of the easement agreement. PRESERVATION RESTRICTIONS: The preservation easement most commonly restricts the appearance and maintenance of the exterior facades of individual structures. In some cases the restriction will extend to interior features and the surrounding landscape. Open spaces having special historical and/or archeological significance may also be the subject of preservation easement restrictions. The conservation of open land lacking special historical or archeological significance should be handled through the mechanism of the Land Conservation Easement. In appropriate cases Maine Preservation can refer interested persons to an appropriate Land Conservation Organization. Preservation easements will also require the maintenance of as certain level of care and in some cases, restoration. Maintenance, repairs, restoration and alterations are subject either to specific requirements set forth in the easement or to the prior approval of Maine Preservation. Standards for restoration and maintenance are those recommended in the Secretary of the Interior’s Standards for the Treatment of Historic Properties . The standard preservation easement agreement can be obtained from Maine Preservation upon request. The terms of this agreement and any special requirements will, of course, vary from property to property. FEDERAL TAX BENEFITS: Donations of preservation easements on certain properties may qualify for Federal tax benefits. Federal guidelines allow charitable deductions for easement contributions to “certified historic structures” which are defined as either (1) those individually listed in the National Register of Historic Places, or (2) those certified as contributing to a National Register Historic District, or (3) those contributing to a certified local historic district. Moreover, a charitable deduction may be taken only for perpetual easements. (a) Charitable Deduction: Gifts of certain property interests to governmental bodies or to qualified charitable organizations are deductible for federal income tax purposes as charitable contributions in the amount of the appraised value of the property interest given. The Internal Revenue Code has specifically recognized the deductibility of an easement that protects a historic building (Section 170 (b)). To qualify for federal tax benefits, an easement must be “for conservation purposes”, one of which is “the preservation of a historically important land area or a certified historic structure”. Easements on building interiors are tax deductible only if there is a substantial and regular opportunity for the general public to view the architectural characteristics covered by the easement. Federal tax benefits apply only where the easement donation is made to a “qualified organization,” which is defined as a governmental body or a charitable organization which has the resources to enforce the restrictions and which can demonstrate a commitment to protect the conservation purposes of the easement. The easement must be granted in perpetuity. (b) Investment Tax Credit: Donors of preservation easements who are interested in taking an Investment Tax Credit for qualified rehabilitation expenditures should note that the Internal Revenue Service has ruled that the property’s basis, on which depreciation deductions are calculated, must be reduced by the value of the easement. The donation of a preservation easement may therefore reduce the dollars needed to meet the “substantial rehabilitation” test as well as reduce depreciation deductions. It is recommended that the donor evaluate all of these aspects prior to making the donation of the easement. (c) Federal Estate Tax Implication: Gifts of cash or property, including preservation easements, to public charities may reduce the federal estate taxes that would otherwise be payable at the donor’s death. If the gift is made during the lifetime of the donor, the value of the gift will not be included in the value of the donor’s estate. The results will be lower taxes for the estate, as well as for the donor’s heirs, successors or assigns. APPLICATION PROCESS: Persons interested in donating a Preservation easement should complete the MAINE PRESERVATION application form and submit it with the non-refundable application fee to: Maine Preservation 500 Congress Street, 2nd Floor Portland, Maine 04101 Upon receipt of the application and fee, Maine Preservation will document the present condition of the building. Subsequently, the applicant and the Maine Preservation Easement Review Committee will meet to work out the basic terms of the agreement, and the agreement will be submitted to the Maine Preservation Board of Trustees for ratification. The applicant shall be required to submit an appraisal of the property, a title report, a survey or lot map indicating structures and other improvements, and a casualty and liability insurance policy listing Maine Preservation as an additional insured. Maine Preservation will not render advice regarding federal tax implications of specific easements. Applicants intending to take advantage of federal tax incentives will be expected to obtain independent advice from their accountant or attorneys. Upon completion of the Preservation Agreement, the applicant will pay to Maine Preservation an endowment fee. Maine Preservation will deliver the easement for recording at the appropriate Registry of Deeds. If the property is encumbered by any existing mortgage, then the mortgagee’s consent must be obtained as well.
COSTS: 1. Application Fee --Non-refundable:
• Endowment Contribution : a monetary contribution is to be made to the Maine Preservation Easement Fund, which has been established to cover expenses associated with the administration of the Preservation Easement Program. The total value of the Endowment Fee shall be determined based in part upon property value and estimated expenses to administer, monitor and enforce the easement (usually a minimum of $25,000 or five per cent (5%) of market value, whichever is more; however, this amount is custom determined based upon the specifics of the property and the complexities of the easement agreement itself.)
MAINE PRESERVATION EASEMENT FUND Participants in the Maine Preservation Easement Program shall make a financial contribution to the Maine Preservation Easement Fund (the Fund). Income generated from the Fund will enable Maine Preservation to monitor and enforce each preservation easement it accepts. Maine Preservation will consider a wide range of funding options including outright gifts of cash, securities, or other property. The donor may pledge payment of the Endowment Contribution as one lump sum or on an installment basis over several years. The terms of the Endowment contribution will be embodied in a Pledge Agreement drafted by Maine Preservation and reviewed by all parties prior to signing. The Endowment Contribution is tax deductible. All contributions to the Fund are pooled and all properties in the Program will be eligible to benefit from the protection of the Fund. The income generated by the Fund will be applied as follows: 1) to pay expenses associated with the management of the Program, 2) to the regular inspection of properties participating in the Program, 3) for the enforcement of the preservation easement, and 4) for any repairs which the Maine Preservation may elect to make to these properties. Fifty percent of any excess income will be added to the endowment principal of the Fund and the remaining fifty percent of excess income will be available for the general purposes of Maine Preservation. MONITORING AND ENFORCEMENT OF PRESERVATION EASEMENT Monitoring: • An architectural historian and/or other qualified person designated by Maine Preservation shall conduct formal inspections of each easement property on an annual or more frequent basis. The inspector shall have the right to enter upon the premises to conduct such a review. • Where an easement property is undergoing rehabilitation, the Maine Preservation inspector(s) shall retain the right to inspect all related work on a monthly basis. • During each inspection visit the inspector(s) shall review the property to assess improvements to the site or structures, sub-standards or unauthorized alterations, and major defects or deterioration. Enforcement: • Where the inspector(s) find(s) unauthorized changes or deterioration, Maine Preservation shall inform the property owner in writing of such conditions and shall require the Owner to provide a plan for and complete a cure acceptable to Maine Preservation within a reasonable period of tiem. The property owner shall be obligated to respond to such notice within a specified number of days. • Where a property owner fails to reply or refuses to comply with a request for repair, or disregards the Maine Preservation instructions regarding necessary repairs and remedies, Maine Preservation shall be empowered to institute legal or other remedial action in accordance with the enforcement procedures set forth in the easement deed. ____________________________________________________ For more information, or to arrange for a meeting or site visit, contact Maine Preservation at (207) 775-3652 or at maineprs@gwi.net.
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Maine Preservation's Easement Program was established to preserve Maine's historic and architectural heritage by taking and administering preservation easements in significant historic properties. Maine Preservation is a charitable non-profit corporation, qualified under Maine Law (33 M.R.S.A. 1551) to hold easements on historic properties. 
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