[Congressional Record Volume 140, Number 146 (Saturday, October 8, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 8, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
       HISTORIC REHABILITATION TAX CREDIT FOR PERSONAL RESIDENCES

                                 ______


                        HON. MICHAEL A. ANDREWS

                                of texas

                    in the house of representatives

                        Friday, October 7, 1994

  Mr. ANDREWS of Texas. Mr. Speaker, as we travel across our great 
land, we experience first hand the breadth and diversity of its history 
by seeing Quincy Hall in Boston, Union Station in St. Louis, Tivioli 
Union brewery in Denver, Ghiradelli Square in San Francisco, Main 
Street in Brenham, TX, and the Victorian district in Savannah. Many of 
these landmark structures have been preserved through the use of a 
series of Federal tax incentives which have encouraged nearly $12 
billion of private investment in the rehabilitation of historic 
buildings nationwide. These rehabilitated historic structures, which 
were the businesses of yesterday, did not then and could not now exist 
without the individuals who patronize them. The residences in the area 
surrounding these historic structures are not only an integral part of 
an area's successful economy but also a part of the history of the 
neighborhoods. The fabric of our history can be found in the cultural 
diversity of our older urban neighborhoods and towns. The New York 
brownstones, the Philadelphia rowhouses, the Midwest farmhouses, the 
Western victorians, the Southwestern adobes, and the Southern 
antebellum homes are in many instances in danger of being demolished to 
make way for new modular or high rise housing.
  The abandonment by owners of entire neighborhoods contributes to the 
erosion of the sense of community that is so desperately needed in our 
urban areas and towns. The lack of effective communication and sense of 
community among our constituents has contributed to some of the 
problems confronting us now. Moreover, the fiscal woes of America's 
cities are exacerbated by loss of tax revenues and the inability to put 
these abandoned residences in the hands of homeowners.
  To ease this burden, I rise today to introduce a bill to provide 
incentives to preserve our Nation's cultural and historic communities. 
This bill provides a tax credit of 20 percent of the qualified 
rehabilitation expenditures to an eligible building that is used as a 
personal residence. Eligible buildings would be those that meet the 
criteria of the National Register or National Register districts. The 
credit would be available to single as well as multifamily residences. 
Even in mixed use properties, that portion of the qualifying expenses 
attributable to the owner's principle residence is eligible for the 
credit. If property is rehabilitated by a developer for sale to a 
homeowner, the credit would be passed through to the homeowner. More 
affordable condos and co-ops could be available through the conversion 
of office buildings, lofts, factories, and warehouses, and the 
rehabilitation of older apartment buildings.
  Any effort to revitalize decaying neighborhoods would have to provide 
incentives to lower-income homebuyers who may not have a substantial 
income tax liability. My bill also provides a historic rehabilitation 
mortgage credit certificate. Instead of a tax credit, a qualifying low-
income homebuyer would receive a certificate which could be transferred 
to a mortgage lender in exchange for a lower interest rate on the 
mortgage loan.
  Mr. Speaker, I am pleased to introduce this measure, not only because 
this bill will be an incentive to revitalize decaying communities and 
neighborhoods, but also it provides cities a way to attract people back 
to disinvested areas, to increase their tax revenues and to offer lower 
income homebuyers a chance to own historic rehabilitated homes. Not 
only will construction jobs be created with this bill but permanent 
jobs will be created as a result of the revitalized communities and 
neighborhoods.

                          ____________________