BENEFITS OF A HISTORIC DISTRICT: Character, Tax Credits, Economic Value

There are a number of benefits for current home owners and the community to form a second historical district in Avondale Estates (outlined in blue).

Current Historical district (green) and potential historical district (blue)

"The designation of historic districts is a popular policy tool for promoting the preservation of neighborhoods and culturally significant areas as well as for economic development. Designation of a specific geographic area as a historic district may take place at the federal level through the National Register of Historic Places, the state level, or the local level. Federal and state designations provide prestige and recognition and give property owners access to tax credits for historically appropriate renovation; however, these designations do not place restrictions upon the property. On the other hand, local districts often include specific restrictions on the property, such as use and type of renovation. Alterations to properties in locally designated historic districts require approval from local oversight bodies. The restrictions and oversight associated with local historic district designation makes them controversial as a policy tool.

…

The estimates suggest single-family residential property values increased by 13-14 percent in historic districts after becoming listed on the National Register and by approximately 7 percent in historic districts after being designated as a local historic district. Further analysis reveals that property values in districts listed on the National Register begin trending upward three years prior to official listing. The estimated increase therefore overstates the effect of National Register listing to the extent that the upward trend is not attributable to anticipation of National Register status. On the other hand, there is a significant downward property value trend in districts designated as local historic districts in the three to five years prior to designation. There is an abrupt increase in property values starting two years prior to designation and a flatter downward trend at the subsequent higher values. Thus, the estimates understate the effect of local designation to the extent that changes two years prior to designation are attributable to anticipation of becoming a local historic district. The estimated effects in this report suggest fears of negative property value effects associated with local historic designation or listing on the National Register are unwarranted."

From:

"The Value of Historic District Status in Georgia "