Historic Preservation Incentives

Information
The historic Bagdad Theater in southeast Portland
A variety of financial and regulatory incentives encourage the rehabilitation and ongoing use of historic resources.
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Historic preservation incentives increase the potential for historic resources to be used, rehabilitated, and preserved. In Portland, a variety of these incentives are provided by local, state, federal, and non-profit entities. Many of them prioritize rehabilitation of designated historic resources in accordance with local regulations and/or federal historic preservation standards.

Incentives not specifically intended for historic preservation activities, including programs offered by Prosper Portland and grants provided by arts and culture foundations, are not described on this page. Single-family homes – regardless of historic status – are ineligible for many of the incentives described on this page.

Tax Incentives

Federal Rehabilitation Tax Credit

The German Baptist Old People's Home, also known as Milepost 5, utilized the Federal Rehabilitation Tax Credit.
The German Baptist Old People's Home, also known as Milepost 5, utilized the Federal Rehabilitation Tax Credit.

A 20% federal income tax credit is available for the rehabilitation of income-producing historic resources that have been listed in the National Register of Historic Places. To be eligible for the Federal Rehabilitation Tax Credit, rehabilitation expenses must be “substantial” and alterations, both interior and exterior, must meet the Secretary of Interior’s Standards for Rehabilitation. Owner-occupied single-family residences are not eligible. Questions regarding program requirements and eligibility should be directed to the Oregon State Historic Preservation Office.


Oregon Special Assessment of Historic Property Program

The Oriental Apartments participated in the Special Assessment of Historic Property Program.
The Oriental Apartments participated in the Special Assessment of Historic Property Program.

Since 1975, Oregon has provided limited property tax relief for historic resources that have been listed in the National Register of Historic Places. To be eligible for a 10-year Special Assessment of Historic Property, historic resource owners must agree to a preservation plan for the property and commit to minimum rehabilitation expenditures. In some cases, seismic, energy, or accessibility upgrades are required. Unlike many historic preservation incentives, owner-occupied single-family residences are eligible for this incentive. Questions regarding program requirements and eligibility should be directed to the Oregon State Historic Preservation Office.


Zoning Incentives

Adaptive Reuse Flexibility

The Kennedy School is an example of adaptive reuse flexibility.
The Kennedy School is an example of adaptive reuse flexibility.

The Portland Zoning Code provides adaptive reuse flexibility to certain historic resources, allowing continued and adaptive use of Historic and Conservation Landmarks and certain properties in Historic and Conservation Districts. The incentives allow for additional residential density in single-dwelling zones, limited commercial uses in single- and multi-dwelling zones, and major adaptive reuse in zones where new uses aren’t generally allowed. The adaptive reuse incentives reside in Portland Zoning Code section 33.445.400.


Exception to Parking Requirements

The Bohnsen Cottages demonstrate an example of garage-to-retail conversion.
The Bohnsen Cottages demonstrate an example of garage-to-retail conversion.

To allow for the use and ongoing preservation of historic resources, the Portland Zoning Code does not require parking spaces on sites that contain a Historic, Conservation, or National Register Landmark and sites located within a Historic, Conservation, or National Register District. The historic resource parking exception resides in Portland Zoning Code section 33.266.110.


Transfer of Development Rights

The Vancouver Avenue First Baptist Church benefitted from transferring unused floor area to a different site.
The Vancouver Avenue First Baptist Church benefitted from transferring unused floor area to a different site.

The Portland Zoning Code allows for the transfer of development rights from some historic resources in certain zones to support the ongoing preservation of historic resources, allowing otherwise unused development capacity to be built on developable sites. Provisions for Floor Area Ratio (FAR) transfer reduce redevelopment pressure on historic resources and allow unused FAR to be monetized to support seismic upgrades and other rehabilitation work. Historic resource FAR transfer provisions reside in the Portland Zoning Code chapters pertaining to multi-dwelling, mixed-use, and employment zones and the Central City plan district.


Grant Incentives

National Park Service

The National Park Service funded a citywide project to document LGBTQ+ historic places such as the Centenary-Wilbur Church.
The National Park Service funded a citywide project to document LGBTQ+ historic places such as the Centenary-Wilbur Church.

The National Park Service funds a broad range of preservation work through various grant programs, including financial support for specific historic resource planning, survey, rehabilitation, and interpretation projects. Information regarding these federal grants is available from the National Park Service.


Oregon Parks and Recreation Department

The Spokane, Portland and Seattle Steam Locomotive #700 received a State Historic Preservation Office grant for restoration.
The Spokane, Portland and Seattle Steam Locomotive #700 received a State Historic Preservation Office grant for restoration.

Through the State Historic Preservation Office, Oregon’s Parks and Recreation Department offers grants for the rehabilitation of some historic resources listed in and eligible for listing in the National Register of Historic Places. Information regarding these state grants is available from the State Historic Preservation Office.


National Trust for Historic Preservation

The Billy Webb Elks Lodge received a National Trust grant to support restoration following a structure fire.
The Billy Webb Elks Lodge received a National Trust grant to support restoration following a structure fire.

The National Trust for Historic Preservation provides grant funding for a range of historic preservation activities, including preservation planning and rehabilitation of historic resources owned by nonprofits. Information regarding these grants is available from the National Trust for Historic Preservation.


Kinsman Foundation

The Hollywood Theater received a Kinsman Foundation grant for rehabilitation and continued use.
The Hollywood Theater received a Kinsman Foundation grant for rehabilitation and continued use.

The Kinsman Foundation provides grants for the preservation, rehabilitation, restoration, and reconstruction of certain historic resources in Oregon and SW Washington. Grants must be submitted by Aug. 1 of each year for amounts greater than $5,000. Information regarding these grants is available from the Kinsman Foundation.