Funding Opportunities for Your Historic Home
The majority of grants and tax credits available in Massachusetts are only available to non-profits or income producing properties. Here are some potential options for funding the preservation of an owner-occupied private home.
Have you received an energy audit from Mass Save?
The MassSave program is designed for National Grid and Eversource customers to make their homes more efficient. Some Municipal Light Plant communities also have similar programs.
Many homes built more than a hundred years ago were un- or underinsulated compared to modern buildings. The free Mass Save energy audit will help you determine the most effective upgrades for your historic home, many of which are subsidized or include substantial rebates from the program.
Has your community adopted the Community Preservation Act (CPA)?
CPA is a program that provides funding for open space, affordable housing, and historic
preservation projects.
To find out if your town has adopted CPA, go to the Community Preservation Coalition
website. On this page - https://www.communitypreservation.org/databank/info, there’s
a drop-down list of all the CPA towns in Massachusetts. Search for your town’s name
and if it has adopted CPA, contact your CPA Committee to find out about application
procedures. Contact information should be on your town’s website or available at your
Town or City Hall.
(NOTE: Every community has its own standards for projects; some are reluctant to fund
projects involving private property, because CPA projects must provide a “public
benefit.” However, there have been instances where communities have funded private
preservation work in exchange for a preservation easement or some other guarantee
that ensures the project provides a public benefit.)
If your community does not have CPA, you might want to consider campaigning for its
adoption. CPA funds are the biggest resource for historic preservation grants in
Massachusetts. Find out more at the Community Preservation Coalition website:
http://www.communitypreservation.org/
Does your community’s Historical Commission have a grant or loan program for
homeowners?
In a few communities, like Cambridge, the Historical Commission manages a grant or
loan program to assist property owners in rehabilitating historic structures. Check with
your Historical Commission to see whether your community has a program.
Does your community or regional planning agency have a grant or loan program?
Some communities have Community Development Block Grants (CDBG) or other
sources of funding to assist homeowners with fixing up their property. Check with your
community’s Planning and/or Community Development Department to see whether
they have such a program.
If you live in a small town, CDBG and similar programs are often managed through the
Regional Planning Agency (RPA) rather than the municipality. You can find a map of the
State’s Regional Planning Agencies online here: http://www.apama.org/resources/massachusetts-regional-planning-agencies, or a map
here:http://www.massmarpa.org/who-we-are/
http://www.cmrpc.org/sites/default/files/download/margis/MA_RPAs.pdf
Do you live in a rural community?
The US Department of Agriculture has some grant and loan programs for
homeowners in rural areas. Depending on the program, the USDA may define "rural" as any community with fewer than 10,000 residents, which applies to approximately half the municipalities in Massachusetts.
Go to this webpage for information:
https://www.rd.usda.gov/programs-services/programs-services-individuals
https://www.rd.usda.gov/programs-services/single-family-housing-repair-loans-grants
Would you be willing to sell or donate a preservation easement for the property?
A preservation easement is a deed-related restriction that provides protection for
historic structures. Sometimes communities will use CPA funds to purchase preservation
easements on historic properties.
Preservation easements can also be donated or sold to government entities or nonprofit organizations like Historic New England
https://www.historicnewengland.org/preservation/for-homeownerscommunities/preservation-easement-program/.
While a donation won’t get you the funds you need to repair your home, easements
may help you to get income tax deductions or lower your property taxes.
For information on preservation easements, go to:
http://forum.savingplaces.org/learn/fundamentals/preservation-law/easements
https://www.nps.gov/tps/tax-incentives/taxdocs/easements-historic-properties.pdf
Will there be any business use associated with the property?
If your home is also an income-producing property (for example, you’re operating a bed
& breakfast, part of the home is used for business purposes, or it’s a multi-family home),
the rehabilitation work you do might be eligible for State and Federal historic tax
credits.
There’s information on tax credits for houses on the National Park Service’s website
here: https://www.nps.gov/tps/tax-incentives/taxdocs/intro-wood-frame.pdf
You can also find information on historic preservation tax credits here:
Federal credit: https://www.nps.gov/tps/tax-incentives.htm
State credit: http://www.sec.state.ma.us/mhc/mhctax/taxidx.htm
Is the house located on a farm or land that has conservation/open space potential?
While there might not be funding for the house itself, there might be funding to help
keep the property in agriculture or preserve it as open space. You might be able to pay
for renovations to the house by selling the development rights to the community, to the
State, or to a conservation organization. Communities often purchase development
rights to land using CPA funds.
The Massachusetts Department of Agricultural Resources (MDAR), through its
Agricultural Preservation Restriction Program (APR), purchases development rights to
farmland in order to ensure that the land remains in agriculture. Information about the
program is online here: https://www.mass.gov/service-details/agriculturalpreservation-restriction-apr-program-details
(MDAR also has many other grant and loan programs for farmers. Check out their
website for more information.)
Land trusts and conservation organizations will often purchase or accept donations of
development rights to agricultural or open-space properties. The Massachusetts Land
Trust Coalition has a list of land trusts on its website: http://www.massland.org
Is there a trade or vocational school in your area?
Sometimes trade or vocational schools will take on rehabilitation projects as part of
their coursework. This could reduce the cost of your rehab project. However, you’ll need
to be sure that the instructors and supervisors for the project are familiar with working
with historic structures, and that students’ work will be well-monitored.
Here is a list of Massachusetts Vocational Public Schools:
https://www.publicschoolreview.com/massachusetts/vocational-public-schools
Would your property qualify for a Housing and Urban Development (HUD) Rehab
Loan?
The HUD Section 203(k) program enables homebuyers and homeowners to finance both
the purchase (or refinancing) of a house and the cost of its rehabilitation through a
single mortgage or to finance the rehabilitation of their existing home. Certain
restrictions apply. See https://www.hud.gov/program_offices/housing/sfh/203k/203k--
df for more information.
Have you removed or covered lead paint?
Massachusetts provides a tax credit of up to $3000 if you have a licensed professional remove or cover lead paint.
Have you repaired or replaced your septic system?
Massachusetts provides tax credits of up to $18,000.