For owners of historic properties, securing a formal designation can be a source of pride and a tool for preservation. However, the path to designation and its consequences vary significantly depending on whether the recognition is granted at the national or local level. The two main avenues—listing on the National Register of Historic Places and obtaining a local historic designation—are entirely separate programs with distinct processes, benefits, and obligations for property owners.

The primary distinction lies in the degree of regulatory control. Listing on the National Register is largely an honorary recognition that imposes few, if any, restrictions on how a private owner can use or alter their property, unless federal funds or permits are involved. In contrast, local historic designation, established and managed by a city or county government, often comes with specific rules and a review process for proposed changes, offering stronger protection against demolition or inappropriate alterations.

Comparing National and Local Historic Designations

Understanding the fundamental differences between these two types of designation is the first step for any property owner or community group considering preservation. The choice between them often depends on whether the primary goal is national recognition and potential tax incentives or robust local protection and community oversight.

A comparison of the key features of the National Register of Historic Places and typical local historic designations.
Feature National Register of Historic Places Local Historic Designation
Level of Government A federal program administered by the National Park Service in partnership with State Historic Preservation Offices (SHPOs). Separate programs established and administered by local governments, such as a city or county, often through a preservation commission.
Typical Owner Restrictions Listing does not restrict a private property owner's use, alteration, or sale of the property unless federal funding, licenses, or permits are involved. Often includes regulatory review by a local commission for proposed exterior alterations, new construction, or demolition to ensure changes are appropriate.
Key Benefits Provides official recognition of a property's national significance and can qualify owners for federal historic preservation tax incentives. May offer direct financial benefits like property tax deferrals, eligibility for local grants, and stronger legal protection from demolition or incompatible changes.
Who Can Nominate Nominations are submitted to the State Historic Preservation Office by property owners, historical societies, government agencies, or other groups and individuals. The process typically begins with an application submitted to the local planning department or office of historic resources, often by the property owner or community members.

The National Register of Historic Places: Recognition Without Restriction

The National Register of Historic Places is the official list of the nation's historic places worthy of preservation. According to the National Park Service, which administers the program, its purpose is to recognize properties of local, state, and national significance. Listing on the Register is primarily an honor. It does not automatically trigger local zoning or landmark designation and, crucially, does not impose restrictions on private property owners.

An owner of a privately held, National Register-listed property can alter, manage, or dispose of it as they see fit, provided no federal involvement exists. The Texas Historical Commission clarifies that this designation imposes no restrictions on property owners. Protections are only engaged when a project involves federal agencies, funding, or permits. A property will not be listed if the owner objects. For historic districts, listing will not proceed if a majority of property owners object.

The primary benefits of a National Register listing include formal recognition and potential eligibility for federal tax incentives to help offset the costs of renovation. It also helps guide planners and developers and can give property owners priority access to technical assistance from state preservation staff.

Local Historic Designation: Stronger Protections and Community Control

Local historic designations are created and enforced by municipal or county governments and are, as the North Carolina Historic Preservation Office notes, a "totally separate" program from the National Register. These local ordinances provide a more direct and often more powerful tool for preservation. The central feature of most local historic designations is a review process for proposed physical changes to a property.

This means that an owner of a locally designated landmark or a property within a local historic district may need to obtain a special permit or approval from a local preservation commission before making exterior alterations, undertaking new construction, or proceeding with demolition. This oversight is designed to protect the historic character of the property and the surrounding area.

In exchange for these regulations, local designation can offer significant benefits. For example, the North Carolina program makes owners of designated landmarks eligible for a 50 percent property tax deferral, provided the property's key historic features are maintained. Other potential benefits include eligibility for local grants and the assurance that the community values and will help protect the property's historic integrity.

Our Old House | Does anyone have experience starting up a local historic district in your city | FacebookTo illustrate community perspectives and potential challenges in initiating local historic district designations, highlighting the need for community support and addressing concerns about property values.View original on Facebook

Navigating the Designation Process

The steps to secure a historic designation differ based on whether the nomination is for the National Register or a local landmark program. While specifics vary by state and municipality, the general pathways are distinct.

For the National Register of Historic Places, the process begins at the state level. The National Park Service states that nominations can be submitted by a wide range of parties, including property owners, historical societies, and government agencies, to the State Historic Preservation Office (SHPO). The SHPO is responsible for notifying affected property owners and local governments and soliciting public comment as part of its review before a nomination is forwarded for federal consideration.

For a local historic designation, the process starts with the local government. In Los Angeles, for instance, the designation of a Historic-Cultural Monument begins when an application is submitted to the city's Office of Historic Resources. The city's Cultural Heritage Ordinance then governs the process for designation and the review of any projects that might affect the monument. Property owners interested in local designation should contact their municipal planning department to understand the specific application requirements and review procedures.

Financial Incentives and Owner Obligations

Both national and local designations can open doors to financial incentives, but they also come with distinct obligations. Owners of properties listed on the National Register may qualify for federal tax credits to help pay for rehabilitation projects. According to legal analysis from Bean, Kinney & Korman, some states also offer their own historic tax credits that can be combined with federal incentives to further offset renovation costs.

Local designations often provide more direct financial relief. As seen in North Carolina, this can take the form of a significant annual property tax deferral for designated landmarks. However, this benefit comes with the obligation to maintain the property's historic features, with penalties possible if the owner damages its historic value.

The primary obligation for owners of locally designated properties is compliance with the local preservation ordinance. This often means applying for special permits for modifications and working with a local commission to ensure that any changes are compatible with the property's historic character. Projects involving historic properties can sometimes face legal challenges from preservation groups, making it important for owners to understand and follow all local requirements.

Making an Informed Decision for Your Historic Property

Choosing the right path for a historic property depends on the owner's goals. If the aim is prestigious recognition and access to federal tax credits with minimal new restrictions, the National Register of Historic Places may be the most suitable option. If the priority is ensuring the long-term protection of a property from demolition or inappropriate alteration, with access to direct local incentives like tax deferrals, then a local historic designation offers a more powerful tool.

Because local ordinances, benefits, and review processes vary widely, the essential next step for any property owner is to engage with their local government. Property owners should consult their local planning department or preservation commission to understand specific local requirements and benefits, and consider whether national recognition or stronger local protections align better with their preservation goals. The first step is to seek confirmation of local designation requirements and available incentives from the relevant municipal authority.

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