Buffalo became the second city in the state to capitalize on enabling legislation to allow owners of locally designated historic properties to avoid for five years any tax increase based on the higher value that results from rehabilitation for preservation purposes.

The bill was endorsed by the Preservation League of New York State; it was co-sponsored in the legislature by Assemblyman Sam Hoyt.

The arson-damaged 591 Delaware is for sale and assessed at $100,000. A substantial amount of cost of rehabilitation could be offset by new city law allowing front-loaded tax abatements.

After five years, the amount of increased value subject to taxation rises 20% per year until, 10 years after the rehabilitation work would have been completed, a property is assessed at 100% of its new value.

Local legislation was strongly supported by the Preservation Coalition. Fillmore District Councilmember David Franczyk authored the Buffalo law.

Examples of projects that could benefit would be the Sternberg Mansion (a.k.a. Victor Hugo’s), which is in the planning stages of conversion to an inn and banquet facility; 591 Delaware, which was victimized by an arson fire two years ago; and the 1903 Pierce Arrow building (a.k.a. Vernor’s) in the 700 block of Main Street.

Work that is done for preservation purposes (like a new roof, foundation, windows, and electrical, plumbing, and code compliance updates that render a historic building habitable) would be eligible for the program. Work not directly related to the preservation of a building (like converting a house to a restaurant by installing specialized equipment) would not be eligible.

All work must be approved by the city’s preservation Board and the Department of Assessment before work is commenced.

Buffalo’s historic districts are Allentown, Hamlin Park, Lower West Village, Joseph Ellicott, Theater, Delaware, and Linwood. There are dozens of individually listed buildings.