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Conservation Easements

1889 Hanger House
Historic property owners can also benefit from federal tax deductions
through donation of a conservation easement on their structure or site.
An easement is a voluntary transfer of some of the rights inherent in
property ownership, which allow donors to retain ownership and
possession of a historic property while granting a government agency or
qualified non-profit organization the authority to protect the historic,
cultural, architectural, or archaeological characteristics of the
property.
Easements must contain binding and enforceable covenants that run
with the land and structure or property and obligate the owner to
refrain from actions that are incompatible with the preservation of the
property.
How does an easement work?
Typically, the easement involves the surrender of some right that, as
the owner, you would otherwise have, such as the right to modify the
exterior or to use adjacent space in a way that might compromise the
historic character and integrity of the site.

Merchants and Farmers Bank in Dumas
In granting an easement, you will still keep your essential interest
in the property, except for the rights given away in the easement
document. You can use your remaining interest as you see it. You may
live in it, sell it, or give it away subject only to the terms of the
easement.
Since easements reflect the wishes of the grantor, the property will
be protected regardless of who the future owners may be. Should the
property be sold, the easement continues to bind the new owner, and the
title passes with the assessment in force. Although easement agreements
are final, the Arkansas Historic Preservation Program allows changes to
the property, subject to approval if the easement is donated to the
AHPP.
Easements clearly define the features to be protected - generally
including adjacent open space - and prohibit incompatible uses,

Sheeks House
such as commercial development, subdivision, or other actions that are determined to be inappropriate.
Properties and their special characteristics worthy of protection are
described in the deed of easement and documented with photographs. As a
legal document, the easement is filed in the local land records along
with all other legal documents relating to the property.
Why give an easement?
A preservation easement is given to protect and preserve the
architectural, historic, or archaeological value of a landmark and its
surroundings. It assures the grantor of the easement that the
property will not be inappropriately altered or neglected following his
or her tenure.
Easements are an economical way for the state to ensure protection of
its historic resources. Government agencies or conservation
organizations normally cannot afford to purchase, maintain, secure, and
supervise all the places worthy of preservation. With preservation
easements, important sites can be maintained largely or totally without
cost to the taxpayer. At the same time, the public benefits from their
historic and educational value. As with the protection of endangered
species, an important part of Arkansas's heritage is assured of
survival.
How long does an easement last?
The Arkansas Historic Preservation Program accepts only those easements that are granted in perpetuity. Once a historic resource is protected by a preservation easement, its survival for future generations is guaranteed.
What conditions are included in the easement?
Each easement accepted by the Arkansas Historic Preservation
Program is negotiated on an individual basis with the property owner.
The staff of the Arkansas Historic Preservation Program will help
identify and discuss with you the historic elements of your property, as
well as your goals, plans, and needs. The terms of the easement are
drafted to protect each of these elements as fully as possible.

Mutual Aid Union Building
In the case of a historic building or structure, the AHPP requires
some control over the architectural elements of the exterior. Usually
the owner obtains written approval from AHPP before beginning any
alterations or additions. As stated above, the restrictions on the land
may prohibit or limit subdivision and require that the landscape
character of the property be maintained.
In the case of an archaeological site or battlefield, the easement
normally stipulates that the owner notify AHPP before undertaking any
new disturbance of the soil on the easement property. In this way, staff
archaeologists from AHPP can assist in avoiding damage to the site. The
easement also frequently requires the owner to take affirmative steps
to ensure good farming practices and to protect the site from damage
from vandalism and natural causes.
What are the advantages and benefits of donating an easement?
Many donors enter such an agreement to ensure that their property
will be permanently protected from willful destruction, demolition,
dismantling, or other inappropriate treatment while at the same time
realizing certain tax benefits that accompany such a donation.

Eurkea Springs City Auditorium
Because an Arkansas preservation easement is perpetual, the donor and
all future owners of the property are bound to adhere to its
conditions. This can be a welcome guarantee for those who have invested
considerable time, money, and love in a historic property. Donation of
an easement can in some cases also provide the following tangible
financial advantages:
- The value of the easement, as determined by a qualified appraisal,
can be claimed as a charitable donation deduction from taxable income.
- By accepting an easement, the AHPP has made a commitment to the
preservation of the property. The technical advice and assistance of the
staff of the Arkansas Historic Preservation Program will be made
available to you. The staff can provide literature on preservation
techniques, consultants, contractors, and other professionals
experienced in working with historic buildings and can answer questions
on an individual basis. The staff of the AHPP is obligated to inspect
easement properties periodically. Such inspections provide good
opportunities to provide technical advice to owners. Staff members are
happy to meet with you on site to discuss your concerns and give advice
on the most appropriate treatment for the property.
How do I donate a preservation easement?

Holt House

Sears House
When you are ready to discuss donating an easement, a staff member from the AHPP will make a site visit.
During this visit, the staff member will explain the program and
review the standard restrictions. Then you and the staff member can
begin to negotiate the terms of the easement and agree on the language
of a draft. At an appropriate time, the staff member presents the matter
to the AHPP, and the AHPP determines whether to accept the easement, if
ultimately offered. The staff always recommends that donors consult
their attorneys and have them review the easement document. Following an
affirmative determination by the AHPP, the terms of the easement are
put in final form. The property is documented photographically with the
photographs becoming part of the legal record. Both the owner and the
director of the Arkansas Historic Preservation Program sign the easement
deed. It is then recorded in the local court records, and the original
document is returned to the AHPP for deposit in agency files.
(Note: Non-profit entities other than the AHPP are also able to
accept preservation easement donations. For instance, the Eureka Springs
Preservation Society has received easement donations in the past.)
What properties are eligible?

The White County Courthouse at Searcy
In order to be eligible for the tax deduction, the property must be
listed in the National Register of Historic Places individually or as a
component of a National Register historic district. For more
information, contact the AHPP.