[UPDATE June 25, 2008 - The final rule changes did not include the initially proposed five year holding period requirement. Thank you to everyone who helped highlight the negative impact of the proposed rule change.]

CLICK HERE TO VIEW THE PROPOSED RULE CHANGES - Note: the final rule changes did not include the following passage. However, this is an indication of how we must all be conscious of legislation and administrative rules concerning historic rehabilitation.

One change in particular concerned me greatly:

New Rule: 48.10A(303,404A) Repayment of tax credit certificates.
48.10A(1) The owner must retain ownership of the project building for five full years after completion of the rehabilitation or pay back the credit. If the building owner disposes of the project building within one year after certification of the project and award of the tax credit, the owner shall repay 100% of the tax credit. For properties held between one and five years, the tax credit repayment amount is reduced by 20% per year.

In practical terms, this rule would prohibit developers from utilizing the Historic Tax Credits to renovate otherwise qualifying historic single family homes - no developer could afford to hold a building for five years.

Membership in the Des Moines Rehabbers Club is FREE! Members can attend monthly meetings at a variety of interesting locations throughout the City. From time to time, certain benefits such as discounts at local stores or reduced admission to DSMRC special events may be made available to members.

Donations to help the DSMRC (refreshments, web hosting, etc) are always welcome, but are not tax deductible at this time.

Liability Waiver

Members must sign a liability waiver.

The Des Moines Rehabbers Club (DSMRC) activities focus on construction and renovation. Construction and renovation related activities are inherently dangerous. DSMRC event participants and members must recognize the potential for injury to themselves which may result from participation in DSMRC activities and meetings. The DSMRC intends that participants and members expressly assume all risks and liability for any injuries to, or caused by, participants and members.

The phases of a renovation project occur in a specific, yet somewhat fluid, sequence. If a component happens out of order, it can potentially result in significant costs - both time and money. For example, say you schedule your electrical contractor before your HVAC contractor. The electrician may unintentionally run wiring through a joist cavity that will later be necessary for a heating duct. This will result in either calling the electrician back or finding another (potentially more expensive) route for the duct - it is much easier for the electrician to adjust where wires are run than for the heating and cooling contractor to adjust where ducts are placed.

If you hire a general contractor, he or she will take responsibility for scheduling issues and minimize any conflict between the subcontractor trades.

The graphic timeline to the right shows the general order of a gut renovation project from financing through move-in. Remember, of course, that each project is individual – not every renovation will include all these phases (and some will include more). Some people experienced in renovation may have systems and procedures that differ from what you see here. However as a general rule, bigger and more independent tasks are completed before detailed and flexible tasks. Arrows indicate the length of the phase and arrows that overlap indicate phases that can typically occur concurrently.

Click on the image to the right or on the link below to download a readable (and printable) PDF version of the graphic renovation timeline.

This field guide gives sound and practical advice for minimizing lead-based paint exposure hazards during demolition and construction.

NEW GROUP PROMOTES RENOVATION OF HISTORIC HOMES

The Des Moines Rehabbers Club is a new organization providing support and encouragement for people who are undertaking renovation tasks of all types, from repairing a plaster crack all the way through a gut renovation or full restoration project.