Wednesday Houston City Council will consider proposed changes to the city’s historic preservation ordinance. While it has frequently been stated that the current historic districts compromise only one percent of the city’s area, it appears that more than one percent of Houstonians have taken an interest in this issue. At recent public hearings, I have heard opponents say that the new ordinance is a threat to individual property rights while proponents describe the debate to neighborhood pride versus big business and the almighty dollar. What’s all the fuss about?
Remnants of Houston’s history are not easy to find. Did you know that the first capitol of the Republic of Texas was in Houston? No, well you’re not alone. A two-story statehouse once sat at the corner of Main and Texas Avenue. More than a hundred years later, the art deco Shamrock Hilton–once dubbed “Houston’s Riviera” that played an inspirational role in Edna Ferber’s popular novel and movie Giant– is now a parking lot. Today there is an ongoing debate on what to do with the Astrodome.
While some Houstonians may mourn the loss of these structures, the current debate about Houston’s preservation efforts lies not in governmental buildings and corporate development, but in neighborhoods or “living neighborhoods” as a Heights resident called them. The stately Victorian houses, the Craftsman bungalows, the art deco houses and the swanky mid-century homes are found in neighborhoods where residents live, work and raise their families.
In comparison to other cities in United States or even in Texas, Houston was slow to embrace the historical and architectural significance of its neighborhoods. Consider Freedman’s Town (4th Ward). Recently freed slaves inhabited the cottages and bungalows in what became a thriving African-American community in the late 1800s and early twentieth century. Local historian Betty Chapman recently stated during a city council public comment session that not so long ago Freedman’s Town had 567 remaining historical homes and now the number is less than 100. In other words, most of 4th Ward’s structural history is lost.
Houston introduced its first historic preservation ordinance in 1995 and with some minor changes along the way, it has been used to designate neighborhoods historic. In a nutshell, the ordinance allows residents living in a neighborhood 50 years or older to gather a certain percentage (ranging from 51 to 67 percent) of petitions from homeowners in favor of historic district status for their neighborhood. Along with the petitions, other materials such as a thorough inventory of the housing stock (architectural styles), photographs of the front of every home, and a detailed narrative of the area’s history must be submitted to the city. The application then goes to the Houston Archaeological and Historical Commission (HAHC), an appointed 13-member board, which makes recommendations to City Council on historic properties. City Council has the final say of whether a neighborhood is deemed historic.
Under the 1995 ordinance, homeowners living in a historic district must apply to the city for a Certificate of Appropriateness, defined by Houston’s Planning Department as “required for projects that would alter the exterior appearance of a designated historic property. This includes reconstructions, additions, demolitions or relocations and new construction within historic districts. The ordinance does not regulate land use, exterior paint colors or interior alterations and remodeling.” The ordinance also only affects the exterior of a home that is visible from the street so a certificate would not be necessary for building a backyard structure that is not visible from the street. The Planning Department also offers technical assistance at no charge to those living in historic districts.
There are currently 16 historic districts found in Houston and two others pending under this ordinance.
So why change the 1995 ordinance? What has not been mentioned here is that if a homeowner applies for a Certificate of Appropriateness and it is denied, a homeowner can then wait 90 days and proceed with the original plans, whether it is a historically inappropriate change or complete demolition. In essence, the 1995 ordinance provides only weak protection to homes in a historic district, paving the way for large contemporary homes and condos to be built next to a small bungalow. With time the neighborhoods deemed historic do not look so historic anymore.
Earlier this year, the City of Houston placed a moratorium on new applications for historic district status to consider amendments to strengthen the ordinance. Several public meetings were held in areas with historic districts such as Montrose, the Heights and neighborhoods near Rice University to gain public input on proposed amendments. The proposed amendments and changes, and the public questions and answers are found here.
The arguments used about the amendments by neighborhood opponents and proponents and real estate professionals have often times been emotional and loud. The most contentious of the proposed amendments is the elimination of the 90 day waiting period. In brief, if the City of Houston denies the Certificate of Appropriateness, then the homeowner can not proceed with the plan as submitted. Keep in mind that this does not exclude all demolitions. Some homes, whether once architecturally significant or not, are just too far gone to save.
While many of those interested in historic preservation are happy with the elimination of the 90 day waiver, others complain that this level of regulation eliminates their personal property rights. This could be a fair argument based on one’s personal ideology.
However the argument that historic districts erode property values does not appear valid. The only way to determine the impact of historic districts on home values or other economic aspects is to analyze data such as home prices over time. Academic studies on historic preservation efforts are readily available for cities found in the East or West Coasts, yet very little work has been done in Texas cities and none in Houston. Over ten years ago, a study on the economic impact of historic preservation in Texas cities (excluding Houston) was completed by the University of Texas and Rutgers University. They found that cities in Texas with active historic preservation programs indicate that historic designations can increase property values by as much as 20 percent, and that none of the districts saw a decrease in property values. Yet while looking at the effect of historic designation on property values in Dallas (one of the cities studied) may get us closer to what to expect in Houston then looking at a study of Boston, there is still the need for an academic look at Houston, which is quite different than Dallas in the availability of land for development, its building regulations, etc.
The Greater Houston Preservation Alliance (GHPA) recently commissioned a study by the Hobby Center for Public Policy (HCPP) to complete a study using data from the Harris County Appraisal District to compare property values of homes in current historic districts to similar but non-designated neighborhoods. GHPA is a vocal proponent of strengthening the existing ordinance so they obviously have a dog in this hunt. However HCPP does not, so the numbers have to tell the stor
The HCPP study is found here. The statistics show that among the homes in the three historic districts reviewed do not lose value over time and that the homes’ value is higher than for homes in similar neighborhoods. These findings are consistent with the UT-Rutgers study.
It should be noted that the HCPP study is simple in terms of statistical analysis. It is comparative, with the findings correlational rather than causative. For a more thorough look, more years must be reviewed (data from only 2001-2010 was available electronically through HCAD) as well as the introduction of other variables.
People have other complaints with the proposed amendments such as the transition process or how the amendments evolved, and plenty of misinformation is still floating around. Yet to say that historic designation in Houston causes property values to decrease is inaccurate.
If you are interested in Houston history, be informed. Take a look at what the city is proposing in its amendments to the 1995 ordinance. You might also check out differing views about the changes at www.responsiblehistoricpreservation.org (oppose) and at www.preservehouston.org (support). If there is interest in this topic, we can discuss some of the other aspects of the existing ordinance or proposed amendments in a future blog.