from North Carolina Preservation (Fall 2009)

In tough times, you do what you have to do.

We have abbreviated this issue of North Carolina Preservation as a one-time cost-saving measure. It contains the information about the historic properties that are available for purchase, but little else. This recession has required us to take a hard look at revenue and expenses and tighten our belt where we can. I hope you’ll understand — you can probably empathize.

Preservation North Carolina relies primarily on charitable contributions and real estate transactions (sales of historic properties and the donations of preservation easements) for its revenue. In this recession that would seem to be a toxic combination, to use an adjective in current favor.

Our members have been remarkably generous to Preservation North Carolina. Our May appeal for special support received a kind response from many of our donors. This year PNC’s board of directors has been more engaged in fundraising than ever. To my amazement, contributions were actually up for the first six months of 2009 compared to 2008. I couldn’t believe it. That’s a great testament to the people who care about historic preservation in North Carolina.

This summer, aftermany months of inactivity, real estate is finally picking up for PNC. Last fall, our real estate transactions came to a total halt during the credit crisis. That downturn scuttled what would have been the biggest property transaction in PNC’s history. A closing date had been set for late September, but the credit collapse crushed that. Ouch. We haven’t given up; the project is still inching forward as the credit market thaws out.

Tough times sometimes provide opportunities. It’s a good time to buy historic properties. Interest rates are low. Our North Carolina tax credits continue to encourage both homeowners and investors to renovate historic properties. Purchase prices are reasonable, as owners’ visions of “big bucks” recede. The cost of renovation is down, and there are incentives for first-time buyers, energy upgrades and more.

Despite the anxieties of managing a nonprofit during a recession, I’ve bought a new house myself—for the first time in more than thirty years. It’s a 1920s English cottage with Flemish brick bond and steel casement windows. That seemingly incongruous combination of features, one looking back and one looking forward, brings a smile to the faces of old-house enthusiasts. Currently a duplex, the house is inhabited by five very nice college students, but it hasn’t always been that way. At times it’s been a problem property. With wry amusement, neighbors describe midnight police raids where scores of students were beating a hasty retreat out the back door.

My plan is to return the home to its original single- family status, relishing its smaller size. The trend toward downsizing has begun, and Sarah Susanka, the featured speaker at PNC’s 2009 conference in New Bern, has been the advocate for the “not so big” home. This trend might make our smaller historic houses prime candidates for renovation, not teardowns. My purchase will hopefully be good for the neighborhood, good for the economy, and good for me. I’ll be taking advantage of the North Carolina tax credits.

I’m literally betting on a turnaround in the economy. I’m counting on selling my current home next year in a better market. I’m also counting on a full-size magazine next spring and hoping that this recession does no permanent damage to PNC. Maybe the tweaks that we have had to make for survival will improve our performance in better times ahead. Thank you so much for your support for Preservation North Carolina...and take a good look at our properties. Have you decided which one should be your new project? It’s a good time.

Myrick Howard is President of Preservation North Carolina