RD Instruction 2000-FF

PART 2000 - General

Subpart FF - Programmatic Memorandum of Agreement between Rural
Development,

The National Conference of State Historic Preservation

Officers, and the Advisory Council on\
Historic Preservation Regarding Implementation of the\
Housing Preservation Grant Program

§2000.1551 [General]{.underline}

Rural Development has entered into a Programmatic Memorandum of
Agreement (PMOA) with the National Conference of State Historic
Preservation Officers and the Advisory Council on Historic Preservation
regarding the processes Rural Development and applicants for Housing
Preservation Grant (HPG) assistance will use in meeting the objectives
of the National Historic Preservation Act (16 U.S.C. 470-1\[1\], \[4\],
and \[5\]) and the specific historic preservation requirements of
Section 533(i) of the HPG enabling legislation (P.L. 98-181). The PMOA
is implemented through the regulations for the HPG program, Subpart N of
Part 1944 of this chapter. The PMOA is attached as Exhibit A.

§§2000.1552 - 2000.1600 \[Reserved\]

Attachment: Exhibit A

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DISTRIBUTION: W,S,D Administration

General

## oOo

(6-13-86) SPECIAL PN

RD Instruction 2000-FF

Exhibit A

(Letterhead for Advisory Council

on Historic Preservation)

## PROGRAMMATIC

## MEMORANDUM OF AGREEMENT

## BETWEEN

## RURAL DEVELOPMENT,

## THE NATIONAL CONFERENCE OF STATE HISTORIC PRESERVATION OFFICERS,

## AND

## THE ADVISORY COUNCIL ON HISTORIC PRESERVATION

## REGARDING IMPLEMENTATION OF

## [THE]{.underline} [HOUSING]{.underline} [PRESERVATION]{.underline} [GRANT]{.underline} [PROGRAM]{.underline}

WHEREAS Rural Development proposes to administer the Housing
Preservation Grant (HPG) program authorized by Section 533 of the
Housing Act of 1949, as amended by Section 522 of Title V of the Housing
Urban-Rural Recovery Act of 1983 (Pub. L. 98-181)(Act) and

WHEREAS Rural Development has determined that the HPG program may have
effects on properties included in or eligible for inclusion in the
National Register of Historic Places (historic properties), and

WHEREAS Section 533(i) of the Act sets forth specific requirements
pertaining to historic preservation, and

WHEREAS Rural Development has sought the comments of the Advisory
Council on Historic Preservation (Council) pursuant to Section 106 of
the National Historic Preservation Act and the Council\'s regulations
(36 CFR Part 800), and

WHEREAS Rural Development, the Council, and the National Conference of
State Historic Preservation Officers have consulted in accordance with
36 CFR §800.8 of the regulations,

NOW, THEREFORE, it is mutually agreed that Rural Development will
administer the HPG program in accordance with the following provisions
in order to take into account its effects on historic properties.

## [Stipulations]{.underline}

I. Rural Development will by regulation require that each applicant for
an HPG grant

provide, as part of its statement of activities in the preapplication
documentation submitted to Rural Development, a brief description of the
applicant\'s program to meet the requirements of Section 533(i) of the
Act. Rural Development will require each applicant to develop a program
that shall:

A. be developed in consultation with the appropriate State Historic
Preservation Officer (SHPO);

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Exhibit A

Page 2

B. take into account the National historic preservation objectives set
forth st 16 U.S.C. 470-1(1), (4), and (5) (Attachment #1), and
specifically be designed to encourage the rehabilitation of historic
buildings in a manner that realistically meets the needs of low and very
low income homeowners while preserving the historic and architectural
character of such buildings;

C. establish a mechanism for determining whether buildings proposed for
rehabilitation are \"historic properties\" and whether rehabilitation
may affect historic properties. Such mechanisms must be consistent with
the guidance contained in Attachment #2.

D. establish mechanisms, as feasible, for coordination with other public
and private organizations and programs that provide assistance in the
rehabilitation and preservation of historic properties;

E. establish a system to ensure that the rehabilitation of properties
included in or eligible for inclusion in the National Register of
Historic Places is reasonably consistent with the recommended approaches
in the [Secretary of the Interior\'s Standards for Rehabilitation and
Guidelines for Rehabilitating Historic Buildings]{.underline} (G.P.O.
1983 0-416-688), except as provided in stipulation F below, and that the
SHPO is afforded the opportunity to comment on each such rehabilitation;

F. establish a system by which the applicant will furnish all necessary
information and initiate the consultation steps set forth in 36 CFR Part
800 to afford the Advisory Council on Historic Preservation an
opportunity to comment on any rehabilitation that the applicant, in
consultation with the SHPO, determines cannot reasonably meet the
[Secretary of the Interior\'s Standards for Rehabilitation and
Guidelines for Rehabilitating Historic buildings]{.underline} or would
adversely affect historic properties (See Attachment #3), and

G. be accompanied by the SHPO\'s concurrence in the program, or in the
event of non-concurrence, be accompanied by the SHPO\'s comments
together with evidence that the applicant has sought the Council\'s
advice as to how the disagreement might be resolved, and any advice
provided by the Council.

II\. Rural Development will review the program description provided by
the applicant, together with the comments of the SHPO and the Council
where applicable, in determining whether to approve a grant or condition
authorization of an application upon insertion of additional procedures
into the statement of activities, and may request additional advice from
the Council.

III\. For the purposes of stipulation I.F. above, the Council will treat
applicants as though they were Federal agencies in the process
prescribed in the Council\'s regulations implementing Section 106 of the
National Historic Preservation Act (36 CFR Part 800), except that,
should the Council be unable to concur in an applicant\'s proposal or
reach agreement with the applicant on measures to avoid or mitigate
effects on s historic property, the Council will notify the applicant,
Rural Development, and the SHPO that the applicant cannot be treated as
though it were a Federal agency with respect to the specific property
under consideration. Upon receipt of such

RD Instruction 2000-FF

Exhibit A

Page 3

notification from the Council, Rural Development will assume
responsibility for completing compliance with 36 CFR Part 800. Such
assumption of responsibility by Rural Development with respect to a
particular property shall not preclude an applicant from carrying out
the requirements of 36 CFR Part 800 with respect to other properties as
though it were a Federal agency.

IV\. Rural Development and the Council may from time to time jointly
issue non-binding guidance to applicants and SHPOs concerning the
development of programs pursuant to Stipulation I above.

Execution of this Programmatic Memorandum of Agreement evidences that
Rural Development has afforded the Council a reasonable opportunity to
comment on Rural Development\'s implementation of the HPG program.

Vance L. Clark /s/ 4-15-86

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Farmers Home Administration

John W. Fowler /s/ 3/31/86

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Executive Director

Advisory Council on Historic Preservation

Charles G. Lee /s/ 4/1/86

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

President

National Conference of State Historic

Preservation Officers

/s/ 4/30/86

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Chairman

Advisory Council on Historic Preservation

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Exhibit A

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## [ATTACHMENT #1]{.underline}

## [NATIONAL HISTORIC PRESERVATION OBJECTIVES]{.underline}

## [FOR THE]{.underline}

## [HOUSING PRESERVATION GRANT PROGRAM]{.underline}

## [Introduction]{.underline}

Section 533(i) of the Housing Act, as amended, requires that the
Secretary of Agriculture establish procedures which support national
historic preservation objectives in the administration of the HPG
program. The Secretary has determined that the following objectives,
established as national objectives by Sections 2(1), (4) and (5) of the
National Historic Preservation Act (16 U.S.C. 470-1\[1\], \[4\] and
\[5\]) will be supported by implementation of the HPG program, and are
to be taken into account by applicants in their development of programs
to meet the requirements of Section 533(i).

[Objectives]{.underline}

To foster conditions under which our modern society and our prehistoric
and historic resources can exist in productive harmony and fulfill the
social, economic, and other requirements of present and future
generations (16 U.S.C. 470-1\[1\]);

To contribute to the preservation of nonfederally owned prehistoric and
historic resources and give maximum encouragement to organizations and
individuals undertaking preservation by private means (16 U.S.C.
470-1\[4\]), and

To encourage the public and private preservation and utilization of all
usable elements of the Nation\'s historic built environment (16 U.S.C.
470-1\[5\]).

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## [ATTACHMENT #2]{.underline}

## [PROCEDURES FOR]{.underline}

## [THE IDENTIFICATION OF HISTORIC BUILDINGS]{.underline}

## [IN THE]{.underline}

## [HOUSING PRESERVATION GRANTS PROGRAM]{.underline}

## [Introduction]{.underline}

Generally speaking, it is anticipated that the Housing Preservation
Grants (HPG) program will have beneficial effects on historic houses and
other historic buildings, because it will provide for their
rehabilitation and extend their lives. Adverse effects on such buildings
are possible, however, if rehabilitation is done without full
consideration of the historic and architectural significance of the
building involved. It is also possible to do damage to Archaeological
sites lying in the ground underneath a building.

Section 533(i) of the Housing Act, as amended, and Sections 106 and 110
of the National Historic Preservation Act, as amended, require that the
HPG program be carried out with consideration for the historic
(including architectural and Archaeological) importance of properties
included in, and properties eligible for inclusion in, the National
Register of Historic Places. Obviously, one cannot consider the historic
importance of a building if one does not know that it is historic. Only
a small percentage of the historically, architecturally, and
archaeologically important properties in the nation have been formally
identified and registered, and still fewer have been formally included
in the National Register. Therefore, it is necessary that applicants for
HPG funds establish ways to consider whether buildings that may be
rehabilitated have such aspects of importance, even if they have not
been registered as such. Under Section 533(i) and a Programmatic
Memorandum of Agreement executed by Rural Development with the Advisory
Council on Historic Preservation and the National Conference of State
Historic Preservation Officers, rehabilitation of historic buildings
should be done in accordance with the recommendations of the [Secretary
of the Interior\'s Standards for Rehabilitation and Guidelines for
Rehabilitating Historic Buildings (SOI Standards]{.underline}), and in
consultation with the State Historic Preservation Officer (SHPO) of the
State in which the rehabilitation occurs. The purpose of these
guidelines is to assist applicants in determining which rehabilitations
require application of the SOI Standards, by determining which involve
properties of historical, architectural, or Archaeological value.

Procedures for identifying historic properties can be complex; a number
of Federal, state, and local guidelines are available. The process
presented here is simplified and reduced to as few steps as possible,
recognizing the limited means of many HPG applicants and the relatively
limited range of adverse effects that HPG projects are likely to have on
historic properties.

Applicants should consult with their State Historic Preservation
Officers in applying these guidelines to the development of their own
programs.

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RD Instruction 2000-FF

Exhibit A

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[Initial planning with the SHPO]{.underline}

In the development of an HPG program, an applicant should meet with the
State Historic Preservation Officer (SHPO) to establish an efficient,
effective way to determine the historical, architectural, and
Archaeological significance of buildings subject to rehabilitation and
areas that may be affected by rehabilitation activities. Such initial
planning should address at least the following issues.

\* In general, is it likely that the types of buildings that the program
will rehabilitate are eligible for inclusion in the National Register?

\* Does the SHPO know of specific buildings or other properties, on or
eligible for the National Register, that may be affected by the
rehabilitation program?

\* Does the SHPO have opinions about the likelihood of encountering
historic properties, including Archaeological sites, in areas that the
applicant expects to target for rehabilitation?

\* Are there types of buildings that have already been determined [not
to be]{.underline} eligible for inclusion in the National Register, or
that can for other reasons be considered categorically ineligible for
purposes of the HPG program? These will be referred to below as
\"categorically ineligible\" properties.

\* Are there types of buildings that should always be considered
[eligible]{.underline} for the National Register? These might include
types representing relatively recent buildings of extraordinary
historical or architectural importance, as well as older building types.
These will be referred to below as \"categorically eligible\"
properties.

\* Are there any additional standards, guidelines, or criteria that the
SHPO recommends? Based on your State\'s comprehensive State Historic
Preservation Plan or the SHPO\'s experience, the SHPO may be able to
provide special guidance with respect to evaluation of particular
building types, evaluation of Archaeological sites, considering the
historical and architectural integrity of buildings, and other features
that contribute to eligibility or ineligibility for the National
Register.

\* Does the SHPO have advice on the best ways to apply the [SOI
Standards]{.underline} to the kinds of buildings that will be subject to
rehabilitation?

\* What are the most effective ways to coordinate the applicant\'s work
with the SHPO in the review of specific rehabilitation projects?

## [Evaluation of particular properties: step-by-step]{.underline}

The precise system for evaluating the historic, architectural and
Archaeological significance of properties will naturally vary based on
the outcome of initial consultation with the SHPO. However, the
following steps are recommended.

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STEP ONE: [Determine whether the property is already registered or
otherwise determined to be significant]{.underline}

If the building where rehabilitation is being considered has already
been listed in the National Register of Historic Places, or formally
determined eligible for the Register, no further identification is
needed. Rehabilitation should be done in accordance with the [SOI
Standards]{.underline}, in consultation with the SHPO.

You can determine whether a particular property has been listed or
formally determined eligible for the National Register by consulting
listings published periodically by the National Park Service, but it is
usually more efficient to consult with the SHPO for such information.

If the building has been listed in a state or local register of historic
properties, it is very likely to be eligible for the National Register.
The steps below can be carried out, but it may be simpler to assume that
the building is of historical importance and carry out rehabilitation in
accordance with the [SOI Standards]{.underline}, in consultation with
the SHPO.

Information on state and local registers can be obtained from the SHPO
and from local historic preservation organizations.

[STEP TWO]{.underline}: [Consider the age of the building
involved]{.underline}

Buildings that are less than fifty years old are seldom eligible for the
National Register.

If the building is [more than]{.underline} fifty years old, you should
proceed to [Step Three]{.underline}.

If the building is [less than]{.underline} fifty years old, you should
consider whether:

\* the building may be of a type that your initial consultation with the
SHPO has indicated may be [categorically eligible]{.underline}, or

\* the building otherwise appears to be of extraordinary historical or
architectural significance.

If the building is not of a type that is categorically eligible, and is
not otherwise of extraordinary historical or architectural significance,
no further historic preservation review is required. You should document
your determination and rehabilitation can be done without reference to
the [SOI Standards]{.underline}.

If the building may be of a categorically eligible type, or otherwise of
extraordinary significance, you should proceed to [Step
Four]{.underline}.

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RD Instruction 2000-FF

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[STEP THREE]{.underline}: [Consideration of properties over fifty years
old]{.underline}

If the building is [more than]{.underline} fifty years old, you may want
to consider rehabilitating it in accordance with the [SOI
Standards]{.underline} without further evaluation of its historical and
architectural significance. The [SOI Standards]{.underline} for the most
part prescribe commonsense practices that are worth considering for any
older house.

If you do not want to apply the [SOI Standards]{.underline} without
further evaluation, you should consider whether, used on your initial
consultation with the SHPO, the building is [categorically
ineligible]{.underline} for the National Register. If it is, you should
document your determination and rehabilitation can be done without
reference to the [SOI Standards]{.underline}.

If the building does not appear to be categorically ineligible, or if
you are uncertain about its eligibility, you should proceed to [Step
Four]{.underline}.

[STEP FOUR]{.underline}: [Consultation with the SHPO]{.underline}

At this point you have two options. Either:

\(a\) assume that the building is eligible for the National Register and
apply the [SOI Standards]{.underline} to its rehabilitation, in
consultation with the SHPO, OR

\(b\) consult with the SHPO first to determine eligibility. If the SHPO
determines that the property is [not]{.underline} eligible, then unless
someone objects to that determination and the SHPO\'s opinion is
overturned by the Keeper of the National Register (in the National Park
Service), you need not apply the [SOI Standards]{.underline} to its
rehabilitation. If the SHPO determines that the building is eligible,
and you do not disagree, you are required by the program regulations to
apply the [SOI Standards]{.underline} in its rehabilitation. If the SHPO
determines that the property is eligible and you disagree, you may refer
the disagreement to Rural Development, which will seek a final
determination from the Keeper of the National Register. The Keeper\'s
determination is final. If in the end the property is determined
eligible, you are required to apply the [SOI Standards]{.underline} in
its rehabilitation.

## [Special Consideration: Archaeological Sites]{.underline}

If your rehabilitation project will involve substantial earthmoving,
special Consideration should be given to the possibility that historic
or prehistoric Archaeological sites, eligible for the National Register,
might be disturbed. The SHPO should be consulted with regard to any
project involving substantial earthmoving. If an Archaeological site is
involved, special provisions may have to be made for carrying out the
rehabilitation in a way that minimizes damage to it.

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## [Other Considerations in Evaluation]{.underline}

The general criteria of eligibility for the National Register are set
forth at 36 CFR Sec. 60.4 by the National Park Service. Properties may
be eligible for the National Register at National, state, and local
levels of significance. Eligibility is generally based on association
with a historically important person or event, association with
important patterns in history, association with a style of architecture,
or the potential to yield important information about history or
prehistory.

A building normally is eligible only if it retains its [historical
and]{.underline} [architectural integrity]{.underline}. For example,
does it retain most of the architectural detailing that it had when it
was built, or has this been lost or stripped away? If the building bas
been added to over the years, can you still tell the difference between
the original building and the additions? If there are particular parts
of the building that are historically important, for example because
they were associated with an important person, are they still relatively
intact? If it had particular architectural characteristics that made it
important may, a particular kind of porch, or entry hall, or staircase
are those characteristics still intact?

A building does [not]{.underline} have to be in pristine condition to
have integrity. The changes it has undergone over time may actually add
to its significance. It is best to be conservative about integrity; if
you aren\'t sure whether the building still has it, it is best to assume
that it does.

Although in rehabilitation projects the major concern is the structure
to be rehabilitated itself, it is also necessary to consider the
environment in which the structure exists. A building may be Part of a
[district]{.underline} that is eligible for the National Register, for
example an urban neighborhood made up of older houses, or a rural
landscape that retains its historical integrity. Even if the building to
be rehabilitated does not contribute notably to the district, its
rehabilitation may have visual or other effects on the district that
should be considered. It is anticipated that effects on districts will
seldom be a problem in the HPG program, but they could be significant in
rare instances.

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RD Instruction 2000-FF

Exhibit A

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## [ATTACHMENT #3]{.underline}

## [CONTACTING THE ADVISORY COUNCIL]{.underline}

## [ON HISTORIC PRESERVATION]{.underline}

Where an HPG applicant, pursuant to the terms of its system developed
under stipulation I.F. of the Programmatic Memorandum of Agreement
between Rural Development, the Advisory Council on Historic
Preservation, and the National Conference of State Historic Preservation
Officers, must provide the Advisory Council an opportunity to comment on
a project, the applicant shall follow the procedures set forth in the
Council\'s regulations (36 CFR Part 800) as though the applicant were a
Federal agency.

To contact the Council:

Applicants in eastern states (see map) should contact:

Chief, Eastern Division of Project Review

Advisory Council on Historic Preservation

Old Post Office Building

1100 Pennsylvania Ave., NW, Suite 809

Washington, DC 20004

(202)786-0505

Applicants in western states (see map) should contact:

Chief, Western Division of Project Review

Advisory Council on Historic Preservation

730 Simms Street, Room 450

Golden, Colorado 80401

(303)236-2682

Exhibit A: Page 11 not automated see manual