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PRESERVATION NORTH CAROLINA* 'The. Historic Preservation Foundation of North Carolina, Inc. THE REVOLVING FUND Most Frequently Asked Questions In 1977, Preservation NC began the nation's first statewide revolving fired for historic preservation. The revolving fund purchases e~&ngered historic properties and resells them for rehabilitation with protective covenants. The fund has received national attention and has played a key educational role in preservation statewide, raising the public's awareness about local landmarks, debunking misconceptions about preservation, and advocating sensitive rehabilitation. The following questions are frequently asked about the revolving fund: How large is the fund? Approximately $450,000, most of which is tied up in properties which are being held for resale or in notes on properties already sold. .What kinds of properties does the revolving fund work with? The revolving fund uses five criteria: 1. Endangered. (A vacant property is certainly endangered, as is one likely to lose significant landscape features.) 2. Significant. (Eligible for the National Register of Historic Places. As a statewide entity, the fund must be more selective than a local fund would be.) 3. Buyable. (I£the owner is uawilling to sell'the property, tho fund eon do little.) 4. Sellable. (The fund can find buyers for many properties that are hard to sell locally by directing its advertising to a preservation-minded audience both statewide and nationwide.) 5. Local assistance or local spin-offs. Crtaving someone locally to help with showing the property, keeping it presentable, and undertaking other similax tasks is critical.) How does the revolving fund find out about its properties? Usually through the preservation network: our Board of Advisors, the staffofthe Division of Archives and History, and -- other concerned local preservationists. How many properties has the fund worked with? _ Over 200, representing inve~nents ofapproximately $45 million. When does the revolving fund purchase properties outright? The revolving fund prefers to obtain options on properties rather than purchase them outright, since an option requires a much smaller capital outlay. An option gives the revolving fund a specified length of time during which it can purchase the property. If the fund finds a buyer during the option period, then it purchases the property and resells it with protective covenants on the same day. However, in some eases, a property owner is unwilling to grant an option. Then, after evaluating the fund's financial status and the importance of the property, PNC's board will decide whethe~ to purchase the property outright. Does the revolving fund restore its own properties? No. The revolving fund will at most do minimal stabilization work to secure the property. It relies on the buyers who enter into a rehabilitation agreement with PNC at closing to undertake the rehabilitation. 101 St. Mary's Stree~ · P.O. Box 27644 · Raleigh · NC · 27611-7644 PHONE (919) 832-3652 · FAX (919) 832-1651