Is a Curatorship really “rent free”?
According to the Historic Curatorship Program’s Enabling Legislation, (Section 44, Chapter 85, Acts of 1994 (amended)) DCR must establish a Fair Market Rent value for the lease. For the purposes of the program, the Fair Market Rent is based upon the rehabilitation cost estimates in the Request for Proposals. Because the value of the Curatorship to DCR also includes the occupancy and management of the property and the daily and routine maintenance, the Fair Market Rent is established by allowing 10% of the rehab cost for management and 20% for maintenance, and then adding that amount (a total of 30%) to the total rehab costs. Then we divide by the lease term For example: Rehab cost estimates: $500,000 10% (management allowance) $50,000 20% (maintenance allowance) $100,000 Fair Market Rent $650,000 $650,000 over a 25 year lease term = $26,000 / year No cash rent is collected during the base lease term as long as the Curator continues to fulfill the obligations under the lease and the Wor
