Historic Preservation's Biggest Challenge Is Getting Worse

Written by:

Rudi Davis

Date:

08 Dec 2025

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Hundreds of churches across America are facing abandonment and deterioration, and a regulatory bottleneck in the federal historic tax credit program is blocking their adaptive reuse. Preservation experts warn this problem is growing more urgent, with few viable solutions in sight.

Michael Puma, principal at Preservation Studios, has overseen about 60% of New York State’s historic tax credit projects in the past decade. He identifies churches as the most difficult building type for adaptive reuse under current federal standards.

The Regulatory Constraint

Puma explains that federal guidelines for historic tax credits, as interpreted by the National Park Service, restrict the subdivision of sanctuary spaces. “Churches are probably the one that is the most challenging,” Puma said. “The way that the standards are currently written, you can’t substantially subdivide the interior of the sanctuary spaces.”

The National Park Service maintains that the historic significance of sanctuary spaces lies in their volume and grandeur. Adding floors or dividing these spaces alters their defining features, making most adaptive reuse projects ineligible for federal tax credits.

Preservation professionals use a straightforward test for viability: if a blindfolded visitor cannot recognize the building’s original purpose, the project will likely not qualify for the program.

Scale of the Problem

This regulatory barrier is particularly acute because so many churches are being vacated or have already been abandoned and are now deteriorating. Churches make up a significant share of America’s historic building stock, especially in urban centers where adaptive reuse could support both preservation and neighborhood revitalization.

Unlike other building types that struggle with economic feasibility, churches face a regulatory ceiling that blocks most adaptive reuse efforts, regardless of market demand or developer interest.

Signs of Change

Despite these challenges, Puma has seen some recent signs of progress. “I’m seeing the National Park Service move on that a little bit. I think we as an industry have been expressing this concern for quite some time, and I am starting to see some hope that that is being reconsidered.”

He cites a recent project approval as evidence: “I just had a recent project approved that included more division of a sanctuary space than I’ve ever seen them allow, not just in our projects, but in any church reuse I’m aware of.”

Industry Evolution

This development signals a shift in the National Park Service’s approach. Puma notes the agency is now “more customer service oriented” and is directly engaging with preservation professionals instead of keeping an arms-length distance.

“They’re actually hearing concerns from the industry and slowly steering the ship towards change,” he said.

This regulatory evolution is occurring as religious buildings nationwide face a crisis of abandonment and demolition. Traditional preservation standards that require sanctuaries to remain largely unchanged often result in these buildings being left vacant and ultimately torn down.

Future Implications

Easing restrictions on subdividing sanctuary spaces could enable more adaptive reuse projects in cities where churches make up much of the historic building inventory. However, regulatory change is slow, while many buildings continue to deteriorate.

The challenge of church preservation highlights the broader conflict in historic preservation: balancing the need to maintain historical integrity with the practical necessity of economic reuse to prevent demolition by neglect.