Historic districts in the United States are designated historic districts recognizing a group of buildings, archaeological resources, or other properties as historically or architecturally significant. Buildings, structures, objects, and sites within a historic district are normally divided into two categories, contributing and non-contributing. Districts vary greatly in size and composition: a historic district could comprise an entire neighborhood with hundreds of buildings, or a smaller area with just one or a few resources.

Historic districts can be created by federal, state, or local governments. At the federal level, they are designated by the National Park Service and listed on the National Register of Historic Places; this is a largely honorary designation that does not restrict what property owners may do with a property. State-level historic districts usually do not include restrictions, though this depends on the state. Historic districts created by local municipalities, however, almost always protect historic properties by regulating alterations, demolition, or new construction within the district.

Much criticism has arisen of historic districts and the effect protective zoning and historic designation status laws have on the housing supply. When an area of a city is designated as part of a 'historic district', new housing development is artificially restricted and the supply of new housing permanently capped in area so designated as 'historic'. Critics of historic districts argue that while these districts may offer an aesthetic or visually pleasing benefit, they increase inequality by restricting access to new and affordable housing for lower and middle class tenants and potential home owners. Housing advocates have argued that the historic designation process has in many places been hijacked by NIMBY homeowners to block housing.

History

The first U.S. historic district was established in Charleston, South Carolina in 1931, predating the U.S. federal government designation by more than three decades. Charleston city government designated an "Old and Historic District" by local ordinance and created a board of architectural review to oversee it. New Orleans followed in 1937, establishing the Vieux Carré Commission and authorizing it to act to maintain the historic character of the city's French Quarter. Other localities picked up on the concept, with the city of Philadelphia enacting its historic preservation ordinance in 1955.'Philadelphia Historical Commission' http://www.phila.gov/historical/designation.html

The regulatory authority of local commissions and historic districts has been consistently upheld as a legitimate use of government police power, most notably in Penn Central Transportation Co. v. City of New York (1978). The Supreme Court case validated the protection of historic resources as "an entirely permissible governmental goal."438 U.S. 104, 129 (1978) In 1966, the federal government created the National Register of Historic Places, soon after a report from the U.S. Conference of Mayors had stated Americans suffered from "rootlessness." By the 1980s, there were thousands of federally designated historic districts. Some states, such as Arizona, have passed referendums defending property rights that have stopped private property from being designated as historic without the property owner's consent or compensation for the historic overlay.

Property types Historic districts are generally two types of properties, contributing and non-contributing.National Register Historic Districts Q&A , South Carolina Department of Archives and History. Retrieved February 19, 2007. Broadly defined, a contributing property is any property, structure, or object which adds to the historical integrity or architectural qualities that make a historic district, listed locally or federally, significant.Historic and Scenic Preservation Local Option Property Tax Reimbursement , Maine Historic Preservation Commission. Retrieved February 19, 2007. Different entities, usually governmental, at both the state and national level in the United States, have differing definitions of contributing property, but they all retain the same basic characteristics.Ordinance No. 2001-02 , (PDF), Danville, California ordinance, California Office of Historic Preservation. Retrieved February 19, 2007. In general, contributing properties are integral parts of a historic district's historical context and character.Iowa City Historic Preservation Handbook , (PDF), Iowa City Urban Planning Division. Retrieved March 26, 2007. In addition to the two types of classification within historic districts, properties listed on the National Register of Historic Places are classified into five broad categories. They are: building, structure, site, district, and object; each one has a specific definition in relation to the National Register. All but the eponymous district category are also applied to historic districts listed on the National Register.

Federal-level

A listing on the National Register of Historic Places is a governmental acknowledgment of a historic district. However, the Register is "an honorary status with some federal financial incentives."Strengths of Local Listing , Working on the Past in Local Historic Districts, National Park Service. Retrieved February 20, 2007. The National Register of Historic Places defines a historic district per U.S. federal law, last revised in 2004. According to the Register definition, a historic district is: a geographically definable area, urban or rural, possessing a significant concentration, linkage, or continuity of sites, buildings, structures, or objects united by past events or aesthetically by plan or physical development. A district may also comprise individual elements separated geographically but linked by association or history.Title 36: Section 60.3 , Parks Forests and Public Property, Chapter One, Part 60. National Register of Historic Places. Retrieved February 19, 2007.

Districts established under U.S. federal guidelines generally begin the designation process through a nomination to the National Register of Historic Places. The National Register is the official recognition by the U.S. government of cultural resources worthy of preservation."About the Register ", National Register of Historic Places, National Park Service. Retrieved April 4, 2007. While designation through the National Register does offer a district or property some protections, it is only in cases where the threatening action involves the federal government. If the federal government is not involved, then the listing on the National Register provides the site, property or district no protections. For example, if company A wants to tear down the hypothetical Smith House and company A is under contract with the state government of Illinois, then the federal designation would offer no protections. If, however, company A was under federal contract, the Smith House would be protected. A federal designation is little more than recognition by the government that the resource is worthy of preservation.

Generally, the criteria for acceptance to the National Register are applied consistently, but there are considerations for exceptions to the criteria, and historic districts influence some of those exceptions. Usually, the National Register does not list religious structures, moved structures, reconstructed structures, or properties that have achieved significance within the last 50 years. However, if a property falls into one of those categories and are "integral parts of districts that do meet the criteria", then an exception allowing their listing will be made. Historic district listings, like all National Register nominations, can be rejected based on owner disapproval. In the case of historic districts, a majority of owners must object to nullify a nomination to the National Register of Historic Places. If such an objection occurred, then the nomination would become a determination of National Register eligibility only. This provision is controversial because of the presumption that owners who do not file a formal objection support the designation, placing the burden on opponents.

State-level

Most U.S. state governments have a listing similar to the National Register of Historic Places. State listings can have similar benefits to a federal designation, such as granting qualifications and tax incentives. In addition, the property can become protected under specific state laws. The laws can be similar or different from the federal guidelines that govern the National Register. A state listing of a historic district on a "State Register of Historic Places", usually by the State Historic Preservation Office, can be an "honorary status", much like the National Register. For example, in Nevada, listing in the State Register places no limits on property owners.Whaley, Sean. "State adds Goldfield to historic places registry ", Las Vegas Review-Journal, December 24, 2005. Retrieved April 4, 2007. In contrast, state law in Tennessee requires that property owners within historic districts follow a strict set of guidelines from the U.S. Department of Interior when altering their properties.Kreyling, Christine. "Something Old, Something New", Planning; August/September 2006, Vol. 72 Issue 8, p34-39, 6p. Retrieved April 4, 2007. Though, according to the National Historic Preservation Act of 1966, all states must have a State Historic Preservation Office, not all states must have a "state historic district" designation. As of 2004, for example, the state of North Carolina had no such designation.Nicholson, Scott. "Commissioners Address Alcohol Sales In Valle Crucis ", The Mountain Times, August 5, 2004. Retrieved April 4, 2007.

Local-level

Local historic districts usually enjoy the greatest level of protection legally from any threats that may compromise their historic integrity because many land-use decisions are made at the local level. There are more than 2,300 local historic districts in the United States.Bringing Preservation Home , Working on the Past in Local Historic Districts, National Park Service. Retrieved February 19, 2007. Local historic districts can be administered at the county or the municipal level; both entities are involved in land use decisions."Local laws as neighborhood guardians ", Working on the Past in Local Historic Districts (Section B), National Park Service. Retrieved October 5, 2009. The specific legal mechanism by which historic districts are enacted and regulated varies from one state to the next. In some areas, they are a component of zoning (where they are sometimes referred to as "overlay districts." In other places, they are created under a separate process unrelated to zoning.