My Life and Times

Stephanie Diani for The New York Times

HISTORIC HAVEN The historic homes in Angelino Heights stand out against a downtown Los Angeles backdrop.

June 5, 2005
NATIONAL PERSPECTIVES
Preserving History in Los Angeles Neighborhoods
By KIMBERLY STEVENS
LOS ANGELES

A FEW years ago, Laura Weekes bought a fixer-upper home nestled in the heart of the Angelino Heights neighborhood, a collection of around 500 homes in Echo Park, just a stone's throw from downtown.

The house, built in 1905, has details from both the Victorian era and the Craftsman style of architecture.

"To build a new house with the quality of materials they used back then would be financially impossible for me," said Ms. Weekes, who was drawn to the neighborhood because she restores houses professionally. "And because these houses don't always point to a quick financial return they get torn down, which is a travesty."

As the real estate market in Southern California continues to boom, so does the destruction of old houses. Large new houses or apartment buildings are simply more profitable, and they continue to take the place of the old structures.

Although there is no record of exactly how many houses are torn down, The Los Angeles Times estimated in 2001 that there were three demolitions a day in Los Angeles. "It is safe to say that since the Times survey in 2001, there has been more permit activity and an increase in teardowns," said Ken Bernstein, director of preservation issues for the Los Angeles Conservancy.

Those who love old houses admit that there is rarely money to be made in their restoration, at least short term. But they insist that preservation pays off in the long term, both financially and psychologically.

The experience of residents in the Angelino Heights neighborhood gives some insight into what happens when a neighborhood receives a legal designation that protects its architecture. When Angelino Heights was granted the designation of a Historic Preservation Overlay Zone, or H.P.O.Z., in 1981, it was a first for Los Angeles. Preservationists consider it a rousing success.

Since 1981, 20 more zones have been formed in Los Angeles and the surrounding area, and 12 more are being considered in neighborhoods as diverse as Hancock Park, known for its grandiose mansions, Stonehurst in the Valley, for its small stone-clad bungalows, and Balboa Highlands, for the 1960's Eichler tract houses.

A neighborhood receives the historic preservation designation if the majority of its properties have architectural and historic significance. They are protected from demolition, and rules govern what can be done to the exteriors.

The guarantee that houses will not be demolished is either a great thing or an unfair limitation, depending on one's perspective. Ms. Weekes, who bought her house in the neighborhood several years ago, is now trying to have a historic house in Pasadena lifted up and moved to the neighborhood, so she can restore and sell it.

"I can be sure the personality of the neighborhood will stay the same and there is a true appreciation for history in pockets like this," she said.

But it isn't always easy on the pocketbook. The cost of preservation is nearly always more than that of a basic renovation.

Jim Prager, a resident of Angelino Heights long before the Historic Preservation Overlay Zone designation, owns two meticulously restored homes on Carroll Avenue. Historic houses haven't been the best investments in the city, he said. "If we had invested our money in the 70's over on the west side of Los Angeles, we'd probably be sitting on $10 million," he said. "But we had a connection to these old houses. I certainly don't regret it."

According to Mr. Bernstein of the conservancy, the historic zones add value, but not always in the most obvious ways.

The historic districts tend to be diverse neighborhoods economically, ethnically and culturally, he said. "There is a stereotype which comes from the East Coast that historic districts are blue blood, old money, homogeneous and wealthy and that's just not the case here in Los Angeles," he said. He also said that a much wider variety of architectural styles are considered worth saving.

"The H.P.O.Z. fosters a real sense of community and a sense of place and I think that adds to property value," her said.

Henni Bouwmeester, a sales agent for Sotheby's International Realty, who has been selling in the neighborhood since 1998, claims that there is very little turnover, but that when there is, there has been a considerable profit. She sold an Eastlake Victorian five years ago for $430,000 and she recently sold it again for $942,000. That was consistent with the market in neighborhoods that do not have the historic designation, she said - neither higher nor lower. But the buyers get more. "What you're getting is a much better quality home with cachet," she said.

The existence of many rules and regulations in the historic districts tends to keep the so-called flippers away. "I have seen some people turn homes over quickly and make money, but they are not top- notch examples of historic homes," she said.

She works with one woman, however, who buys dilapidated historic houses and restores them, using tax breaks to her advantage. Ms. Bouwmeester will list one of her properties this August for $1 million that she has owned for only a year. "This is an example of very high-end flipping, but it is unusual in this neighborhood and I doubt she's making a huge profit," she said.

Jim McHargue, who bought his home in 1986, said the historic designation has caused some real demographic shifts in the neighborhood. "When we moved to the neighborhood, over half the properties were owned by absentee landlords," he said. "The H.P.O.Z. has created a longstanding group of homeowners and it is the only thing that has enhanced and added value to the homes in this neighborhood."

Murray Burns, who owns 12 properties in the neighborhood, is known for doing high-end restorations and renting the houses to tenants who tend to stay.

"It's difficult and expensive," he said. "I think the payoff comes in the long run."

Ms. Weekes said that living in old houses becomes a way of life. "There really isn't any way to quantify financially what it means to wake up in a beautifully restored old house every morning," she said.

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