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The Complete Guide to Baltimore's
CHAP Historic Tax Credit

What it is, who qualifies, the full 6-step process, and why a certified appraiser is required — explained in plain English by a 36-year Baltimore appraisal veteran

Call 443-904-5229 — Free Consultation See the 6-Step Process
Ed Drost · MD License #30004874 · CHAP Before & After Appraisals · 36+ Years Baltimore Experience
BaltimoresTrustedAppraiser.com › Free Resources › Baltimore CHAP Historic Tax Credit Guide
Quick answer
Baltimore's CHAP Historic Tax Credit freezes your property tax assessment at its pre-renovation value for 10 years after a qualifying rehabilitation. On a $250,000 home renovated to $450,000, that saves approximately $4,400 per year — $44,000 over the credit period. The program requires a certified before-appraisal and after-appraisal from a Maryland Certified Residential Appraiser. Call Ed Drost at 443-904-5229 to get started.
ED

Written by Ed Drost · Maryland Certified Residential Appraiser · License #30004874

36+ years Baltimore City & County · CHAP Before & After Appraisals · Residential Appraisal Solutions, LLC · 443-904-5229

What Is the Baltimore CHAP Historic Tax Credit?

The Commission for Historical and Architectural Preservation — CHAP — administers one of the most valuable financial incentives available to Baltimore City homeowners. The CHAP Historic Tax Credit program freezes your property's tax assessment at its pre-rehabilitation value for 10 full years after you complete a qualifying renovation.

In plain English: if your home is worth $250,000 before the renovation and $450,000 after, Baltimore City continues calculating your property taxes based on the $250,000 value for 10 years — even though your home is now worth significantly more. The $200,000 increase in assessed value is completely sheltered from taxation during the credit period.

At Baltimore City's approximately 2.2% property tax rate, that is $4,400 per year in tax savings — or $44,000 over the full 10-year credit period. For homeowners undertaking significant rehabilitations in Baltimore's historic neighborhoods, this program is genuinely transformative.

CHAP Tax Savings — Example Calculation
$250,000
Pre-rehabilitation assessed value — the baseline for your 10-year tax freeze
$450,000
Post-rehabilitation market value — not taxed during the credit period
$44,000
Estimated 10-year tax savings at Baltimore City's ~2.2% rate

Which Baltimore Neighborhoods Are Eligible?

To qualify for the CHAP Historic Tax Credit, your property must be located within a designated Baltimore City CHAP historic district. The program covers dozens of neighborhoods throughout Baltimore City — from the waterfront communities of the harbor to the established neighborhoods of North Baltimore. If you are unsure whether your property qualifies, call CHAP at 410-396-4866 or call Ed Drost at 443-904-5229 for a free consultation.

Hampden
Remington
Federal Hill
Fells Point
Canton
Highlandtown
Bolton Hill
Reservoir Hill
Mount Vernon
Charles Village
Waverly
Station North
Barclay
Greenmount West
Oliver
Johnston Square
Ednor Gardens
+ Many More
⚠
Important: Do not begin any exterior renovation work before confirming your property is in a CHAP district and obtaining CHAP review and approval for exterior changes visible from a public way. Work completed without CHAP approval does not qualify for the tax credit and cannot be retroactively approved.
Step-by-Step Process

The 6-Step CHAP Historic Tax Credit Process

1

Verify Your Property Is in a CHAP-Eligible District

Before spending a dollar on renovation planning, confirm that your property is located within a designated Baltimore City CHAP historic district. Contact the CHAP office at 410-396-4866 or visit 417 E. Fayette Street, Baltimore, MD 21202. You can also check the Baltimore City CHAP district maps online at chap.baltimorecity.gov.

Also check: Whether your property is individually designated (a City Landmark) versus contributing to a historic district. The review requirements differ depending on designation type.
2

Get Your Certified Before-Appraisal

Before any rehabilitation work begins, you must hire a Maryland Certified Residential Appraiser to document your property's fair market value. This before-appraisal establishes the pre-rehabilitation baseline — the value that your property taxes will be calculated on for the entire 10-year credit period. It must be USPAP-compliant and submitted with your CHAP application.

★ Required step — cannot be done after construction begins
Why timing matters: The before-appraisal must reflect the property's value prior to rehabilitation work. An appraisal ordered after work has begun does not satisfy this requirement and will not be accepted by the CHAP program.
3

Submit Rehabilitation Plans to CHAP for Review and Approval

All exterior alterations visible from a public way must be reviewed and approved by CHAP before work begins. Submit your renovation plans, contractor drawings, and material specifications to the CHAP office. Work must meet the Secretary of the Interior's Standards for Rehabilitation — a federal standard that governs how historic properties may be modified while preserving their historic character.

What CHAP reviews: Window replacements, door replacements, siding or masonry repair, roofline changes, additions, porches, and any other exterior modification visible from the street. Interior work on non-individually-designated properties generally does not require CHAP review.
4

Complete the Qualifying Rehabilitation

Complete your renovation according to the approved plans. The total rehabilitation investment must equal at least 25% of the property's pre-rehabilitation assessed value — not appraised value — to qualify for the tax credit. Document all work meticulously with dated photographs, contractor invoices, permits, and inspection records throughout the construction process.

Documentation tip: Photograph every phase of the work — before, during, and after each trade. CHAP reviewers and your after-appraiser will need this documentation to confirm the scope and quality of the rehabilitation.
5

Get Your Certified After-Appraisal

Once the rehabilitation is complete, hire a Maryland Certified Residential Appraiser to document the property's fair market value following the completed renovation. The after-appraisal documents the value increase attributable to the rehabilitation and confirms that the investment has produced a meaningful increase in market value. This appraisal is the second required submission for your CHAP tax credit application.

★ Must be completed after all work is finished
What the after-appraisal documents: The post-rehabilitation market value, the value increase attributable to the renovation, and confirmation that the work meets USPAP standards for a certified residential appraisal.
6

Submit Your CHAP Tax Credit Application

Submit the completed CHAP Historic Tax Credit application to the Baltimore City CHAP office, including both certified appraisals, documentation of completed work, contractor invoices, permits, and before-and-after photographs. The CHAP office reviews the application, confirms the work meets the Secretary of the Interior's Standards, and, if approved, certifies the property for the 10-year tax assessment freeze.

After approval: CHAP certifies the rehabilitation and notifies the Maryland Department of Assessments and Taxation (SDAT) to freeze the assessment. The freeze takes effect on the next assessment cycle and remains in place for 10 years from the date of application approval.
The Appraisal Requirement

Why the CHAP Program Requires a Certified Appraiser

The CHAP Historic Tax Credit program requires two certified appraisals from a Maryland Certified Residential Appraiser — not an automated estimate, not a real estate agent's opinion of value, not a desktop appraisal. A certified USPAP-compliant appraisal from a licensed professional is the only documentation the program accepts.

The reason is straightforward: the before-appraisal establishes the baseline for your 10-year tax freeze, and that number has significant financial consequences for both the homeowner and Baltimore City. A professionally documented, defensible value is essential.

① Before-Appraisal

  • Documents fair market value before any work begins
  • Establishes the pre-rehabilitation baseline
  • Sets the value used for your 10-year tax freeze
  • Must be completed before construction starts
  • Must be USPAP-compliant and certified
  • Submitted with initial CHAP application
  • Must include full interior and exterior inspection

② After-Appraisal

  • Documents fair market value after completion
  • Confirms the rehabilitation's value impact
  • Demonstrates qualifying investment level
  • Must be completed after all work is finished
  • Must be USPAP-compliant and certified
  • Submitted with final CHAP application
  • Must document all rehabilitated improvements
⚠
Common mistake: Some homeowners order only one appraisal at the end of the project, not realizing a before-appraisal was required. If you have already begun or completed work without a certified before-appraisal, call Ed Drost at 443-904-5229 immediately to discuss your options. In some cases a retrospective appraisal documenting pre-construction value can be developed from available market data — but this must be addressed as early as possible.
Frequently Asked Questions

CHAP Historic Tax Credit — Common Questions

How much does the CHAP Historic Tax Credit actually save Baltimore homeowners?
The savings depend on the scope of your rehabilitation and the resulting increase in assessed value. A home assessed at $250,000 before renovation that is assessed at $450,000 after saves approximately $4,400 per year at Baltimore City's ~2.2% tax rate — or $44,000 over the 10-year credit period. Larger rehabilitations in higher-value neighborhoods produce proportionally greater savings. For a free estimate of your potential savings, call 443-904-5229.
What renovations qualify for the CHAP Historic Tax Credit?
Qualifying work must meet the Secretary of the Interior's Standards for Rehabilitation and represent a minimum investment of 25% of the property's pre-rehabilitation assessed value. Common qualifying work includes roof replacement, masonry repointing, window restoration or appropriate replacement, structural repairs, mechanical system upgrades, kitchen and bathroom rehabilitation, and foundation work. Additions may qualify if they meet the Standards and do not damage or destroy historic materials.
Exterior work visible from a public way must be approved by CHAP before beginning. Interior work on non-individually-designated properties generally does not require pre-approval.
Can I apply for the CHAP Historic Tax Credit after I have already started or finished my renovation?
This is the most common and most costly mistake homeowners make. The program requires a before-appraisal documenting pre-rehabilitation value, and that appraisal must be completed before work begins. If you have already started work, call 443-904-5229 immediately. In some situations, a retrospective appraisal can document pre-construction value from available historical market data — but this option has limits and must be addressed before the trail of evidence grows cold.
Is the CHAP Historic Tax Credit the same as the Maryland Heritage Structure Rehabilitation Tax Credit?
No. The CHAP Historic Tax Credit is a Baltimore City program that freezes your property tax assessment. The Maryland Heritage Structure Rehabilitation Tax Credit is a separate state-level program that provides an income tax credit equal to a percentage of qualifying rehabilitation expenditures. Many Baltimore homeowners pursue both programs simultaneously. The requirements are different and the two programs use separate application processes. Call 443-904-5229 for guidance on pursuing both programs together.
How do I find out if my Baltimore home is in a CHAP-eligible historic district?
Contact the Baltimore City CHAP office at 410-396-4866 or visit chap.baltimorecity.gov to search district maps. You can also call Ed Drost at 443-904-5229 — after 36 years of appraising Baltimore City properties, I can tell you immediately whether your neighborhood is in a CHAP district and direct you to the right resources to confirm your specific property's eligibility.
Why does the CHAP program require a Maryland Certified Residential Appraiser specifically?
The certified appraisal requirement exists because the before-appraisal establishes a legally significant baseline that determines your property's tax treatment for 10 years. Baltimore City will not accept automated estimates, broker price opinions, or unlicensed valuations. The appraisal must be performed by a Maryland state-licensed appraiser, must comply with USPAP (Uniform Standards of Professional Appraisal Practice), and must be signed and certified by the appraiser. This protects both the homeowner and the integrity of the program.
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Last updated: May 2026 · Ed Drost · Maryland Certified Residential Appraiser · License #30004874