Fourth in a series of stories this week explaining referendum questions that will be on the November ballot.

On Nov. 5, voters will be asked whether they want the state to borrow $10 million to help restore historic community buildings that are owned by the government or nonprofit entities.

Question 3 is one of three separate bond questions on the statewide ballot, totaling $65 million in borrowing.

Here’s what you need to know:

What is Question 3?

Question 3: Do you favor a $10,000,000 bond issue to restore historic buildings owned by governmental and nonprofit organizations, with funds being issued contingent on a 25% local match requirement from either private or nonprofit sources?

It would make public grants available for the preservation of historic buildings owned by a government or a nonprofit entities, which are not eligible for existing historic rehabilitation tax credit programs.

How will the funding be awarded?

Final rules for the funding have not yet been drafted. But the state will likely award funding to restore historic community buildings – such as public libraries, town halls, theaters, art galleries and community gathering places – through a competitive grant process.

Groups will be able to apply for funding from the Historic Preservation Commission, which will make the final decision. The funding will likely be awarded over several years. And the program will require recipients to provide a 25% match to receive the grant.

Why is it on the ballot?

The state constitution requires all state general obligation bonds to be approved by voters, but only after they have received two-thirds support from each chamber of the Legislature.

Question 3 is a general obligation bond initiated by lawmakers. Rep. Sawin Millett, R-Waterford, and Sen. Rick Bennett, R-Oxford, sponsored L.D. 912: An Act to Authorize a General Fund Bond Issue to Restore Historic Community Buildings.

The bill originally proposed $50 million in funding but was whittled down to $10 million by the Legislature’s budget-writing committee.

How much will it cost?

Borrowed with an estimated interest rate of 3.75%, the 10-year bond would likely cost the state a little more than $12 million.

Who is eligible for the funding?

Only governmental entities and nonprofit organizations that own buildings will be eligible for funding. The state’s Historic Preservation Commission is expected to receive $100,000 in funding to cover administrative costs.

Has the state done this before?

Yes, although not recently. State Historic Preservation Officer Kirk Mohney said voters approved a $2 million bond back in 1985 to restore historic buildings, and the state issued $250,000 each year over a four-year period. Voters also approved a couple of smaller bond measures in the early 2000s for the New Century Community Grant Program for archival collections.

Who are the major players?

So far, no groups have filed paperwork with the state to raise or spend money in support or opposition to the proposal.

Nonprofit groups testified in support of the proposal when it was presented to lawmakers. They said small community nonprofits operate on shoestring budgets and have limited options for raising enough money to maintain and restore their historic community buildings.