(1) A city, village, or county may receive and recommend approval of applications for preliminary certificates of rehabilitation within its corporate boundaries pursuant to subsection (4) of this section.

(2) Prior to exercising authority under subsection (1) of this section, a city, village, or county shall request the approval of the State Historic Preservation Officer. The request shall be accompanied by assurances that the city, village, or county:

(a) Enforces laws for the designation of historically significant real property;

(b) Has a landmark ordinance or resolution that has been approved under section 77-1386;

(c) Maintains a historic review commission which has been approved by the State Historic Preservation Officer;

(d) Maintains a system for the survey and inventory of historically significant real property; and

(e) Maintains a system for reviewing applications for certifications of rehabilitations substantially the same as that provided in section 77-1388.

(3) Within forty-five days after the receipt of the request and the assurances, the State Historic Preservation Officer shall approve the city, village, or county to exercise authority under subsection (1) of this section.

(4)(a) The owner of historically significant real property described in section 77-1385 may apply for a preliminary certificate of rehabilitation on a form prescribed by the State Historic Preservation Officer. The application shall be filed with the city, village, or county prior to beginning rehabilitation, and the city, village, or county shall forward the application to the State Historic Preservation Officer with the following information:

(i) Certification that the real property is designated pursuant to a landmark ordinance or resolution or is in a district so designated; and

(ii) Any comments or recommendations on the application.

(b) The State Historic Preservation Officer shall process the application in accordance with subsection (4) of section 77-1388.