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INFORMATION REGARDING THE MILLS ACT
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RECOMMENDATION
Staff recommends that the Planning Commission receive the following information regarding the Mills Act. No formal action is required at this time.
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DISCUSSION
Background
At the conclusion of the June 11, 2015 Planning Commission meeting, one of the Commissioners requested information from staff at an upcoming meeting regarding the Mills Act.
According to information from the State Office of Historic Preservation, the Mills Act was enacted by the State in 1972 and grants participating local governments (both cities and counties) the authority to enter into contracts with owners of qualified historic properties to receive property tax relief in return for restoring and maintaining their historic properties. It should be noted that the Mills Act program is administered and implemented by local governments and Mills Act contracts are between the property owner and the local government granting the tax relief. The State Office of Historic Preservation is not a signatory to Mills Act contracts and the local government establishes its own criteria and determines how many contracts will be allowed in its jurisdiction.
A qualified historic property is one that is listed on a federal, state, county, or city register, including the National Register of Historic Places, California Register of Historical Resources, California Historical Landmarks, State Points of Historical Interest, and locally-designated landmarks. Both owner-occupied family residences and income-producing commercial properties may quality for the Mills Act program.
The Mills Act contracts are originally set for a ten-year period, with automatic yearly extensions, and remain with the property if ownership is transferred. Subsequent property owners are bound by the contract and have the same rights and obligations as the owners who originally entered into the contracts. Property owners agree to restore, maintain, and protect the property in accordance with specific historic preservation standards and conditions identified in the contract, in return for the noted property tax relief. Periodic inspections by local officials are intended to ensure proper maintenance of the property and penalties may be imposed for breach of contract or failure to protect the historic property.
The Mills Act allows local governments to design preservation programs to accommodate specific community needs and priorities for rehabilitating entire neighborhoods, encouraging seismic safety programs, contributing to affordable housing, promoting heritage tourism, or fostering pride of ownership. Local governments have adopted the Mills Act in recognition of the economic benefits of conserving and reinvesting in historic resources, as well as the important role that historic preservation can play in revitalizing older areas.
Conclusion
As noted, no action is required by the Planning Commission in response to this report.