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governments participating in the Mills Act program as well as has copies of Mills Act ordinances, resolutions, and contracts that have been adopted.
FREQUENTLY ASKED QUESTIONS ABOUT THE MILLS ACT
Q: What is the Mills Act Program?
A: The Mills Act provides economic incentives to owners of qualified historical properties to encourage the preservation of residential neighborhoods and the revitalization of downtown commercial districts. The Mills Act is the single most important economic incentive program in California for the restoration and preservation of qualified historic buildings by private property owners. First enacted in 1972, the Mills Act legislation grants participating local governments (cities and counties) the authority to enter into contracts with owners of qualified historic properties who actively participate in the restoration and maintenance of their historic properties while receiving property tax relief. California State Codes Relating to the Mills Act include the following:
California Government Code, Article 12, Sections 50280 - 50290
California Revenue and Taxation Code, Article 1.9, Sections 439 – 439.4
Q: My property or a property I am considering buying is already under a Mills Act contract. What does that mean to me as a property owner?
A: Mills Act contracts are for 10 years initially with automatic annual extensions and stay with the property when sold or otherwise transferred. Subsequent owners are bound by the contract and have the same rights and obligations as the original owner who entered into the contract. Because the local government and the property owner negotiate other specific terms of the contract, you need to contact your local government to determine the rights and obligations a Mills Act contract creates.
Q: How are tax assessments determined for properties under the Mills Act?
A: The State Board of Equalization has provided guidelines for county assessors for use in assessing properties under the Mills Act.
Q: Does my property qualify for the Mills Act Program?
A: First, find out if your local government participates in the program. Then, contact our local government or go to its website to see what the local criteria are, and what the process is for applying.
Q: If my local government does not currently have a Mills Act program, what should I do?
A: Contact the Planning Department or Community Development Department of your local government and ask them to consider adopting the Mills Act Program.
Q: How does the Mills Act benefit local governments?
A: 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 because they recognize the economic benefits of community reinvestment and the important role historic preservation can play in revitalizing older areas, creating cultural tourism, building civic pride, and retaining the sense of place and continuity with the community’s past.
Just imagine the City of Los Angeles without the iconic Angels Flight Railway, the Bradbury Building, Saint Vibiana’s Cathedral, or the Hollyhock House in Barnsdall Art Park, Crossroads of the World, and other iconic historical landmarks. The Mills Act helps to preserve historical resources such as these for local communities.
Q: How does the Mills Act benefit Owners of Historical Properties?
A: Owners of historic buildings may qualify for property tax relief if they pledge to rehabilitate and maintain the historical and architectural character of their properties for at least a ten-year period. The Mills Act program is especially beneficial for recent buyers of historic properties and for current owners of historic buildings who have made major improvements
APARTMENT MANAGEMENT MAGAZINE - MAY 2022 CS-33