| WHAT IS THE MILLS ACT? |
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The Mills Act is an economic incentive program in California for the restoration and preservation of qualified historic buildings by property owners. Enacted by state legislation (CA Gov. Code Sections 50280-50290) in 1972, the Mills Act legislation grants participating cities and counties the authority to enter into contracts with owners of qualified historic properties who actively participate in the rehabilitation, restoration, preservation, and maintenance of their historic properties. To offset costs, the Mills Act permits property tax relief.
| WHAT ARE THE MILLS ACT PROGRAM BENEFITS? |
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The property owner benefits by receiving property tax savings. This can be as much as 40% to 60% of their pre-Mills Act contract tax rate. The cost to maintain a qualified historical property is reduced by leveraging property tax savings. Additionally, all Mills Act contract benefits are transferable if the qualified historical property is sold.
For general information and frequently asked questions regarding tax relief for historic properties please see the following resource:
| IS MY PROPERTY ELIGIBLE? |
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Eligible properties are privately owned and not exempt from property taxation.
The property must be listed on any federal, state, county, city or city and county’s official register of historical or architecturally significant sites, places or landmarks. For designated properties in the City see the Official Register of Historic Properties linked here.
If your property is not designated, you must establish landmark designation for your property to be eligible for Mills Act Benefits. The process for designating additional properties to be added to the Official Register is outlined in the City’s Historic Preservation Ordinance, linked here. Please also refer to Section 11.90.040 of the Municipal Code linked here.
Additionally, as a general rule, to qualify as historic, a building must be at least 50 years old and be a good example of a particular architectural style or be associated with a person or event of local, statewide, or national historic importance.
| WHAT ARE THE PROGRAM REQUIREMENTS? |
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To benefit, the property owner must:
- Commit to a minimum ten (10) year Mills Act contract
- Identify all proposed work to be completed to their property under the Mills Act contract
- Record the executed Mills Act contract with the county recorder
- Implement the work provisions contained in the contract following the U.S. Secretary of the Interior Standards and the State Historic Building Code
- Permit reoccurring (five-year) inspections to the interior and exterior of their premises
| CONTRACT DURATION – 10 YEARS |
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Mills Act contracts are for an initial term of 10 years. A contract automatically renews each year on its anniversary date and a new 10-year agreement becomes effective, creating a “rolling” contract term that is always equal to the initial contract term.
If the property owner decides not to renew their Mills Act contract, a written 90-day notice of non-renewal must be given to the local legislative government and the contract expires ten (10) years later. The owner may have to pay a 12.5% penalty of the current fair market value of their property if the Mills Act contract is canceled by the City due to breach of contract or because the site is no longer a qualified historical property.
| HOW DO I APPLY FOR A MILLS ACT CONTRACT? |
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After confirming that your property is eligible, you can apply for a Mills Act Contract through ConnectLCF, following the instructions below:
APPLYING FOR A MILLS ACT CONTRACT IS DONE THROUGH CONNECTLCF
Register for ConnectLCF, For additional instructions on how to register visit our How To Guides page.
Gather all the necessary documents needed to upload with application.
Visit the ConnectLCF Required Submittals page to see what is required for the Mills Act Contract Application.
Once you’ve logged in, you can access your account dashboard from the top left hand side of the top menu bar.
You can apply for a Mills Act Contract by clicking the “Apply” button. In the search bar, search for “Mills Act.” Hit Apply to begin the application process.
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STAFF REVIEW
Once submitted, staff will review your application and follow up with you on the next steps.
