WHAT IS THE MILLS ACT

WHAT IS THE MILLS ACT?

In 1972 Senator James Mills introduced a little-publicized bill to grant property tax relief to owners of qualified historic properties. Historic properties that are owner-occupied single family residences and income producing commercial properties are recognized under the Act. The tax relief is to encourage homeowners to maintain and preserve their historic properties for all of us to visually enjoy.

A qualified historic property is one which is recognized and listed as historic on any official federal, state, county, city register or local survey listings that the local jurisdictional government recognizes.

WHY IS THERE AN AGREEMENT BETWEEN THE HOMEOWNER AND THE CITY?

The responsibility for assuring that the homeowner uses the money for the preservation of the structure was left up to the jurisdictional local government. A formal agreement is executed between the City and the property owner for a minimum of ten years. In return, the property owner agrees to protect, preserve, and maintain the historical and architectural character of the property in accordance with the specified historic preservation standards and conditions set forth by the City.

Periodic inspections of the property by the City planning officials and a report submitted by the homeowner every two years ensure that the proper maintenance of the property is accomplished. The City can impose very stiff penalties for breach of the agreement if the property is not maintained.

The City will assess a fee for the submission of an Agreement application, but Government Code 50281.1 states that it is "not to exceed the reasonable costs of administering the program."

WHAT ARE THE BENEFITS OF A MILLS ACT AGREEMENT?

	Reduced property tax to the qualified homeowner, who redirects the tax moneys "saved" into the preservation of the property, work for local contractors and purchase of restoration materials.
	The City at large in that there is an increase in the value of historic homes and surrounding homes by the very nature of maintenance and preservation.
	Visually improves the physical environment of the community and its historic landmarks.
	Provides revenue source to the City via application fees and issuance of permits for work performed under the agreement.