REPORT TO HISTORICAL AND LANDMARKS COMMISSION
SUBJECT
Title
Update on 2024 Mills Act Audit
Report
BACKGROUND
The Mills Act is an economic incentive program in California for the restoration and preservation of qualified historic buildings by private property owners. Enacted in 1972, the Mills Act legislation grants participating local governments 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. A formal Historic Property Preservation Agreement, generally known as a Mills Act Contract, is executed between the City and the property owner for a minimum ten-year term. Contracts are automatically renewed each year and are transferred to new owners when the property is sold. Property owners agree to restore, maintain, and protect the property in accordance with specific historic preservation standards and conditions identified in the contract over a ten-year period. There are currently 132 properties in the City of Santa Clara with a Mills Act Contract.
The Planning Division of the Community Development Department administers the Mills Act program for the city. As part of this program, the City conducts an audit of properties with a Mills Act contract every five years. Only properties with a Mills Act contract for at least five years are subject to an audit. The last Mills Act audit was conducted in 2017. However, due to the COVID pandemic, the planned 2022 audit was postponed to 2024. The purpose of the audit is to ensure that property owners are following their ten-year restoration plan. Property owners are asked to provide proof of investment into the property in accordance with the ten-year restoration plan, such as receipts, invoices, and photo evidence.
DISCUSSION
Preparations for the 2024 Mill Act audit are underway. A hard copy introductory letter will be mailed to all Mills Act property owners that ...
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