REPORT TO HISTORICAL AND LANDMARKS COMMISSION
SUBJECT
Title
Report on Completion of the 2024–2025 Mills Act Audit
Report
BACKGROUND
The Mills Act is an economic incentive program for the restoration and preservation of qualified historic buildings by private property owners. Enacted in 1972, the Mills Act legislation grants participating local governments (cities and counties) 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.
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. 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.
Staff has completed the audit and will present a summary of the findings to the Historical and Landmarks Commission (HLC).
DISCUSSION
There are currently 132 properties in the City of Santa Clara with a Mills Act Contract. All property owners were initially contacted by mail and/or email and asked to submit self-reported documentation for the audit, such as invoices, photographs, and written descriptions. Letters were sent to both the property address and the owner’s mailing address, as verified through Santa Clara County records when different. Each letter also offered property owners the option to schedule an on-site inspection with staff in lieu of submitting self-reported documentation.
A total of 128 property owners completed the Mills Act Audit. Of the 128 properties, 127 were found in compliance with their Mills Act Contract, while one was determined to be out of compliance. Staff is working with this property owner who completed the audit but was found out of compliance to either bring them into compliance or remove them from the program. A total of four property owners, out of 132 properties, did not complete the Mills Act Audit.
A total of 96 properties were identified with expired 10-year plans. Separate from the audit process, staff will work with these property owners to prepare updated plans, which will be agendized in batches to the HLC.
Property owners who did not respond to the initial requests sent via email and mail were subsequently contacted by telephone, certified mail, and attempted hand-delivered notices from Code Enforcement staff. Despite these efforts, four properties failed to provide the required documentation or to respond at all. One of these properties was also non-responsive during the 2017 audit.
Accordingly, staff will proceed with nonrenewal or contract termination of the following properties from the program in coordination with the City Attorney’s Office:
- 1711 Main Street
- 1895 Catherine Street (also non-responsive during the 2017 audit)
- 906 Monroe / 1341 Homestead Road (currently bank-owned)
- 1077 Harrison Street
For both nonrenewal and contract termination, City Council will set a hearing date. Once scheduled, notices will be mailed to the property owners and published in the Santa Clara Weekly.
The City will conduct the next audit of properties with a Mills Act contract in 2030/2031.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
PUBLIC CONTACT
Public contact was made by posting the Historical and Landmarks Commission agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
There is no staff recommendation.
Staff
Prepared by: Rebecca Bustos, Principal Planner and Meha Patel, Associate Planner
Approved by: Lesley Xavier, Planning Manager