REPORT TO HISTORICAL AND LANDMARKS COMMISSION
SUBJECT
Title
2024-2025 Mills Act Audit Update
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. 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
There are currently 135 properties in the City of Santa Clara with a Mills Act Contract. A total of 115 introductory letters were sent to Mills Act property owners with contracts initiated between 1994 and 2018, requesting documentation for completed projects in accordance with each property's 10-year plan. Of these, 65 properties submitted complete information, and 11 opted for on-site inspections rather than document submittal. 36 owners provided incomplete information, and staff is working with them individually to supply additional information. Three property owners have not responded at all thus far, and staff is continuing to reach out to them.
Additionally, 20 letters were sent t...
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