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Legislative Public Meetings

File #: 18-1355    Version: 1 Name:
Type: Public Hearing/General Business Status: Agenda Ready
File created: 9/25/2018 In control: Historical & Landmarks Commission
On agenda: 11/1/2018 Final action: 11/1/2018
Title: Public Hearing: Consideration of 2017-2018 Historical Property Preservation Agreement Audit (Mills Act Contracts)
Attachments: 1. Phase I Letter.pdf, 2. Phase II Letter.pdf, 3. Excerpt All MA Property Responses.pdf, 4. Audit Process Results, 5. 1711 Main Street Property Evaluation.pdf, 6. Photos 1711 Main St.pdf, 7. 741 Lincoln St Property Evaluation.pdf, 8. 741 Lincoln St Additional Material.pdf, 9. Photos 741 Lincoln St.pdf, 10. 1751 Benton St Property Evaluation.pdf, 11. Photos 1751 Benton St.pdf, 12. 1695 Market St Property Evaluation.pdf, 13. 1695 Market St Addtional Material.pdf, 14. Photos 1695 Market St.pdf, 15. 1212 Pierce Property Evaluation.pdf, 16. 864 Madison St Property Evaluation.pdf, 17. 864 Madison St Addtional Materials.pdf, 18. Photos 864 Madison St.pdf, 19. 758 Jackson St Property Evaluation.pdf, 20. Photos 758 Jackson St.pdf, 21. 758 Jackson St Addtional Materials.pdf, 22. 906 Monroe St 1341 Homestead Property Evaluation.pdf, 23. Photos 906 Monroe St 1341 Homestead Rd.pdf, 24. Mills Act Contracts Under Consideration.pdf, 25. State Guidelines for the Assessment of Mills Act Properties, 26. Correspondence 09272018 741 Lincoln St .pdf, 27. Correspondence or Responses Received.pdf, 28. Agenda Report
REPORT TO HISTORICAL AND LANDMARKS COMMISSION
SUBJECT
Title
Public Hearing: Consideration of 2017-2018 Historical Property Preservation Agreement Audit (Mills Act Contracts)

Report
EXECUTIVE SUMMARY
The Mills Act is an economic incentive program offered in the State of California that allows for owners of historical properties to receive a property tax reduction by entering into a contract with participating local governments, such as cities and counties, through the agreement of repairing and maintaining a historically significant property. This program allows the tax savings achieved to be used towards the initial preservation, restoration, or rehabilitation of the historical property and then towards the continuous long term maintenance of the property. The original contract is binding with all successors in the interest of the owner. Penalty for cancellation for breach of contract conditions is 12.5 percent of the property value at time of cancellation. Attached is the State Guidelines for the Assessment of Mills Act Properties which provides guidance to County Assessors and interested parties.

The Mills Act Contract requires that City staff monitor the progress of each property and conduct periodic reviews to ensure that the contractual obligations are being fulfilled. . Until the most current audit activity in 2017-2018, the last known City audits occurred in the 2007.

State Law with regards to Mills Act Contracts now requires an audit of the program every 5 years. The City has conducted a comprehensive detailed audit and completed the review of all existing agreements. Future audits, in line with the State law, may include mail-in surveys and external inspections for those in good standing.

BACKGROUND
The 2017-2018 Mills Act Contracts Audit was conducted by the City of Santa Clara and differs from other assessments and surveys conducted by the County of Santa Clara Tax Assessors Office. The City made efforts to work with the property owners to mai...

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