Getting with the program
California’s Mills Act (or Historical Property Contract) program provides property tax breaks to owners of historic buildings who agree to restore and maintain the structures for at least 10 years. The amount of the tax break depends on the date of purchase, the property valuation and the current property tax assessment. In Los Angeles, the program is administered by the Office of Historic Resources. Here is how the Los Angeles program works:
* A property must first be designated a historic-cultural monument or be a qualifying structure within one of the city’s 21 historic preservation overlay zones.
* To get historic-cultural monument status, structures must meet one of these criteria: be of historical or cultural significance to L.A.; be architecturally significant to a certain period, style or type of construction; or represent a notable work of a “master” builder, designer or architect. Applications are submitted to the city’s Office of Historic Resources for review by the Cultural Heritage Commission. For information, call (213) 978-1200.
* Applications for Mills Act contracts are available at the Los Angeles Department of City Planning website, www.lacity.org/pln. They are submitted to Lambert Giessinger, historical property contracts manager in the Office of Historic Resources, City Hall, 200 N. Spring St., Room 620, L.A. 90012.
* Owners accepted to the Mills Act program must agree by contract to comply with the U.S. secretary of the Interior’s Standards for Rehabilitation of Historic Buildings, which include: preserving the distinctive features and finishes or examples of craftsmanship that characterize the property; repairing, not replacing, deteriorating features when possible (if replacement is necessary, however, the owner must match the feature in design, color, texture and materials); additions and exterior alterations may not destroy historic materials.
* Owners must draw up a plan delineating how they will restore and maintain the property. They agree to periodic inspections.
* The contract has an initial term of 10 years but is renewed annually and continues in perpetuity if no action is taken to cancel it. To break the contract, the homeowner may submit a notice of nonrenewal, ending it 10 years after the date of notice. Homeowners in breach of contract face a hearing before the city council, which can cancel the agreement. A penalty of 12.5% of the home’s current fair-market value will be assessed.
* Alterations to the property are subject to a Cultural Heritage Commission review.
* Nonrefundable application fees are $443.
For more information, visit www.lacity.org/pln.
-- Diane Wedner
