Historic Designation/Mills Act…What To Do…

HISTORIC HOMES in Kensington, Talmadge and throughout many other communities in San Diego are fun to admire, particularly when they have been pristinely maintained and cared for. I often sell homes that have historic potential but are not already designated, which leads to some investigation. Homes that are historically designated with Mills Act in place are highly desirable as the property taxes are reduced from the standard 1% of the purchase price (plus local bonds and assessments), significantly impacting the homeowner’s monthly payment for the home. Along with these tax savings, come some rules and responsibilities, however. Below are some answers to questions I often get asked about the process and what to expect:

1. It can take about 2 years to get through the process of getting your home historically designated and having Mills Act apply. The first year is spent having research completed on the home including chain of title, who lived in the home, who built the home, etc. Once the application is submitted, a hearing is held to either approve or deny the designation. Once approved of the historic designation, the homeowner is eligible to apply for the Mills Act the following year. Lastly, if approved of Mills Act benefits, they would go in to effect the following July.

2. There are three basic categories for a historic designation: architectural style, built or designed by a master builder or master architect, or if a person of historical significance lived in the home

3. If your home is designated as a historic landmark, you may be eligible to qualify for Mills Act benefits. If so, you would apply with the City and, if approved, sign a contract outlining maintenance and care specifications for your home. In return, your property taxes would be significantly reduced (the percentage varies from home to home).

4. If granted Mills Act, the City will reduce your property taxes in exchange for your agreement to maintain the home in its original state. For example, If your home needs a new roof, you would replace it with a roof that looks exactly like the original. Similarly for elements such as windows, stucco, etc.

5. If benefiting from Mills Act and the historic designation, the homeowner must also agree to keep the home visible from the street so that passersby can admire the landmark. This places limitations on enclosing a property with a courtyard wall, planting privacy trees and shrubs, etc.

There are several local research companies who specialize in the historic designation process or you can do the work yourself if you are confident in your abilities to research and present as is needed. Having gone through this process myself and having helped many clients do the same, I am happy to provide referrals to you if you are curious about how to get started! Just give me a call at 619-944-2798!