The Mid Century Modern Homeowner's Best-Kept Secret: The Mills Act
Unlock Significant Property Tax Savings with the Mills Act: A San Diego Homeowner's Guide
As a realtor specializing in San Diego's incredible collection of Mid Century modern, Vintage and Historical homes, I often talk with clients who are captivated by the clean lines, indoor-outdoor flow, and unique character of Modern design. Owning a piece of San Diego history is a dream for many.
But what if I told you that owning one of these historic homes could come with a substantial financial benefit?
Enter the Mills Act.
This is one of the best kept secrets for owners of historic properties in California, and San Diego has a fantastic program. It’s a win-win that helps you save money while preserving the architectural soul of our city.
What Exactly is the Mills Act?
The Mills Act is a state program that allows local governments, like the City of San Diego, to enter into contracts with owners of qualified historic properties.
Here’s the simple breakdown:
The Agreement: The homeowner agrees to preserve, maintain, and restore their historic home according to specific preservation standards.
The Reward: In exchange, the County Assessor's office agrees to reassess the property tax based on a formula for income-producing properties, rather than on its current market value (Prop 13 value).
The result? A potential property tax reduction of 40% to 70% annually. Yes, you read that right!
Why Mid Century Homes are Perfect Candidates
San Diego is a hotbed of Mid Century modern architecture, with homes designed by masters like Lloyd Ruocco, Homer Delawie, William Krisel and Dan Palmer. Many of these homes, built in the 1950s, 60s, and early 70s, are now reaching an age where they can easily qualify for historic designation.
A home doesn't need to be a grand mansion to qualify. It simply needs to have architectural or historical significance. The very design elements that make us fall in love with Modern homes, like their unique rooflines, original cabinetry, use of natural materials, and connection to the landscape are what make them historically significant and prime candidates for the Mills Act.
The Benefits Go Beyond Your Wallet
While the tax savings are the most eye catching benefit, the Mills Act offers so much more:
Become a Steward of History: You play a direct role in protecting San Diego's unique architectural heritage for future generations.
Enhance Property Value: A Mills Act designation is a massive selling point. Future buyers who appreciate historic architecture will see the contract and its tax benefits as a huge plus.
Encourage Quality Neighborhoods: Mills Act homes are beautifully maintained, which helps preserve the character and desirability of the entire community.
Is It Right For You?
The Mills Act is a formal agreement, typically a 10-year renewable contract, that transfers to new owners when the property is sold. It requires a commitment to being a caretaker of the home's historic features. But for those who already love and cherish their home's original character, it’s simply a way to be rewarded for doing what they would do anyway.
Let's Explore the Possibilities!
Navigating the world of historic homes and programs like the Mills Act is my passion. Whether you're considering buying a Mid Century, Craftsman or Historical home or you already own one and are curious about the potential savings, I can help.
Send me a direct message or comment below! I'm happy to provide a complimentary consultation to discuss:
How to identify homes with Mills Act potential.
The steps involved in the application process.
A curated list of available Mid Century and historic homes in San Diego.
