Historic Homes are quite common in San Diego, and include a variety of styles such as Tutor, Craftsman and Spanish styles.

Not only are they beautifully crafted with attention to detail, the use of solid wood and formality often lost, they are highly desired.

I am a sucker for old homes. And a bigger sucker for historic homes that have been updated but keep the original charm. The built in bookshelves, the formal dining rooms, rich wood floors and wainscoting are often unmatched in newer homes.

My husband found our current home. It is a white craftsman built in 1912. We were even more excited to learn we could get it historically designated.

Mills Act Process (Historical Designation):

An important factor in the Mills Act, is that your community needs to be Historically Designated by the City of San Diego.

This allows you to then go on to the CA Historical Resources Inventory Database to further research your home and its eligibility. If your home can be located as eligible, you can begin the process of applying for the Mills Act.

This includes making an apt with the City of San Diego once you have completed an application. The application includes current photos of your home, your search results from the CA Historical Resources Inventory, and explanation of any additions or modification done to the property, a check , copy of your Grant deed, and any proposed improvements.

Upon your meeting with the city, and inspection of your property you move onto the contract. The Mills Act is a Ten Year Contract where you agree to make any necessary changes to your home before your contact ends. Paperwork is finalized, and you purchase a historic plaque to be displayed on the exterior of your home.

Within the next year, you will see a reduction on your property taxes. This can be a huge benefit financially for a high valued home. The idea is that you will use the saved income to continue to maintain your property for community enjoyment. It can be an amazing incentive.

Things to note:

• The Mills Act is not a great fit for everyone. If your home requires extensive remodeling to bring your home back to the original appearance, the remodel costs may not be worth the tax savings

• It may not be for you if you have owned your home for a long time, and already have low property taxes

• Highest benefit for homes bought at peak of market or recently as the property is reappraised at full market value. Higher appraised value equals higher property taxes

• You cannot make any changes to the exterior of your home without the city’s consent. This includes paint colors, repairs and fixtures and garages

• You can however change the interior as you wish

• Repairs to the exterior of the home need to be with like materials and approved by the city

• Limitations to large trees/shrubs blocking the home

• You enter into a ten year contract where you are required to make the agreed upon changes

• You are not required to open your home to the public. Prior to 1985 any property under contract had to be open to the public for tours

  
  

The Mills Act: A California state law that facilitates a contract between homeowners and the state in order to preserve historic homes. In exchange, homeowners receive a reduction in property taxes

City of San Diego - Mills Act Property Tax Reduction

Did you know?

There are currently 1,200 properties with Mills Act in San Diego

Local historical designation is required before you can enter into a Mills Act agreement. Even if your property is listed on the National Register and/or California Register, but is not designated historical by the City of San Diego, your property is not eligible for the Mills Act.

How much are tax savings?

This varies from property to property and range from 20 - 70 percent based on the Tax Accessors property evaluations.

Did you Know?

Ca property tax is 1.25 % of purchase price

Did you know?

If you sell your home with Mills Act, the contract is inherited by the new owners. The property will permanently be maintained as historic

What are some Historic Districts in San Diego?

• Mission Hills

• South Park

• Kensington

• Old Town

• Burlingame

• Little Italy

• Gaslamp Quarter