The Mills Act Historical Property Contract Program has served as Los Angeles's primary financial incentive for historic preservation since 1996, offering property tax savings for owners who invest in the rehabilitation and restoration of historic buildings.
Enabled by state legislation in 1972, the Mills Act offers a unique tool for historic preservation through a revolving 10-year contract between the City and the property owner. Contracts are automatically renewed each year and are transferred to new owners when the property is sold. The program’s strength is that it incentivizes – through a property tax abatement – significant investment in historic preservation to retain and protect historic resources.
There are property assessed valuation thresholds in place for new applications: $1.5 million for single-family residences or $3 million for multi-family residential, commercial, or industrial properties. Any properties exceeding these valuation limits require an application for an exemption and the preparation of an Historic Structure Report.
Additional information about the program is available in the list of Frequently Asked Questions.
