Los Angeles, CA Historic Preservation: Mills Act Contracts (2026)
Key Facts
- Program authority
- California Government Code § 50280 (Mills Act)
- Minimum contract term
- 10 years, with automatic annual renewals
- Renewal rule
- Auto-renews unless owner or City gives timely written notice of nonrenewal
- Valuation cap (single-family)
- $1,500,000 assessed value (outside core areas)
- Valuation cap (multi-family/commercial)
- $3,000,000 assessed value (outside core areas)
- Cancellation penalty
- 12.5% of full property value paid to the State
Summary
Los Angeles implements the Mills Act through Historical Property Contracts, allowing owners of designated Historic-Cultural Monuments or HPOZ Contributing Structures to enter a 10-year renewable agreement with the City in exchange for a reduced property tax assessment.
Sec. 19.140: Pursuant to California Government Code Section 50280, the City Council may contract with an owner or agent of the owner of any qualified historical property... Pursuant to Article 1.9 of the California Revenue and Taxation Code, historical properties that are "restricted" by the type of contracts referenced in the previous sentence shall be reassessed by the County Assessor in a manner that may result in lower real property taxes.
Sec. 19.142: [E]ligibility for Historical Property Contracts shall be limited... to sites, buildings or structures with a pre-contract assessed valuation of $1,500,000 or less for single-family dwellings, and $3,000,000 or less for multi-family residential, commercial, or industrial buildings...
Sec. 19.143: The required provisions of a Historical Property Contract shall be... (a) a minimum term of 10 years; (b) the owner's commitment and obligation to preserve and, when necessary, restore and rehabilitate the property to conform to the rules and regulations of the Office of Historic Preservation... (f) automatic annual renewal(s) of the contract, absent timely written notice of nonrenewal by the owner or the City... [I]f the City does cancel the contract... the owner shall pay the State of California a cancellation fee of twelve and one-half percent (12½%) of the full value of the property at the time of cancellation.
Full Breakdown
Under LAMC § 19.140, the City may contract with owners of qualified historical properties pursuant to California Government Code § 50280, resulting in lower property taxes via reassessment under Article 1.9 of the Revenue and Taxation Code. Eligibility (§ 19.142) is generally limited to properties with assessed valuations of $1,500,000 or less for single-family dwellings and $3,000,000 or less for multi-family/commercial/industrial buildings, except in the Downtown Historic Core, Hollywood Historic District, or Greater Downtown LA Area. The total annual unrealized property tax revenue from all contracts may not exceed $2,000,000. Required contract terms (§ 19.143) include a 10-year minimum, automatic annual renewals, and owner commitment to preserve and rehabilitate the property per the Secretary of the Interior's Standards. If the City cancels the contract due to owner breach or deterioration, the owner must pay the State a cancellation penalty of 12.5% of the property's full value.
Violations & Fines
If the City cancels a Historical Property Contract due to owner breach or failure to rehabilitate, the owner must pay the State of California a cancellation fee of 12½% of the full value of the property at the time of cancellation (LAMC § 19.143). Natural disaster damage may allow cancellation without penalty if the Cultural Heritage Commission concurs.
Frequently Asked Questions
Who is eligible for a Mills Act contract in Los Angeles?
What does the property owner have to do in exchange for the tax reduction?
What happens if the City cancels my Historical Property Contract?
Sources & Official References
Other rules in Los Angeles
California rules heatmap·Compare Los Angeles to another location·View the California historic preservation overview
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Mills Act Contracts in Nearby Cities
How other cities in Los Angeles County handle mills act contracts.