[quote=temeculaguy]Sometimes it’s not as bad as it seems, some of these historical buildings come with property tax exemptions and are advertised as such when they are for sale. I’ve seen some advertised with property tax savings of over $500 a month, but the buyer is restricted in what they can do in way of modifications. So when you look at it that way, the government is paying them to provide a visual museum piece for all to see. Sure it’s unfair to tell people what to do with their property that owned them before they were made historical, I am not sure what the answer is because it’s an ex post facto homeowners association in those cases. But if someone were to buy one, knowing the rules adn reaping the benefits, they can’t cry foul.[/quote]
TG, if you are speaking of properties with Mills Act designations then yes, the restriction on increasing the footprint or “style” of the home is a VERY small price to pay for receiving the property tax abatement from the Mills Act, IMO. A property which SHOULD have a property tax of $8,600 per year could easily have a reduction to +/- $1,800 per year under the Mills Act. The homeowner often must also follow other rules to keep the Mills Act status, including signing a contract with the city/county to restore the exterior within ten years. Many jurisdictions had $25K grants to get the owner started (each time they wanted to take a “draw” off the grant, they had to have receipts for labor/materials). Not sure if this is still happening and am unsure of the level of government oversight on the homeowner’s progress.
A fully restored property under the Mills Act program is a “labor of love.” Often, the homeowner could only afford materials (and not labor) after their grant ran out. They are mostly DIY projects involving labor-intensive stripping, sanding and searching for original artifacts which may be missing. These projects are not for everyone. That’s why the property tax incentive is in place to restore them and maintain them. It’s the government’s way of thanking the owners who do this for the benefit of the neighborhood and city/county.
