Comments on: The Mills Act - A Great Tax Savings! http://historichomesblog.com/2008/04/11/the-mills-act-a-great-tax-savings/ Thu, 28 Aug 2008 06:32:54 +0000 http://wordpress.org/?v=wordpress-mu-1.0 By: Sandy DeAngelis http://historichomesblog.com/2008/04/11/the-mills-act-a-great-tax-savings/#comment-29 Sat, 12 Apr 2008 20:32:51 +0000 http://historichomesblog.com/2008/04/11/the-mills-act-a-great-tax-savings/#comment-29 Kelly, the Mills Act is statewide, and each City has the option of adopting it or now. Thanks for your response and your interest. Sandy DeAngelis Kelly, the Mills Act is statewide, and each City has the option of adopting it or now.

Thanks for your response and your interest.

Sandy DeAngelis

]]> By: Sandy DeAngelis http://historichomesblog.com/2008/04/11/the-mills-act-a-great-tax-savings/#comment-28 Sat, 12 Apr 2008 20:31:14 +0000 http://historichomesblog.com/2008/04/11/the-mills-act-a-great-tax-savings/#comment-28 John Carlson, Homes that are on the Historic Registry are sought after by those who love and value historical architecture and presevation, and they will typically demand a higher price than those that are not on the registry. However, I do not have any specific statistics -- especially in this crazy market we are in. Regarding what is required by the homeowner with a home on the Historic Registry; each city/town/registry is different. In the City of Orange, there are restrictions as to what can be done to the exterior of a house and they exceed the requirement and specifications of those of homes which are not on the Registry. In the City of Santa Ana, the restrictions/requirements are the same if a house is on the Registry or not, there is no additional layer of requirements. However, there are restrictions on all homes in vintage neighbors such as "you can't put in an aluminum window, etc. in a vintage home, but who would want to?? Let me know if I can be of any help. Sandy DeAngelis John Carlson,
Homes that are on the Historic Registry are sought after by those who love and value historical architecture and presevation, and they will typically demand a higher price than those that are not on the registry. However, I do not have any specific statistics — especially in this crazy market we are in.

Regarding what is required by the homeowner with a home on the Historic Registry; each city/town/registry is different. In the City of Orange, there are restrictions as to what can be done to the exterior of a house and they exceed the requirement and specifications of those of homes which are not on the Registry. In the City of Santa Ana, the restrictions/requirements are the same if a house is on the Registry or not, there is no additional layer of requirements. However, there are restrictions on all homes in vintage neighbors such as “you can’t put in an aluminum window, etc. in a vintage home, but who would want to??

Let me know if I can be of any help.

Sandy DeAngelis

]]> By: Kelly Evans http://historichomesblog.com/2008/04/11/the-mills-act-a-great-tax-savings/#comment-27 Sat, 12 Apr 2008 01:51:00 +0000 http://historichomesblog.com/2008/04/11/the-mills-act-a-great-tax-savings/#comment-27 Sandy, we too here in Redondo Beach, CA rely on the Mills Act for a tax savings as well as preservation of the historical homes in our area. I didn't know it was also available in other cities. The Redondo Beach Mills Act website is http://www.redondobeachhistorical.org/millsact.htm Take care Kelly Evans Sandy, we too here in Redondo Beach, CA rely on the Mills Act for a tax savings as well as preservation of the historical homes in our area.
I didn’t know it was also available in other cities. The Redondo Beach Mills Act website is http://www.redondobeachhistorical.org/millsact.htm
Take care
Kelly Evans

]]> By: John C. Carlson http://historichomesblog.com/2008/04/11/the-mills-act-a-great-tax-savings/#comment-26 Sat, 12 Apr 2008 00:05:00 +0000 http://historichomesblog.com/2008/04/11/the-mills-act-a-great-tax-savings/#comment-26 Ms. DeAngelis, I'm a commercial real estate appraiser & have been doing my own research about the Mills Act since I had an assignment about a year ago. Specifically, I'm trying to quantify the Act's impact on a properties value, if any. With the Act's tax reduction, I can mathematically analyze the expense reduction and thereby income increase and then Cap the savings into a supposed "value increase" What I haven't been able to develop data for is how buyers and sellers are analyzing this savings. What Cap rate is being applied? Are they even giving any credit to the expense reduction? I just recently reviewed a Mills Act contract for a mixed use commercial property in Old Town Pasadena and discovered that Pasadena'a Contract requires specific repairs and upgrades to be completed in each year of the contract. I am aware that one other "downside" is that any repairs and upgrades to a building have to comply with the more onerous Historic Building Code. One apartment Broker I interviewed stated that one of his investors had a tenant kick out a window in an apartment building under a Mills Contract. Instead of being able to go to Lowes or Home Depot & getting a $75+ window, the owner had to have a craftsmen fabricate an exact historical copy of the window - total cost exceeded $1200. So, to be more long winded, do you have any data that shows what value increase, if any buyers are applying when purchasing a property under a Mills Act Contract? Is any credit being given to the tax expense reduction? Any data you could share would be appreciated. I specialize in luxury and historic home valuations, along with appraisals of industrial buildings and apartments of all sizes. Sincerely, John C. Carlson Certified General Real Estate Appraiser Diamond Bar, CA 909-861-6186 Ms. DeAngelis,

I’m a commercial real estate appraiser & have been doing my own research about the Mills Act since I had an assignment about a year ago. Specifically, I’m trying to quantify the Act’s impact on a properties value, if any.

With the Act’s tax reduction, I can mathematically analyze the expense reduction and thereby income increase and then Cap the savings into a supposed “value increase” What I haven’t been able to develop data for is how buyers and sellers are analyzing this savings. What Cap rate is being applied? Are they even giving any credit to the expense reduction?

I just recently reviewed a Mills Act contract for a mixed use commercial property in Old Town Pasadena and discovered that Pasadena’a Contract requires specific repairs and upgrades to be completed in each year of the contract. I am aware that one other “downside” is that any repairs and upgrades to a building have to comply with the more onerous Historic Building Code.

One apartment Broker I interviewed stated that one of his investors had a tenant kick out a window in an apartment building under a Mills Contract. Instead of being able to go to Lowes or Home Depot & getting a $75+ window, the owner had to have a craftsmen fabricate an exact historical copy of the window - total cost exceeded $1200.

So, to be more long winded, do you have any data that shows what value increase, if any buyers are applying when purchasing a property under a Mills Act Contract? Is any credit being given to the tax expense reduction?

Any data you could share would be appreciated. I specialize in luxury and historic home valuations, along with appraisals of industrial buildings and apartments of all sizes.

Sincerely,

John C. Carlson
Certified General Real Estate Appraiser
Diamond Bar, CA
909-861-6186

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