Your submission should contain the following information:
✔ Mills Act Application Form
✔ Application Fee
✔ Verification that the property is a qualified historical property(1)
✔ Itemized 10-year Rehabilitation and Maintenance Plan
✔ Filled out Tax Savings Worksheet
✔ A copy of the most recent real property tax bill for the property
✔ A fair market value appraisal (land plus improvement) of the property prepared by a certified appraiser
✔ A current deed for the property with an attached legal description
✔ Current photos of the property and each of the subject structure(s)
✔ Value Cap Exception request with supporting justification(2), as applicable
✔ Additional information as may be required to assess the historicity of the property and evaluate the Mills Act Contract Application.

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(1) If the property is not currently a qualified historic property, the Mills Act Contract Application may be accompanied by a request that the property be listed on the Monterey County Register of Historic Resources. 

(2) A Value Cap Exception request is only required for residential properties whose fair market value (land plus improvement) exceeds $3,000,000 or commercial/industrial properties whose fair market value (land plus improvement) exceeds $5,000,000.

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Updated: 8/11/2025

Preface: The Mills Act (Historic Property Contract) application requirements are detailed in Monterey County Code (“MCC”) Chapter 18.28, section 18.28.060. 

1. Mills Act Application Form: A filled-out application form with the name, address, and contact information of the property owner and signed by all persons and entities having a right, title, or interest in the real property to be subject to the historic property contract.

2. Mills Act Application Fee: Application fees are due at the time of submittal and must be submitted for the County to accept and process the application. Our current adopted fee schedule and a fee estimator are available on our website.

3. Verification that the property is a qualified historical property: Information demonstrating the property meets one or more of the criteria in MCC section 18.28.030.H designating it as a qualified historical property. In summary, a property is a qualified historical property if:

a. The property is individually listed on the National Register of Historic Places (NRHP), California Register of Historical Resources (CRHR), or Monterey County Register of Historical Resources;

b. The property is a contributing structure in a registered Historic District; or

c. The property is within a registered Historic District, and an evaluation of the proposed Rehabilitation and Maintenance Plan by a qualified historian determines that its implementation would elevate the structure to contributing status.

If the property is not presently listed on any of these registers or in a historic district, the Mills Act application may be accompanied by a request signed by the property owner(s) that the property be added to the Monterey County Register of Historical Resources. In this case the application must be accompanied by a report by a qualified historian on the County’s list of historical consultants which demonstrates why the property qualifies for listing in the County register. 

• The criteria for listing are in MCC section 18.25.070.
• The County’s list of approved historical consultants is available on our website. 

 4. Itemized 10-year Rehabilitation and Maintenance Plan, containing, at a minimum, the following information: 

a. A description of the improvements to be done. The proposed improvements must be appropriate to restore, preserve, and/or maintain the historic structure in accordance with the Secretary of the Interior's Standards for the Treatment of Historic Properties;

b. Schedule and cost estimates for the proposed improvements; and

c. Preliminary documentation needed to substantiate and illustrate proposed improvements, such as plans, photographs, or property assessments. 

The plan shall show how the tax savings will be used to rehabilitate and maintain the historic property and establish their general historical appropriateness and feasibility. Work plan items which show care and attention to the specific character defining features of the historic resources are highly encouraged. General maintenance and bringing the property into compliance with health and safety requirements is also appropriate. The initial contract terms 10-years, so rehabilitation work should be feasibly accomplishable within that period. Work which doesn’t have a clear nexus between maintenance of the historic property would not be appropriate to include in the work plan (for example, constructing new structures or site improvements)(3).  

5. Filled Out Tax Savings Worksheet: A filled-out copy of the tax savings worksheet. This worksheet is used to estimate the tax savings to the owner (and potential reduction in revenue to the County) by the historic property contract. The historic property contract changes the tax assessment(4) to be based on a capitalization rate calculated from the gross income generated by the property, rather than its purchase price/market value.(5)

If you do not rent out your property, fill in the information with an estimate of the gross income that would be generated if you did rent it out. Use the most current available information. However, the following rough figures are provided to assist applicants in filling out the worksheet:  

a. Gross income, maintenance, and insurance costs are based on market conditions. At the contract application stage, the owner/applicant estimates this information.

b. A Vacancy rate is a reduction in rental revenue based on turnover from changes in tenancy. 1-2% is a rough figure for owner-occupied residences as of 2022.

c. Depreciation depends on the conditions of the property, however 3% is a rough figure as of 2022.

d. The State Board of Equalization sets the interest rate for historic property contracts each year. 3% is a general rough figure as of 2022. 

6. A copy of the most recent real property tax bill for the property: This bill can be found on the County of Monterey Treasurer-Tax Collector’s website. 

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3 This does not mean that new additions or site improvements are prohibited, only that they generally would be less appropriate in demonstrating that the tax savings would be utilized for rehabilitation and maintenance of the historic property. 

4 For more detailed information on the tax assessment, the California Office of State Parks has a copy of the State Board of Equalization guidelines for assessing historic properties on their website. See the third question, “How are tax assessments determined for properties under the Mills Act?” The County Assessor’s contact information is available on their website. 

5 The historic property tax assessment only applies to the historic structures/features of the property. For example, if you have two residences on a property and only one is historical, the tax reduction would only apply to the historical residence, and the overall tax obligation would be assessed as a “blended” rate. 

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7. A fair market value appraisal (land plus improvement) of the property prepared by a certified appraiser: An appraisal of the fair market value of the property (land plus improvement value), prepared by a certified appraiser no more than one year prior to the application for the contract and as determined prior to the improvements proposed in the application for the contract.  

8. Deed: A current grant deed of the property with an attached legal description. If a grant deed is not available, other documentation may be submitted that includes both verification all persons and entities having a right, title, or interest in the real property; and a legal description of the property (MCC sections 18.28.060.B.1 and 18.28.060.B.4). In all cases a legal description of the property shall be required. 

9. Photos: Photos of the property and each elevation of the subject structure(s). 

10. Value Cap Exception request with supporting justification as applicable: Eligibility for historic property contracts is limited to residential properties whose fair market value (land plus improvement value) does not exceed three million dollars ($3,000,000) and commercial/industrial properties whose fair market value (land plus improvement value) does not exceed five million dollars ($5,000,000). If the appraisal identifies that the property exceeds the value limit, the Mills Act Application must be accompanied by a written request for an exception to the Value Cap Limitation which demonstrates: 

a. The site, building, object, or structure is a particularly important resource such as the last or only example of its kind, and it represents an exceptional example of an architectural style, the work of a master, or is associated with the lives of significant persons or events important to history; and

b. The historical property contract will result in the preservation of a site, building, object, or structure whose significance as a historical resource would otherwise be at immediate risk of substantial adverse change. A substantial adverse change in the significance of the historical resource means the physical demolition, destruction, relocation, or alteration of the resource or its immediate surroundings such that the significance of the resource would be materially impaired; and

c. The exception is warranted due to one or more of the following additional factors:

i. The resource is highly visible to the public;

ii. The difference between the current property tax obligation for the property and the estimated property tax obligation under the Mills Act is within the same range as the expected estimated lost property taxes from historic property contracts for properties meeting the valuation limit;

iii. The work program proposes to provide for critical improvements immediately necessary to preserve the resource, and it provides for the best and most efficient use of the expected property tax savings; or 

iv. Approval of the contract would generate heritage tourism, affordable housing, or similar public benefits. 

Note that eligibility for listing on the local register alone is not sufficient to demonstrate that the resource is particularly important. Additionally, the application must meet all three of the exception criteria detailed above for the exception to be granted. Should the property be determined to qualify for an exception, the Board of Supervisors still has the sole discretion as to enter into a Mills Act contract and weighs the lost revenue of preferential tax treatment against the public benefits associated with historic preservation. 

11. Additional information as may be required to assess the historicity of the property and evaluate the Mills Act Contract Application: Regardless of listing status as a qualified historical property, if a report by a qualified historian has been prepared which demonstrates why the property is historically significant under the National Register of Historic Places (NRHP), California Register of Historical Resources (CRHR), or Monterey County Register of Historical Resources. Other information may also be included in the application which demonstrates the particular significance of the property, such as newspaper articles or clippings, historical correspondence, original plans, or historical photographs.

Preface: The Mills Act (Historic Property Contract) application process is detailed in Monterey County Code (“MCC”) Chapter 18.28, sections 18.28.090 and 18.28.100. The following is a summary of the steps in this process from initial application submittal to contract recordation. 

1. Application Submittal and Completeness Review: All applications for Historic Property Contracts are submitted to the County staff contacts6 for the Historic Resources Review Board (HRRB) by email.

a. Applicants are encouraged to reach out ahead of formal submittal, and all applications must be received prior to July 1 of a calendar year to be considered within that calendar year.

b. After submittal of an application, County staff will review the application for completeness and consistency with the eligibility criteria in MCC section 18.28.080.

c. At this stage staff may request additional information, clarification on some of the submittal items, and a site visit to review the historic property and discuss the application materials and work plan.

2. Historic Resources Review Board Hearing: After an application is determined to be complete, it would be considered before a public hearing before the County’s Historic Resources Review Board (HRRB). The HRRB provides a recommendation regarding the eligibility of the property for a Historic Property Contract, as well as whether the contract should be approved.

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(6)See the advisory committee web page for the current designated staff members. 

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3. Director of Housing and Community Development Eligibility Determination: Considering the recommendation of the HRRB, the director of the County’s Housing and Community Development determines whether the property is eligible for a Historic Property Contract. If the director determines the property is not eligible, that determination is appealable to the Board of Supervisors as detailed in MCC section 18.28.090.G. If the director determines the property is eligible for a contract, proceed to step four below. 

4. Negotiation of Historic Property Contract: Should the Director of the County of Monterey department of Housing and Community Development determine the property is eligible for a Historic Property Contract, County staff and the applicant would negotiate the terms of the contract. Mandatory provisions of Historic Property Contracts are detailed in MCC section 18.28.050.

a. A typical additional provision is requiring that the historic property be made available once annually for a public tour, see MCC section 18.28.050.B.9. 

b. Following successful negotiation of the contract, staff would transmit the draft contract to the applicant for signature in the presence of the notary. 

c. After executing the draft contract, the applicant would return it to County staff so that it may be brought to the Board of Supervisors for step five. 

5. Board of Supervisors Hearing: After a draft contract has been negotiated and executed by the applicant, the draft contract would be considered by the Board of Supervisors at a public hearing. The Board of Supervisors retains sole discretion to enter into Historic Property Contracts. This hearing is typically scheduled for October or November in a given calendar year so that all Historic Property Contract applicants that year may be considered together. 

6. Contract Recordation: Should the Board of Supervisors approve the Historic Property Contract, the applicant must record the contract with the at the County Recorder’s office, including paying the requisite recording fee. The contract must be recorded by the end of the calendar year in order to go into effect in the following year.