Santa Monica’s Historic Preservation Ordinance
Santa Monica’s Historic Preservation Ordinance, established in 1976, protects its architectural heritage through the designation and protection of landmarks and historic districts, overseen by the municipal Landmarks Commission. The city became a Certified Local Government in 1992, under the provisions of the National Historic Preservation Act (NHPA), allowing for strong local control, incentives, and review of demolitions for older buildings.
See below for a synopsis of the procedure for historic designation for individual properties, and of resulting benefits including Mills Act incentives.
Eligibility and designation criteria for individual properties
City code §9.56.100 states that a property or district may be eligible for landmark or historic district designation if it meets one or more of the following criteria:
- it exemplifies, symbolizes, or manifests elements of the cultural, social, economic, political or architectural history of the City;
- it has aesthetic or artistic interest or value, or other noteworthy interest or value;
- it is identified with historic personages or with important events in local, state or national history;
- it embodies distinguishing architectural characteristics valuable to a study of a period, style, method of construction, or the use of indigenous materials or craftsmanship, or is a unique or rare example of an architectural design, detail or historical type valuable to such a study;
- it is a significant or a representative example of the work or product of a notable builder, designer or architect;
- it has a unique location, a singular physical characteristic, or is an established and familiar visual feature of a neighborhood, community or the City.
Those criteria are derived from the National Register for Historic Places, whose standards of proof are subject to stringent guidelines. To know whether your property is eligible for landmarking, be sure to engage the services of a qualified historian.
Designation procedures
The City includes detailed designation procedures for landmarks (§9.56.120) and historic districts (§9.56.130), which can be initiated by anyone including the Landmarks Commission itself. The process involves restrictions on alterations to the property while the application is pending, as well as procedures and timelines for public hearings and Commission decisions.
Other historic preservation procedures
The ordinance also includes sections on criteria and procedures for the issuance of Certificates of Appropriateness for alterations and demolitions (§9.56.140) or for Structures of Merit (§9.56.150); Certificates of Economic Hardship (§9.56.160); procedures for Certificates of Appropriateness or Economic Hardship (§9.56.170); appeals (§9.56.180); maintenance and repair (§9.56.190); unsafe or dangerous Conditions (§9.56.200); ordinary maintenance (§9.56.210); mapping of landmarks (§9.56.220); voluntary restrictive covenants (§9.56.230) waivers (§9.56.240) Certificate of Appropriateness extensions (§9.56.250) recordation of landmarks and historic districts (§9.56.260); and preservation incentives (§9.56.270).
Mills Act incentives
Introduction
The most renowned incentive for historic designation throughout California is eligibility for Mills Act tax benefits, available in Santa Monica to owners of designated Landmarks or Structures of Merit, and contributing structures in Historic Districts.
The Mills Act is a California state law permitting local governments to offer property tax relief to owners of qualified historic properties who agree to restore, maintain, and protect them, as specified in approved 10-year (minimum) contracts. Here are the basic requirements, processes and benefits.
Application requirements
The City of Santa Monica Planning Department accepts Mills Act Contract applications on an annual basis, with an application deadline of May 31. All Mills Act Contract applications must include the following:
- completed Mills Act Application Form;
- restoration/rehabilitation and/or maintenance plan;
- a 10-year Restoration/Rehabilitation Plan with estimated cost and schedule, prepared by a certified architect;
- an architectural report identifying the status and condition of all character-defining features of the building and site prepared by a certified architect;
- a financial analysis form, to be used by City staff to estimate of the Mills Act tax assessment amount, which is ultimately determined by the Los Angeles County Office of the Assessor;
- photographs of all building elevations and character-defining features of the structure(s);
- copy of the legal description for the property (“Exhibit A” on a Grant Deed)
- copy of latest property tax bill.
Review process
Mills Act Contract applications are reviewed by staff and then presented to the Landmarks Commission for review and recommendation to City Council. Once City Council approves the contract, notarized signatures of both the property owner and City officials are obtained, and the City submits the document to the Los Angeles County Recorder to be recorded. The City will then forward a confirmed copy of the document to the Los Angeles County Tax Assessor, who will recalculate the property owner’s tax payment.
Key Mills Act provisions and obligations
In Santa Monica the Mills Act Contract only regulates exterior restoration/rehabilitation and general maintenance.
As indicated in a City of Santa Monica overview of the Mills Act process, City staff will make periodic inspections of Mills Act properties to ensure that the work plan is being followed.
The contract will remain in effect for the property even if it changes ownership. The tax savings serves as an incentive for buyers in the real estate market.
How property taxes are calculated and reduced
As indicated in the the City of Santa Monica guide to the Mills Act program, property taxes are usually a set percentage of the market value, or purchase price, of the property. But when applying the Mills Act, the County reassesses property taxes based on a property’s ability to produce rental income. If it is owner-occupied, a rental value is determined based on comparable properties in the area. A capitalization rate determines a fair value based on the income stream. This will be the new assessed property value to be taxed.
The guide also provides the following sample calculation:
Who benefits from the Mills Act incentive?
Property owners with comparatively low property taxes, such as those benefitting from Proposition 13 limits on assessed value change over time, will not likely benefit from a Mills Act contract because the assessed value under the Mills Act will likely be higher than the current base-year value of the property. In general, owners who benefit most from a Mills Act contract are those who have acquired their properties in the last 10 years.
Further incentives
Other local preservation incentives for landmarked properties or contributors to historic districts include:
- architectural review exemption;
- waiver of certificates of appropriateness/administrative approval fees;
- parking incentives;
- consideration for historically appropriate streetscape improvements in historic districts;
- application of the State Historical Building Code (CCR Title 24, Part 8) to alterations to designated structures of merit, landmarks, and contributing buildings and structures located in historic districts;
- eligibility for Historical Property Contracts;
- priority status for plan check processing.
Beyond all of those incentives for designation, there are more general benefits to having a property formally assessed by a qualified historian, whether or not it is ultimately deemed eligible, and whether or not it receives Mills Act funding. Uncovering the property’s story — including its architects, builders, occupants and construction chronology, as revealed in a range of textual and visual records — could be helpful for:
- Establishing historic significance for buildings of note, thereby facilitating heritage designation; access to preservation resources including restoration grants and tax incentives; and protection from unwanted alterations;
- Guiding restoration efforts by ensuring that the materials, construction methods and style are historically appropriate, thus preserving the property’s character and maintaining or increasing its value;
- Adding market value by demonstrating its association with significant people (e.g. architects, builders, owners, occupants) or events;
- Legal and planning benefits including facilitation of zoning issues, building permits, or disputes about property modifications, especially in historic districts.
I’m a Pasadena-based architectural historian who has written hundreds of assessments of properties throughout Los Angeles County. I love Santa Monica, and look forward to helping preserve its historic fabric in the wake of the new ordinance.
If you own a property that is more than 50 years old, schedule a consultation to find out whether historic designation is right for you.
If any of the above links are broken or incorrect, or if you would like to suggest other resources for preservation in Santa Monica, please let me know.
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