1/27/26 Item #5
City Council
January 27, 2026
Item: #5
Mills Act Contract
1852 Terminations
THE MISSION CIT
Afshan Hamid, Director
Community Development
Department
1 Mills Act Contract Terminations City of
Santa Clara
Mills Act Program
• Purpose: Provides economic incentives to private property owners for the restoration and preservation of qualified historic buildings Audit Requirement: The City audits properties with a Mills Act contract every five years
• 2017: Last completed audit
• 2022: Audit delayed to 2024 due to COVID-19
• 2030/2031: Next audit cycle
2 POST MEETING MATERIAL
1 1/27/26 Item #5
Mills Act Contract Terminations City of
Santa Clara
The Center of What's Possible
2024 Mills Act Audit
• Planning staff reached out to all Mills Act properties through mailed and email letters to self-report or schedule an on-site inspection. • Property owners who did not respond to the initial requests sent via email and mail were subsequently contacted by telephone, certified mail, and attempted hand-delivered notices from Code Enforcement staff.
3 Mills Act Contract Terminations City of
Santa Clara
The Center of What Pussible
Audit Outreach
Phase 5 Letters
Certified mailed and email
Phase 1 Letters letters sent out to
Planning staff sent out properties which did no
letters to all Mills Act respond in all four phases
properties to submit Code Enforcement visited
self-report or schedule intihases an responde the properties to hand on-site inspection. deliver letters as well.
July 2024 February 2025
May 2024 November 2024 July 2025
Phase 2 Letters Phase 4 Letters
Letters sent out to Mailed and email letters
Respond in Phase did not sent out to properties
which did not respond in
Phases 1, 2, and 3
4 2
1/27/26 Item #5
Mills Act Contract Terminations City of
Santa Clara
The Contero/ Whors Roasilly
Completed Mills Act Audit
Contract termination for the two (2) properties that failed to submit the completed audit
• 1711 Main Street
• 906 Monroe Street / 1341 Homestead Road
5 Mills Act Contract Terminations City of
Santa Clara
The Centerst Wet Prohible
1711 Main Street
• Mill Act Contract recorded in
2000
• Current owners participated in
the 2017 audit with an on-site
inspection
2024 Audit: Two email
responses from owner telling
staff to review building permit
records on file
6 3
1/27/26 Item #5
Mills Act Contract Terminations City of
Santa Clara
The Corder of What: Posgible
906 Monroe Street /
1341 Homestead Road
• There are two residences on the
property; however, only 906 Monroe
Street is listed on the HRI and subject
to the Mills Act
• Mill Act Contract recorded in 1998
• Previous owners participated in the
2017 audit with an on-site inspection
• Property is currently bank owned
• 2024 Audit: No response
Mills Act Contract Terminations City of
Santa Clara
The Center of Whet: Possible
Historic Property Preservation Agreement
• Agreements run with the land and remain in effect even when ownership changes
• Agreement Section 3(c): Owners must allow periodic on-site inspections; failure to do so is a contract violation
• Agreement Section 4(a): Owners must provide information requested by the City to confirm compliance
• Both owners did not respond to repeated City requests and did not allow on- site inspections
• Both properties are in violation of Sections 3(c) and 4(a) of their agreements 8 8
4 1/27/26 Item #5
Mills Act Contract Terminations City of
Santa Clara
The Confer Whore Pon fok
Termination Process
• Property owners are subject to a cancellation fee equal to 12.5% of the current fair market value, as determined by the County Assessor, per California Government Code
• The cancellation fee is paid to the County Auditor and distributed to jurisdictions within the property's tax rate area
• Properties will remain listed on the HRI and subject to the Historic Preservation Ordinance
9 9
Mills Act Contract Terminations City of
Santa Clara
The Confer of Wets Risibles
Recommendation
• Terminate the Mills Act Contract for the property located at 1711 Main Street due to violation of Sections 3(c) and 4(a) of the Agreement, effective immediately
• Terminate the Mills Act Contract for the property located at 906 Monroe Street / 1341 Homestead Road due to violation of Sections 3(c) and 4(a) of the Agreement, effective immediately
• Direct the Community Development Director to inform the affected property owners and the County
10 10
5 1/27/26 Item #5
City Council
January 27, 2026
Item: #5
Mills Act Contract
1852 Terminations
THE MISSION CIT
Afshan Hamid, Director
Community Development
Department
11 6