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HPPA No. 2016-04 <br />October 6, 2016 <br />Page 2 <br />Mills Act Agreement <br />Ordinance No. NS -2382 authorized the Historic Resources Commission to execute Historic Property <br />Preservation Agreements (HPPA), commonly known as Mills Act agreements for eligible properties <br />(Exhibit 3). To be eligible for the Mills Act, the property must be listed on the Santa Ana Register of <br />Historical Properties. The Historic Resources Commission Application and Historic Register <br />Categorization actions proposed for this site authorize the listing of the property on the local register. <br />The agreement provides monetary incentive to the property owner in the form of a property tax <br />reduction in exchange for the owner's voluntary commitment to maintain the property in a good state <br />of repair as necessary to maintain its character and appearance. Once recorded, the agreement <br />generates a different valuation method in determining the property's assessed value, resulting in tax <br />savings for the owner. Aside from the tax savings, the benefits include: <br />• Long term preservation of the property and visual improvement to the neighborhood <br />• Allows for a mechanism to provide for property rehabilitation <br />• Provides additional incentive for potential buyers to purchase historic structures <br />• Discourages inappropriate alterations to the property <br />Upon consideration of the application, it is recommended that the City enter into a Historic Property <br />Preservation Agreement. <br />CEQA Compliance <br />This project is not subject to the California Environmental Quality Act as it is not a project. <br />Strategic Plan Alianment <br />Approval of this item supports the City's efforts to meet Goal No. 5 Community <br />Engagement & Sustainability, Objective No. 2 (expand opportunities for <br />environmental sustainability) and Objective No. 3 (facilitate diverse housing <br />support efforts to preserve and improve the livability of Santa Ana neighborhoods). <br />N5i c.--- <br />Hally Soboleske <br />Senior Planner <br />HS:jm <br />hslHisloric InW100616HRMhppa16�04.hrc <br />Attachments: <br />Exhibit 1 - 500' Radius Map <br />Exhibit 2 - Department of Parks and Recreation Form <br />Exhibit 3 - Mills Act Agreement <br />25F-18 <br />Health, Livability, <br />conservation and <br />opportunities and <br />