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HPPA No. 2016-21 <br />October 6, 2016 <br />Page 2 <br />Mills Act Aareement <br />Ordinance No. NS -2382 authorized the Historic Resources Commission to execute Historic <br />Property Preservation Agreements (HPPA), commonly known as Mills Act agreements for eligible <br />properties (Exhibit 3). To be eligible for the Mills Act, the property must be listed on the Santa Ana <br />Register of Historical Properties. The Historic Resources Commission Application and Historic <br />Register Categorization actions proposed for this site authorize the listing of the property on the <br />local register. The agreement provides monetary incentive to the property owner in the form of a <br />property tax reduction in exchange for the owner's voluntary commitment to maintain the property <br />in a good state of repair as necessary to maintain its character and appearance. Once recorded, <br />the agreement generates a different valuation method in determining the property's assessed <br />value, resulting in tax savings for the owner. Aside from the tax savings, the benefits include: <br />• Longterm 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 action is not subject to the California Environmental Quality Act as it is not a project. <br />Strategic Plan Alignment <br />Approval of this item supports the City's efforts to meet Goal No. 5 Community Health, Livability, <br />Engagement & Sustainability, Objective No. 2 (expand opportunities for conservation and <br />environmental sustainability) and Objective No. 3 (facilitate diverse housing opportunities and <br />support efforts to preserve and improve the livability of Santa Ana neighborhoods). <br />Hally Soboleske <br />Senior Planner <br />HS:jm <br />WHistorlc Infolf 00616HR0hppa16-2I.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-98 <br />