The Historic Preservation Commission on Oct. 15 recommended approval of three Mills Act historical property contract applications for properties at 331 Pennsylvania Avenue, 530 Jackson Street, and 1035 Howard Street.

Planning staff explained that Mills Act contracts provide a property tax reduction to owners of qualified historic properties in exchange for binding rehabilitation and maintenance plans. Staff reported that each applicant submitted rehabilitation and maintenance plans that align with the Secretary of the Interior’s Standards and that preapproval inspections were completed.

Key details presented by staff included estimated first-year property tax savings and rehabilitation costs. For 331 Pennsylvania Avenue (a property listed on the National Register, adaptively reused for seven residential units), staff reported an estimated first-year property tax savings of $35,402 (a 39.54% reduction) and estimated rehabilitation work of $400,000 with annual maintenance costs estimated at $15,000. For 530 Jackson Street (a contributor to the Jackson Square Historic District), staff reported estimated first-year savings of $261,620 (approximately a 59.4% reduction) and proposed rehabilitation costs of about $804,000 with yearly maintenance estimated at $19,000. For 1035 Howard Street (a category 2 Article 11 building), staff described proposed rehabilitation work with an estimated cost of $3,405,000 and annual maintenance costs estimated at $75,000; first-year tax savings were reported as roughly $260,000 (a 64.19% reduction).

Property owners or their representatives spoke in support of the applications during the hearing. Commissioners asked about enforcement and monitoring; staff said Mills Act applicants submit annual affidavits, photo evidence and receipts and that staff conducts inspections every five years. If an owner fails to perform required work, the city can cancel the Mills Act contract and apply a penalty (12.5% of fair market value).

The commission moved to recommend approval of all three Mills Act applications. The roll-call vote was unanimous (7–0). The staff recommendation will be forwarded to the Board of Supervisors for final action on entering Mills Act contracts.