The Mills Act program is one of the most powerful historic preservation incentives for property owners. Today, combined Mills Act property owners in Los Angeles save over $20M in taxes. These savings are meant to be reinvested into rehabilitating and maintaining historic properties.

The program offers a property tax abatement through a revolving, auto-renewing 10-year contract between the City and the property owner. One major incentive for Mills Act recipients is that contracts are transferred to new ownership when the property is sold, who continue to receive the financial incentive.

In 2020, Los Angeles City Planning undertook a comprehensive, independent assessment (The Mills Act Program Assessment and Equity Analysis) to evaluate the program. The City has not accepted new contracts since then. In March 2025, they released draft recommendations to update and revive the Mills Act program.

The 2022 Mills Act Program Assessment and Equity Analysis assessment found that current funding is insufficient to effectively manage the number of contracts and to bring the program into complete compliance with state law.

The assessment also found that contracts and savings are disproportionately benefiting property owners in communities with lower barriers to opportunity. Through the assessment a number of recommendations were provided for program sustainability and program equity.

That 2022 Assessment Report was used to compile a Draft Policy Updates and Ordinance Amendments document, which was released publicly in March 2025. The proposals in this draft would drastically change how the Mills Act program works, and could negatively affect many currently participating in the program.

The City of Los Angeles has launched the public process to update their Mills Act program. In a letter submitted on April 17 to the Cultural Heritage Commission, the Conservancy outlined its analysis of the proposed Mills Act changes and recommended several amendments.

We strongly oppose contract non-renewal, the potential introduction of significant fees, and the elimination of the Downtown and Hollywood exemption areas.

Our detailed recommendations are listed below, following the framework established by the Draft Policy Updates and Ordinance Amendments, but please review our position letter for the full context.