Nothing is certain except death and taxes. So, it’s no wonder that these amazing lofts with property tax benefits consistently top the charts for LA Loft Blog readers. #millsact
While some have never heard of the Mills Act, it offers some financial advantages for LA loft owners. It can save a bundle of money on taxes while giving an amazing urban abode with truly gratifying character. #millsact #la | SOLD
MillsActLA.com – Benefits of a Mills Act Loft
To help preserve the historic structures of L.A., a significant tax incentive has been legislated by California state and local governments called the Mills Act. The unique tax law offers home owners of qualifying historic properties as much as 66% or more off of their property tax bills. Owners of lofts in historic buildings can potentially save thousands of dollars each year. That money can be used to help furnish the home, put more money down at purchase to reduce monthly mortgage payments, trade up to a larger loft or spent on anything. But, buyers should also be prepared by saving some of the money for potential special assessments in the future should the building need major restoration. The Higgins Building loft owners endured a special assessment in 2017 of around $15,000 to $45,000 per unit for repairs to its crumbling old facade. The Higgins restoration is under way now.
Sometimes listing agents (especially out-of-area agents) make mistakes and incorrectly report that a specific loft building is Mills Act approved. For example, the SB Grand at 312 W 5th St has a current listing that is incorrect. That building is NOT Mills Act approved unfortunately. Neither is Alta Lofts.
The Mills Act offers a substantial reduction in property taxes for owners of qualified historical properties, provided that they agree to preserve, restore, rehabilitate, and maintain the historical and architectural character of their properties. Many owners report that they save about 2/3 off of their property taxes. The formula is complicated, and varies by building, so prospective Mills Act home buyers should check with the city, county and a tax professional to determine what the real savings may be. | MILLS ACT LOFTS FOR SALE | MILLS ACT RECENTLY SOLD
How Mills Act Tax Saving Benefits Are Calculated
Mills Act participants may realize very fruitful property tax savings each year for recently improved or purchased old properties because the valuation of a Mills Act property is determined by the Income Approach to Value rather, not by the common Market approach to calculating appraised value. The Income Approach, divided by a capitalization rate, gives the assessed value of the property. Generally, the income potential for an owner-occupied residential property is calculated by looking at rental rates for comparable nearby properties, while the income from a commercial property is based on actual rent received. Because rental values vary greatly, the actual Mills Act historic property tax savings may vary.
Mills Act LA Property Tax Los Angeles
MILLS ACT PROPERTIES FOR SALE | DOWNTOWN LOFTS FOR SALE
MillsActLA.com — Want to save a bundle on your property taxes while helping to maintain the authentic integrity of an historic California building? The Mills Act is a California law allowing cities to enter into contracts with the owners of historic buildings. The City of Los Angeles has such contracts, as do many other cities in Southern California.
Mills Act Historical Property Contract Program
How does it work? A written agreement, generally known as a Mills Act or Historical Property Contract, is executed between the City of Los Angeles and property owners for a revolving ten-year term. The developer or HOA homeowners association takes care of the details. Contracts may automatically renew each year so that the term of the contract normally extends for 10 years. Builders and homeowners agree to restore, maintain and protect the property in accordance with specific historic preservation standards and conditions identified in the agreement. Periodic inspections by LA City and County officials ensure proper maintenance of the property. The City may impose penalties for breach of contract or failure to protect the historic property. The contract is transferred to new owners if the property is sold, and is binding to all successive owners. MILLS ACT DETAILS >> MORE
The list of Downtown L.A. Mills Act properties changes. Here are some recent examples:
108 W 2ND ST — Higgins Building
1850 INDUSTRIAL ST — Biscuit Company
215 W 7TH ST — Bartlett Building
257 S SPRING ST — Douglas Building
315 E 8TH ST — Textile Building
416 S SPRING ST — El Dorado Building
420 S SAN PEDRO ST — Little Tokyo Lofts
460 S SPRING ST — Rowan Building
738 S LOS ANGELES ST — Eckardt Building
746 S LOS ANGELES ST — Cornell Building
849 S BROADWAY — Eastern Columbia
>> MORE
MILLS ACT PROPERTIES FOR SALE | DOWNTOWN LOFTS FOR SALE
More info on Mills Act Properties is available at https://www.laloftblog.com/?s=mills+act
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Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.