Historic Preservation Benefits & Incentives

Nationwide studies also show that preservation projects contribute more to the local economy than do new building programs because each dollar spent on a preservation project has a higher percentage devoted to labor and to the purchase of local materials. By contrast, new construction typically has a higher percentage of each dollar spent devoted to materials that are produced outside the local economy and to special construction skills that may be imported.

In most instances, the City's Planning Division waives the fees for projects requiring administrative approvals. Project that entail ordinary maintenance often can be approved administratively and the fees for the administrative approval is waived on historic buildings as a benefit to owners restoring and maintaining the important historic resources of the City.

One of California’s most valuable tools for the preservation of historic resources is the California State Historical Building Code (CHBC), which is defined in Sections 18950 to 18961 of Division 13, Part 2.7 of Health and Safety Code (H&SC), a part of California Law. The CHBC is intended to save California’s architectural heritage by recognizing the unique construction issues inherent in maintaining and adaptively reusing historic resources.

The CHBC provides alternative building regulations for permitting repairs, alterations, and additions necessary for the preservation, rehabilitation, relocation, related construction, change of u se, or continued use of a “qualified historical building or structure.” The CHBC’s standards and regulations are intended to facilitate the rehabilitation or change of occupancy so as to preserve their original or restored elements and features, encourage energy conservation and a cost effective approach to preservation, and provide for reasonable safety from fire, seismic forces, or other hazards for occupants and users of such historic resources, structures, and properties, and to provide reasonable availability and usability by the physically disabled.

The Historical Property Contract Program (Mills Act) provides property tax abatement to properties designated as Structures of Merit or City Landmarks. Under the program, property owners receive a significant reduction in local property taxes in exchange for their promise to actively participate in restoring, rehabilitating, repairing, and preserving their properties. Participants enter into a perpetual 10-year contract with the City. For details, please refer to the Mills Act.

Economic incentives are available to historic preservation projects at the local, state, and federal levels. The State of California and the Federal Government offers rehabilitation tax credits to designated and qualified projects and properties.