A historic designation and a Mills Act contract are different things. When you’re preparing to sell a Redlands historic home, or considering buying one, the distinction matters. A designation can help establish eligibility, but it doesn’t mean the property already has a contract or that an application will be approved.
Redlands publishes a ceiling of seven Council approvals per year, divided between residential and commercial properties. Applications are accepted year-round. For your property, the useful next step is to establish whether you’re looking at a new application or an existing recorded agreement.
How many contracts can Redlands approve each year?
The Redlands City Council may approve up to seven applications per year, consisting of five residential properties and two commercial properties.
The City’s Mills Act page states:
“Mills Act applications are accepted throughout the year. The only limitation on annual approvals is that the City Council may approve a maximum of seven (7) applications per year, consisting of five (5) residential properties and two (2) commercial properties.”
That wording sets a maximum. It doesn’t establish how many contracts the Council actually approves in a particular year, and it doesn’t promise approval to an eligible applicant.
The application packet says selection uses the program’s adopted eligibility criteria and that applications must include all requested information to be considered. Ask Planning about current activity rather than treating the annual ceiling as an availability count.
When can you apply, and who makes the decision?
You can apply throughout the year, with the Historic & Scenic Preservation Commission making a recommendation before the City Council makes the final decision.
According to the City, review proceeds after the application and all necessary information have been submitted. The Commission reviews the request, then the Council holds a public hearing. The City says the overall process typically takes about three to four months because of preparation and lead time for public hearings.
That timeline depends on the program being currently authorized, and because Redlands authorizes it for set periods and has extended it before, confirm its current status with the Planning Division before applying.
Contact the Planning Division at 35 Cajon St or (909) 798-7555. For comparison, the Riverside Mills Act guide explains how another city runs it, including its filing window. Redlands’ published intake rule is year-round.
Which Redlands properties qualify?
A qualifying property must meet Redlands’ historic designation, ownership, tax status, condition, and preservation requirements.
The City’s list starts with a privately owned property inside Redlands that is not exempt from taxation. It must be listed in an official federal, state, or City historic register. If it isn’t already designated, the City says a local historic designation application can be processed concurrently with the Mills Act request.
Designation alone isn’t enough. The property must be in good condition, with its character-defining features maintained, and be a good example of architectural, historical, or aesthetic integrity. The owner must propose significant improvements that won’t harm that integrity.
The owner also agrees to a ten-year contract with automatic annual renewals and annual documentation for City review. There is currently no valuation limit for single-family properties, according to the program page.
For another local eligibility framework, the La Mesa Mills Act guide explains how another city runs it. Use Redlands’ own criteria for a Redlands application.
What should your application and work plan include?
Your application must include all requested information and a ten-year work plan showing how tax savings will support the property’s historic character-defining features.
The City’s 2025 fee schedule lists a Mills Act Contract Application fee of $1,160. Fees change, so confirm the current amount before filing.
The work plan should connect proposed spending to maintaining, preserving, or restoring significant contributing aspects of the historic resource. The City’s examples typically include foundations and seismic retrofit, roofs, exterior siding and finishes, windows, doors, porches, and exterior stairs. It also lists code-required repairs or replacements and documented contributing elements unique to a property.
Interior remodeling, appliance replacement, HVAC equipment, and ordinary expenses such as utilities or insurance are usually not included. Don’t assume a kitchen project or a particular repair qualifies. Ask Planning to review the proposed item against the property’s historic features.
A pre-listing inspection can be part of your sale preparation, but program eligibility and approval of work belong with the City’s review.
What obligations follow approval?
Approval requires you to spend the full amount of tax savings on qualifying preservation work and document compliance each year.
The City says all savings received must finance preservation, maintenance, or restoration of the property’s character-defining features or elements. This is a spending obligation attached to the tax treatment.
Annual reports are due to the Planning Division no later than the last business day in July. They include a description of improvements completed during the prior twelve months, before and after photographs, receipts and checks showing payment, and copies of the assessment notice and tax bill. The City says amounts without proof of payment and a description of completed work won’t count toward the obligation.
The contract has a rolling ten-year term, adding a year automatically unless notice of nonrenewal is given. Nonrenewal leaves the agreement in effect for its remaining term.
Cancellation is different. Under Government Code sections 50284 through 50286, cancellation for breach requires a public hearing and carries a fee equal to one-eighth of the property’s current fair market value. State law also allows court action to enforce the contract.
How is the property tax benefit determined?
The county assessor determines the restricted value using an income-capitalization method, rather than a promised savings amount.
Revenue and Taxation Code section 439.2 directs the assessor to use that method for enforceably restricted historical property. The calculation considers fair rent attributable to the property, including comparable rental use, even when the owner occupies the home.
The State Board of Equalization says restricted historical properties are assessed annually at the lowest of the factored base-year value, current market value, or restricted value.
That makes your property’s existing tax basis relevant. A contract’s presence doesn’t establish a buyer’s future bill, and a seller’s assessment notice isn’t a substitute for an assessor estimate after a sale.
Ask the San Bernardino County Assessor about the property under consideration. Keep that estimate separate from the application ceiling and from the home’s asking price.
What should you check before buying or selling?
You should check the recorded contract, remaining term, work plan, annual reports, and compliance records before relying on Mills Act status in a transaction.
Start with the preliminary title report and the recorded agreement. The City’s brochure says contracts transfer when a property sells. Government Code section 50281 gives successors the same rights and obligations as the original owner.
Request the ten-year work plan and identify completed and outstanding items. Check whether annual reports include payment evidence, whether either party has served notice of nonrenewal, and whether there are City inspection or compliance letters.
Where applicable, Government Code section 50281 requires the contract to provide for inspection of the interior and exterior before a new agreement and every five years thereafter. Read the property’s own contract for its specific terms.
For sellers, assemble these records alongside the documents discussed in the California seller disclosure guide. For buyers, review the obligations together with the assessor’s estimate rather than treating the contract as a tax benefit without preservation commitments.
The short version
Redlands allows up to seven Council approvals each year, split into five residential and two commercial properties, while accepting applications year-round.
Confirm current program authorization with Planning before applying. For an existing contract, check the recorded terms, preservation work, reporting history, and any nonrenewal notice. A sale transfers the obligations as well as the rights, and the assessor determines the property’s tax treatment.
To start considering your sale plans, use the home value tool.
Common questions
How many residential Mills Act contracts can Redlands approve each year?
The City Council may approve up to five residential applications and two commercial applications per year. That is an approval ceiling, not a promise that seven contracts will be approved.
When can you apply for a Redlands Mills Act contract?
The City says applications are accepted throughout the year. Confirm the program's current authorization and application requirements with the Planning Division before filing.
Does a historic designation guarantee approval?
No. Redlands also considers the property's condition, architectural or historical integrity, proposed improvements, and the owner's agreement to meet contract obligations.
Does a Mills Act contract transfer when a Redlands home sells?
Yes. The City's brochure says contracts transfer to new owners, and state law gives successors the same rights and obligations under the contract.
