When looking to buy a home in Hancock Park, the potential property taxes can be daunting. There is a way, in Los Angeles, to buy a home and not pay the Los Angeles property tax on it.

Getting a Tax Abatement in Los Angeles Through the Mills Act:

The Mills Act is an incentive program to maintain and preserve the nature of historical buildings by private property owners. If you buy a property that is historical or has a historical feel, you may be eligible to apply for the Mills Act and receive a tax abatement. The Mills Act is a contract that the homeowner makes with the city, where you agree to restore the property in line with its historical nature and character. The City then agrees that you’re not going to pay property taxes. To the government, you are using the property tax money to invest in maintaining the historical nature of the property.

How Long Does The Mills Act Last?

The Mills Act designation lasts for 10 years initially, and when you sell the property, you sell it with the Mills Act designation. So the next owner doesn’t pay Los Angeles property taxes either.

What if I buy a Home in Los Angeles with a Mills Act Designation?

Because the Mills Act lasts 10 years, if you buy a home that already has the designation, you do not have to pay taxes on the home. It’s important to understand the requirements of The Mills Act when buying a home with a designation and to maintain the historical features required by the contract.

How Do I Know If My Los Angeles Home Qualifies For The Mills Act?

Any property that is listed in the National Register of Historic Places, or is located within a registered historic district qualifies for the Mills Act. Hancock Park is one area under the HPOZ-  The Historic Preservation Overlay Zone, and many homes are likely to qualify for a tax abatement with the Mills Acts! Click here to read more about the HPOZ on the La City Planning website.

A Note From Sheri:

We’ve sold many properties in Hancock Park with the Mills Act, and it’s super attractive to buyers, so it’s a win-win. You don’t pay property taxes, and you also get to put the money into restoring a property, which makes it have character and charm. This actually greatly increases the value of your home.

About Sheri Bienstock:

Deep roots in LA are the foundation of The Bienstock Group’s local expertise, and Sheri Bienstock’s “people passion” is the foundation for how it runs. Born and raised in Hancock Park, Sheri was ranked #3 of Keller Williams Realty’s 133,000 agents before starting The Bienstock Group. Sheri has been ranked #1 Listing Agent in 90036 and Hancock Park! Read More about Sheri here!

To hear more about homes in Los Angeles and your potential to qualify and buy a home tax-free, contact the Bienstock Group!