Historical property contracts: qualified historical property: adaptive reuse: City of Los Angeles.

Existing law, commonly referred to as the Mills Act, authorizes an owner of any qualified historical property to contract with the legislative body of a city, county, or city and county to restrict the use of the property, as specified, in exchange for lowered assessment values. Existing law defines "qualified historical property" as privately owned property that is not exempt from property taxation and meets certain criteria related to the property's historic significance. In this regard, existing law requires the property to be listed in the National Register of Historic Places, located in a registered historic district, as defined, or listed in any state, city, county, or city and county official register of historical or architecturally significant sites, places, or landmarks. Existing law establishes the Infill Infrastructure Grant Program of 2019, which requires the Department of Housing and Community Development to establish and administer a grant program to fund capital improvement projects pursuant to specified requirements. Existing law provides that capital improvement projects that may be funded under the grant program include, among other things, those related to adapted reuse, which means, when referring to building structures, retrofitting and repurposing of existing buildings that create new residential rental units, as specified. This bill, starting January 1, 2026, and until January 1, 2036, would expand the definition of "qualified historical property" for purposes of the Mills Act by providing alternative criteria that a privately owned property that is not exempt from property taxation may meet. That alternative criteria would require the property to be constructed at least 30 years prior to the year a legislative body and property owner enter into the contract to restrict the use of the property, and to be located within the City of Los Angeles on a site that satisfies certain criteria, including, among others, being in a zone where office, retail, or parking are a principally permitted use. The alternative criteria would also require the property to meet, in the determination of the City of Los Angeles, at least one of specified criteria, including, among others, being identified with important events of national, state, or local history, as specified. The bill would require a contract entered into to restrict the use of that qualified historical property to require adaptive reuse of the qualified historical property, dedicate at least 3 units to live-work artist lofts, and facilitate, promote, and accommodate active transportation, as specified. The bill would require the owner of the qualified historic property to submit a fiscal analysis, as specified, to the City of Los Angeles before the City of Los Angeles would be authorized to issue a contract under these provisions. The bill would make findings and declarations as to the necessity of a special statute for the City of Los Angeles. The bill would also update an obsolete cross-reference. This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Los Angeles.