San Francisco's Historic Preservation Commission is set to implement significant changes to the Mills Act program, aimed at enhancing fairness and social equity in the preservation of historic properties. During a recent government meeting, officials discussed findings from a comprehensive audit of the program, which revealed disparities in how Mills Act contracts are distributed across the city.

The Mills Act allows local governments to offer property tax reductions to owners of qualified historic properties, incentivizing their maintenance and rehabilitation. However, concerns were raised regarding the uneven implementation of the program, particularly its benefits skewing towards property owners in higher resource neighborhoods. Currently, San Francisco has 48 Mills Act contracts, predominantly held by single-family homes, which do not reflect the city's high renter population.

To address these issues, staff proposed two key policy amendments. First, new priority considerations for Mills Act applications will be established, focusing on criteria such as office-to-residential conversions and properties located in areas with vulnerable populations. This shift aims to align the program with broader housing and equity goals.

Second, future Mills Act contracts will be placed into non-renewal status after ten years, allowing property owners to complete their rehabilitation plans while still benefiting from tax reductions. This change is intended to ensure that contracts are only maintained when there is an ongoing preservation need.

Next steps include seeking feedback from the Board of Supervisors and conducting targeted outreach to educate property owners about the program's opportunities and limitations. These changes are expected to foster a more equitable approach to historic preservation in San Francisco, ensuring that the benefits of the Mills Act are accessible to a broader range of property owners.