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Commission hears audit concerns about Mills Act contracts; agrees to calendar deeper review
Summary
Staff told commissioners that the Government Audit and Oversight Committee scrutinized several Mills Act contracts, citing properties with recent rehabilitation and unresolved enforcement issues; commissioners asked staff to calendar a future hearing to examine Mills Act eligibility and possible policy responses.
Tim Frey, planning department staff, reported that the Government Audit and Oversight Committee questioned the relationship between Mills Act property‑tax incentive contracts and properties that have had extensive rehabilitation before contract approval. The committee flagged examples in the DeBose Park area and asked whether the city should be affording tax breaks to property owners who have already completed substantial rehabilitation.
Frey said the committee raised concerns about proceeding with Mills Act contracts for properties that remain subject to enforcement actions, and noted one Mills Act contract was recommended to be limited to a 10‑year term rather than the typical indefinite term. "There were two properties in the DeBose Park area that had previously had owner move‑in evictions...that did concern the committee," Frey said.
Commissioners asked staff for more information and for a dedicated calendar item to examine Mills Act policy, eligibility criteria and how the program is being used. "If there's abuse involved, I think it would be important for us to get a grip on this," one commissioner said. The commission agreed to schedule a separate discussion in a future hearing and to share lists of current Mills Act contracts with the Board of Supervisors' committee, as requested.
No formal policy changes were adopted; staff indicated it will provide additional information to the commission and return the issue for a future public discussion.
