Coronado has many historic homes, and owning one comes with both pride and a few extra things to learn. This guide covers the basics so you know what to ask before you fall in love with a house.
What designation means
A home can be designated as a historic resource by the city. Designation can affect what you can change on the outside, and the city usually reviews exterior work on a designated home. It can also open a door to a property tax program called the Mills Act. Ask the city's Community Development Department how a particular home is classified before you make an offer.
The Mills Act
The Mills Act is a California law that lets cities enter contracts with owners of qualifying historic properties. In return for preserving the property, the owner may receive a property tax reduction. The City of Coronado describes its program in its Mills Act application: it cites the city's municipal code and state law, and says designation as a historic resource does not guarantee approval of a Mills Act agreement. In general: - Contracts run for ten years and renew each year unless the owner or the city gives notice not to renew. - A later owner takes on the contract's rights and obligations. - The county assessor values a Mills Act property using an income method rather than recent sales, which usually produces a lower value than the market value. - Applications go through the city and the contract is approved at public hearings. Details, fees and the application: City of Coronado: Mills Act application, and the state's overview at the Office of Historic Preservation.
Questions to ask before you buy
- Is the home designated, or could it be? What are the rules for the exterior, windows, additions and demolition?
- Does the property already have a Mills Act contract? If so, ask for a copy and the remaining term.
- What are the real costs of keeping up the home, and has a qualified inspector looked at the foundation, roof, wiring and plumbing of an older house?
- What would your property tax be? Try the property tax estimator.
- Are there permits on record for past work? See our guide to renovating in Coronado.
General information, not legal, tax or lending advice. Rules, schedules and programs change, so confirm current details with the official source. The city and the county assessor decide how the Mills Act applies to a particular property.
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