Own a character home in North Laguna and wondering if the Mills Act could meaningfully lower your property tax bill? You are not alone. Many owners of architecturally significant homes want to preserve their property and keep carrying costs sane. In this guide, you will learn what the Mills Act is, how the tax perks work, and exactly how to check eligibility in North Laguna versus Laguna Hills, plus next steps if you are buying or selling. Let’s dive in.
Mills Act basics
The Mills Act is a California program that lets local governments contract with owners of qualified historic properties in exchange for preservation commitments and significant property tax relief. It is a state law, but each city or county decides whether to participate and how to run it. You apply where your property legally sits, and that local agency sets the rules and signs the contract. You can read the state overview on the California Office of Historic Preservation’s Mills Act page for core rules and definitions.
- Learn the program’s intent, legal basis, and mechanics in the state’s Mills Act overview: California Office of Historic Preservation.
How tax savings are calculated
Under a Mills Act contract, the county assessor typically uses an income approach to value the property instead of a standard market approach. The calculation looks at potential rental income and allowable expenses to derive a lower assessed value in many cases. Results vary by parcel, but owners often report substantial reductions. The Orange County Assessor notes examples ranging from the mid‑teens up to the 50 to 60 percent range for some properties, depending on the details of the home and the formula used. For a real estimate, contact the Orange County Assessor’s Special Properties team.
- See the assessor’s notes on historical property valuation: Orange County Assessor glossary.
Eligibility and owner obligations
To qualify, your property generally needs to be a designated historic resource under local, state, or national criteria and approved by the participating city or county. Contracts typically run for a minimum 10 years and renew annually, and they are recorded so they transfer to future owners. In exchange for the tax benefit, you agree to preserve and maintain the property according to standards in the contract, often referencing the Secretary of the Interior’s Standards. Local inspections, project reviews, and periodic reporting are common. Early cancellation or noncompliance can trigger penalties.
- Find key eligibility and contract standards: Mills Act program overview.
North Laguna or Laguna Hills? Check jurisdiction first
Here is the critical step. “North Laguna” often refers to a neighborhood in Laguna Beach. The address you have may also be described as Laguna Hills or near North Laguna Hills. The Mills Act only applies if your local government participates, so you must confirm which jurisdiction governs the parcel.
- The state keeps a contacts list of participating cities and counties. As of October 16, 2025, Laguna Beach appears on that list. The City of Laguna Hills does not appear on the list, which suggests there is not a current city‑run Mills Act program there. Always confirm the latest status with the city. See the state list here: OHP Mills Act contacts by jurisdiction.
If your address is in Laguna Beach
Laguna Beach is listed as a participating jurisdiction by the state. If your North Laguna property is within Laguna Beach city limits and is a qualified historic resource, you may be able to apply under that city’s process. The city will set application windows, fees, review procedures, and contract details.
If your address is in Laguna Hills
The City of Laguna Hills does not appear on the state’s participating list as of the research date. If your property is within Laguna Hills city limits, that likely means a Mills Act contract is not currently available unless the city adopts a program. Check directly with Laguna Hills Planning to confirm the most current position.
If your address is in unincorporated county
If the parcel is outside city limits in unincorporated Orange County, the county’s program status applies. The state contacts page lists the County of Orange for unincorporated areas. Confirm with the county whether contracts are available for your location.
Step‑by‑step: How to verify eligibility
Follow this quick path to clear answers:
Confirm the governing agency for your exact address. Use a city or county parcel lookup or contact the Orange County Assessor to confirm whether you are in Laguna Beach, Laguna Hills, or unincorporated county. The contract must be signed by the government that governs your parcel. Refer to the state’s program guidance: Mills Act overview.
Check the state’s contacts list and your city’s planning page. Look up your jurisdiction on the state’s list of participating agencies: OHP contacts by jurisdiction. Then confirm details with the local planning department.
Get a parcel‑specific tax estimate. Ask the Orange County Assessor’s Special Properties team how a Mills Act valuation could affect your parcel if you qualify. See the Assessor glossary for background.
If in Laguna Hills and no program exists, ask planning staff if a Mills Act ordinance is under consideration. Without a city program, a contract cannot be issued for a parcel inside city limits.
If you are buying, incorporate Mills Act diligence into escrow. Request any existing contract, inspection reports, and maintenance history. Confirm transfer mechanics and reporting requirements before you remove contingencies.
Buyer and seller playbook
- Buying a Mills Act home. Contracts normally transfer with the property, so you can continue the benefit if you meet the obligations. Ask for the recorded contract, approved work history, and inspection letters in your disclosure package.
- Selling a Mills Act home. Highlight the tax savings and the preservation story in your marketing. Be transparent about obligations, review requirements, and any pending work items so buyers can plan with confidence.
- Renovation planning. Exterior changes usually require review against the contract standards. Plan timelines and budgets with those checkpoints in mind.
Risks and tradeoffs to weigh
- Administration and standards. Expect periodic inspections, documentation, and plan checks for exterior work. Preservation standards can raise project costs compared with off‑the‑shelf replacements.
- Market reception. Many buyers value the tax savings. Others focus on the obligations. Clear disclosure and education help both sides.
- Program changes. Cities can adjust caps, fees, and criteria. Verify current rules with your local planning department before relying on projected savings.
Orange County context
The Mills Act is administered locally, so programs vary. The state’s contacts page shows multiple Orange County cities participating, including Laguna Beach, along with the County of Orange for unincorporated areas. That variation is why confirming your exact jurisdiction and speaking with the local planning staff and the Orange County Assessor is essential. Start with the state’s reference pages for the most up‑to‑date contacts and program guidance: Mills Act program overview and OHP contacts by jurisdiction.
Ready to explore whether your North Laguna home could qualify or to position a historic listing the right way? Reach out to the design‑minded team at bouHAUS for local guidance, valuation insight, and buyer or seller representation.
FAQs
Does the Mills Act apply in North Laguna specifically?
- It depends on jurisdiction. If your address is inside Laguna Beach city limits, the city appears on the state’s participating list. If you are in Laguna Hills, that city does not appear on the list as of the research date. Confirm using the OHP contacts list.
How much could my property taxes drop under Mills Act?
- Savings vary by parcel and assessor calculation. The Orange County Assessor notes examples ranging from the mid‑teens up to 50 to 60 percent for some properties. Ask the Assessor’s Special Properties unit for a parcel‑specific estimate: OC Assessor glossary.
What makes a home eligible for a Mills Act contract?
- The property must be a qualified historic resource under local or state criteria and approved by the participating city or county. Contracts include preservation standards, inspections, and reporting. See the Mills Act overview.
Do Mills Act benefits transfer when a home sells?
- Yes. Contracts typically run for a minimum 10 years, renew annually, and remain in effect for successive owners unless lawfully terminated. Confirm transfer steps in escrow. Learn the basics in the Mills Act overview.
What are the main obligations if I get a Mills Act contract?
- You agree to preserve and maintain the property per contract standards, often the Secretary of the Interior’s Standards, with periodic inspections and potential review of exterior changes. Details are set by your local jurisdiction. Start with the state program overview.
