The Fullerton City Council approved the designation of a historic property located at 432 West Brookdale Place to preserve, rehabilitate and maintain the property.
The designation, which was approved 4-1 with Mayor Pro Tem Nicholas Dunlap as the dissenting vote, authorized a Mills Act Contract between the owner of the appointed historic property and the city.
“The Mills Act is a state-authorized program that allows participating local governments to offer property tax reductions to owners of qualified historic properties in exchange for a long term commitment to preservation and rehabilitation,” Fullerton Associate Planner Benjamin Koff said during the meeting.
The city council adopted the Mills Act Program and associated Mills Act Program Guidelines in April 2020. Due to the adopted Mills Act Program Guidelines, the city can process no more than ten Mills Act Contracts per calendar year. This request is the first application submitted in the 2026 calendar year and is the cities’ twelfth overall property request of a contract.
The 432 West Brookdale Place property was built in 1927 and is located in one of 16 residential areas that have been designated historic districts.
Over the last 25 years, ten of the 16 historical districts are recognized as Residential Preservation Zones, including Brookdale.
“Key eligibility requirements include that the property must be privately owned, subject to property taxation, residential in use, and listed on a local state or national historic register, or otherwise designated as a qualified historic resource by the city,” Koff said.
Pre-approval inspection of the home revealed there are missing architectural features, detracting from the historic nature of the home. The original, defining characteristics of the property must be corrected before the execution of the Mills Act Contract.
Work completed on the property should support long-term preservation and conform with the Secretary of Interior’s Standards for Rehabilitation.
Applicants are required to submit a description of work done and cost estimates for any reformation in the property made during the first ten years of the contract. The contract automatically renews each year on the anniversary of its establishment.
The rehabilitation and maintenance plan totals up to $84,700 in repairs towards preserving the historic property, funding termite extermination, foundation maintenance and exterior.
“The property must demonstrate the ability to be preserved, rehabilitated and maintained in accordance with historic standards,” Koff said.
The contract results in property tax reduction, indicating the city will receive approximately $1,225 less per year in property taxes from this address, totaling $12,252.60 for the entirety of the term.
Fullerton receives 15.64% in property taxes, with the remaining going to the county general fund, school districts and Orange County’s special districts.
If a property owner breaches the contract terms or the property owner petitions for immediate contract cancellation, the city would impose a 12.5% penalty of property assessed fair market value.