Journal ·
Mills Act in Pasadena vs Glendale: Two Programs, Two Different Doors
The Mills Act is one state law, and Pasadena and Glendale run it in almost opposite ways. Pasadena takes applications for a fixed window each spring, scores them against each other, and awards a capped number of contracts. Glendale has no published annual cap and no competitive scoring, but it will not look at a Mills Act application until the property is on the Glendale Register, and that listing needs a City Council vote. A buyer who wants the tax break should be asking which door the house is standing in front of, because the timelines and the odds are not the same.
What a Mills Act contract actually does to the tax bill
The enabling law is Government Code sections 50280 through 50290. A city may contract with the owner of a qualified historical property to restrict its use, and in exchange the county assessor stops using ordinary market comparables. Valuation moves to the income method set out in Revenue and Taxation Code sections 439 through 439.4. The assessor estimates the fair rent the property would command, subtracts allowed expenses, and divides by a capitalization rate that the statute builds rather than the market.
A qualified historical property, under Government Code section 50280.1, is privately owned, not tax exempt, and either listed in the National Register or located in a registered historic district, or listed in a state, city, or county official register of historical or architecturally significant sites. That second branch is the one both cities run through their local registers.
Why a higher interest rate makes the Mills Act worth more
The capitalization rate is assembled from four pieces, and none of them comes from sales data. The State Board of Equalization sets the interest component every year. There is a fixed risk component of 4 percent for an owner-occupied single-family residence and 2 percent for everything else, an amortization component tied to the remaining life of the improvements, and a property tax component, all described in the Board's assessment guidelines.
For the 2026 lien date the interest component is 6.50 percent, announced in Letter To Assessors 2025/030 on September 24, 2025. For the 2021 lien date it was 3.00 percent. The same house, with the same rent and the same condition, divides its income by a noticeably larger number now than it did five years ago. A larger capitalization rate produces a smaller restricted value, and a smaller restricted value produces a smaller tax bill.
The catch sits in section 439.2(d). The enrolled taxable value is the lowest of three figures: the restricted value, current market value, and the factored Proposition 13 base year value. An owner who bought in 1994 and has a very low factored base may find the restricted value is higher than what they already pay, in which case the contract changes nothing on the bill. Recent buyers at current prices are the ones the arithmetic favors. That is also why the same contract can be worth thousands to one household and nothing to its neighbor.
Who can apply in Pasadena
Pasadena's program was created by ordinance in October 2002 and runs under Ordinance 6912. Under the 2026 Mills Act Guidelines and Application, eligibility is limited to designated landmarks and historic monuments, works of Greene and Greene, properties listed individually in the National Register, and contributors to a designated landmark district or a National Register district. A property that is not yet designated can still apply if a nomination goes in before or with the application and is recorded with the Los Angeles County Recorder before the end of the year.
Two limits in that document catch people out. Single-family eligibility stops at a total assessed value of $2.0 million, with exceptions for works of Greene and Greene, historic monuments, and individually listed National Register properties, plus one discretionary exception per year. And an applicant has to submit a plan of future rehabilitation work. Properties that are already fully rehabilitated, or that need nothing done, are ineligible. The program pays for work that has not happened yet.
Who can apply in Glendale
Glendale routes everything through the Glendale Register of Historic Resources, adopted September 30, 1997, which now holds over 100 properties. The city's own historic preservation page states that listing requires the approval of both the property owner and the City Council, and that owners of listed properties are eligible to participate in the Mills Act program.
The Mills Act application form, revised January 2026, asks whether the property is listed and, if not, for the date the Glendale Register nomination was submitted. It asks for proposed or anticipated work over the next ten years. It does not impose an assessed value ceiling and does not describe a scoring system or an annual quota.
The deadlines are not comparable
| Pasadena | Glendale | |
|---|---|---|
| Gate | Landmark, monument, NR listing, or district contributor | Glendale Register listing, City Council vote |
| 2026 window | Feb 5 to May 29, 5:00 p.m. | July 31 target, later accepted |
| Deadline type | Hard competitive cutoff | Soft, tied to year-end recordation |
| Annual cap | 20 single-family, 6 multi-family or commercial | none published |
| Selection | Points for work plan and stated priorities | no published scoring |
| Assessed value limit | $2.0M for single-family, with exceptions | none published |
| Fee timing | None to apply, paid at contract signing | Paid before the application is processed |
| Published fee | 2025: $1,410 single-family, $2,820 other | not published on the form |
Pasadena's 2026 schedule ran site visits from July 20 to August 21, notification on or before October 16, signing by November 19, and recordation by December 31. Glendale's form says July 31 is the date that keeps recordation inside the same calendar year, and that applications arriving later are still accepted without a guarantee. Both cities are aiming at the same December 31 recording deadline, and they get there on different tracks.
Glendale does not print a fee figure on its application. The form tells applicants to contact preservation staff for the current amount, and the fee has to be paid before the file moves. Pasadena publishes last year's numbers in the guidelines and collects nothing until a contract is awarded.
What the owner is signing up for
The initial term is ten years, and under Government Code section 50282 a year is added automatically on each anniversary unless someone serves notice of nonrenewal. The owner needs 90 days notice, the city needs 60. Once notice is served, the contract still runs out the balance of its term. The clerk records the contract with the county within 20 days, so it sits on title and passes to the next owner.
The same section sets the state inspection floor at once every five years. Pasadena goes well past that: its guidelines require annual self certification and annual inspections by appointment. Work affecting historic architectural features, inside and out, needs a Certificate of Appropriateness. Breach carries a cancellation fee of 12.5 percent of current fair market value, assessed as though the property were free of the restriction, under Government Code section 50286. On a $1.6 million house that is $200,000.
What this changes when the house sells
A Mills Act contract is recorded, so it shows up in the preliminary title report. A buyer inherits the obligations along with the assessment, including the work plan the previous owner promised. Ask for the recorded contract and the attached rehabilitation plan, not just the tax figure. Ask when the last inspection happened. In Pasadena, ask whether the annual self certification has been filed.
The listed tax amount on an old MLS sheet is also not a forecast. Because the capitalization rate is rebuilt every year, a Mills Act assessment moves annually, and the interest component alone has swung from 3.00 to 6.50 percent since 2021.
Q: Does a Mills Act contract expire when the house is sold? No. It is recorded against the property and the new owner takes it on with the same rights and obligations.
Q: Can a buyer apply before closing? Both applications ask for owner signatures and owner certification, so in practice the application belongs to whoever is on title when it is filed.
Q: Is a house in a Glendale historic district automatically eligible? Not automatically. Glendale ties Mills Act eligibility to the Glendale Register. District rules are a separate layer, covered in our Glendale historic district guide.
Q: Where does Pasadena's landmark district system fit? Contributors to a designated landmark district qualify. Garfield Heights is one example, and we walked through it in this article.
This is general information about two city programs, not tax or legal advice. Program rules, fees, and deadlines change, and the county assessor makes the valuation decision. Confirm current requirements with the city before relying on any of it. Call Alla at (818) 699-5367 or use the enquiry form.
More on buying and selling in the area: the Pasadena area guide and the Glendale area guide.