Last updated: February 2026
Buying a historic home in North Park is about more than just owning a beautiful property. It is a powerful financial strategy.
The Mills Act is a special agreement that can lower your property taxes by roughly 20% to 70%. This massive saving stays with the house, meaning when you buy one of these homes, you inherit the tax break immediately. It is one of the only ways to own a luxury home in San Diego while paying “entry-level” property taxes.
Real World Example: How Much Does the Mills Act Save You?
Based on a $1,300,000 Historic Home in North Park (92104)
| Scenario | Assessed Value | Approx. Annual Tax (1.2%) | Monthly Tax Cost |
|---|---|---|---|
| Standard Home Purchase | $1,300,000 | ~$15,600 | ~$1,300 / mo |
| Mills Act Home | ~$450,000* | ~$5,400 | ~$450 / mo |
| YOUR ANNUAL SAVINGS | $10,200 / yr | $850 / mo |
How Mills Act Tax Savings Work in North Park
The Mills Act changes how your property is taxed. Instead of basing your property tax on what you paid (or current market value), the County Assessor uses a formula based on what the property could earn as a rental. This almost always results in a lower assessed value.
The actual savings vary by property and depend on location, size, and comparable rents in the area. The County Tax Assessor’s office handles the valuation using a formula set by state law. You can learn more about the program directly from the City of San Diego Mills Act page.
How to Apply for the Mills Act in North Park
If you buy a historic home that does NOT already have a Mills Act contract, you can apply for one yourself. Here’s what you need to know:
- Your home must have a local historic designation first. Being old is not enough. The property must be designated historic by the San Diego Historical Resources Board. National Register listing alone does not qualify.
- Applications are accepted January 1 through March 31 each year. You must submit by March 31 to be processed in that calendar year.
- The application fee is currently $471.
- You must submit a 10-year restoration and maintenance plan with cost estimates from qualified contractors.
- You’ll need current photographs of all sides of the property, character-defining features, and any outbuildings.
- You need your current Grant Deed, including the legal description, from the San Diego County Assessor’s Office.
What You Can and Can’t Change on a Mills Act Home
The Mills Act is a contract. You agree to preserve the historic character of the home in exchange for the tax break.
What you can usually do without issue:
- Update kitchens and bathrooms (interior changes)
- Replace flooring, paint interior walls, update fixtures
- Upgrade electrical, plumbing, and HVAC systems
- Add insulation or make energy efficiency improvements
What requires approval or may be restricted:
- Changing windows visible from the street
- Altering the front porch, facade, or roofline
- Adding a new fence in the front yard
- Any exterior modification visible from the public right-of-way
The rule of thumb: the inside is yours to update. The outside needs to stay true to the home’s historic character.
The process involves paperwork, photos, and a review by the city. It’s competitive but worth it if your property qualifies. We walk buyers through this regularly. Read our full guide: Are Mills Act Homes Worth It in San Diego?
Mills Act valuations are determined by a rental-income formula, not market value. This estimate is based on 2026 historic rental data for North Park/South Park.
Architectural Styles That Qualify in North Park
Not every old house in North Park qualifies for historic designation. The home needs architectural or historical significance. In 92104, the most common qualifying styles include:
- Craftsman Bungalows – The most common historic style in North Park, especially in the Dryden District. Built roughly 1905-1930 with exposed rafters, wide porches, and handcrafted details.
- Spanish Colonial Revival – White stucco, red tile roofs, arched doorways. Very common in the Burlingame Historic District.
- Mission Revival – Similar to Spanish Colonial but with simpler detailing and curved parapets.
- Prairie Style – Less common but found scattered through North Park. Horizontal lines, flat or hipped roofs, and bands of windows.
- Italian Renaissance Revival – Found in Burlingame. Symmetrical facades, low-pitched roofs, and decorative elements.
A home doesn’t need to be in a historic district to qualify, but it helps. Individual properties can also apply based on their architecture or historical significance. Learn more about historic homes in San Diego.
North Park is famous for its Craftsman bungalows and Spanish Revival estates. While many homes look historic, only a select few have this official designation and the tax benefits that come with it. Below is the current list of homes in 92104 flagged as historic or Mills Act-eligible.
See Mills Act Homes for Sale in North Park
Where Are the Mills Act Neighborhoods?
You can find historic homes all over North Park, but they are most common in two specific “Historic Districts.” If you want the highest chance of finding a Mills Act home, start your search here.
1. The Burlingame Historic District
Burlingame is famous for its pink sidewalks and unique character. It was built between 1912 and 1929. Almost every home here is a masterpiece of Spanish or Italian architecture. Because the entire neighborhood is a designated historic district, many homeowners here have already done the paperwork to secure Mills Act tax status.
2. The North Park Dryden District
Located roughly between 28th and Pershing streets, the Dryden District is the place to go if you love Craftsman homes. This area was developed in the early 1900s and is filled with beautiful bungalows. It is a very popular area for buyers who want to be in a walkable neighborhood and have access to Morley Field, while still seeking the “old world” charm.
Why These Homes Sell Fast
Inventory for Mills Act homes is exceptionally tight. This is because of Transferability.
When a seller has a Mills Act contract, that contract transfers to you at closing. You do not have to apply for it. You do not have to wait. You get the lower tax bill on day one. Because this saves buyers thousands of dollars in monthly payments, these homes often receive multiple offers within days of hitting the market and typically sell for $100,000 more than a bungalow home or Spanish-style home that is not historically designated.
Buyer FAQ
How do I know if a home definitely has the Mills Act? The listing usually says so, but not always! Sometimes agents forget to check the box. We can pull the property tax records for any home you like to verify if the tax reduction is active.
Can I remodel a Mills Act home? Yes, but you have to be careful. You can update the kitchen and bathrooms (the inside) usually without issue. But if you want to change the outside (like windows or the porch), you need approval. We explain the rules in our Is It Worth It? Guide.
Are they expensive to maintain? They can be. The trade-off for low taxes is that you must maintain the home’s historic look. You are using your tax savings to preserve San Diego history.
Is it hard to get a new Mills Act contract? It is competitive. If you buy a historic home that doesn’t have the act yet, you have to apply. Read our full article to learn about the application process: Are Mills Act Homes Worth It?
Common Myths About Mills Act Homes
“Historic homes are automatically more expensive to own.”
Maintenance can be more involved, but the Mills Act tax savings often offset a significant portion of added costs. In a market like North Park, the tax relief can save you $500-$850+ per month.
“If a home looks old, it must be historic.”
Not every older home is officially designated. To get Mills Act benefits, the property must be on the local historic register AND have an approved contract. Looking old doesn’t qualify you.
“Historic means I can’t change anything.”
You can update interiors freely in most cases. The restrictions focus on exterior features visible from the street – facades, windows, porches, and rooflines.
“Mills Act savings are guaranteed for every buyer.”
Not every historic home has a Mills Act contract, and not every owner sees the same savings. Properties with already-low Prop 13 assessed values may see little benefit. Always verify before making assumptions.
Historic homes with active Mills Act contracts sell extremely fast. We often know about upcoming historic listings before they hit the MLS. Contact the McT Real Estate Group at 619-736-7003 with ‘Mills Act’ to get on my priority list