State Historic Building Code

The SHBC allows reasonable alternatives to the requirements of regular codes and ordinances, applicable to all qualified historic resources. Any condition permitted to continue within existing occupancies is permissible in historic buildings. CHBC Part 8, Title 24, regulations require enforcing agencies to accept reasonably equivalent alternatives to the regular code.

All San Jose Historic Resources

San Jose 2020 General Plan Alternative Discretionary Use Policy

Land uses other than those designated on the Land Use/Transportation Diagram may be allowed on sites with structures of significant historical or architectural merit if to do so would enhance the likelihood that the historic/architectural qualities would be preserved, and the use would not otherwise be incompatible with the surrounding area. Such alternative use(s) should be allowed only under Planned Development zoning.

All San Jose Historic Resources

Mills Act/Historical Property Contract

The Historical Property Contract is a contract between the City of San Jose and the owner of a designated City Landmark. The contract allows the owner to enjoy a reduced property tax rate from the County Assessor in exchange for the preservation, restoration and rehabilitation, of the owner’s historic property. The purpose of the agreement is to provide greater protection for the City Landmark property than is otherwise provided by the Municipal Code, by requiring 10% of annual savings are to be used towards rehabilitation and/or maintenance.

Reducing Property Taxes with the Mills Act, an article published in the Fall 2003 edition of Preservation Action Council of San Jose’s Continuity Newsletter, explains the property tax reduction further:

http://www.preservation.org/newsletters/fall2003.pdf

The Historical Property Contract Application can be downloaded from the Planning website at

http://www.sanjoseca.gov/planning/applications/dev_hpc_app.pdf.

City Landmarks

City of San Jose Building Tax Exemption

Building and Structure (B&S) Construction Tax (5% of improvement value) Commercial-Residential-Mobile home Park (CRMP) Tax (5% of improvement value)

City Landmarks

Federal Tax Credits

A tax credit differs from an income tax deduction. An income tax deduction lowers the amount of income subject to taxation. A tax credit lowers the amount of tax owed. In general, a dollar of tax credit reduced the amount of income tax owed by one dollar. The two credits are mutually exclusive. Only one applies to a given project. Which credit applies depends on the building – not on the owner’s preference.

City Landmarks

20% Federal Tax Credit

The 20% rehabilitation tax credit equals 20% of the amount spent in a certified rehabilitation of a certified historic structure. The 20% credit is available for properties rehabilitated for commercial, industrial, agricultural or rental residential purposes. It is not available for properties used exclusively as the owner’s private residence. The 20% rehabilitation tax credit applies only to certified historic structures, and may include buildings built after 1936.

Income Producing Historic (National Register) buildings

10% Federal Tax Credit

The 10% rehabilitation tax credit equals 10% of the amount spent to rehabilitate a non-historic building built before 1936. The 10% rehabilitation tax credit applies only to non-historic, non-residential buildings built before 1936.

Income Producing Non-Historic (National Register) buildings built before 1936