Committee hears Mills Act application for 714 Steiner; owner seeks help to preserve Alamo Square 'Painted Lady'

The Government Audit and Oversight Committee on Dec. 2 reviewed a Mills Act application for 714 Steiner Street, a three‑story, wood‑frame Queen Anne building in the Alamo Square historic district.

Planning Department staff described the Mills Act program and eligibility criteria, noting the program authorizes 10‑year rolling contracts that provide property‑tax reductions to owners who commit to rehabilitation and maintenance under the Secretary of the Interior’s Standards. Staff said the department currently administers 45 Mills Act contracts and evaluates applications against five priority considerations: necessity, investment, distinctiveness, recently designated landmarks and legacy business status.

Jonathan Vimmer of the Planning Department presented the 714 Steiner application, describing the building as a contributing resource to Alamo Square’s postcard row and recommending an eligibility exemption because the owner committed to restoring deferred maintenance and removing a non‑original garage to restore historic windows and siding. The estimated cost of proposed rehabilitation work was $1,259,900, with annual maintenance estimated at $5,400.

Michael from the Assessor's Office explained the Mills Act valuation process and said the restricted income approach yielded a recommended Mills Act value of $951,784, producing a first‑year property tax savings of about $31,500 (lien date 01/01/2022). The applicant, Leah Culver, addressed the committee and said she purchased the nearly 130‑year‑old property knowing it could qualify and that the house required substantial exterior repairs; she said she was open to discussing limiting the contract term.

Supervisor Aaron Peskin questioned whether the rehabilitation would have occurred absent Mills Act benefits, noting the project includes a rear‑yard addition approved separately; he asked for additional data on termination dates for existing Mills Act contracts. Because the property sits within 500 feet of Chair Preston’s residence, Preston recused himself from the item and Vice Chair Chan presided for that matter.

Given open questions and the timing constraints for lien‑date processing, the committee moved to continue the resolution to the call of the chair to allow the district supervisor and staff further discussion with the property owner; the motion passed.