A Definitive Guide To Owning A Palm Springs Historic Home
Palm Springs has a wealth of homes, and public buildings, that have received historic designation. It is quite simply part of the DNA of the city at this point. But, just because historic designation has a prominent place in the architectural landscape for Palm Springs, it doesn’t mean everyone understands it.
It can be complex.
At PS Properties, we have accrued quite a bit of experience with homes that have received historic designation — in Palm Springs or other communities, such as Rancho Mirage. We’ve sold more than a dozen Class 1 Historic properties and we’ve represented numerous others that qualify, despite their owners not wanting to go through the designation process.
Those sales have totaled nearly $80 million.
Numbers aside, we just understand the nuance, the financial upside and the prestige that comes with owning a home that has earned Class 1 Historic designation. We’re also quite familiar with the process of earning a designation. And, we know the names involved.
All of this is helpful as you navigate the market, particularly if you’re looking for or selling a home with historic designation.
WHAT IS A CLASS 1 HISTORIC DESIGNATION?
A Class 1 Historic designation lends a layer of prestige to a historically or architecturally-significant property, because just saying it is significant. The process for achieving that status is remarkably thorough and it often involves preservation groups working with property owners to draft exhaustive nomination submissions. Many times, the process of drafting the nomination alone can take more than a year.
Nomination forms highlight the history of the property, including the lives of its owners, the historical significance of the home, the architectural significance of the home’s designer and the cultural impact the residence had on Palm Springs and the greater Coachella Valley. Class 1 Historic homes may be notable for starting architectural trends or for standing alone in their uniqueness, for the materials used to build them or for the notable owners who lived in them.
In Palm Springs, for example, municipal code designates seven criteria for historic designation eligibility. And the city adheres to a tiered framework for its designations, so that Class 1 and Class 2 are the only two classes eligible for contracts through the Mills Act. A Class 1 designation is the highest level of protection and it can cover residential, commercial or civic properties. A Class 2 designation generally means that the structure has lost some structural integrity or has been altered to a point that it does not qualify for Class 1 designation.
To better understand the process for historic designation, here is a look at the steps involved in Palm Springs.
- Draft nomination application, which can take more than a year to complete.
- Submit application to Palm Springs planning department for review by the Historic Site Preservation Board, a seven-member board that meets once a month.
- The Historic Site Preservation Board reviews the application for eligibility and schedules a public hearing.
- If it feels a nomination meets historic designation eligibility, the Historic Site Preservation Board forwards a recommendation to the Palm Springs City Council.
- The Palm Springs City Council makes the ultimate classification based on the information it receives.
On average, about 12 nominations are considered every year. There isn’t a cap on nominations, and applications are reviewed as they are received. If a property is approved for Class 1 or Class 2 Historic designation, the owners of the property will have the opportunity to enter into a Mills Act contract. Those contracts are good for 10 years, but they renew automatically and they transfer to new owners if a property is sold.
WHAT IS THE MILLS ACT AND HOW MUCH DOES IT SAVE?
The Mills Act is a California-exclusive statute that allows for cities and municipalities in the state to enter into contracts with owners of homes that have received Class 1 or Class 2 historic designation. Those contracts offer a significant reduction in property tax liability for owners in exchange for the owners restoring and maintaining the integrity of the historic property.
The law was enacted in 1972 and it has had a sizable impact on the market of historic homes in Palm Springs and the Coachella Valley. While Palm Springs is widely known for its robust portfolio of homes that have received historic designation, other cities in the Coachella Valley also utilize contract opportunities through the Mills Act to preserve their historic architectural footprints. The historic designation process differs slightly from each municipality to the next, but the benefits of the contracts associated with the Mills Act are fairly consistent.
A historic designation that is eligible for a Mills Act contract often makes a property more attractive to a buyer, particularly for its savings. In many instances, owners can see a savings of up to 70% from the pre-contract tax bill. What does that actually look like?
If a home had an assessed value of $500,000, it would likely carry a $6,000 property tax bill. With a Mills Act contract, that assessed value could drop to just under $173,000. That would translate to a property tax bill of just over $2,000, saving a homeowner nearly $4,000 per year.
WHAT CAN AN OWNER CHANGE ON A HISTORIC HOME?
While a historic designation is coveted for some homeowners, and it offers some benefits, it also comes with some limitations. Most notably, exterior modifications to the home would need prior approval.
Owners are free to modify a home’s interior and they are expected to invest in routine maintenance on a historic home. But, once those modifications reach the exterior — be they structural or to the landscape — owners must receive formal permission from the city of Palm Springs to complete the changes. That formal acknowledgement is called a Certificate of Appropriateness.
Here’s a breakdown of what is allowed without additional city approval.
- Interior remodels to kitchens, bathrooms and even layouts are permissible.
- Restoration efforts that renew architectural integrity and align with a home’s original design.
- Routine maintenance that incorporates original materials and colors.
Here’s a breakdown of what is not allowed without the city’s prior approval.
- Demolition projects that remove large parts of a home’s original structure or footprint.
- A new exterior paint color, new window frames, altered rooflines or surface textures.
- The use of materials that disrupts the historic continuity of a property.
WHAT ARE EXAMPLES OF HISTORIC HOMES IN PALM SPRINGS?
The Koerner House (Class 1)
The Koerner House is, without question, a formative residence of the Palm Springs architectural record. It is one of significance and influence, situated within a community of note, Deepwell Estates. It was designed by celebrated architect E. Stewart Williams and owned by a distinguished Canadian businessman.
The Sutter Residence (Class 2)
Also designed by architect E. Stewart Williams, the Sutter Residence is a departure for the Koerner House next door in its Brutalist design, which was rarely seen in residential architecture. It was given a Class 2 designation, with the potential to earn Class 1, once some glass elements were replaced.
El Sueno (Nominated)
The home formerly owned by actress Donna Reed and philanthropist Melba Bennett was nominated for historic designation in early 2026. A hearing for the rare Monterey Colonial Revival has not yet been announced publicly.
FREQUENTLY ASKED QUESTIONS
How much does the Mills Act save in Palm Springs?
The Mills Act can save homeowners a significant amount of money by reducing the assessed value of a home and thereby reducing the property tax liability. In some cases, owners can see a savings of up to 70% on their property tax bills.
Can I remodel a Class 1 designated home?
To a certain extent, owners of Class 1 designated homes can remodel interiors. However, exterior updates need prior approval from the city and anything that dramatically changes the footprint of a home is generally not permitted.
Does the Mills Act contract transfer with new ownership?
A Mills Act contract renews automatically every 10 years and it transfers to a new owner upon the sale of the property.
How long does historic designation take?
Historic designation in Palm Springs can take years, as the draft nomination process often takes more than a year to complete.
If you are interested in exploring the possibility of purchasing or selling a home that has received Class 1 Historic designation, the experienced team at PS Properties is ready to help. To continue this conversation with our dedicated team, contact us below or call 760-779-4500.
