SAN DIEGO: A program that provides tax breaks for owners of historic properties could face significant changes under a plan backed by San Diego Mayor Jerry Sanders.

The mayor is trying to limit the Mills Act program's fiscal impact. Under his plan, the city would not be able to approve tax breaks in any given year that subtract more than $100,000 from city revenue.

The city loses more than $1.1 million annually in property taxes under the program, from approved exemptions, according to a city estimate.

The proposal will be considered at a public hearing Monday at the Balboa Park Club in Balboa Park. It begins at 6 p.m.

The city has nearly 900 properties in its Mills Act program, the largest in the state. The owners are expected to use the tax break to maintain the home's historic integrity, but the city doesn't follow up to make sure that happens.

Sanders is proposing that owners be required to make a “substantial investment” in their properties and allow a city inspection every five years. He also wants to increase fees from $400 to $2,267 to cover the costs of administering the program. –C.G.