Here is the good news that the city does not want you to know about. The state has passed a law regarding natural resources. A historic home or even potentially historic home must be treated the same way as any other natural resource.

CALIFORNIA ENVIRONMENTAL QUALITY ACT

WHEN DOES CEQA APPLY?

Resources which are listed in a local historic register or deemed significant in a historical resource survey as provided under Section 5024.1(g) are to be presumed historically or culturally significant unless "the preponderance of evidence" demonstrates they are not. A resource that is not listed in, or determined to be eligible for listing in, the California Register of Historic Resources, not included in a local register of historic resources, or not deemed significant in a historical resource survey may nonetheless be historically significant, pursuant to Section 21084.1. A resource that is not listed in, or determined to be eligible for listing in, the California Register of Historic Resources, not included in a local register of historic resources, or not deemed significant in a historical resource survey may nonetheless be historically significant, pursuant to Section 21084.1.

CEQA does apply to discretionary projects and equates a substantial adverse change in the significance of a historical resource with a significant effect on the environment (Section 21084.1). Further, the Act explicitly prohibits the use of a categorical exemption within the CEQA Guidelines for projects which may cause such a change (Section 21084). "Substantial adverse change" is defined as demolition, destruction, relocation, or alteration activities which would impair historical significance (Section 5020.1).

Section 21084.1 is intended to provide, in the form of CEQA mitigation measures or project alternatives, new protections for historical resources which may be adversely changed by a project. Presumably, the Lead Agency may conclude that a project will have no significant environmental effect when there is no substantial evidence of an adverse change. Buildings and other historic resources protected from adverse changes by local regulations such as a historic district designation or historic preservation ordinance, may logically be expected not to suffer such changes as long as the project complies with those regulations. Where such protective regulations exist, or where mitigating conditions of approval are imposed, the initial study for the development project may cite them as evidence that no impact will occur, or that any impacts will be mitigated to a level of insignificance. Either a Negative Declaration or mitigated Negative Declaration could be adopted under those circumstances.

DEMOLITION PERMITS?

Common ministerial actions include roof replacement, interior remodeling, or other activities which require only a non-discretionary building permit. A ministerial action applies fixed standards or objective measurements and involves "little or no personal judgment by a public official as to the wisdom or manner of carrying out the project" (Guidelines Section 15369).

WHAT DOES IT MEAN?

Current CEQA law provides that an EIR must be prepared whenever it can be fairly argued, on the basis of substantial evidence, that a project may have a significant effect on a historical resource (Guidelines Section 15064).

This effectively requires preparation of a mitigated Negative Declaration or an EIR whenever a project may adversely impact historic resources.

Where there is no protective ordinance or other regulation in place or where protective actions such as mitigation measures are insufficient to avoid a "substantial adverse change" in the resource, the Lead Agency should conclude that an adverse change will occur. In that case, an EIR must be prepared. As mentioned before, for purposes of CEQA a substantial adverse change in the historical resource is the equivalent of a significant adverse environmental effect.