Anaheim Hills homes sold for a median of $1.1 million over the three months ending in June 2026, according to Redfin. In the Anaheim Colony Historic District, the median over the three months ending in May 2026 was $792,000. Those reported medians differ by about 39 percent, but their three-month periods end one month apart.
It's also the wrong number to lean on. Anaheim Hills sold for $579 a square foot over the three months ending in June 2026, down 4.3 percent year over year. The Colony sold for $541 a square foot over the three months ending in May 2026, up 1.9 percent. Those reported price-per-square-foot figures differ by about 7 percent, not 39 percent, though they also cover different periods. Most of the price difference between these two neighborhoods isn't a premium for dirt. It's a reflection of bigger lots and larger, newer floor plans in the hills. The price-per-square-foot figures are closer than the medians suggest, and another difference between them shows up in ownership costs: two separate cost mechanisms, one that can shrink a Colony owner's tax bill for a decade, and one that can double an Anaheim Hills owner's HOA bill depending on which tract they land in.
The Colony's Tax Break Comes With a File Folder
The Colony Historic District sits around the streets first settled in 1857, including the Mother Colony House, believed to be the oldest surviving residence in Anaheim, and the 1929 Kraemer Building. Homes here can qualify for the city's Mills Act program, approved by Anaheim City Council in 2000 for properties in its historic districts. The City of Anaheim describes the Mills Act as a 1972 state law that lets cities cut property taxes on qualified historic homes in exchange for a commitment to maintain them. According to the Anaheim Colony's own account of the program, current participants have received tax reductions of up to 70 percent.
That's not a one-time discount. According to the City of Anaheim, it's a 10-year contract that automatically renews each year, and it stays with the house when it sells. A buyer who picks up a Mills Act property inherits the contract, the tax savings, and the obligations that come with both.
The city runs annual inspections that evaluate everything visible from the public right-of-way. The city's Historic Preservation office is explicit that sellers of Mills Act homes are expected to disclose the contract's requirements to buyers, along with any unfinished items from the maintenance plan.
What Happens If You Ignore the Contract
The upside of the Mills Act is real, but so is the downside if a new owner treats the historic obligations as optional. The city's own program guidelines describe a process where staff work with owners to resolve compliance issues, but if a property stays out of compliance after repeated attempts, state law allows the city to cancel the contract and fine the owner 12.5 percent of the property's fair market value.
On a Colony home selling near the current median of $792,000, that's a fine in the neighborhood of $99,000. That's the kind of number a buyer needs to know before they close, not after an inspection notice arrives in the mail. If you're looking at a Mills Act property, request a copy of the current contract and maintenance plan from the seller or the city's Historic Preservation staff before you write an offer, not during your contingency period.
Anaheim Hills' HOA Costs
Anaheim Hills carries a different kind of hidden cost, and it has nothing to do with historic preservation. In 1977, during the neighborhood's early development boom, homeowners formed the Anaheim Hills Planned Community Association, now managed by Powerstone Property Management. AHPCA originally oversaw 39 sub-associations and set shared rules across those communities. Anaheim Hills has since grown to more than 75 communities.
The county-wide median HOA fee sits around $395 a month as of a 2026 industry survey, and that figure doesn't capture the association structure for a particular Anaheim Hills address.
This is not something a listing photo or a marketing flyer will flag. It shows up in the HOA disclosure documents and the preliminary title report, and it's worth asking your agent to confirm before you get attached to a specific tract.
The Mello-Roos Question, Answered Carefully
Buyers coming from newer master-planned parts of Orange County, places like Great Park or Portola Springs in Irvine, often assume every hillside community carries a Mello-Roos special tax on top of base property taxes. In Anaheim Hills, that assumption usually doesn't hold. According to CTCCAL, Mello-Roos financing came out of a 1982 state law passed after Proposition 13 limited how local governments could fund new infrastructure. Much of Anaheim Hills was developed earlier or in phases that didn't rely on that financing tool, which is part of why the neighborhood is sometimes described as a relief valve for buyers who want a master-planned feel without a Community Facilities District tax layered on top.
That said, "mostly" isn't "always." Anaheim Hills includes tracts built across several decades, and whether a specific phase carries a CFD varies by subdivision. The only way to know for a given address is to pull the current property tax bill and preliminary title report and look for a line item labeled Community Facilities District, CFD number, or Special Tax.
Two Neighborhoods, Two Different Cost Levers
| Anaheim Colony Historic District | Anaheim Hills | |
|---|---|---|
| Median sale price | $792,000 (3 mo. ending May 2026) | $1.1 million (3 mo. ending June 2026) |
| Median price per square foot | $541 (3 mo. ending May 2026) | $579 (3 mo. ending June 2026) |
| Main cost lever | Mills Act contract, up to 70% property tax reduction, 10-year term | HOA dues |
| Main transaction risk | Undisclosed maintenance obligations or contract noncompliance | Uncertainty over which HOA structure applies to a given tract |
| Mello-Roos exposure | Not typical in this historic core | Uncommon in most of the neighborhood, but varies by tract and phase |
What to Actually Request Before You Write an Offer
For a Colony property, ask for the recorded Mills Act contract and the current maintenance plan, and confirm with the city's Historic Preservation staff whether the property is in good standing. For an Anaheim Hills property, ask your agent to confirm through the preliminary title report and HOA disclosures whether the community falls under AHPCA, and if so, request current AHPCA financials alongside the individual HOA's. For either neighborhood, pull the current county tax bill and check it line by line for a Community Facilities District or Special Tax entry rather than assuming based on the neighborhood's age.
None of this shows up in a portal search filtered by price and bedroom count. It shows up in escrow, and it's exactly the kind of detail that changes what a house actually costs to hold once you own it.
A Few Common Questions
Does every home in the Colony Historic District qualify for the Mills Act? No. Eligibility depends on whether the structure is designated historic under the city's program. Confirm status directly with Anaheim's Historic Preservation office rather than assuming based on the home's age or architectural style.
How can I confirm whether a specific Anaheim Hills tract is associated with AHPCA? Ask for the HOA's governing documents and current assessment statement during escrow, and confirm with Powerstone Property Management, which manages AHPCA, whether the specific tract is one of the association's member communities.
Comparing Anaheim Hills and the Colony by median price alone tells you which neighborhood had the higher reported median, though these figures cover different periods. It doesn't tell you which one costs less to hold five or ten years from now, and that answer depends on a tax contract in one neighborhood and an association boundary line in the other. If you're weighing a specific address in either part of Anaheim and want help pulling the Mills Act contract, the AHPCA status, or the CFD line item before you write an offer, Kevin Kott Real Estate can walk through those documents with you before you make a decision.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
