BILL ANALYSIS Ó
AB 2450
Page 1
Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2450 (Achadjian) - As Amended April 25, 2016
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|Policy |Local Government |Vote:|9 - 0 |
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Urgency: No State Mandated Local Program: YesReimbursable:
Yes
SUMMARY:
This bill requires a public entity proposing to acquire tax
exempt property to provide specified notice to the county
assessor.
FISCAL EFFECT:
Minor, if any, costs to local entities to give notice to county
assessors. Potentially a reimbursable state mandate, but it is
unlikely any local entity would make a claim with the Commission
AB 2450
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on State Mandates.
COMMENTS:
Purpose and Background. According to the author, "Assessors are
required to consider the effect of any enforceable restrictions
on a property's value. For low income housing, also known as
below market rate (BMR) properties, governmental agencies
execute contracts to restrict the use of the land for owner
occupied housing, which are sold at affordable or below market
prices. These contracts come with governmentally imposed
restrictions to ensure compliance with the terms of the
affordable housing program.
"During the past several years, it has been increasingly
difficult for assessors to properly assess BMR properties
because property owners, and governmental agencies do not always
disclose the existence of BMR contracts at the time of transfer.
Currently, only the homeowner is required to disclose, and
local housing agencies are not legally mandated to inform the
assessors of the existence of these BMR contracts even though
they maintain records for the purpose of enforcing the
restrictions. The result is low-income homeowners are
incorrectly over taxed. Correcting an overpayment is expensive,
time consuming and may not result in a complete refund. This
change will help the governmental agency achieve their objective
of assisting low-income families by ensuring BMR families do not
pay more property taxes than required."
AB 2450
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This bill requires a public entity proposing to acquire tax
exempt property to provide specified notice to the county
assessor, in the same manner that existing law requires that
notice be provided to the county tax collector. The California
Assessors Association, sponsor of the bill, argues that this
bill "will help assessors provide accurate and timely property
tax relief to low-income homeowners. Moreover, it will assist
cities and counties in assisting low-income families by ensuring
these families do not pay more property taxes than required."
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081