BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2450


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          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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          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