BILL NUMBER: AB 1718 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 31, 2010
AMENDED IN SENATE AUGUST 19, 2010
AMENDED IN SENATE AUGUST 9, 2010
AMENDED IN SENATE JULY 15, 2010
AMENDED IN ASSEMBLY MAY 28, 2010
AMENDED IN ASSEMBLY APRIL 27, 2010
AMENDED IN ASSEMBLY MARCH 11, 2010
INTRODUCED BY Assembly Member Blumenfield
(Coauthors: Assembly Members Huffman, Ma, Torres, and Yamada)
(Coauthors: Senators Alquist and Correa)
FEBRUARY 2, 2010
An act to amend Section 53684 of the Government Code, and to add
Part 10.6 (commencing with Section 20800) to Division 2 of the
Revenue and Taxation Code, relating to taxation , and
declaring the urgency thereof, to take effect immediately .
LEGISLATIVE COUNSEL'S DIGEST
AB 1718, as amended, Blumenfield. Taxation: property tax
deferment.
The Senior Citizens and Disabled Citizens Property Tax
Postponement Law, until February 20, 2009, authorized a claimant, as
defined, to file a claim with the Controller to postpone the payment
of ad valorem property taxes, where household income, as defined, did
not exceed specified amounts. Existing law authorized the
Controller, upon approval of the claim, to either make payment
directly to specified entities, or to issue the claimant a
certificate of eligibility that constituted a written promise of the
state to pay the amount specified on the certificate, as provided.
Existing law required these payments to be made out of a
specified funds appropriated to the Controller, as
specified, and also required repaid property tax postponement
payments to be transferred, as specified, to the General
Fund.
Existing law, on and after February 20, 2009, prohibits a person
from filing a claim for postponement, and prohibits the Controller
from accepting applications for postponement, under the Senior
Citizens and Disabled Citizens Property Tax Postponement Law.
This bill would establish the County Deferred Property Tax Program
for Senior Citizens and Disabled Citizens, authorize a county to
elect to participate in the program by adopting a resolution
indicating the county's intention to participate in and administer
the program, and specify that the requirements of a county or county
officials set forth in the bill are conditioned upon the county's
passage of the above-described resolution. Under the program, a
participating county would be authorized to defer a claimant's
property taxes retroactively, for the time period since the
suspension of the Senior Citizens and Disabled Citizens Property Tax
Postponement Law property taxes due on or before
February 20, 2010 , and prospectively, as specified ,
unless retroactive deferment would impair a vested right of a private
party .
This bill would authorize require a
claimant, as defined, upon verifying a county's
participation in the program, to apply, within a specified filing
period, to the county to participate to use the
application form of a county to initiate participation
in the program. The bill would require
authorize the county treasurer or county tax collector to
review the claimant's application for program participation, as
specified, and, if the claimant is eligible, and if there are
sufficient funds within the county's Property Tax Deferral Fund,
which this bill would require a participating county to establish
within its treasury, to (1) defer property taxes on the claimant's
residential dwelling for that fiscal year, (2) issue a subvention
payment to that county, in an amount equivalent to the amount of the
deferred property taxes, from the county's Property Tax Deferral
Fund, and (3) direct the county auditor to
apportion that subvention payment in the same manner as if the
property taxes had been paid , and (4) provide a letter or other
written notice to the claimant, noting the relevant fiscal year of
participation, for use as written confirmation of participation
. The bill would authorize the county treasurer of a participating
county, if he or she makes a specified determination, upon the
adoption of a specified resolution by that county's board of
supervisors, to deposit specified funds in the county treasury for
the purpose of investment of those funds in the county's Property Tax
Deferral Fund.
This bill would require the amount of property taxes deferred,
plus any interest accrued thereon, to be secured by a county property
tax lien, as specified. The bill would also require the lien to be
evidenced by a notice of lien, and various county officials to
process and record the notice of lien, as specified. The bill would
require a participating county to charge a claimant a specified
adjusted rate of interest on the amount owed for the deferment of
property taxes. The bill would require the amount secured by the lien
to be increased to reflect the accrual of interest on the property
taxes deferred, or decreased by the amount of any payment made to
reduce the amount secured by the lien, as specified. The bill would
provide procedures for the release of the lien if the obligation is
paid in full or otherwise discharged, and would require all amounts
owed by a claimant under the program to become due immediately under
specified circumstances.
This bill would authorize a participating county to charge an
application fee to the claimant to offset the actual costs of
administering the program, and would require the fee proceeds to be
deposited in an account within the county's Property Tax Deferral
Fund, to be used exclusively for those administration
administrative costs. The bill would
provide if specified other collection actions are unsuccessful, that
costs to foreclose on a residential dwelling for which property taxes
have been deferred under the program would be administrative costs.
The bill would require the letter or other written
confirmation of participation in the program provided by the county
to be considered as evidence of program participation.
The bill would prohibit a lender or other person authorized to
take sale on the real property for which property taxes are deferred
due to the failure to pay property taxes from filing a notice of
default based solely on the failure to pay property taxes if the
borrower provides the lender or other person authorized to take sale
evidence of the borrower's participation in the Senior Citizens and
Disabled Citizens Property Tax Postponement Program during the
2008-09 fiscal year. The bill would require the Controller to provide
written notice to individuals that participated in the program
during 2008, 2009, or the 2008-09 fiscal year for use as written
confirmation of that participation.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3 majority . Appropriation:
no. Fiscal committee: yes no .
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Since 1977, the Senior Citizens and Disabled Citizens Property
Tax Postponement Law has helped eligible elderly and disabled
residents on fixed incomes remain in their homes by deferring payment
of property taxes until the house is sold or ownership otherwise
transferred.
(b) Suspension of the Senior Citizens and Disabled Citizens
Property Tax Postponement Law in February 2009 has exposed
participants to possible default on property taxes in December 2009
and thereafter, and has heightened fears of home foreclosures.
(c) While counties may not force the sale of a home to collect on
delinquent property taxes for five years, no similar delay applies to
lenders that would protect the elderly and disabled who would have
participated in the property tax deferral program established
pursuant to the Senior Citizens and Disabled Citizens Property Tax
Postponement Law had it not been suspended.
SEC. 2. Section 53684 of the Government Code is amended to read:
53684. (a) Unless otherwise provided by law, if the treasurer of
any local agency, or other official responsible for the funds of the
local agency, determines that the local agency has excess funds which
are not required for immediate use, the treasurer or other official
may, upon the adoption of a resolution by the legislative or
governing body of the local agency authorizing the investment of
funds pursuant to this section and with the consent of the county
treasurer, deposit the excess funds in the county treasury for the
purpose of investment by the county treasurer pursuant to Section
53601 or 53635, or Section 20822 of the Revenue and Taxation Code.
(b) The county treasurer shall, at least quarterly, apportion any
interest or other increment derived from the investment of funds
pursuant to this section in an amount proportionate to the average
daily balance of the amounts deposited by the local agency and to the
total average daily balance of deposits in the investment pool. In
apportioning and distributing that interest or increment, the county
treasurer may use the cash method, the accrual method, or any other
method in accordance with generally accepted accounting principles.
Prior to distributing that interest or increment, the county
treasurer may deduct the actual costs incurred by the county in
administering this section in proportion to the average daily balance
of the amounts deposited by the local agency and to the total
average daily balance of deposits in the investment pool.
(c) The county treasurer shall disclose to each local agency that
invests funds pursuant to this section the method of accounting used,
whether cash, accrual, or other, and shall notify each local agency
of any proposed changes in the accounting method at least 30 days
prior to the date on which the proposed changes take effect.
(d) The treasurer or other official responsible for the funds of
the local agency may withdraw the funds of the local agency pursuant
to the procedure specified in Section 27136.
(e) Any moneys deposited in the county treasury for investment
pursuant to this section are not subject to impoundment or seizure by
any county official or agency while the funds are so deposited.
(f) This section is not operative in any county until the board of
supervisors of the county, by majority vote, adopts a resolution
making this section operative in the county.
(g) It is the intent of the Legislature in enacting this section
to provide an alternative procedure to Section 51301 for local
agencies to deposit money in the county treasury for investment
purposes. Nothing in this section shall, therefore, be construed as a
limitation on the authority of a county and a city to contract for
the county treasurer to perform treasury functions for a city
pursuant to Section 51301.
SEC. 3. Part 10.6 (commencing with Section 20800) is added to
Division 2 of the Revenue and Taxation Code, to read:
PART 10.6. COUNTY DEFERRED PROPERTY TAX PROGRAM FOR SENIOR
CITIZENS AND DISABLED CITIZENS
CHAPTER 1. GENERAL PROVISIONS AND DEFINITIONS
20800. This part shall be known and may be cited as the County
Deferred Property Tax Program for Senior Citizens and Disabled
Citizens.
20801. Unless the context requires otherwise, the definitions set
forth in this chapter shall govern the construction of this part.
20802. (a) "Claimant" means an owner of a residential dwelling,
as defined in Section 20808, who applies to a participating county
for deferment of property taxes pursuant to this chapter and meets
all of the following requirements:
(1) Has a household income, as defined in subdivision (a) of
Section 20803, that does not exceed thirty-five thousand five hundred
dollars ($35,500).
(2) Has (A) attained eligibility for full Social Security benefits
as of the last day of the filing period for that fiscal year, or (B)
is blind or disabled, as defined in Section 12050 of the Welfare and
Institutions Code, except in the case of retroactive deferment, as
provided for in Section 20810, the age eligibility shall be 62 years
old.
(3) Has equity of at least 20 percent of the full assessed value
of the residential dwelling, as determined for purposes of ad valorem
property taxation, or at least 20 percent of the fair market value,
as determined by the county assessor or tax collector, sufficient to
protect the county's interest in any residential dwelling after
deferment.
(3) Has equity value of at least 20 percent. For purposes of this
subdivision, "equity value" means the amount by which the fair market
value of residential dwelling exceeds the total amount of any liens
or other obligations against the residential dwelling. A
participating county may require a claimant to provide an appraisal
by a licensed or certified appraiser in support of his or her
application. If an alternate appraisal method is used, a claimant
whose application is denied for insufficient equity, may provide an
appraisal by a licensed or certified appraiser in support of his or
her application for consideration by the county.
(b) Only one claimant per residential dwelling may have property
taxes deferred under this chapter at any one time.
(c) A claimant shall apply to participate in the program in each
year that he or she seeks to defer property taxes under the program.
(d) The claimant may be required to furnish evidence of his or her
ongoing eligibility in order to continue participation in the
(d) The county treasurer, or county tax
collector, may require a claimant to furnish evidence of the
claimant's ongoing eligibility in order to continue participation in
the program in a subsequent year.
(e) If the claimant fails or refuses to furnish any information
requested in writing by the county pursuant to this chapter, or files
a fraudulent claim for deferment under this chapter, any
county obligation the claimant's application to
defer property taxes under this chapter shall be null and void, any
record of a deferment payment on the tax roll shall be canceled, the
tax or assessment shall be a lien as though no payment had been made,
and the amount of the lien shall be increased by any penalties or
interest resultant from property tax delinquency.
20803. (a) "Household income" means all income, as defined in
subdivision (b), received by any member of a household while that
member is or was a member of that household. In the case of
a nonresident claimant, "household income" shall include, but not be
limited to, all income received by the claimant during the calendar
year without regard to source.
(b) "Income" means adjusted gross income, as defined in Section
17072, plus all of the following cash items:
(1) Amounts contributed on behalf of the contributor to a
tax-sheltered retirement plan or deferred compensation plan.
(2) Annual winnings from the California Lottery in excess of six
hundred dollars ($600) in the current calendar year.
(3) Exempt interest received from any source.
(4) Gifts and inheritances in excess of three hundred dollars
($300), other than transfers between members of the household. Gifts
and inheritances shall include noncash items.
(5) Life insurance proceeds to the extent that the proceeds exceed
the expenses incurred for the last illness and funeral of the
deceased spouse of the claimant. "Expenses incurred for the last
illness" shall include unreimbursed expenses paid or incurred during
the income calendar year and any expenses paid or incurred thereafter
up until the day the claim is filed. For purposes of this paragraph,
funeral expenses shall not exceed five thousand dollars ($5,000).
(6) Nontaxable amount of any pensions and annuities.
(7) Nontaxable gain from the sale of a residence, as defined in
Section 121 of the Internal Revenue Code.
(8) Nontaxable military compensation as defined in Section 112 of
the Internal Revenue Code.
(9) Nontaxable scholarship and fellowship grants as defined in
Section 117 of the Internal Revenue Code.
(10) Public assistance and relief.
(11) Railroad retirement benefits.
(12) Sick leave payments.
(13) Social Security benefits (not including Medicare benefits).
(14) Temporary workers' compensation payments.
(15) Unemployment insurance payments.
(16) Veterans' benefits.
(17) If an alternative minimum tax is required to be paid pursuant
to Chapter 2.1 (commencing with Section 17062) of Part 10, the
amount of the alternative minimum taxable income, regardless of
whether or not that amount is held in cash, in excess of the regular
taxable income otherwise applicable.
(c) Net business loss, net rental loss, net capital loss, or other
net losses, amounts deducted for depreciation, or other noncash
expenses shall not be deducted in calculating adjusted gross income
for purposes of this section.
(d) For purposes of this chapter, income shall be determined for
the calendar year that ends within the fiscal year for which
deferment is claimed pursuant to this chapter.
20804. (a) "Owner of a residential dwelling" includes all of the
following:
(1) An individual with an ownership interest of a vendee, who is
in possession of the residential dwelling under a land sale contract,
provided that the contract or memorandum thereof is recorded, and
only from the date of recordation of the contract or memorandum
thereof in the office of the county recorder of a participating
county in which the residential dwelling is located.
(2) An individual with an ownership interest of a holder of a life
estate in the residential dwelling, provided that the instrument
creating the life estate is recorded, and only from the date of
recordation of that instrument in the office of the county recorder
of a participating county in which the residential dwelling is
located.
(3) If the residential dwelling is located within a participating
county, an individual with a joint-tenant or tenant-in-common
ownership interest in the residential dwelling, or the interest of a
tenant where title is held in tenancy by the entirety or as community
property.
(4) An individual with an ownership interest in the residential
dwelling and the title to the residential dwelling, located within a
participating county, is held in trust.
(5) For purposes of this chapter, an individual who is the
registered owner of a mobilehome attached to a permanent foundation
and assessed as real property.
(b) An ownership interest described in subdivision (a) shall be
required to be evidenced by a duly recorded instrument in the office
of the county recorder of a participating county in which the
residential dwelling is located.
20805. "Participating county" means a county that makes an
election described in Section 20810.
20806. "Program" means the County Deferred Property Tax Program
for Senior Citizens and Disabled Citizens.
20807. "Property taxes" means ad valorem property taxes or
special assessments imposed upon a residential dwelling within the
year in which deferment is sought.
20808. (a) (1) "Residential dwelling" means a dwelling, and the
land surrounding that dwelling as is reasonably necessary for the use
of the dwelling as a home, occupied by the claimant as his or her
principal place of residence, and owned by any of the following:
(A) The claimant.
(B) The claimant and the claimant's spouse.
(C) The claimant and his or her parents, children (whether natural
or adopted), or grandchildren of either the claimant or the claimant'
s spouse.
(D) The claimant and the spouse of any parent, child (whether
natural or adopted), or grandchild of either the claimant or the
claimant's spouse.
(E) The claimant and another individual who resides in this state
and is eligible for deferment under this chapter.
(2) "Residential dwelling" shall also include all of the
following:
(A) A condominium that is assessed as real property for local
property tax purposes.
(B) A portion of a multidwelling or multipurpose building and the
portion of land upon which it is built.
(C) A mobilehome that is permanently attached to a permanent
foundation and assessed as real property for local property tax
purposes.
(b) "Residential dwelling" shall not include any of the following:
(1) Any dwelling in which the owner or owners do not have an
equity value of at least 20 percent of the full value of the
dwelling, as determined for property tax purposes, or an equity value
of at least 20 percent of the fair market value of the dwelling, as
determined by the county assessor or tax collector. "Equity value,"
as used in this subdivision, means the amount by which the fair
market value of the dwelling exceeds the total amount of liens or
other obligations against the property, as determined by the county
assessor or tax collector pursuant to his or her review of the
appropriate county records.
(1) Any dwelling in which the claimant does not have an equity
value of 20 percent, as described in paragraph (3) of subdivision (a)
of Section 20802.
(2) Any dwelling in which the claimant's interest is a life estate
or is held pursuant to a contract of sale, unless the claimant
obtains the written consent of the holder of the reversionary
interest subject to the life estate, or the vendor under the contract
of sale, for the claimant to participate in the program with respect
to the dwelling.
(3) Any dwelling for which the claimant does not receive a secured
tax bill.
(4) Any dwelling in which the claimant's interest is held as a
possessory interest, except a life estate as described in paragraph
(2).
(5) Any houseboat or floating home.
CHAPTER 2. DEFERMENT
20810. A county may elect to participate in the County Deferred
Property Tax Program for Senior Citizens and Disabled Citizens by
adopting a resolution indicating the county's intention to
participate in and to administer the program. All requirements of a
county or county officials set forth in this chapter are conditioned
upon the county's adoption of this resolution. Under this program, a
participating county may defer a claimant's property taxes
retroactively, for the time period since the suspension of the Senior
Citizens and Disabled Citizens Property Tax Postponement Law, and
prospectively, as provided in this part, unless retroactive deferment
would impair a vested right of a private party.
property taxes retroactively, for property taxes due on or before
February 20, 2010, and prospectively, as provided in this part.
20811. (a) Upon verifying a county's participation in the
program, a claimant may submit his or her application to participate
in the program to the county, on a form to be created by the county
if it initiates its participation in the program pursuant to Section
20810.
20811. (a) A claimant shall use the application
form of a county to initiate participation in the program pursuant to
Section 20810.
(b) Upon a participating county's receipt of a claim for property
tax deferment under the program, submitted within the filing period
specified in Section 20812, the county treasurer or county tax
collector shall review the claimant's application for program
eligibility, consistent with the requirements specified in Section
20802.
(c) If the claimant is eligible to participate in the program, and
if there are sufficient funds within the county's Property Tax
Deferral Fund, established pursuant to Section 20822, to defer
property taxes on the claimant's residential dwelling for that fiscal
year, the county treasurer or county tax collector, shall
may do all of the following:
(1) Defer the property taxes due on the claimant's residential
dwelling and owing for that fiscal year.
(2) Issue a subvention payment, equivalent to the amount of the
deferred property taxes, from the county's Property Tax Deferral Fund
to the county to be processed in the same manner as all other
property tax payments.
(3) Apportion Direct the county auditor to
apportion that subvention payment in the same manner as the
property taxes had they been paid.
(4) Provide a letter or other written confirmation to the
claimant, noting the relevant fiscal year of participation, for use
as written confirmation of program participation.
(d) If the claimant's property taxes are deferred under the
program, the participating county shall not charge the claimant any
penalties, or undertake any collections actions with respect to taxes
deferred under this chapter.
(e) (1) The amount of property taxes deferred, plus any interest
accrued thereon, shall be secured by a county property tax lien, of
the priority described in Section 2192.1, against the claimant's
residential dwelling for which the property taxes are deferred.
(2) In the case of a residential dwelling that is part of a larger
parcel taxed as a unit, including, but not limited to, a duplex,
farm, or multidwelling or multipurpose building, the lien shall be
against the entire tax parcel.
(f) The lien shall be evidenced by a notice of lien for deferred
property taxes executed by the county, and shall secure all sums
deferred and owing under this chapter, including amounts deferred
subsequent to the initial deferment. The notice of lien shall
include, but not be limited to, all of the following:
(1) The names of all record owners of the real property for which
the county has deferred property taxes under the program.
(2) A description of the real property for which property taxes
have been deferred.
(g) The county recorder shall index the lien according to the
names of each record owner and the county.
20812. (a) The filing period for a claimant to apply to a
participating county for deferment under the program shall be from
October 1 to December 10 of each year.
(b) A participating county may require any information necessary
to process the claimant's application for deferment under the
program, whether through the county's application form or forms or
otherwise.
(c) Any form filed by a claimant under this chapter shall not be
under oath, but shall contain, or be verified by, a written
declaration that the information therein was provided under the
penalty of perjury.
(d) All forms supplied to the claimant shall include a statement
of the interest rate that will apply to the property taxes deferred
under the program.
(e) A county may grant a reasonable extension for filing a claim
if it determines that good cause for the extension exists. However,
no extension shall be granted beyond the termination of the fiscal
year for which deferment is requested.
20813. (a) Upon receipt of a notice of lien for deferred property
taxes from the county treasurer, the county assessor, or county tax
collector, shall immediately do all of the following:
(1) Enter on the notice of lien a description of the real property
for which the taxes have been deferred.
(2) Enter on the notice of lien the names of all record owners of
the real property, as disclosed by the county assessor's records.
(3) Enter on the assessment records applicable to the property,
the fact that the taxes on the property have been deferred.
(b) Upon entry of the information required by subdivision (a), the
county assessor shall immediately forward the notice of lien to the
county recorder, who shall record the notice of lien.
(c) When the record reveals a change in the ownership status of
the real property subsequent to the date of entry of the deferral
information thereon, the county assessor shall notify the county
treasurer or county tax collector, as appropriate, of the change in
the ownership status in the manner prescribed by the county treasurer
or county tax collector.
(d) As of the recordation of the notice of lien pursuant to this
section, the lien for deferred property taxes shall be deemed to
impart constructive notice of the contents thereof to subsequent
purchasers, mortgagees, lessees, and any other lienholders.
20814. (a) A participating county shall reduce the amount secured
by the lien provided for in subdivision (e) of Section 20811 by the
amount of any payment received for that purpose. Payments shall be
applied to the oldest deferral amount in order of lien recordation
date until paid in full.
(b) A participating county shall increase the amount secured by
that lien to reflect the accrual of interest on the property taxes
deferred, or any subsequent deferral of property taxes made with
respect to that residential dwelling pursuant to a claim of that
claimant.
(c) A participating county shall annually adjust the lien as
described in this section.
20815. If at any time the amount of the obligation secured by the
lien for deferred property taxes is paid in full or is otherwise
discharged, the county treasurer or county tax collector shall do all
of the following:
(a) Execute and cause to be recorded by the county recorder a
release of the associated lien conclusively evidencing the
satisfaction of all amounts secured by the lien. The cost of
recording the release of the lien shall be added to, and become part
of the obligation secured by, the lien being released.
(b) Direct the county tax collector, or other appropriate county
official, to remove from the secured roll the information required to
be entered thereon by paragraph (1) of subdivision (a) of Section
2514 with respect to the real property described in the lien.
(c) Direct the county tax collector, or other appropriate county
official, to remove the information required to be entered into the
county assessment records by Section 2515 from the assessment records
applicable to the real property described in the lien.
20816. (a) If property taxes are deferred for a claimant and that
claimant subsequently dies, all amounts owed by that claimant
pursuant to this chapter shall become due as of the end of that
fiscal year, unless another eligible claimant for the same
residential dwelling successfully applies to the county for deferment
pursuant to this chapter for the next fiscal year.
(b) All amounts owed by the claimant pursuant to this chapter
shall become due immediately if any of the following occurs:
(1) The claimant ceases to own the residential dwelling by sale,
conveyance, or condemnation.
(2) The claimant ceases to reside permanently at the residential
dwelling.
(3) The claimant's equity in the residential dwelling falls below
the amount necessary to be eligible to participate in the program, as
provided by paragraph (3) of subdivision (a) of Section 20802 and
subdivision (b) of Section 20808.
(4) The claimant refinances existing loans on the residential
dwelling.
(4) The claimant refinances an exiting mortgage or deed of trust
on the residential dwelling causing his or her equity value in the
residential dwelling to decline by 5 percent or more.
(5) Deferment was granted erroneously because eligibility
requirements were not actually met.
20817. (a) The county treasurer or county tax collector shall
maintain a record of all residential dwellings against which a notice
of lien for deferred property taxes has been recorded pursuant to
this chapter. With respect to each residential dwelling, the record
shall include, but not be limited to, the name of the claimant, a
description of the real property against which the lien is recorded,
the identification number of the notice of lien or book and page
number of the recording, and the amount of the lien.
(b) Information and records of the program not required to be
disclosed shall be maintained in the same manner as described in
Section 408.
CHAPTER 3. FINANCING
20820. A participating county may charge an application fee from
a claimant upon that claimant's submission of an application form to
participate in the program, consistent with Section 54985 of the
Government Code. The application fees derived from all claimants in a
participating county shall be used to offset that county's
costs incurred in administering the program. The county may include
within the application fee any recording fee required pursuant to
Section 27361.3 of the Government Code for the recording of the
release or discharge of the property tax deferral lien, and if the
fee is so included, the amount of that recording fee shall be
transferred to the county recorder, along with the documents
pertaining to release or discharge of the lien, upon the release or
discharge of the lien. The proceeds of the fee shall be
county's costs incurred in administering the program. The
proceeds of the fee shall be deposited in an account within the
Property Tax Deferral Fund, established by Section 20822, to be used
exclusively to pay those administration costs.
20821. (a) A participating county shall charge claimants
an adjusted rate of interest on the amount property taxes deferred
pursuant to this chapter. The adjusted rate
of interest per annum shall be 7 percent, or the
interest on the amount of property taxes deferred
pursuant to this part. The effective annual interest rate shall be 7
percent, or the effective annual yield earned in the prior
fiscal year by the Pooled Money Investment Account plus 2 percent,
whichever is higher, rounded to the nearest full percent.
(b) The interest rate provided for by subdivision (a) shall be
applied as of the first day of the month in which a deferment payment
is made pursuant to this chapter and every day of the month
thereafter until the lien is discharged. In the event that any
payment is applied, in any month, to reduce the amount owed under the
lien, the interest rate shall be applied to the balance of the
amount owed beginning on the first day of the following month.
(c) In computing interest in accordance with this section,
fractions of a cent shall be disregarded.
(d) The interest rate shall be applicable solely to the amount of
property taxes deferred, and shall not be compounded.
20822. (a) Each
participating county shall establish a Property Tax Deferral Fund
within its treasury. Expenditures from this fund shall be for the
sole purposes of making property tax deferment subvention payments
pursuant to subdivision (c) of Section 20811 and offsetting the
county's administrative costs, as described in Section 20820.
(b) If deferred property taxes cannot be collected through
collection actions taken pursuant to Section 20816, costs to
foreclose on a residential dwelling for which property taxes have
been deferred, but not repaid, under this chapter shall be
administrative costs, payable from the account described in Section
20820.
20823. (a) The deferment of property taxes pursuant to this
chapter shall not affect the obligation of a borrower to continue to
make payments to a lender with respect to an impound account, trust,
or other type of account described in Section 2954 of the Civil Code
which was established prior to the effective date of the act that
added this section.
(b) (1) No lender shall require a borrower to maintain an impound,
trust, or other similar type of account with regard to property
taxes once the borrower has deferred these taxes pursuant to this
chapter and has first submitted submits
to the lender evidence of tax deferment under this part, except in
the following circumstances:
(A) Federal law, regulation, rule, or program requires the
borrower to maintain an impound, trust, or other similar type of
account with regard to property taxes, notwithstanding Sections
7153.2 and 7153.8 of the Financial Code.
(B) The borrower is required to make payment to a lender using the
type of account described in Section 2954 of the Civil Code for a
loan that is made, guaranteed, or insured by a federal government
lending or insuring agency.
(C) The prohibition would impair the express obligations of a loan
agreement.
(2) If not previously used in payment or partial payment of
property taxes, any payment made by a borrower to an impound, trust,
or other similar type of account prior to the time of submission of
evidence of tax deferment pursuant to this part shall be refunded to
the borrower within 30 days thereafter.
(c) No lender or other person authorized to take sale on real
property shall file a notice of default based solely on a borrower's
failure to pay property taxes if the borrower provides evidence of
participation in the property tax deferment program established
pursuant to this part. A borrower who is a claimant shall provide
evidence of participation to each lender upon a participating county'
s approval of the claimant's application to participate in the
program.
(d) (1) A mortgagee, trustee, or other person authorized to take
sale on real property due to the mortgagor's or trustor's failure to
pay property taxes shall not file a notice of default for five years
following the initial authorization to take sale if the mortgagor or
trustor provides evidence of participation in the property tax
deferral program established pursuant to this chapter.
(2) Notwithstanding subdivision (b), no lender shall require a
borrower to maintain an impound, trust, or other type of account with
regard to taxes if the borrower provides evidence of participation
in the property tax deferral program established pursuant to this
chapter. A lender shall not file a notice of default based solely on
a mortgagor's failure to pay property taxes, until at least five
years have elapsed from the date on which the property taxes became
delinquent, if the mortgagor or trustor provided the mortgagee,
trustee, or other person authorized to take sale, evidence of his or
her participation in the Senior Citizens and Disabled Citizens
Property Tax Postponement Program during the 2008-09 fiscal year.
(3) Written confirmation from the Controller identifying the
individual as a participant in the Senior Citizens and Disabled
Citizens Property Tax Postponement Program during the 2008-09 fiscal
year shall be considered evidence of participation for purposes of
this section. The Controller shall provide written notice to
individuals that participated in the program during 2008, 2009, or
the 2008-09 fiscal year for use as written confirmation of
participation.
(d) A letter or other written confirmation from the county
identifying an individual as a participant in the program, provided
pursuant to paragraph (4) of subdivision (c) of Section 20811, shall
be considered as evidence of participation for purposes of this
section.
20824. If the department deferment
claim is filed timely, then any delinquent penalties and interest for
that fiscal year shall be canceled unless the failure to perfect the
claim was due to willful neglect on the part of the claimant or his
or her representative. In the event of such willful neglect, any
property tax deferment subvention payment may be used only if it is
accompanied by sufficient amounts to pay the delinquent interest and
penalties.
20825. If a property tax deferment repayment is made to satisfy
an obligation secured by a lien for property tax deferment, and the
repayment exceeds the amount owed to the participating county under
the lien, the county shall refund the overpayment to the party
entitled thereto.
SEC. 4. This act is an urgency statute
necessary for the immediate preservation of the public peace, health,
or safety within the meaning of Article IV of the Constitution and
shall go into immediate effect. The facts constituting the necessity
are:
In order to provide property tax deferment to seniors and disabled
citizens in urgent need of assistance, it is necessary that this act
take immediate effect.