AB 528

Bill Subjects

Abstract

Existing law generally authorizes a county tax collector to sell tax-defaulted property 5 or more years after the real property has become tax defaulted. Existing law authorizes a nonprofit organization to purchase residential or vacant property, with the approval of the board of supervisors of the county in which it is located, that has been tax defaulted for 5 years or more, or 3 years or more after the property has become tax defaulted and is subject to a nuisance abatement lien, as long as the property is used for low-income housing or public use, as specified. Existing law defines "nonprofit organization" as a nonprofit public benefit corporation organized for the purpose of the acquisition of either single-family or multifamily dwellings for rehabilitation and sale or rent to low-income persons or for other use to serve low-income persons, or vacant land for construction of residential dwellings and subsequent sale or rent to low-income persons, for other use to serve low-income persons, or for dedication of that vacant land to public use. This bill, among other things, would revise the definition of nonprofit organization to also require that the nonprofit organization (1) own or manage housing units located on property that is exempt from taxation, as specified, (2) contract with a nonprofit corporation that has received a tax exemption for properties intended to be sold to low-income families with financing in the form of zero interest rate loans, (3) is a community housing development organization, or (4) is a community land trust. This bill would require the tax collector to document each step in the tax sale process and provide a file of those documents to the nonprofit organization or public agency that purchases the property at the time of the sale. The bill would require the nonprofit organization to indicate via a checklist to be developed by the tax collector that to the best of their knowledge that the property is free and clear of any issues that may cloud transfer of title. The bill would require tax collectors to provide their lists of tax-defaulted properties eligible for tax sale to the Controller, and the Controller would be required to maintain an up-to-date list of all upcoming tax sales in the state on its internet website. The bill would also require tax collectors, at any time after the property has become tax defaulted, but before it is eligible for tax auction, to provide certain nonprofit organizations with a nonpublic list of tax-defaulted properties at their request. Existing law requires that whenever the county or the state is the purchaser of a tax-defaulted property that the price be agreed upon between the county board of supervisors, the Controller, and the governing body of any city in which that property is located, and that the price be paid to the county tax collector for distribution. This bill would require that whenever a nonprofit organization is the purchaser, the price is zero if the state reimburses the tax collector for the minimum bid price and all costs associated with the transaction. The bill would authorize a county, after a property becomes eligible for tax sale, to lower the purchase price to an amount below the minimum bid price for public agencies and nonprofit organizations. Existing law requires that the county board of supervisors approve certain tax-defaulted property sales and that the Controller approve the agreement. This bill would require that the county board of supervisors make the decision to approve or disapprove a sale within 90 calendar days of receiving a request for approval and that the Controller make the determination of approval or rejection of the agreement within one calendar month of receipt of the agreement. The bill would also require the Controller, on or before January 30, 2023, to develop a standardized set of best practices for the sale of tax delinquent properties to nonprofit organizations with input from all relevant stakeholders. The bill would require tax collectors to formally adopt those practices on or before December 31, 2024. Because this bill would add to the duties of county tax collectors, the bill would impose a state-mandated local program. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.