(1) Existing law requires a mortgage servicer to comply with applicable federal guidance regarding borrower options following a forbearance relating to the COVID-19 emergency.
This bill would authorize a borrower who is experiencing financial hardship that prevents the borrower from making timely payments on a specified residential mortgage loan due directly to the elevated temperature landfill event that occurred beneath the Chiquita Canyon Landfill in the County of Los Angeles (landfill event) , to request forbearance on their residential mortgage loan, as prescribed. The bill would require the borrower to certify under penalty of perjury that they are experiencing a financial hardship due to the landfill event. By expanding the crime of perjury, this bill would impose a state-mandated local program. The bill would require the Department of Financial Protection and Innovation to post specified information on its internet website.
The bill would, except as specified, require a mortgage servicer to offer mortgage payment forbearance of a period of up to an initial 90 days, subject to extension at the request of the borrower in 90-day increments. Among other things, during the time of forbearance granted under the bill's provisions, the bill would prohibit a mortgage servicer from initiating any judicial or nonjudicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale if the borrower is performing pursuant to the terms of the forbearance.
(2) Pursuant to constitutional authorization, existing property tax law authorizes the board of supervisors of a county, by ordinance, to provide that every assessee of any taxable property, or any person liable for the taxes thereon, whose property was damaged or destroyed without their fault, may apply for reassessment of that property, as provided.
This bill would authorize the board of supervisors, by ordinance, to provide that every assessee of any real property located within 5 miles of the landfill event, or any person liable for the taxes thereon, to apply for reassessment of that property, as provided. The bill would require an application for reassessment under those provisions to be executed under penalty of perjury, or if executed outside of the State of California, verified by affidavit. By expanding the crime of perjury, this bill would impose a state-mandated local program.
(3) Existing property tax law imposes various penalties, costs, and interests upon taxpayers that pay their property taxes after specified delinquency dates.
This bill would suspend the above-described penalties, costs, and interests, as applicable, and would prohibit their collection until April 10, 2030, for property located in a certain area in the County of Los Angeles, unless either the taxes on the property were delinquent as of April 1, 2025, or the taxes on the property are paid through an impound account. By imposing additional duties on local tax officials, this bill would impose a state-mandated local program.
Existing property tax law authorizes any person to elect to pay delinquent taxes in installments (installment redemption plan) by a certain date before the tax collector obtains the power to sell the property in order to redeem certain tax-defaulted property. Existing property tax law prohibits restarting installment payments if those payments are started under these provisions and the amount required to be paid in any fiscal year is not paid as required (default) .
This bill would prohibit an installment redemption plan, for which all payments due on or before January 7, 2025, have been timely made, from being considered in default until April 10, 2030, for property located in a certain area in the County of Los Angeles. By imposing additional duties on local tax officials, this bill would impose a state-mandated local program.
Existing property tax law authorizes, for taxes due on escape assessments for prior fiscal years, those taxes to be paid over a four-year period (installment plan) at the option of the assessee if the additional tax is over $500 and a written request for installment payment is filed by the assessee with the tax collector by a certain time.
This bill would suspend the taxes due on a property making payments pursuant to an installment plan as described above, would prohibit their collection, and would prohibit the taxes from being considered delinquent, all until April 10, 2030, for property located in a certain area in the County of Los Angeles, provided that, on or before April 1, 2025, all payments required by the plan were timely made. By imposing additional duties on local tax officials, this bill would impose a state-mandated local program.
Existing property tax law requires each person owning taxable personal property, other than a manufactured home, having an aggregate cost of $100,000 or more for any assessment year to file annually a signed property statement, declared to be true under the penalty of perjury, with the assessor. If a person fails to file that annual statement, existing property tax law requires a penalty of 10 percent of the assessed value of the unreported taxable tangible property of that person placed on the current roll to be added to the assessment made on the current roll.
This bill would suspend that penalty until April 10, 2030, and prohibit it from being imposed if the person files a statement on or before April 10, 2030, and if the property is located in a certain area in the County of Los Angeles. By imposing additional duties on local tax officials, this bill would impose a state-mandated local program.
(4) This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.
(5) 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 with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Statutes affected:
AB 985: 680 BPC
02/20/25 - Introduced: 680 BPC
03/24/25 - Amended Assembly: 680 BPC
06/23/25 - Amended Senate: 75.52 RTC, 75.52 RTC, 463 RTC, 463 RTC, 2610.5 RTC, 2610.5 RTC, 2617 RTC, 2617 RTC, 2618 RTC, 2618 RTC, 2704 RTC, 2704 RTC, 2705 RTC, 2705 RTC, 2922 RTC, 2922 RTC, 4103 RTC, 4103 RTC, 4217 RTC, 4217 RTC, 4837.5 RTC, 4837.5 RTC