Existing law requires the county assessor to consider, when valuing real property for property taxation purposes, the effect of any enforceable restrictions to which the use of the land may be subjected. Under existing law, these restrictions include, among other enumerated items, a recorded contract with a nonprofit corporation that meets prescribed requirements, including requirements that the nonprofit corporation has received a welfare exemption for properties intended to be sold to low-income families who participate in a special no-interest loan program, and that the contract includes a deed of trust on the property in favor of the nonprofit corporation to ensure compliance with the terms of the program, as described.
This bill would, for purposes of valuing property by the county assessor, establish a rebuttable presumption that, at the time of purchase, an assessor shall not include the value of the above-described deed of trust. By changing the manner in which county assessors assess property for property taxation purposes, this bill would impose a state-mandated local program.
The bill would also make a technical, nonsubstantive change to those provisions.
This bill would incorporate additional changes to Section 402.1 of the Revenue and Taxation Code proposed by AB 2897 to be operative only if this bill and AB 2897 are enacted and this bill is enacted last.
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.

Statutes affected:
AB1868: 402.1 RTC, 402.1 RTC
01/18/24 - Introduced: 402.1 RTC
04/18/24 - Amended Assembly: 402.1 RTC
06/13/24 - Amended Senate: 402.1 RTC
08/22/24 - Amended Senate: 402.1 RTC, 402.1 RTC, 402.1 RTC
09/03/24 - Enrolled: 402.1 RTC, 402.1 RTC
09/25/24 - Chaptered: 402.1 RTC, 402.1 RTC
AB 1868: 402.1 RTC