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<ns0:Id>20250SB__104198AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-11</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2026-03-19</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:MeasureNum>1041</ns0:MeasureNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Arreguín</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Arreguín</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title> An act to amend Section 5899.4 of, and to amend and repeal sections 5898.16, 5898.17, 5902, 5913, and 5954 of, the Streets and Highways Code, relating to local government.</ns0:Title>
<ns0:RelatingClause>local government</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Voluntary contractual assessments: wildfire safety improvements.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>Existing law authorizes a public agency to establish a contractual assessment program, under which public agency officials and individual property owners may enter into voluntary contractual assessments to finance certain improvements to real property, as specified. To finance those improvements, existing law authorizes a public agency to issue bonds, or to advance its own funds and later sell bonds to reimburse itself for those advances. Under the program, those bonds or advances would be repaid through the voluntary contractual assessments, which constitute a lien against the lots and parcels land, as specified. To establish a contractual assessment program, existing law requires the legislative body of the public agency to adopt a resolution that, among other things, provides certain details of the
program, including the kinds of projects and the geographic area within which properties would be eligible for financing under the program.</html:p>
<html:p>Existing law authorizes a public agency to establish a contractual assessment program to finance certain kinds of improvements that are attached to real property, including energy or water efficiency improvements. This contractual assessment program is commonly known as a Property Assessed Clean Energy (PACE) program. The California Financing Law requires the Commissioner of Financial Protection and Innovation to license and regulate persons who administer a contractual assessment program on behalf of a public agency, as specified.</html:p>
<html:p>Existing law, the Wildfire Safety Finance Act (act), authorizes the legislative body of any public agency that has accepted the designation of Very High Fire Hazard Severity Zone to create a voluntary contractual assessment program to finance wildfire safety
improvements, as specified. The act defines “wildfire safety improvements” as, among other things, permanent wildfire resilience and safety improvements fixed to existing real property. The act prohibits a wildfire safety improvement financed under the act from being used as a part of a project to construct a new home or to rebuild or reconstruct a home that was destroyed or damaged in a fire. Existing law repeals the Wildfire Safety Finance Act on January 1, 2029.</html:p>
<html:p>This bill would indefinitely extend the operation of certain provisions of the Wildfire Safety Finance Act and would revise the requirements on a legislative body of a public agency to establish a voluntary contractual assessment program under the act. In this regard, the bill would eliminate the requirements that the legislative body accept a designation of Very High Fire Hazard Severity Zone and adopt a resolution establishing the program. The bill would instead authorize any public agency that has
established a PACE program or established a special tax relating to a specified community facilities district to enter into voluntary contractual assessments with property owners to finance the installation of wildfire safety improvements, as defined.</html:p>
<html:p>The bill would modify the projects eligible for financing under the act to, among other things, include wildfire safety improvements in connection with the rebuilding or reconstruction of property that are in addition to or an improvement to the property as it existed immediately before it was destroyed or damaged by fire, as specified. The bill would also include improvements that contribute to the defensible space Zones 1 and 2 of a property, which includes the space between 0 and 100 feet from each side and from the front and rear of the structures that can be fixed to a building or structure, as specified.</html:p>
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<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_3F5BEAC8-4BC1-47CE-9059-533197253B1A">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 5898.16 of the
<ns0:DocName>Streets and Highways Code</ns0:DocName>
, as
amended by Section 11 of Chapter 158 of the Statutes of 2020, is amended to read:
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<ns0:LawSection id="id_F6664927-D07A-46D1-9102-7A059B999E1A">
<ns0:Num>5898.16.</ns0:Num>
<ns0:LawSectionVersion id="id_EB57AA09-CC76-4667-B1BE-C37ACEA27882">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A public agency shall not permit a property owner to participate in any program established pursuant to this chapter for the purposes specified in paragraph (2) of subdivision (a) of Section 5898.20 or Section 5899, 5899.3, or 5899.4 if any of the following apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The property owner’s participation would result in the total amount of the annual property taxes and assessments exceeding 5 percent of the property’s market value, as determined at the time of approval of the property owner’s contractual assessment.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The property does not comply with the conditions specified in paragraphs (1) to (5), inclusive, and paragraph (8), and, in addition, for properties with energy efficiency
improvements specified under Section 5898.20 of this code and paragraph (7) of subdivision (a) of Section 26063 of the Public Resources Code.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A public agency shall not permit the property owner to participate in any program established pursuant to this chapter for the purposes specified in paragraph (2) of subdivision (a) of Section 5898.20 or Section 5899, 5899.3, or 5899.4 unless the property owner is given the right to cancel the contractual assessment without penalty or obligation, consistent with the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The property owner shall receive the right to cancel document set forth below or a substantially similar document that displays the same information in a substantially similar format. The document shall be provided to the property owner as a printed copy unless the property owner agrees to an electronic copy.
</html:p>
<html:table align="center" border="0" frame="void" id="id_6F32E9C2-E68A-4702-B2F0-35E66F463DCE" rules="none" width="416">
<html:tbody>
<html:tr>
<html:td colspan="2" width="635">
<html:p class="Center10Point">
<html:b>Right to Cancel</html:b>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="635"/>
</html:tr>
<html:tr>
<html:td colspan="2" width="635">
Property Owner:
<ns0:LabelledField>
<html:span class="EnSpace"/>
[Owner Full Name],
<html:span class="EmSpace"/>
[Phone],
<html:span class="EmSpace"/>
[Email]
<html:span class="EnSpace"/>
</ns0:LabelledField>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="635">
Property Address:
<ns0:LabelledField>
<html:span class="EnSpace"/>
[Property Address]
<html:span class="EnSpace"/>
</ns0:LabelledField>
<html:br/>
<html:br/>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="635">
Your Right to Cancel:
<html:br/>
<html:br/>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="635">
<html:p class="Left10Point">
You are entering into a contractual assessment with
<ns0:LabelledField>[Provider]</ns0:LabelledField>
for financing that will result in a lien on the property at
<ns0:LabelledField>[Property
Address]</ns0:LabelledField>
. You may cancel this transaction, without cost, on or before midnight on the third business day after whichever of the following events occurs last:
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
(1)
<html:span class="EnSpace"/>
The date on which you signed the contractual assessment.
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
(2)
<html:span class="EnSpace"/>
The date you received your Financing Estimate and Disclosure.
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
(3)
<html:span class="EnSpace"/>
The date you received this notice of your right to cancel.
</html:p>
<html:p class="Left10Point"/>
<html:p class="Left10Point">
If you cancel the transaction,
<ns0:LabelledField>[Provider]</ns0:LabelledField>
, within 20 calendar days after
<ns0:LabelledField>[Provider]</ns0:LabelledField>
receives notice of cancellation, must take the steps necessary to reflect the fact that, if recorded, the lien on your property has been discharged and removed from the tax rolls, and
<ns0:LabelledField>[Provider]</ns0:LabelledField>
must return to you any money you have given in connection with your application, not including the application processing fee. After
<ns0:LabelledField>[Provider]</ns0:LabelledField>
has done the things mentioned above, you must return any money paid to you or on your behalf, whether to your contractor or any other person. All money must be returned to the address below.
</html:p>
<html:br/>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="635">
<html:br/>
If you cancel the transaction:
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="635">
●
<html:span class="EmSpace"/>
You will not be charged a cancellation fee; and
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="635">
●
<html:span class="EmSpace"/>
You will be refunded any money you have given, excluding application and processing fees as applicable.
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="635"/>
</html:tr>
<html:tr>
<html:td colspan="2" width="635">
To cancel this transaction, you may submit this form to
<ns0:LabelledField>[Provider]</ns0:LabelledField>
in writing at:
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="635">
Provider:
<html:span class="EmSpace"/>
__________
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="635">
Attn:
<html:span class="EmSpace"/>
Right to Cancel Notification
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="635">
Email:
<html:span class="EmSpace"/>
__________
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="635">
Fax number:
<html:span class="EmSpace"/>
__________
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="635">
Address:
<html:span class="EmSpace"/>
__________
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="635"/>
</html:tr>
<html:tr>
<html:td colspan="2" width="635">
<html:p class="Left10Point">Deadline to Cancel:</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="635"/>
</html:tr>
<html:tr>
<html:td colspan="2" width="635">
<html:p class="Left10Point">If you want to cancel this transaction, you must submit this form on or before midnight on the third business day after whichever of the following events occurs last:</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
(1)
<html:span class="EnSpace"/>
The date on which you signed the contractual assessment.
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
(2)
<html:span class="EnSpace"/>
The
date you received your Financing Estimate and Disclosure.
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
(3)
<html:span class="EnSpace"/>
The date you received this notice of your right to cancel.
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="635"/>
</html:tr>
<html:tr>
<html:td colspan="2" width="635">
You may use any written statement that is signed and dated by you and states your intention to cancel, or you may use this notice by dating and signing below. If you cancel by mail, fax, or email, you must send the notice no later than midnight of the third business day following the date on which you signed the contractual assessment. If you send or deliver your written notice to cancel some other way, it must be delivered to the above address no later than midnight on the third business day after whichever of the following events occurs last:
<html:p class="Left10Point">
<html:span class="EmSpace"/>
(1)
<html:span class="EnSpace"/>
The date on which you signed the contractual assessment.
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
(2)
<html:span class="EnSpace"/>
The date you received your Financing Estimate and Disclosure.
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
(3)
<html:span class="EnSpace"/>
The date you received this notice of your right to cancel.
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="635"/>
</html:tr>
<html:tr>
<html:td colspan="2" width="635">
<html:p class="Left10Point"/>
<html:p class="Left10Point">I WISH TO CANCEL</html:p>
<html:p class="Left10Point"/>
</html:td>
</html:tr>
<html:tr>
<html:td height="138" width="422">
<html:p class="Left10Point">
<ns0:LabelledField>
Property Owner
<html:span class="EnSpace"/>
<html:span class="EnSpace"/>
</ns0:LabelledField>
</html:p>
<html:p class="Left10Point"/>
</html:td>
<html:td height="138" width="211">
<html:p class="Left10Point">
<ns0:LabelledField>
Date
<html:span class="EmSpace"/>
</ns0:LabelledField>
</html:p>
<html:p class="Left10Point"/>
</html:td>
</html:tr>
</html:tbody>
</html:table>
<html:p>
(B)
<html:span class="EnSpace"/>
References to “third” in the notice to cancel document set forth in subparagraph (A) shall be changed to
“fifth” for a property owner who is a senior citizen.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The five-day right to cancel added by the act that added subparagraph (B) to this paragraph shall apply to a contractual assessment entered into on or after January 1, 2021.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The property owner is deemed to have given notice of cancellation at the moment that the property owner sends the notice by mail, email, or fax or at the moment that the property owner otherwise delivers the notice, as applicable.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
This section only applies to a property owner who seeks to participate in a program established pursuant to this chapter for the purposes specified in paragraph (2) of subdivision (a) of Section 5898.20 or Section 5899, 5899.3, or 5899.4 for a residential property with four or fewer units.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For the purposes of this section, the following definitions apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Property owner” shall include all owners of record.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Senior citizen” means an individual who is 65 years of age or older.
</html:p>
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 5898.16 of the
<ns0:DocName>Streets and Highways Code</ns0:DocName>
, as
amended by Section 12 of Chapter 158 of the Statutes of 2020, is repealed.
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 5898.17 of the
<ns0:DocName>Streets and Highways Code</ns0:DocName>
, as amended by Section 13.5 of Chapter 158 of the Statutes of
2020, is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_75414E7D-F848-478E-A314-B5A573FB987B">
<ns0:Num>5898.17.</ns0:Num>
<ns0:LawSectionVersion id="id_0D5EB42A-E446-4416-A1AC-048478C746F2">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The disclosure set forth below, or a substantially equivalent document that displays the same information in a substantially similar format, shall be completed and delivered to a property owner before the property owner consummates a voluntary contractual assessment described in this chapter for purposes specified in paragraph (2) of subdivision (a) of Section 5898.20 or Section 5899, 5899.3, or 5899.4, or a special tax described in Section 53328.1 of the Government Code. The disclosure shall be provided to the property owner as a printed paper copy in no smaller than 12-point type, unless the property owner opts out of receiving a printed paper copy in writing by signing a printed paper document. A property owner who opts out of receiving a printed paper copy of the disclosure shall be provided with an electronic copy
in accordance with the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code). A sample of the disclosure set forth below shall be maintained on a public internet website available to property owners.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
This section only applies to disclosure to a property owner who seeks to participate in a program established pursuant to this chapter for the purposes specified in paragraph (2) of subdivision (a) of Section 5898.20 or Section 5899, 5899.3, or 5899.4 for a residential property with four or fewer units.
</html:p>
<html:table align="center" id="id_A60B1F88-A15B-4128-8841-2E85258C54E1">
<html:tbody>
<html:tr>
<html:td align="center" colspan="3" width="1530">
<html:p class="Centered">Financing Estimate and Disclosure</html:p>
<html:p class="Left10Point"/>
</html:td>
</html:tr>
<html:tr>
<html:td align="left" colspan="3" width="1530">
<html:p>Notice to Property
Owner: Existing law requires that a printer paper copy of this document be provided to you before reviewing and signing, unless you opt out, in writing, to that printed copy by signing a printed paper document. If you opt out of receiving a printed paper copy of this disclosure, an electronic copy will be provided to you. The financing arrangement described below will result in an assessment against your property which will be collected along with your property taxes and will result in a lien on your property. You should read and review the terms carefully, and if necessary, consult with a tax professional or attorney.</html:p>
<html:br/>
</html:td>
</html:tr>
<html:tr>
<html:td align="left" colspan="3" width="1530"/>
</html:tr>
<html:tr>
<html:td align="left" colspan="3" width="1530">
<html:p>
<html:b>
<html:u>Customer Service Toll-Free telephone number and email:</html:u>
</html:b>
</html:p>
<html:p class="Left10Point">In the event you have a consumer complaint, questions about your financing obligations related to the contractual assessment or your contractual rights under the terms of this
contract, you can contact either this toll-free telephone number or email address provided below and receive a response within 24 hours or one business day.</html:p>
<html:p class="Left10Point"/>
<html:p class="Left10Point">Toll-Free telephone number: ___________</html:p>
<html:p class="Left10Point">Customer service email address: ___________</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="3" width="1530">
<html:br/>
<html:p class="Left10Point">
<html:u>
<html:b>Products and Costs</html:b>
</html:u>
</html:p>
<html:br/>
</html:td>
</html:tr>
<html:tr>
<html:td width="559">
<html:p class="Left10Point">Product costs (including</html:p>
<html:p class="Left10Point">labor/installation)</html:p>
</html:td>
<html:td colspan="2" valign="bottom" width="969">
<html:p class="Left10Point">
<html:span class="EmSpace"/>
$________
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td width="559">
<html:p class="Left10Point"/>
<html:p class="Left10Point">
<html:u>Description</html:u>
</html:p>
<html:p class="Left10Point">1.</html:p>
<html:p class="Left10Point">2.</html:p>
<html:p class="Left10Point">3.</html:p>
</html:td>
<html:td colspan="2" valign="top" width="969"/>
</html:tr>
<html:tr>
<html:td colspan="3" width="1530">
<html:br/>
<html:p class="Left10Point">
<html:u>
<html:b>Financing Costs</html:b>
</html:u>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td width="559">
<html:p class="Left10Point">Application fees and costs</html:p>
<html:p class="Left10Point">Prepaid Interest</html:p>
<html:p class="Left10Point">Other Costs</html:p>
<html:p class="Left10Point">Total Amount Financed</html:p>
<html:p class="Left10Point"/>
</html:td>
<html:td colspan="2" valign="top" width="969">
<html:p class="Left10Point"/>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
$________
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
$________
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
$________
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
$________
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" valign="top" width="887"/>
<html:td valign="top" width="899"/>
</html:tr>
<html:tr>
<html:td colspan="2" valign="top" width="887">
<html:p class="Left10Point">
<html:u>
<html:b>Annual Percentage Rate (APR)</html:b>
</html:u>
</html:p>
<html:p class="Left10Point"/>
<html:p class="Left10Point">Simple Interest Rate</html:p>
<html:p class="Left10Point"/>
<html:p class="Left10Point">Total Annual Principal, Interest, and</html:p>
<html:p class="Left10Point">Administrative Fees</html:p>
</html:td>
<html:td valign="top" width="899">
<html:p class="Left10Point"/>
<html:p class="Left10Point"/>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EnSpace"/>
______%
</html:p>
<html:p class="Left10Point"/>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EnSpace"/>
______%
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
$______
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="3" valign="bottom" width="1530"/>
</html:tr>
<html:tr>
<html:td colspan="3" valign="bottom" width="1530">
<html:p class="Left10Point">Note: If your property taxes are paid through an impound account, your mortgage lender may apportion the amount and add it to your monthly payment.</html:p>
<html:p class="Left10Point"/>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="3" valign="bottom" width="1530">
<html:p class="Left10Point">See “Other Important Considerations” below</html:p>
<html:p class="Left10Point"/>
</html:td>
</html:tr>
<html:tr>
<html:td valign="bottom" width="559">
<html:p class="Left10Point">
<html:u>Total Amount you will have paid over the life of the financing</html:u>
</html:p>
</html:td>
<html:td colspan="2" valign="bottom" width="969">
<html:p class="Left10Point"/>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
$________
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td valign="bottom" width="559"/>
<html:td colspan="2" valign="bottom" width="969"/>
</html:tr>
<html:tr>
<html:td valign="bottom" width="559">
<html:p class="Left10Point">
<html:u>
<html:b>Other Costs</html:b>
</html:u>
</html:p>
<html:p class="Left10Point">Appraisal Fees</html:p>
<html:p class="Left10Point">Bond related costs</html:p>
<html:p class="Left10Point">Annual Administrative fees</html:p>
<html:p class="Left10Point">Estimated closing costs</html:p>
<html:p class="Left10Point">Credit Reporting Fees</html:p>
<html:p class="Left10Point">Recording Fees</html:p>
</html:td>
<html:td colspan="2" valign="bottom" width="969">
<html:p class="Left10Point"/>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
$________
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
$________
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
$________
</html:p>
<html:p class="Left10Point"/>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
$________
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
$________
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
$________
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td valign="bottom" width="559">
<html:br/>
<html:p class="Left10Point">
<html:u>
<html:b>Total Financing Costs and Closing Costs</html:b>
</html:u>
</html:p>
<html:p class="Left10Point"/>
</html:td>
<html:td colspan="2" valign="bottom" width="969">
<html:br/>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
$________
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td width="559">
<html:p class="Left10Point">Estimated Cash (out of pocket) to close</html:p>
<html:p class="Left10Point">
<html:span class="EnSpace"/>
</html:p>
</html:td>
<html:td colspan="2" width="969">
<html:p class="Left10Point">
<html:span class="EnSpace"/>
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
$________
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td width="559">
<html:br/>
<html:p class="Left10Point">
<html:u>
<html:b>Other Terms</html:b>
</html:u>
</html:p>
<html:p class="Left10Point">Prepayment fee</html:p>
<html:p class="Left10Point"/>
</html:td>
<html:td valign="bottom" width="326">
<html:br/>
<html:p class="Normal">
◻
<html:span class="EnSpace"/>
No
</html:p>
</html:td>
<html:td valign="bottom" width="470">
<html:br/>
<html:p class="Left10Point">
◻
<html:span class="EnSpace"/>
Yes ______
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="3" width="1530">
<html:br/>
<html:p class="Left10Point">
<html:u>
<html:b>Additional Information About These Financing</html:b>
</html:u>
</html:p>
<html:p class="Left10Point">
<html:u>
<html:b>Comparisons</html:b>
</html:u>
<html:span class="EmSpace"/>
[Use this information to compare to other financing options]
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="3" width="1530"/>
</html:tr>
<html:tr>
<html:td width="559">
<html:p class="Left10Point">
<html:span class="DashedLeaders"/>
</html:p>
</html:td>
<html:td width="326"/>
<html:td width="649"/>
</html:tr>
<html:tr>
<html:td width="559">
<html:p class="Left10Point"/>
<html:p class="Left10Point"/>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
Over the term of the financing
</html:p>
<html:p class="Left10Point"/>
<html:p class="Left10Point"/>
</html:td>
<html:td colspan="2" width="969">
<html:p class="Left10Point">
<html:span class="EmSpace"/>
$________ Principal you will have paid off.
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
$________ Amount of interest you have paid.
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
$________ Amount of financing and other costs
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
you will have paid.
</html:p>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
$________ Total you will have paid.
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td width="559">
<html:p class="Left10Point">
<html:span class="DashedLeaders"/>
</html:p>
</html:td>
<html:td width="326"/>
<html:td width="649"/>
</html:tr>
<html:tr>
<html:td width="559">
<html:p class="Left10Point"/>
<html:p class="Left10Point">Annual Percentage Rate</html:p>
<html:p class="Left10Point"/>
</html:td>
<html:td width="326">
<html:p class="Left10Point"/>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
______%
</html:p>
<html:p class="Left10Point"/>
</html:td>
<html:td width="649"/>
</html:tr>
<html:tr>
<html:td colspan="2" width="887">
<html:p class="Left10Point">
<html:span class="DashedLeaders"/>
</html:p>
</html:td>
<html:td width="649"/>
</html:tr>
<html:tr>
<html:td width="559"/>
<html:td width="326"/>
<html:td width="649"/>
</html:tr>
<html:tr>
<html:td colspan="2" width="887">
<html:p class="Left10Point"/>
<html:p class="Left10Point">Total Interest Paid (as a percentage of all the payments you have made)</html:p>
<html:p class="Left10Point"/>
</html:td>
<html:td width="899">
<html:p class="Left10Point"/>
<html:p class="Left10Point"/>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
______%
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="887"/>
<html:td width="899"/>
</html:tr>
<html:tr>
<html:td colspan="3" width="887"/>
</html:tr>
<html:tr>
<html:td colspan="3" width="887"/>
</html:tr>
<html:tr>
<html:td colspan="3" width="887"/>
</html:tr>
<html:tr>
<html:td colspan="2" width="887"/>
<html:td width="899"/>
</html:tr>
<html:tr>
<html:td colspan="3" width="1530">
<html:p class="Left10Point">
<html:u>
<html:b>Other Important Considerations</html:b>
</html:u>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td valign="top" width="559">
<html:p class="Left10Point"/>
<html:p class="Left10Point"/>
</html:td>
<html:td valign="top" width="326"/>
<html:td width="609">
<html:p class="Left10Point"/>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="3" valign="top" width="1530">
<html:p>I understand that I may be required to pay off the remaining balance of this obligation by the mortgage lender refinancing my home. If I sell my home, the buyer or their mortgage lender may require me to pay off the balance of this obligation as a condition of sale.</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td align="right" colspan="2" valign="top" width="887"/>
<html:td align="right" valign="top" width="609">
<html:p class="Right10Point">
<html:span class="SpacedLeaders"/>
_______________
</html:p>
<html:p class="Left10Point">
<html:span class="SpacedLeaders"/>
[Borrower initials]
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td align="right" colspan="2" valign="top" width="887">
<html:p class="Left10Point"/>
<html:p class="Left10Point">
<html:u>
<html:b>Monthly Mortgage Payments</html:b>
</html:u>
</html:p>
<html:p class="Left10Point"/>
</html:td>
<html:td align="right" valign="top" width="609"/>
</html:tr>
<html:tr>
<html:td align="left" class="Left10Point" colspan="3" valign="top" width="1530">
<html:p class="Left10Point">Your payments will be added to your property tax bill. Whether you pay your property taxes through your mortgage payment, using an impound account, or if you pay them directly to the tax collector, you will need to save an estimated $_______ for your first tax installment. If you pay your taxes through an impound account you should notify your mortgage lender, so that your monthly mortgage payment can be adjusted by your mortgage lender to cover your increased property tax bill.</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td align="right" colspan="2" valign="top" width="887"/>
<html:td align="right" valign="top" width="609">
<html:p class="Right10Point">
<html:span class="SpacedLeaders"/>
_______________
</html:p>
<html:p class="Left10Point">
<html:span class="SpacedLeaders"/>
[Borrower initials]
</html:p>
<html:br/>
<html:p class="Left10Point"/>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="3" valign="top" width="1530">
<html:p>Tax Benefits: Consult your tax adviser regarding tax credits, credits and deductions, tax deductibility, and other tax benefits available. Making an appropriate application for the benefit is your responsibility.</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td align="right" colspan="2" valign="top" width="887"/>
<html:td align="right" valign="top" width="609">
<html:br/>
<html:p class="Right10Point">
<html:span class="SpacedLeaders"/>
_______________
</html:p>
<html:p class="Left10Point">
<html:span class="SpacedLeaders"/>
[Borrower initials]
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" valign="top" width="887">
<html:p>Statutory Penalties: If your property tax payment is late, the amount due will be subject to a 10% penalty, late fees, and 1.5% per month interest penalty as established by state law, and your property may be subject to foreclosure.</html:p>
</html:td>
<html:td valign="top" width="609"/>
</html:tr>
<html:tr>
<html:td align="right" colspan="2" valign="top" width="887"/>
<html:td align="right" valign="top" width="609">
<html:br/>
<html:p class="Right10Point">
<html:span class="SpacedLeaders"/>
_______________
</html:p>
<html:p class="Left10Point">
<html:span class="SpacedLeaders"/>
[Borrower initials]
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td align="right" colspan="3" valign="top" width="887">
<html:p class="Left10Point"/>
<html:p class="Left10Point">
<html:b>
<html:u>Three Day Right to Cancel</html:u>
</html:b>
</html:p>
<html:p class="Left10Point">
<html:br/>
</html:p>
<html:p class="Left10Point">You, the property owner, may cancel the contract at any time on or before midnight on the third business day after the date of the transaction to enter into the agreement without any penalty or obligation. To cancel this transaction, you may mail or deliver a signed and dated copy of the contract with notice of cancellation to:</html:p>
<html:p class="Left10Point"/>
<html:p class="Left10Point">___________ [name of business] at</html:p>
<html:p class="Left10Point">___________ [address]</html:p>
<html:p class="Left10Point">You may also
cancel the contract by sending notification of cancellation by email to the following email address: _________________[email address of business].</html:p>
<html:p class="Right10Point">
<html:span class="SpacedLeaders"/>
_______________
</html:p>
<html:p>
<html:span class="SpacedLeaders"/>
[Borrower initials]
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td align="left" colspan="3" valign="top" width="887"/>
</html:tr>
<html:tr>
<html:td align="left" colspan="3" valign="top" width="887"/>
</html:tr>
<html:tr>
<html:td align="right" colspan="3" valign="top" width="887"/>
</html:tr>
<html:tr>
<html:td align="right" colspan="3" valign="top" width="1530">
<html:p class="Left10Point">
<html:u>
<html:b>Confirmation of Receipt</html:b>
</html:u>
</html:p>
<html:p class="Left10Point">This confirms the receipt of the information in this form. You do not have to accept this financing just because you acknowledge that you have received or signed this form, and it is NOT a contract.</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td align="right" colspan="2" valign="top" width="887">
<html:br/>
<html:p class="Left10Point">__________________________</html:p>
<html:p class="Left10Point">[Property Owner Signature -
Date]</html:p>
</html:td>
<html:td align="right" valign="top" width="609">
<html:br/>
<html:p class="Left10Point">__________________________</html:p>
<html:p class="Left10Point">[Property Owner Signature - Date]</html:p>
</html:td>
</html:tr>
</html:tbody>
</html:table>
<html:p>
(2)
<html:span class="EnSpace"/>
References to “three” and “third” in the document set forth in paragraph (1) shall be changed to “five” and “fifth,” respectively, for a property owner who is a senior citizen.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The five-day right to cancel added by the act that added paragraph (2) to this subdivision shall apply to a contractual assessment entered into on or after January 1, 2021.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A public agency or other party to a voluntary contractual assessment described in this chapter for the purposes specified in paragraph (2) of subdivision (a) of Section 5898.20 or Section 5899, 5899.3, or 5899.4, or a special tax described in Section 53328.1 of the
Government Code shall not make any monetary or percentage representations of increased value to a property owner regarding the effect the financed improvements will have on the market value of the property unless that public agency or other party derives its estimates of the market value using one of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
An automated valuation model, which is a computerized property valuation system that is used to derive a real property value.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A broker’s price opinion conducted by a real estate broker licensed pursuant to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
An appraisal conducted by a state licensed real estate appraiser licensed pursuant to Part 3 (commencing with Section 11300) of Division 4 of the Business and Professions Code.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For purposes of this section, “property owner” shall include all owners of record.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
For purposes of this section, “senior citizen” means an individual who is 65 years of age or older.
</html:p>
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<ns0:BillSection id="id_12017D7F-41AE-440B-9259-CE7C34E49062">
<ns0:Num>SEC. 4.</ns0:Num>
<ns0:ActionLine action="IS_REPEALED" ns3:href="urn:caml:codes:SHC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'7.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'29.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'5898.17.'%5D)" ns3:label="fractionType: LAW_SECTION||qualifyingLanguage: amended by Section 14.5 of Chapter 158 of the Statutes of 2020" ns3:type="locator">
Section 5898.17 of the
<ns0:DocName>Streets and Highways Code</ns0:DocName>
, as amended by Section 14.5 of Chapter 158 of the Statutes of
2020, is repealed.
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<ns0:BillSection id="id_C225E34E-F574-445E-BD9F-0D6C1667D96B">
<ns0:Num>SEC. 5.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:SHC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'7.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'29.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'5899.4.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 5899.4 of the
<ns0:DocName>Streets and Highways Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_6A308165-68DB-4DBE-8D43-7D50BBC37A27">
<ns0:Num>5899.4.</ns0:Num>
<ns0:LawSectionVersion id="id_E79E0B2D-08F5-4C87-91BA-9C152C18D4AB">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
It is the intent of the Legislature to provide homeowners and businesses with an affordable way to finance improvements to their homes and buildings that make those facilities more resistant to wildfire by permitting voluntary individual efforts to improve the wildfire resilience and safety of those facilities. The Legislature further intends that this chapter should be used to finance the installation of wildfire safety improvements that are permanently fixed to residential, commercial, industrial, agricultural, or other real property.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The upfront cost of making residential, commercial, industrial, agricultural, or other real property more resistant to wildfire prevents many property owners from making those improvements. To
make those improvements more affordable and to promote the installation of wildfire safety improvements, it is necessary to authorize an alternative procedure for authorizing assessments to finance the cost of wildfire safety improvements.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A public purpose will be served by a voluntary contractual assessment program that provides the legislative body of any public agency with the authority to finance the installation of wildfire safety improvements that are permanently fixed to residential, commercial, industrial, agricultural, or other real property.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
For the purpose of financing the installation of wildfire safety improvements, “public agency” means a city, county, or city and county. The definition of “city” in Section 5005 shall not apply to this paragraph.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Wildfire safety improvements” means permanent wildfire resilience and safety improvements fixed to residential, commercial, industrial, agricultural, or other real property. Wildfire safety improvements include, but are not limited to, any improvements identified by the Department of Forestry and Fire Protection and improvements that contribute to the defensible space Zones 1 and 2 of a property, which includes the space between 0 and 100 feet from each side
and from the front and rear of the structures, as may be identified by the Department of Forestry and Fire Protection from time to time, that can be fixed to a building or structure. As used in this section, a wildfire safety improvement would include, but not be limited to, a Class A fire-rated roof, enclosed eaves, fire-resistant vents, and multipane windows, including dual pane windows, or functional shutters, which when closed, cover the entire window and do not have openings. As used in this section, wildfire safety improvements that contribute to defensible space do not include brush clearing or other improvements that are temporary in nature unless they are necessary as part of the installation or acquisition of another wildfire safety improvement. A voluntary contractual assessment that finances a wildfire safety improvement shall not be eligible for a waiver of the requirements of paragraph (1) of subdivision (b) of Section 22687 of the Financial Code pursuant to subdivision (e) of Section 22687 of
the Financial Code. In order to qualify under this paragraph, a wildfire safety improvement shall be fixed to an existing building or structure, and shall not be used as a part of a project to construct a new home or to rebuild or reconstruct a home that was destroyed or damaged in a fire. A voluntary contractual assessment for wildfire safety improvements entered into pursuant to this section may be used to acquire or construct wildfire safety improvements in connection with the rebuilding or reconstruction of property if the wildfire safety improvements are in addition to or an improvement to, and were not part of, the property as it existed immediately prior to the destruction or damage to the property by fire.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Any public agency that has established a PACE program in accordance with Section 5898.20, 5899, or 5899.3, or a special
tax described in Section 53328.1 of the Government Code, may enter into voluntary contractual assessments with property owners to finance the installation of wildfire safety improvements that are permanently fixed to real property pursuant to this chapter.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For purposes of the report required pursuant to Section 5898.22, relating to a voluntary contractual assessment program for wildfire safety improvements, the designated public agency official shall satisfy the requirements of paragraph (1) of subdivision (c) of Section 5898.22 by identifying the types of wildfire safety improvements that may be financed through the use of contractual
assessments.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Notwithstanding any other provision of this chapter, upon the written consent of an authorized public agency official, the proposed arrangements for financing the program pertaining to the installation of wildfire safety improvements that are permanently fixed to real property may authorize the property owner to purchase directly the related equipment and materials for the installation of wildfire safety improvements and to contract directly for the installation of wildfire safety improvements that are permanently fixed to the property owner’s residential, commercial, industrial, agricultural, or other real property.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
It is the responsibility of the property owner to contact the property owner’s insurance provider to determine whether the wildfire safety improvement to be financed by the voluntary contractual
assessment is covered by the property owner’s insurance plan and whether that improvement will impact the insurance rate.
</html:p>
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</ns0:BillSection>
<ns0:BillSection id="id_F7DD34B4-17D1-4ED8-AFE8-C4E7B11A8E49">
<ns0:Num>SEC. 6.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:SHC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'7.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'29.1.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'5902.'%5D)" ns3:label="fractionType: LAW_SECTION||version: Amended by Stats. 2018, Ch. 837, Sec. 13. [id_bf8f2140-f4bb-11e8-9ce3-e321f3ccb212]" ns3:type="locator">
Section 5902 of the
<ns0:DocName>Streets and Highways Code</ns0:DocName>
, as amended by Section 13 of Chapter 837 of the Statutes of 2018, is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_88E75DE7-7011-4A2C-90ED-27431162DC03">
<ns0:Num>5902.</ns0:Num>
<ns0:LawSectionVersion id="id_D0155DEA-2B97-499B-9A33-7AEAF8A8D7EB">
<ns0:Content>
<html:p>For purposes of this chapter:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“Assessment contract” means an agreement entered into between all property owners of record on real property and a public agency in which, for voluntary contractual assessments imposed on the real property, the public agency provides a PACE assessment for the installation of one or more efficiency improvements on the real property in accordance with a PACE program, specified in paragraph (2) of subdivision (a) of Section 5898.20 or Section 5899, 5899.3, or 5899.4, or a special tax described in Section 53328.1 of the Government Code.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Authorized representative” means an attorney-in-fact, as defined in Section 4014 of the Probate Code, or conservator of the estate, as defined in
Section 2400 of the Probate Code, of the property owner.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
“Efficiency improvement” means one or more permanent improvements fixed to real property.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
“PACE assessment” means a voluntary contractual assessment, voluntary special tax, or special tax, as described in subdivisions (a), (b), and (c) of Section 26054 of the Public Resources Code.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
“PACE program” means a program in which financing is provided for the installation of efficiency improvements on real property and funded through the use of property assessments, as well as other program components defined in this section, established pursuant to any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Chapter 29 (commencing with Section 5898.10) of Part 3 of this code.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code).
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A charter city’s constitutional authority under Section 5 of Article XI of the California Constitution.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
“Program administrator” means an entity administering a PACE program on behalf of, and with the written consent of, a public agency.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
“Property owner” means all property owners of record on the property subject to the PACE assessment.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
“Public agency” means a city, including a charter city, county, city and county, municipal utility district, community services district, community facilities district, joint powers authority, sanitary district, sanitation district, or
water district, as defined in Section 20200 of the Water Code, that has established or participates in a PACE program, and utilizes a program administrator.
</html:p>
</ns0:Content>
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</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_37CC2E3B-4CC0-4709-B3A1-A74B3AE1346F">
<ns0:Num>SEC. 7.</ns0:Num>
<ns0:ActionLine action="IS_REPEALED" ns3:href="urn:caml:codes:SHC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'7.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'29.1.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'5902.'%5D)" ns3:label="fractionType: LAW_SECTION||version: Repealed and added by Stats. 2018, Ch. 837, Sec. 14. [id_19314140-f4bb-11e8-9ce3-e321f3ccb212]" ns3:type="locator">
Section 5902 of the
<ns0:DocName>Streets and Highways Code</ns0:DocName>
, as added by Section 14 of Chapter 837 of the Statutes of 2018, is repealed.
</ns0:ActionLine>
<ns0:Fragment/>
</ns0:BillSection>
<ns0:BillSection id="id_A49A3BF3-973F-403F-A919-8B51114F049B">
<ns0:Num>SEC. 8.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:SHC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'7.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'29.1.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'5913.'%5D)" ns3:label="fractionType: LAW_SECTION||version: Amended (as amended by Stats. 2018, Ch. 837) by Stats. 2020, Ch. 156, Sec. 4. [id_78209974-2f55-11eb-89dc-d56983d123f9]" ns3:type="locator">
Section 5913 of the
<ns0:DocName>Streets and Highways Code</ns0:DocName>
, as amended by Section 4 of Chapter 156 of the Statutes of 2020, is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_459587A8-6685-4ECB-AF04-3539F6FE07E4">
<ns0:Num>5913.</ns0:Num>
<ns0:LawSectionVersion id="id_DA7E82AF-3E8B-4A4E-9625-720F7ED027AD">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Before a property owner executes an assessment contract the program administrator shall do the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Make an oral confirmation that at least one owner of the property has a copy of the contract assessment documents required by paragraph (2) of subdivision (a) of Section 5898.20 or Section 5899, 5899.3, or 5899.4, or Section 53328.1 of the Government Code, as applicable, with all the key terms completed, the financing estimate and disclosure form specified in Section 5898.17, and the right to cancel form specified in Section 5898.16, with hard copies available upon request.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Make an oral confirmation of the key terms of the assessment contract, in plain
language, with the property owner on the call or to a verified authorized representative of the owner on the call and shall obtain acknowledgment from the property owner on the call to whom the oral confirmation is given.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The oral confirmation required pursuant to paragraph (1) shall include, but is not limited to, all of the following information:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The property owner on the call has the right to have other persons present for the call, and an inquiry as to whether the property owner would like to exercise the right to include anyone else on the call. This shall occur at the onset of the call, after the determination of the preferred language of communication.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The property owner on the call is informed that they should review the assessment contract and financing estimate and disclosure form with all other
owners of the property.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The efficiency improvement being installed is being financed by a PACE assessment.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The total estimated annual costs the property owner will have to pay under the assessment contract, including applicable fees.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
The total estimated average monthly amount of funds the property owner would have to save in order to pay the annual costs under the PACE assessment, including applicable fees.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
That the county annual secured property tax bill, which will include the installment of the PACE lien, will be mailed by the county tax collector no later than November 1 each year, and that if the lien is recorded after the fiscal year closes but before the bill is mailed, the first installment may not appear on the county tax bill
until the following year.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
The term of the assessment contract.
</html:p>
<html:p>
(H)
<html:span class="EnSpace"/>
That payments on the assessment contract will be made through an additional annual assessment on the property and paid either directly to the county tax collector’s office as part of the total annual secured property tax bill, or through the property owner’s mortgage impound account, and that if the property owner pays taxes through an impound account, the property owner should notify the property owner’s mortgage lender to discuss adjusting the monthly mortgage payment by the estimated monthly cost of the PACE assessment.
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
That the property will be subject to a lien during the term of the assessment contract and that the obligations under the assessment contract may be required to be paid in full before the property owner sells or refinances
the property.
</html:p>
<html:p>
(J)
<html:span class="EnSpace"/>
That the property owner has disclosed whether the property has received or is seeking additional PACE assessments and has disclosed all other PACE assessments or special taxes that are or about to be placed on the property, if known to and understood by the property owner.
</html:p>
<html:p>
(K)
<html:span class="EnSpace"/>
That any potential utility savings are not guaranteed, and will not reduce the assessment payments or total assessment amount.
</html:p>
<html:p>
(L)
<html:span class="EnSpace"/>
That the program administrator and contractor do not provide tax advice, and that the property owner should seek professional tax advice if the property owner has questions regarding tax credits, tax deductibility, or of other tax impacts on the PACE assessment or assessment contract.
</html:p>
<html:p>
(M)
<html:span class="EnSpace"/>
That if that property tax payment is
delinquent within the fiscal year, the county tax collector will assess a 10-percent penalty and may assess related costs, as required by state law. A delinquent payment also subjects the property to foreclosure. If the delinquent payment continues past June 30 of a given year and defaults, the county tax collector will assess penalties at the rate of 1 ½ percent per month (18 percent per year), and the property will continue to be subject to foreclosure and may become subject to the county tax collector’s right to sell the property at auction.
</html:p>
<html:p>
(N)
<html:span class="EnSpace"/>
That the property owner has a three-business day right to cancel the assessment contract pursuant to subdivision (b) of Section 5898.16, and that canceling the assessment contract may also cancel the home improvement contract under Section 5940.
</html:p>
<html:p>
(O)
<html:span class="EnSpace"/>
That it is the responsibility of the property owner to contact the property owner’s home
insurance provider to determine whether the efficiency improvement to be financed by the PACE assessment is covered by the property owner’s insurance plan.
</html:p>
<html:p>
(P)
<html:span class="EnSpace"/>
That the property owner may repay an amount owed pursuant to an assessment contract before the date that amount is due under the contract without early repayment penalty.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The program administrator shall comply with the following when giving the oral confirmation described in subdivision (a):
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The program administrator shall record the oral confirmation in an audio format in accordance with applicable laws.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The program administrator may not comply with the requirement in subdivision (a) through the use of a prerecorded message, or other similar device or method.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Recording of an oral confirmation shall be retained by the program administrator for a period of at least five years from the time of the recording.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The provisions of this section shall be in addition to the documents required to be provided to the property owner under Sections 5898.16 and 5898.17.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
At the commencement of the oral confirmation, the program administrator shall ask if the property owner on the call would prefer to communicate during the oral confirmation primarily in a language other than English that is specified in Section 1632 of the Civil Code. If the preferred language is supported by the program administrator, the oral confirmation shall be given in that primary language, except where the property owner on the call chooses to communicate through the property owner’s own interpreter. If
the preferred language is not supported and an interpreter is not chosen by the property owner on the call, the PACE assessment transaction shall not proceed. For purposes of this subdivision, “the property owner’s own interpreter” means a person, who is not a minor, is able to speak fluently and read with full understanding both the English language and any of the languages specified in Section 1632 of the Civil Code, and who is not employed by, and whose services are not made available through, the program administrator, the public agency, or the contractor.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Beginning on January 1, 2019, if the oral confirmation was conducted primarily in a language other than English that is specified in Section 1632 of the Civil Code, the program administrator shall deliver in writing the disclosures and contract or agreement required by law, including, but not limited to, the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Assessment contract documents specified in paragraph (2) of subdivision (a) of Section 5898.20 or Section 5899, 5899.3, or 5899.4, or a special tax described in Section 53328.1 of the Government Code.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The financing estimate and disclosure form specified in Section 5898.17.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The right to cancel form specified in Section 5898.16.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Before the execution of any contract or agreement described in paragraph (1), the program administrator shall deliver a translation of the disclosures, contract, or agreement in the language in which the oral confirmation was conducted, that includes a translation of every term and condition in that contract or agreement.
</html:p>
</ns0:Content>
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</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_49A5F003-6879-48D8-BB11-BD97E6D920A8">
<ns0:Num>SEC. 9.</ns0:Num>
<ns0:ActionLine action="IS_REPEALED" ns3:href="urn:caml:codes:SHC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'7.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'29.1.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'5913.'%5D)" ns3:label="fractionType: LAW_SECTION||version: Amended (as added by Stats. 2018, Ch. 837) by Stats. 2020, Ch. 156, Sec. 5. [id_794d80b6-2f55-11eb-89dc-d56983d123f9]" ns3:type="locator">
Section 5913 of the
<ns0:DocName>Streets and Highways Code</ns0:DocName>
, as amended by Section 5 of Chapter 156 of the Statutes of 2020, is repealed.
</ns0:ActionLine>
<ns0:Fragment/>
</ns0:BillSection>
<ns0:BillSection id="id_82970BDB-9630-4097-9C7D-79A5ADADEA9C">
<ns0:Num>SEC. 10.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:SHC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'7.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'29.1.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'5954.'%5D)" ns3:label="fractionType: LAW_SECTION||version: Amended (as amended by Stats. 2018, Ch. 837, Sec. 17) by Stats. 2019, Ch. 497, Sec. 265. [id_ed976a13-17a4-11ea-b2f2-bb47ce738c12]" ns3:type="locator">
Section 5954 of the
<ns0:DocName>Streets and Highways Code</ns0:DocName>
, as amended by Section 265 of Chapter 497 of the Statutes of 2019, is amended to
read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_7ED2ADA7-E885-48EB-9615-E3857782E841">
<ns0:Num>5954.</ns0:Num>
<ns0:LawSectionVersion id="id_1B6B6E73-1156-4CD5-B58C-468633D2DE57">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
For each PACE program that it administers, a program administrator shall submit a report to the public agency no later than February 1 for the activity that occurred between July 1st through December 31st of the previous year, and another report no later than August 1 for the activity that occurred between January 1st through June 30th of that year. Those reports shall contain the following information, along with all methodologies and supporting assumptions or sources relied upon in preparing the report:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The number of PACE assessments funded, by city, county, and ZIP Code.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The aggregate dollar amount of PACE assessments funded, by city, county, and ZIP Code.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The average dollar amount of PACE assessments funded, by city, county, and ZIP Code.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The categories of installed efficiency improvements whether energy or water efficiency, renewable energy, wildfire safety improvements, or seismic improvements, and the percentage of PACE assessments represented by each category type, on a number and dollar basis, by city, county, and ZIP Code.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The definition of default used by the program administrator.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
For each delinquent assessment:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The total delinquent amount.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The number and dates of missed payments.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
ZIP Code, city, and county in which the underlying property is located.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
For each defaulted assessment:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The total defaulted amount.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The number and dates of missed payments.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
ZIP Code, city, and county in which the underlying property is located.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The percentage the defaults represent of the total assessments within each ZIP Code.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
The total number of parcels defaulted and the number of years in default for each property.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
The estimated total amount of energy saved, and the estimated total dollar amount of those savings by
property owners by the efficiency improvements installed in the calendar year, by city, county, and ZIP Code. In addition, the report shall state the total number of energy savings improvements, and number of improvements installed that are qualified for the Energy Star program of the United States Environmental Protection Agency, including the overall average efficiency rating of installed units for each product type.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
The estimated total amount of renewable energy produced by the efficiency improvements installed in the calendar year, by city, county, and ZIP Code. In addition, the report shall state the total number of renewable energy installations, including the average and median system size.
</html:p>
<html:p>
(10)
<html:span class="EnSpace"/>
The estimated total amount of water saved, and the estimated total dollar amount of such savings by property owners, by city, county, and ZIP Code. In addition, the report shall
state the total number of water savings improvements, the number of efficiency improvements that are qualified for the WaterSense program of the United States Environmental Protection Agency, including the overall average efficiency rating of installed units for each product type.
</html:p>
<html:p>
(11)
<html:span class="EnSpace"/>
The estimated amount of greenhouse gas emissions reductions.
</html:p>
<html:p>
(12)
<html:span class="EnSpace"/>
The estimated number of jobs created.
</html:p>
<html:p>
(13)
<html:span class="EnSpace"/>
The average and median amount of annual and total PACE assessments based on ZIP Code, by city, county, and ZIP Code.
</html:p>
<html:p>
(14)
<html:span class="EnSpace"/>
The number and percentage of homeowners over 60 years old by city, county, and ZIP Code.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
All reports submitted pursuant to this section shall include only aggregate data, and
shall not include any nonpublic personal information.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A public agency that receives a report pursuant to this section shall make the data publicly available on its internet website.
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(d)
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This section does not limit another governmental or regulatory entity from establishing reporting requirements.
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<ns0:Num>SEC. 11.</ns0:Num>
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Section 5954 of the
<ns0:DocName>Streets and Highways Code</ns0:DocName>
, as added by Section 18 of Chapter 837 of the Statutes of 2018, is repealed.
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