Cal. Sts. & Hy. Code § 5898.16

Current through the 2023 Legislative Session.

Section 5898.16 - [Effective until 1/1/2029] Participation by property owner

(a) 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:

(1) 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.

(2) 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.

(b) 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:

(1)

(A) 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.

Right to Cancel
Property Owner: [Owner Full Name],[Phone],[Email]
Property Address: [Property Address]
Your Right to Cancel:
You are entering into a contractual assessment with [Provider] for financing that will result in a lien on the property at [Property Address]. You may cancel this transaction, without cost, on or before midnight on the third business day after whichever of the following events occurs last: (1) The date on which you signed the contractual assessment. (2) The date you received your Financing Estimate and Disclosure. (3) The date you received this notice of your right to cancel. If you cancel the transaction, [Provider], within 20 calendar days after [Provider] 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 [Provider] must return to you any money you have given in connection with your application, not including the application processing fee. After [Provider] 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.
If you cancel the transaction:
*You will not be charged a cancellation fee; and
*You will be refunded any money you have given, excluding application and processing fees as applicable.
To cancel this transaction, you may submit this form to [Provider] in writing at:
Provider:__________
Attn:Right to Cancel Notification
Email:__________
Fax number:__________
Address:__________
Deadline to Cancel:
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: (1) The date on which you signed the contractual assessment. (2) The date you received your Financing Estimate and Disclosure. (3) The date you received this notice of your right to cancel.
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: (1) The date on which you signed the contractual assessment. (2) The date you received your Financing Estimate and Disclosure. (3) The date you received this notice of your right to cancel.
I WISH TO CANCEL
Property Owner	Date

(B) 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.

(C) 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.

(2) 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.

(c) 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.

(d) For the purposes of this section, the following definitions apply:

(1) "Property owner" shall include all owners of record.

(2) "Senior citizen" means an individual who is 65 years of age or older.

(e) This section shall remain in effect only until January 1, 2029, and as of that date is repealed.

Ca. Sts. and High. Code § 5898.16

Amended by Stats 2020 ch 158 (AB 2471),s 11, eff. 1/1/2021.

Amended by Stats 2018 ch 837 (SB 465),s 8, eff. 1/1/2019.

Amended by Stats 2017 ch 561 (AB 1516),s 247, eff. 1/1/2018.

Added by Stats 2016 ch 618 (AB 2693),s 5, eff. 1/1/2017.