2023 California Code › Streets and Highways Code - SHC › DIVISION 7 - THE IMPROVEMENT ACT OF 1911 › PART 3 - PERFORMING THE WORK › CHAPTER 29 - Contractual Assessments › ARTICLE 1 - General Provisions › Section 5898.17.

5898.17. (a) 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.
(b) (1) 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.
Financing Estimate and Disclosure
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.
Customer Service Toll-Free telephone number and email:
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.
Toll-Free telephone number: ___________
Customer service email address: ___________
Products and Costs
Product costs (including
labor/installation)
$________
Description
1.
2.
3.
Financing Costs
Application fees and costs
Prepaid Interest
Other Costs
Total Amount Financed
$________
$________
$________
$________
Annual Percentage Rate (APR)
Simple Interest Rate
Total Annual Principal, Interest, and
Administrative Fees
______%
______%
$______
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.
See “Other Important Considerations” below
Total Amount you will have paid over the life of the financing
$________
Other Costs
Appraisal Fees
Bond related costs
Annual Administrative fees
Estimated closing costs
Credit Reporting Fees
Recording Fees
$________
$________
$________
$________
$________
$________
Total Financing Costs and Closing Costs
$________
Estimated Cash (out of pocket) to close
$________
Other Terms
Prepayment fee
◻ No
◻ Yes ______
Additional Information About These Financing
Comparisons[Use this information to compare to other financing options]
Over the term of the financing
$________ Principal you will have paid off.
$________ Amount of interest you have paid.
$________ Amount of financing and other costs
you will have paid.
$________ Total you will have paid.
Annual Percentage Rate
______%
Total Interest Paid (as a percentage of all the payments you have made)
______%
Other Important Considerations
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.
_____ _______________
_____ [Borrower initials]
Monthly Mortgage Payments
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.
_____ _______________
_____ [Borrower initials]
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.
_____ _______________
_____ [Borrower initials]
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.
_____ _______________
_____ [Borrower initials]
Three Day Right to Cancel
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:
___________ [name of business] at
___________ [address]
You may also cancel the contract by sending notification of cancellation by email to the following email address: _________________[email address of business].
_____ _______________
_____ [Borrower initials]
Confirmation of Receipt
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.
__________________________
[Property Owner Signature - Date]
__________________________
[Property Owner Signature - Date]
(2) 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.
(3) 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.
(c) 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:
(1) An automated valuation model, which is a computerized property valuation system that is used to derive a real property value.
(2) 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.
(3) 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.
(d) For purposes of this section, “property owner” shall include all owners of record.
(e) For purposes of this section, “senior citizen” means an individual who is 65 years of age or older.
(f) This section shall remain in effect only until January 1, 2029, and as of that date is repealed.
(Amended (as amended by Stats. 2018, Ch. 837, Sec. 10) by Stats. 2020, Ch. 158, Sec. 13.5. (AB 2471) Effective January 1, 2021. Repealed as of January 1, 2029, by its own provisions. See later operative version amended by Sec. 14.5 of Stats. 2020 Ch. 158.)