Property taxation: tax-defaulted property.

Existing law generally authorizes a taxing agency to sell tax-defaulted property 5 or more years after the real property has become tax defaulted. Existing law authorizes the board of supervisors of the county in which the property is situated, or the state, county, any revenue district the taxes of which on the property are collected by county officers, or a redevelopment agency, to purchase the property, as specified, if certain conditions are met. Existing law also authorizes a nonprofit organization to purchase residential or vacant property, with the approval of the board of supervisors of the county in which it is located, if the property is used for low-income housing or public use, as specified. Existing law requires any sale under these provisions to be approved by the board of supervisors and to meet specified requirements, including notice requirements of an agreement under these provisions. This bill would prohibit a board of supervisors from approving the sale of tax-defaulted property, as described above, unless it conducts a hearing, with notice, and makes a specified finding that either the sale price is greater than or equal to the tax sale value, as defined, of the property or the tax sale value of the property is less than the amount necessary to redeem the property, as specified. The bill would require the notice of the hearing to be mailed at least 45 days prior to the hearing to the last assessee of each portion of the property and to parties of interest, and to contain, among other things, a description of the property, the proposed sale price, and the date, time, and location of the hearing. The bill would require any costs incurred in conducting the hearing and making the findings to be paid by the taxing agency or nonprofit organization by which the property is to be or may be purchased. The bill would also authorize the challenge of a board of supervisors' determination by the filing of a petition for judicial review in the superior court of the county within 45 days following the issuance of the board's decision, as specified. The bill would require the board to provide a written notice of the right to judicial review and the applicable deadlines to all parties who appeared at the hearing or submitted written evidence. The bill would authorize the superior court to vacate the board's decision and remand the matter to the board of supervisors if the court determines that the decision was not supported by substantial evidence or that the board otherwise failed to follow certain requirements. By requiring a board of supervisors to engage in specified actions relating to approving a sale of tax-defaulted property, the bill would impose a state-mandated local program. 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.