July 20, 2010
Assembly Bill 1718 (Blumenfield) modifies the senior citizen property tax postponement program. The current program, which was suspended in February 2009 for budgetary reasons, gives the postponed taxes “judgment lien” status. AB 1718 proposes a superpriority status for the funds that the State Controller would send to counties to pay for the deferred taxes. The California Land Title Association and other industry groups are opposed to the bill, and are seeking amendments to eliminate the superlien status. Fannie Mae has also expressed concern over the legislation and its impact on mortgage lending.