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News & Press: Industry News

Board of Equalization Publishes Letter on Assessing PACE Improvements

Tuesday, April 18, 2017  
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The BOE published a letter to county assessors that the PACE financing is similar to assessing the value of public improvements financed by bonds under the 1911 Act, whereby the assessor has the burden of proving that the value is not already reflected in the stated purchase price. Thus, upon a change in ownership of real property that is encumbered by PACE financing, a rebuttable presumption applies that the value is already reflected in the stated purchase price. However, the presumption can be overcome, for example, by a paired-sales analysis showing that comparable properties without PACE assessments sell for more than properties with PACE assessments. The BOE letter points out that many improvements under PACE programs will qualify for exclusion from assessment as new construction, such as an active solar energy system or seismic strengthening improvements.

California Land Title Association

1215 K Street #1816 Sacramento, CA 95814-3905
Email:  |  Phone: 916-444-2647  |   Fax: 916-444-2851