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News & Press: Sacramento Report

Recorded Notices for Water Efficiency Charges

Tuesday, November 21, 2017  
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The New Year will see the implementation of the Water Bill Savings Act, which authorizes a joint powers authority to provide funding for customers who install, or repair a water efficiency improvement. The improvement is funded by an efficiency charge evidenced by a written agreement between the customer, all property owners of record, the Joint Powers Authority and the local agency or its publicly owned utility.

The repayment of the water efficiency improvement is through an efficiency charge on the customer’s water bill.  A customer’s obligation to pay the efficiency charge remains associated with the meter at the property on which the efficiency improvement is located until the efficiency charge has been repaid in full. No later than 10 days after funding an efficiency improvement, a notice of efficiency charge is required to be recorded with the county recorder. The notice is entitled “NOTICE OF EFFICIENCY CHARGE” and must contain contact information for the person or entity authorized to provide a prompt and accurate written statement of the outstanding charges and payoff amounts related to the efficiency charge. The act provides that the recordation of the notice of efficiency charge shall be considered sufficient notice to a subsequent customer at a property with installed efficiency measures of the customer’s obligation to pay the efficiency charge for installed measures. The act does not state that the recorded notice creates a lien on the real property. The new law also provides for recording a notice of full repayment of the charge.

California Land Title Association

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