§ 22685

(a) A program administrator shall derive market value using one of the following:

(1) An automated valuation model, using the following criteria:

(A) The automated valuation model must be provided by a third-party vendor.

(B) The automated valuation model must have estimation models with confidence scores and regular statistical calibration by the third-party vendor.

(C) The PACE program must utilize at least three automated valuation models for each property. The estimated value for each model shall be the average between the high and low values, if a range is provided.

(D) The PACE program shall utilize the estimated value with the highest confidence score for a property. If an automated valuation model meeting the criteria of subparagraphs (A),(B), and (C) does not obtain a confidence score for a subject property, the PACE Program shall utilize the average of all estimated values.

(2) An appraisal conducted within six months of the application date 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.

(3) For paragraph (2), program administrators shall conform to the requirements of California Code of Regulations, Title 10, Chapter 6.5 (commencing with Section 3500), including but not limited to, Section 3577 governing Minimum Standards of Practice, or with the Appraiser Independence Requirements that were developed by the Federal Housing Finance Agency.

(b) The market value determination by the program administrator shall be disclosed to the property owner prior to signing the assessment contract.

(c) Notwithstanding Section 22696, this section shall become operative on January 1, 2018.

(Added by Stats. 2017, Ch. 475, Sec. 71. (AB 1284) Effective October 4, 2017. Section operative January 1, 2018, by its own provisions.)