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8310-8316 Sale by Agreement: Eligible Purchasing Entities

8310. TAXING AGENCIES
The most common reason for a taxing agency to acquire property is that the property is needed for a public purpose (Rev. & Tax. Code §3695.4).

A taxing agency may also acquire tax-defaulted property if the agency is owed delinquent taxes or assessments at least two years prior to the date of the agreement, or if the agency has recorded a deed to itself (Rev. & Tax. Code §§3773, 3791). The conditions provided for by these statutes are rarely encountered.

NOTE: After an agency disposes of its tax-deeded interest through a conditional sales agreement and transfer of possession, the agency is ineligible to acquire the property under Chapter 8 provisions, but it may buy the property at public auction (Attorney General Letter 6-21-48).

8311. TAXING AGENCY DEFINED
As defined in Revenue and Taxation Code section 121, a taxing agency includes the State, a county, and a city. "Taxing agency" also includes every district that assesses property for taxation purposes and levies taxes or assessments on the property so assessed.

A reclamation district for which the county treasurer acts as trustee is a taxing agency (Rev. & Tax. Code §3772).

As used in Chapter 8, "taxing agency" also includes any city or taxing agency or revenue district whose taxes are collected by county officers and are included in the amounts for which the property was tax-defaulted. Entities with this status have all of the rights under Chapter 8 of a taxing agency to which property has become subject to sale for taxes (Rev. & Tax. Code §3773).

8312. REVENUE DISTRICTS
A revenue district may acquire tax-defaulted property subject to sale by the tax collector under an agreement, if the revenue district's taxes levied on the property are collected by county officers (Rev. & Tax. Code §3791.3).

NOTE: A city is both a revenue district and a taxing agency (Rev. & Tax. Code §§121, 122).

8313. REVENUE DISTRICT DEFINED
"Revenue district" includes every city and district for which county officers assess property and collect taxes or assessments (Rev. & Tax. Code §122). When a taxing entity's assessment and collection functions are consolidated with those of a county, its taxes and assessments are subject to collection and enforcement of collection at the same time, and in the same manner, as county taxes collected on the secured roll.

8314. REDEVELOPMENT AGENCIES
A redevelopment agency created pursuant to the California Community Redevelopment Law may purchase tax-defaulted property, which is subject to sale (or any part thereof, including any right of way or other easement), pursuant to Chapter 8. A redevelopment agency, however, may purchase only such tax-defaulted property located within a "designated survey area" (Rev. & Tax. Code §3791.3). Such survey areas are identified by fixed survey monuments, in accordance with instructions found in the survey instructions manual published by the U.S. Bureau of Land Management.

8315. JOINT AGENCY PURCHASE
As stated in Revenue and Taxation Code section 3792: "If property tax-defaulted for more than five years has been sold for taxes for two or more years or has been deeded for taxes to two or more taxing agencies, they may make a joint agreement with the board of supervisors under this article. The joint agreement may provide for the conveyance of all or any interest in the property to one of them or to any combination of them."

8316. NONPROFIT ORGANIZATIONS - DEFINED
"Nonprofit organization" means a nonprofit organization incorporated pursuant to Part 1 (commencing with §5110) of Division 2 of Title 1 of the Corporations Code for the purpose of acquisition of residential or vacant property that has become tax-defaulted and subject to sale for nonpayment of taxes (Rev. & Tax. Code §3791.4).

1) In the case of residential property, the nonprofit organization must rehabilitate and sell or rent or otherwise use the property to serve low-income persons.

2) In the case of vacant property, the nonprofit organization must construct a residential dwelling on the property and sell or rent to, or otherwise use the property to serve, low-income persons, or it must dedicate the vacant property to public use. "Rehabilitation," as defined in Health and Safety Code section 17920(f), means repairs and improvements to a substandard building to correct the deficiencies noted (Rev. & Tax. Code §3772.5). 

"Low-income persons" means persons and families whose income does not exceed 120 percent of the area median income, with adjustments for family size, as determined from time to time by the Secretary of Housing and Urban Development pursuant to section 8(f) of the Housing and Community Development Act of 1974 (P.L. 93-383).