CA AB1718

Establishes the County Deferred Property Tax Program for Senior Citizens and Disabled Citizens, allowing counties to elect participation by adopting a resolution.

Permits participating counties to defer property taxes retroactively for taxes due on or before February 20, 2010, and prospectively for eligible claimants with household income not exceeding $35,500 and at least 20 percent equity in their residential dwelling.

Requires deferred property taxes plus accrued interest to be secured by a county property tax lien at 7 percent annual interest (or county's Pooled Money Investment Account yield plus 2 percent, whichever is higher), with the lien recorded by the county recorder.

Allows participating counties to establish a Property Tax Deferral Fund within their treasury to make subvention payments and offset administrative costs, and to charge application fees to claimants to cover administration expenses.

Prohibits lenders from requiring borrowers to maintain impound accounts for property taxes once the borrower provides evidence of tax deferment participation, and prevents lenders from filing notices of default solely based on property tax non-payment when deferment is in effect.