CA AB1883

Allows financing of renewable energy, energy efficiency, and water efficiency improvements through voluntary contractual assessments under the Improvement Act of 1911, including prepaid service contracts in addition to installation costs.

Authorizes public agencies to transfer rights to voluntary contractual assessments to third parties for up to 3 years without issuing bonds, while retaining exclusive foreclosure authority and senior lien status.

Permits refinancing of existing contractual assessment bonds if total interest costs decrease and final maturity dates do not extend beyond useful life of improvements, with variable rate bonds allowed for non-residential and multi-unit properties.

Clarifies that power purchase agreements or leases for renewable energy systems must include covenants preventing system removal during the assessment term and can be paid partially or fully after installation.

Allows public agencies to levy contractual assessments on leasehold or possessory interests in property they own, with the lessee as the assessment obligor.