AB 2693 Summary

• Prohibits Property Assessed Clean Energy (PACE) programs from requiring property owners to participate if total annual property taxes and assessments exceed 5% of property market value, limited to residential properties with 4 or fewer units.

• Requires property owners to receive a standardized "Financing Estimate and Disclosure" document before finalizing a voluntary contractual assessment, with detailed information on product costs, financing costs, annual percentage rates, and payment obligations.

• Grants property owners a 3-day right to cancel contractual assessments without penalty or obligation, with cancellation rights extending to 3 business days after signing the agreement, receiving financing estimates, or receiving the cancellation notice, whichever occurs last.

• Prohibits PACE programs and other parties from making monetary or percentage claims about increased property value unless estimates are derived from an automated valuation model, broker's price opinion, or state-licensed appraiser.

• Requires legislative bodies to comply with specified requirements and conditions before annexing residential properties with 4 or fewer units to Mello-Roos community facilities districts established under the alternative procedure for financing energy efficiency, water conservation, and renewable energy improvements.