Financial Code - FIN - FIN § 22685

Summary

(a) A program administrator shall derive market value using one of the following: (1) Automated valuation models, using the following criteria: (A) Each automated valuation model must be provided by a third-party vendor. (B) Each automated valuation model must have estimation mod

Text

(a)
A program administrator shall derive market value using one of the following:
(1)
Automated valuation models, using the following criteria:
(A)
Each automated valuation model must be provided by a third-party vendor.
(B)
Each automated valuation model must have estimation models with confidence scores and regular statistical calibration by the third-party vendor.
(C)
The program administrator shall 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 program administrator 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 or state-certified real estate appraiser licensed pursuant to Part 3 (commencing with Section 11300) of Division 4 of the Business and Professions Code. A program administrator may rely upon an appraisal obtained from a property owner if that appraisal was conducted in accordance with applicable laws and regulations by a state-licensed or state-certified appraiser in connection with a consumer credit transaction secured by the subject property, including the
purchase or refinance of the subject property or the extension of an equity line of credit secured by the subject property.
(b)
The market value determination by the program administrator shall be disclosed to the property owner prior to signing the assessment contract.

Retrieval chunks

• #1 | Financial Code - FIN - FIN § 22685

  (a) A program administrator shall derive market value using one of the following: (1) Automated valuation models, using the following criteria: (A) Each automated valuation model must be provided by a third-party vendor. (B) Each automated valuation model must have estimation models with confidence scores and r…