Property approved for acceptance under the Tax Credit Program must be used for the conservation purposes for which it was contributed.   If any unauthorized use is made of property after it is donated to a nonprofit organization or local governmental entity, the donee must seek to terminate the unauthorized use and restore the conservation benefits for which the property was donated.   If the Board determines that an unauthorized use has not been terminated and the conservation benefits fully restored within a reasonable time, the fee title owner must pay to the state the greater of the following:

1. The fair market value of the property based on appraisals when accepted by the Board.
2. The fair market value of the property based on appraisals at the time of and based on the unauthorized use of the property.

The department that is the donee or the Board may seek injunctive relief to prevent the unauthorized use of the property, or may assume ownership or management of the property to assure that it is used in the manner originally authorized.

To assure the long-term conservation purposes are maintained, the Board will conduct an annual review of all property accepted by nonprofit organizations and local governmental entities pursuant to the Tax Credit Act.   The purpose of the review will be to ensure the use of the property conforms to the purposes for which its was accepted into the Tax Credit Program.

If any property approved for acceptance under the Tax Credit Program is later transferred by the donee, its use must be restricted by deed to the conservation purposes for which the property was contributed.   Consistent with this requirement, any local government or nonprofit organization seeking to sell or transfer donated property must first obtain Board approval.

If the Board determines that the conservation purposes for which the property was contributed can no longer be achieved due to significantly changed circumstances beyond the control of the donee, the donee must use proceeds of the sale of the property to acquire property in California of equal or greater value and comparable resource value, as determined by the Board.   Any replacement property must meet the criteria for acceptance under the Tax Credit Act.   To assure transfers are properly made, the conveyance instrument (i.e., deed, conservation easement) by which the donated property is acquired shall include substantially the following language:

The property is being granted pursuant to the Natural Heritage Preservation Tax Credit Act of 2000 (California Public Resources Code Section 37000 et seq.).   Any transfer of the property described herein (or any interest in such property) is subject to the prior written approval of the Wildlife Conservation Board.   Requests for such approval should be mailed to the Executive Director, Wildlife Conservation Board, 1807 13^th Street, Suite 103, Sacramento, California 95811.

At the time it acquires the donation, the donee must record a Notice and Declaration with the local county recorder to notify third parties of the requirements surrounding the donation.   When the property has been acquired and the Notice and Declaration is recorded and returned to the Board, an Acknowledgment of Donation will be sent to the donor and the donee confirming the approval of the donation pursuant to the program and the award of the tax credit.

Samples of a Grant Deed containing the language required above, a Notice and Declaration and an Acknowledgment of Donation are provided in
Sample Notices and Declarations (PDF).