No, regardless of the reason, if the new construction is not completed within two years from the date of sale of the original property, the property will not qualify for property tax relief. There is no provision for exceptions due to hardship or other factors which may have prevented compliance.

If you qualify, your base year value will transfer to the replacement residence as of the latest qualifying event--a) the sale of your original residence; b) the purchase of your replacement residence; or c) the completion of construction of your replacement residence.

This means if you purchase or construct your replacement residence before the sale of your original residence, you will be responsible for the increased taxes on your replacement residence until your original residence is sold.

Some requirements for a transfer of base year value include the following:

1. At the time of the sale of the original residence, you must be the owner of a principal residence that has been substantially damaged as a result of wildfire or natural disaster that amounts to more than 50 percent of the improvement value of the residence immediately before the wildfire or natural disaster.
2. The replacement property must be your principal place of residence, and must be eligible for a Homeowners’ Exemption or a Disabled Veterans’ Exemption.
3. The replacement residence must be purchased or newly constructed within two years of the sale of the original property.
4. To receive relief from the date the base year value qualifies for transfer, you must file your claim within three years following the purchase date or new construction completion of the replacement property.
5. Your original property must have been eligible for the Homeowners’ Exemption or the Disabled Veterans’ Exemption either at the time it was sold or within two years of the purchase or construction of the replacement property.
6. Both your original property and your replacement property must be located in California.

In order to qualify, you must file a properly completed Claim for Transfer of Base Year Value to Replacement Primary Residence for Victims of Wildfire or Other Natural Disaster (BOE-19-V). 

If the full cash value of your replacement property, as defined, is greater than the value of your original property, you are eligible for partial relief.

Example:

Replacement property is purchased on July 1, 2021, for $600,000.

Original property has a factored base year value of $100,000.  Original property is sold on July 15, 2021, for $400,000.

The difference is $200,000.  ($600,000 - $400,000 = $200,000)  The difference is added to the factored base year value ($100,000 + $200,000 = $300,000).

The new base year value of the replacement property is $300,000.

A “natural disaster” means the existence, as declared by the Governor, of conditions of disaster or extreme peril to the safety of persons or property within the affected area caused by conditions such as fire, flood, drought, storm, mudslide, earthquake, civil disorder, foreign invasion, or volcanic eruption.