The validity of an assessment or supplementary assessment levied under this division shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the assessment is levied. Any appeal from a final judgment in such an action or proceeding shall be perfected within 30 days after the entry of judgment.
Chapter 5Levying and Collecting the Assessment
Section § 10400
If you want to challenge an assessment or supplementary assessment made under this law, you need to start the legal action within 30 days of the assessment being issued. Additionally, if you are appealing a final judgment from such a case, you must file the appeal within 30 days after the judgment is entered.
assessment validity supplementary assessment legal contest 30-day limit assessment challenge appeal period final judgment appeal levy contestation timing for legal action assessment dispute legal timeframe assessment judgment levy validity appealing judgments
Section § 10401
This law explains what happens after certain resolutions are passed, specifically concerning where diagrams and assessments should be sent depending on whether bonds will be issued. If bonds are involved, these documents go to the superintendent of streets. If not, they go to the city tax collector. If an entity other than a municipal corporation is handling the process, these documents are sent to a corresponding official, such as the county surveyor if a county is involved. If the area isn't in a city or county, the documents need to be recorded with the county surveyor for unincorporated areas or with city officials for incorporated areas.
Upon the passage of the resolutions provided for in Section 10312, the clerk of the legislative body shall, if bonds are to be issued, transmit to the superintendent of streets, or if no bonds are to be issued, to the city tax collector the diagram and assessments adopted pursuant to Section 10312. If other than a municipal corporation is conducting the proceeding, the diagram and assessment shall be transmitted to and recorded by the corresponding officer of the entity conducting the proceeding, which officer shall be the county surveyor if a county is conducting the proceeding, and that officer shall perform the duties provided in this division for the tax collector. If neither a municipal corporation nor a county is conducting the proceeding, a certified copy of the diagram and assessment shall be recorded with the county surveyor if all or any part of the improvement district is in unincorporated territory, and with the superintendent of streets or tax collector of the city if all or any part of the improvement district is an incorporated territory.
diagram transmission assessment adoption superintendent of streets city tax collector bond issuance process municipal corporation county surveyor unincorporated territory incorporated territory improvement district entity conducting proceeding document recording legislative resolutions transmission process
Section § 10402
This section explains that the tax collector must put the diagram and assessment information into a special book kept for this purpose. Once the information is recorded, the assessment becomes due, meaning you have to pay it. The payment due date is usually the day it's recorded. However, sometimes the local government can decide that payments are due once the related bonds are issued.
The tax collector shall record the diagram and assessment received pursuant to Section 10401 in a substantial book to be kept for that purpose in his office. Upon the date of recordation with the tax collector or, if a certified copy is recorded with the county surveyor or the superintendent of streets of the city, or both, as provided in Section 10401, then upon the date of recordation, the assessment becomes due and payable, except that the legislative body may provide in the resolution adopted pursuant to Section 10312 that all or any portion of the assessment becomes due and payable on the date of the bonds which represent the assessments or portion thereof.
tax collector diagram record assessment due date substantial book recordation county surveyor superintendent of streets assessment payable legislative body resolution bond issuance date tax assessment process payment timeline bond-related assessment assessment recordation
Section § 10402.5
This law states that once a city resolution is passed under Section 10312, the city clerk needs to record a notice of assessment. This notice should include details about any yearly charges for administrative costs. When this happens, the assessment becomes a lien (a legal claim) on the property. The lien for the annual administrative costs is created at the same time the yearly property tax becomes a lien.
Upon the passage of the resolution provided for in subdivision (a) of Section 10312, the city clerk shall record a notice of assessment, as provided for in Section 3114, modified to reflect any annual assessment for administrative cost, whereupon the assessment shall attach as a lien upon the property assessed, as provided in Section 3115, except that the annual assessment for administrative cost shall become a lien at the same time as the property tax becomes a lien each year.
city clerk duties notice of assessment lien on property annual assessment administrative cost property tax lien Section 10312 resolution property assessment notice annual lien creation city resolution impact
Section § 10403
In California, if assessments aren't paid within 30 days after they're due, they're considered late (delinquent) and a 5% penalty will be added. However, you can pay these assessments either fully or partially within the first 30 days after they're due.
All assessments not paid within 30 days after they become due, except all unpaid assessments for which bonds are to be issued, shall become delinquent and the recording officer shall add to each delinquent assessment 5 percent of the amount thereof. Assessments may be paid in whole or in part during the 30-day period after the same become due and payable.
late assessments delinquent penalties 5 percent penalty assessment payments 30-day payment period recording officer partial payment due assessments unpaid assessments payment grace period
Section § 10404
When an assessment is recorded, the collection officer must notify property owners. This is done by mailing a statement with important details like the property's description, the assessment amount, the recording date, and payment instructions. If bonds are issued, this must also be mentioned.
If the collection officer doesn't mail the notice to a property owner or if the owner doesn't get it, the process is still valid. Additionally, a notice must be published that informs everyone the assessment is recorded, the amounts are due immediately, and what happens if they're not paid in 30 days. The notice also specifies the consequences if bonds are or aren't issued and the payment isn't made within the time frame.
(a)CA Streets and Highways Code § 10404(a) Notice of recordation of assessment shall be given as provided in this section.
(b)CA Streets and Highways Code § 10404(b) Upon recording of the assessment, the collection officer shall mail, as provided in subdivision (a) of Section 5070, a statement containing all of the following:
(1)CA Streets and Highways Code § 10404(b)(1) A designation by street number, or some other description, of the property assessed sufficient to enable the owner to identify it.
(2)CA Streets and Highways Code § 10404(b)(2) The amount of the assessment.
(3)CA Streets and Highways Code § 10404(b)(3) The date of the recordation of the assessment.
(4)CA Streets and Highways Code § 10404(b)(4) The time and place of payment of the assessment and the effect of failure to pay within such time.
(5)CA Streets and Highways Code § 10404(b)(5) If bonds are to be issued, a statement of that fact designating the act pursuant to which such bonds are to be issued.
(c)CA Streets and Highways Code § 10404(c) The failure of the collection officer to mail the notice to any property owner or the failure of any property owner to receive the notice shall not affect the validity of any proceedings taken under this division.
(d)CA Streets and Highways Code § 10404(d) The collection officer also shall give notice by publication pursuant to Section 6066 of the Government Code, which notice shall state all of the following:
(1)CA Streets and Highways Code § 10404(d)(1) That the assessment has been recorded as provided in Section 10402, and that all sums assessed therein are due and payable immediately.
(2)CA Streets and Highways Code § 10404(d)(2) That the payment of such sums is to be made to the collection officer within 30 days after the date of recording the assessment, which date shall be stated in the notice.
(3)CA Streets and Highways Code § 10404(d)(3) If bonds are not to be issued, that all assessments will become delinquent if not paid before the expiration of that 30 days and the effect of the failure to pay the assessments within the 30-day period.
(4)CA Streets and Highways Code § 10404(d)(4) If bonds are to be issued, the effect of the failure to pay the assessments within the 30-day period.
assessment notice recordation collection officer property description payment deadline delinquent assessment bonds issuance failure to pay published notice section 10402 subdivision (a) of Section 5070 section 6066 Government Code property owner notification due and payable sums
Section § 10405
This law states that the tax collector must set a date and location for selling pieces of land with unpaid assessments. The sale must happen between 60 days and six months after the diagram and assessment are officially recorded.
The tax collector shall fix a time and place for the sale of various parcels of land upon which the assessments are unpaid, which date shall be not less than 60 days nor more than six months after the date of the recordation of the diagram and assessment.
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Section § 10406
If there's no plan to issue bonds for a project, the entity's tax collector must announce that an assessment has been recorded. Then, the tax collector is responsible for collecting the assessments, following the procedures outlined in this chapter.
When the resolution of intention does not provide for the issuance of bonds, the tax collector of the entity conducting the proceedings shall give the notice of recording the assessment and collect and receive the assessments, and proceedings shall be had as provided in this chapter.
no bond issuance tax collector duties assessment recording collect assessments notice of assessment assessment procedures entity conducting proceedings resolution of intention notice obligation non-bond funding tax collection process municipal assessments public project funding
Section § 10407
If property assessments aren't paid on time, the tax collector must start publishing a notice about selling the property within 30 days after the payment is overdue. This notice is published following specific government procedures.
Within 30 days after the date of the delinquency, the tax collector shall begin the publication of a notice of sale of the property upon which the assessments have not been paid. The publication shall be made in the city pursuant to Section 6066 of the Government Code.
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Section § 10408
This law explains how a notice of sale for land should be published. Instead of listing full descriptions of each land parcel, the notice should use the parcel numbers from an assessment and diagram. It should include the owner's name, the amount owed, any penalty for late payment, a fee for a notice cost, and the sale costs. These details should be noted for each parcel.
The notice of sale published pursuant to Section 10407 need not set out the description of the various parcels of land at length, but shall describe the parcels by their respective number as they appear upon the assessment and diagram. The notice shall refer to the assessment and diagram. Opposite the description or designation of each parcel of land shall be set out the name of the owner as it appears on the last equalized assessment roll for city taxes or as known to the tax collector, the amount assessed against the parcel, the penalty for delinquency, a fee which is required to reimburse the municipality for the estimated reasonable cost of providing notice pursuant to Section 10408.5, and the costs of sale chargeable to the parcel.
notice of sale land parcels assessment diagram owner's name last equalized assessment roll amount assessed penalty for delinquency estimated reasonable cost notice cost reimbursement costs of sale published notice parcel number tax collector municipality fee
Section § 10408.5
The law requires that, before a property is sold due to unpaid taxes, the tax collector must send a notice to the concerned parties using their last known mailing address. This notice must be sent 45 to 60 days before the sale and should include details like the sale date, time, place, and the amount needed to cancel the sale.
The tax collector must try to find the contact information of these parties, but if it's not available or the notice isn't received, the sale's validity won't be affected.
(a)CA Streets and Highways Code § 10408.5(a) Not less than 45 days nor more than 60 days prior to the date of sale, the tax collector shall send notice by registered mail to the last known mailing address, if available, of parties of interest, as defined in Section 6505.4. The content of the notice shall include the date, time, and place of the proposed sale, and the amount required to redeem prior to the time of the sale.
(b)CA Streets and Highways Code § 10408.5(b) The tax collector shall make a reasonable effort to obtain the name and last known mailing address of parties of interest.
(c)CA Streets and Highways Code § 10408.5(c) The validity of any sale under this chapter is not affected if the tax collector’s reasonable effort fails to disclose the name and last known mailing address of parties of interest or if a party of interest does not receive the mailed notice.
tax sale notice registered mail property sale unpaid taxes parties of interest redemption amount mailing address notice requirements tax collector responsibilities reasonable effort to contact mail delivery failure validity of sale real estate transactions
Section § 10409
Before a property is sold due to unpaid assessments, the tax collector must send a notice to the property's owner at least 15 days prior to the sale. This notice is mailed at no cost to the owner and must include details like the property's legal description, street number, the amount owed, any penalties, and fees for the notice. It also lists costs related to the sale itself. This ensures property owners are well informed of their dues and the impending sale.
At least 15 days prior to the date of the sale, the tax collector shall mail, postage prepaid, notices of sale to the owners of all property upon which the assessments have not been paid, as they appear on the last equalized assessment roll for city taxes or as known to the tax collector. The various parcels shall be designated by their legal description or by street number in addition to their respective numbers as they appear upon the assessment and diagram. Opposite the description and designation of each parcel in the notice shall be set out the amount assessed against the property, the penalty for delinquency, a fee which is required to reimburse the municipality for the estimated reasonable cost of providing notice pursuant to Section 10408.5, and the portion of the costs of the sale chargeable to the parcel.
tax collector notice unpaid assessments property sale last equalized assessment roll legal description street number amount assessed delinquency penalty notification fee cost of sale owner notification municipality reimbursement Section 10408.5 pre-sale notice city taxes
Section § 10410
Once the notices of sale have been published and mailed, the tax collector must submit an affidavit to the legislative body. This document confirms that all requirements for publishing and mailing the notices have been met, including the specific time and method used.
Upon the completion of the publishing and mailing of the notices of sale, the tax collector shall file with the legislative body an affidavit setting forth the time and manner of the compliance with the requirements for publishing and mailing the notices.
tax collector notices of sale affidavit legislative body compliance publishing requirements mailing requirements sale notices time and manner file affidavit
Section § 10411
This law allows anyone to pay the overdue assessments, penalties, and costs on a property that is delinquent before it is sold due to unpaid assessments. If the payment is made after the first advertising notice of sale has been published, any related advertising costs must also be paid.
At any time after delinquency and prior to the sale of any parcels of land assessed and delinquent, any person may pay the assessment, and penalties and costs due on the property, including the cost of advertising if the payment is made after the first publication of the notice of sale.
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Section § 10412
This law explains what happens when a property is being sold due to unpaid taxes. The tax collector will start the sale at a scheduled time and place, following a list, selling properties one by one in order. They can delay the sale to another day if necessary, continuing each day until all properties are sold.
At the time and place fixed in the notice, the tax collector shall proceed with the sale of the property advertised, commencing at the head of the list and continuing in numerical order of lots or parcels of land until all are sold. He may postpone or continue the sale from day to day until the sale is completed.
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Section § 10413
This law says that if property tax on a piece of land hasn't been paid, the tax collector must try to sell that land (or enough of it) to cover the unpaid tax, any penalties, costs, and an additional fifty cents for issuing a sale certificate. If nobody else buys the land, the city will take ownership by default.
The tax collector shall sell separately each parcel of land in the published notice on which the assessment remains unpaid, or so much of it as is necessary to realize the amount assessed against the parcel and penalties and costs, and fifty cents ($0.50) for a certificate of sale. If there is no other purchaser for any lot or parcel of land so offered for sale, it shall be struck off to the city as purchaser.
unpaid property tax tax collector land sale assessment penalties costs certificate of sale city purchaser parcel sale default city ownership property auction municipal purchase public notice land auction process realize assessment amount
Section § 10414
When a parcel is sold, the tax collector must create two certificates of sale. The certificate includes details about the sale, like what was sold, who bought it, and the sale price. The original certificate is given to the buyer, and the duplicate is kept by the tax collector for records.
For each sale the tax collector shall issue an original and duplicate certificate of sale, referring to the proceedings, describing the parcel sold, and giving the name of the purchaser and the amount for which the parcel was sold. He shall deliver the original certificate to the purchaser and keep the duplicate on file in his office, in the form of a stub, in the certificate book.
tax collector certificate of sale duplicate certificate parcel sold purchaser sale price original certificate record keeping sale proceedings certificate book stub property sale tax sale sale records buyer
Section § 10415
If property is sold because of unpaid debts, you have up to one year from the sale date to get it back. To do this, you must pay the sale amount plus an extra penalty, which is 1% of the amount for each month until you pay.
At any time before the expiration of one year from the date of the sale, any property sold pursuant to this chapter may be redeemed by payment to the tax collector of the amount for which it was sold and an additional penalty at the rate of 1 percent of the amount a month until paid.
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Section § 10416
This law states that when someone redeems a piece of land, the tax collector must give the redemption money to the person holding the original certificate of sale. The holder must then surrender the certificate and provide a receipt for the money. The tax collector also needs to record the redemption and its date on the duplicate certificate of sale for that piece of land.
The tax collector shall pay the redemption money to the person holding the original certificate of sale and shall require that the person to whom the redemption money is paid surrender the certificate and give a receipt for the money so paid. Upon redemption of any parcel of land the tax collector shall enter the fact and date of redemption upon the duplicate certificate of sale for that parcel of land.
tax collector duties original certificate of sale redemption money payment surrender of certificate receipt for redemption money recording redemption duplicate certificate of sale land redemption process certificate surrender requirement redemption entry date
Section § 10417
If someone buys property through this specific process and no one claims it back within a year, the buyer can get a deed for the property from the tax collector. As long as the buyer follows the rules, the tax collector will provide a deed that details the property's description and notes that it wasn't claimed. The process costs $1, unless the city bought it, in which case it's free.
If property sold pursuant to this chapter is not redeemed within one year, and if the purchaser or his assignee has complied with the provisions of this chapter, the tax collector shall execute to the person named in the original certificate, or to his assignee on his application, a deed of the property described in the certificate. The deed shall refer in general terms to the proceedings under which it is issued and contain a description of the property, any assignment thereof, and the fact that no person has redeemed the property. The tax collector shall receive from the applicant one dollar ($1) for making the deed, unless the city is the purchaser, in which case no charge shall be made.
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Section § 10418
This law requires that at least 30 days before applying for a deed, the buyer or their assignee must send a written notice to both the property owner and occupant, if occupied. The notice must include details about the property, explain that it was sold due to unpaid assessments, specify how much it was sold for, and state the amount needed to redeem the property. It must also mention when they plan to ask the tax collector for the deed. If the owner can't be located despite reasonable effort, the notice should be visibly posted on the property 30 days before applying for the deed.
At least 30 days before he applies for a deed, the purchaser or his assignee shall serve upon the owner of the property, and upon the occupant of such property if it is occupied, a written notice setting forth:
(a)CA Streets and Highways Code § 10418(a) A description of the property.
(b)CA Streets and Highways Code § 10418(b) That the property has been sold for a delinquent assessment (specifying the improvement for which the assessment was made).
(c)CA Streets and Highways Code § 10418(c) The amount for which the property was sold.
(d)CA Streets and Highways Code § 10418(d) The amount necessary to redeem at the time of giving notice.
(e)CA Streets and Highways Code § 10418(e) The time when the purchaser or assignee will apply to the tax collector for a deed.
If the owner cannot be found, after due diligence, the notice shall be posted in a conspicuous place upon the property, at least 30 days before the time stated therein as the time at which the application for a deed will be made.
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Section § 10419
If you're applying for a property deed, you need to provide a sworn statement to the tax collector. This statement must show that you've notified the property owner as required, and if you couldn’t contact the owner directly, you must prove you made a strong effort to find them. The tax collector will keep these statements on file.
The person applying for a deed shall file with the tax collector an affidavit or affidavits showing that notice of such application has been given as required in this chapter, and if the notice was not served on the owner of the property personally that due diligence was used to find the owner. The affidavit or affidavits shall be filed by the tax collector in his office.
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Section § 10420
If someone is redeeming a property more than 11 months after it was sold, they must pay an extra $3 fee in addition to other required costs. This fee is for the service of notice and preparing affidavits. The $3 should be given to the buyer of the property or their assignee in the same way other redemption costs are paid.
If redemption of the property is made after such affidavits are filed, and more than 11 months from the date of sale, the person making the redemption shall pay, in addition to the other amounts required, three dollars ($3) for the service of notice and the making of the affidavits, which amount shall be paid over to the purchaser or his assignee in the same manner as other sums paid for redemption.
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Section § 10421
This law states that if someone buys property due to unpaid assessments, they can't get the official property deed until they've followed certain rules outlined in previous sections (10417-10420) and have submitted the correct paperwork to the tax collector.
No deed for any property sold for delinquent assessment shall be made until the purchaser or his assignee has complied with all the provisions of Sections 10417 to 10420, inclusive, and has filed the proper affidavits with the tax collector.
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Section § 10422
This law section explains that when a tax collector issues a deed, it provides full ownership rights (called title in fee) to the buyer. The new owner is also entitled to take immediate possession of the property as soon as they receive the deed.
The deed of the tax collector conveys the title in fee to the property and entitles the grantee, upon the receipt thereof, to immediate possession of the property described in the deed.
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Section § 10423
This law states that a deed issued by a tax collector is assumed to be correct and valid unless proven otherwise. It means that everything mentioned in the deed, as well as the steps taken before the deed's creation, is presumed to be accurate and properly conducted.
The deed of the tax collector is prima facie evidence of the truth of all the matters which it recites, and of the regularity of all proceedings prior to the execution of the deed.
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Section § 10424
This law requires the tax collector to quickly transfer any funds they collect, either through voluntary payment or sales, to the city treasurer. The city treasurer must then deposit these funds into a special fund named after the specific improvement project these funds are intended for. The money in the special fund can only be used for purposes related to the improvement project.
As fast as collected the tax collector shall pay the funds collected by him pursuant to this division, either upon voluntary payment or as the result of sales, to the treasurer of the city. The city treasurer shall place the funds so received in a special fund designated by the name of the improvement proceeding. Payment shall be made out of the special fund so established only for the purposes provided for in this division.
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Section § 10424.2
In Orange County, if there is a delay in the acquisition or construction of an improvement project after bonds have been issued, the county board can use money from the improvement fund to pay off those bonds early. This repayment won't lower the amount owed by property owners through assessments, but future installments will be reduced as much as possible by law.
Additionally, the board can issue new bonds equivalent to the amount paid off, and the money from these new bonds will go back into the improvement fund.
(a)CA Streets and Highways Code § 10424.2(a) If the Orange County Board of Supervisors determines, subsequent to the issuance of bonds, that the acquisition or construction of all or any part of the proposed improvement will be delayed beyond the date upon which, at the time the bonds were issued, the acquisition or construction was expected to occur, the balance then on deposit in the improvement fund, or the portion specified by the board, may, at the direction of the board, be applied to call outstanding bonds called for redemption. The call and redemption of bonds pursuant to this section shall not cause the amount of any assessment to be reduced. The board shall cause any annual assessment installments occurring after any redemption under this section to be reduced to the maximum extent permitted by law.
(b)CA Streets and Highways Code § 10424.2(b) The board may, from time to time, issue bonds in an aggregate principal amount not in excess of the principal amount of bonds called for redemption pursuant to subdivision (a). The net proceeds derived from the sale of the bonds shall be deposited in the improvement fund.
Orange County Board of Supervisors improvement project delay bond issuance bond redemption improvement fund early bond repayment property assessments annual assessment installments new bond issuance aggregate principal amount construction delay acquisition delay financial management project funding infrastructure financing
Section § 10425
If the initial assessment or bond sale doesn't cover all the costs for improvements or acquisitions, including legal judgments, the local government can either use money from the general fund or require an additional assessment to cover the shortfall.
If the first assessment or the sale of bonds to represent assessments levied pursuant to this division fails to raise sufficient money to pay all costs, damages, and expenses of the improvement or acquisition, including any judgments rendered in the action and proceedings mentioned in this division and the costs and expenses thereof, the legislative body may pay the deficit out of the general fund, or may order a supplemental assessment to pay the deficit.
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Section § 10426
This law section explains that any additional assessments for improvements should be handled in the same way as the initial assessment. If more funds are needed, further assessments can be made. During a hearing, the legislative body can approve, change, or amend these supplemental assessments, and their decision is final.
The supplemental assessment shall be made and collected in the same manner, as nearly as may be, as the first assessment. Subsequent supplemental assessments may be made, if necessary, to pay for the improvement. At the hearing the legislative body may confirm, modify, or correct the supplemental assessment. The decision of the legislative body thereon is final.
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Section § 10427
After finishing a city improvement project and settling all related expenses, the city council assesses any leftover money in the improvement fund. If there's extra cash, they decide how to use it. Options include transferring up to $1,000 or 5% to the city's general fund, applying it as a credit against assessments, using it for maintenance, or repaying bond debts to cut down future assessment costs. If they choose to repay bonds early, the treasurer must adjust reserve funds to maintain tax benefits, give cash credits for previous payments, and update financial records to reflect new assessment balances.
After completion of the improvement and the payment of all claims from the improvement fund, the legislative body shall determine the amount of the surplus, if any, remaining in the improvement fund by reason of the assessment and any supplemental assessment levied for the improvement. The surplus shall be used, in amounts determined by the legislative body, for one or more of the following purposes:
(a)CA Streets and Highways Code § 10427(a) For transfer to the general fund of the city, provided that the amount transferred shall not exceed the lesser of one thousand dollars ($1,000) or 5 percent of the total amount expended from the improvement fund.
(b)CA Streets and Highways Code § 10427(b) As a credit upon the assessment and any supplemental assessment, in the manner provided in Section 10427.1.
(c)CA Streets and Highways Code § 10427(c) For the maintenance of the improvement.
(d)CA Streets and Highways Code § 10427(d) To call bonds, thereby reducing outstanding assessments and subsequent assessment installments. In the event that the legislative body determines to use all or some portion of the surplus to call bonds prior to maturity, the treasurer shall do each of the following:
(1)CA Streets and Highways Code § 10427(d)(1) Cause the special reserve fund, if any, to be reduced as necessary pursuant to Section 8887 to assure that the bonds will not become subject to federal income taxation.
(2)CA Streets and Highways Code § 10427(d)(2) Cause any assessment previously paid in cash to receive a credit in cash pursuant to subdivision (b) of Section 10427.1 for the proportionate share of the surplus as determined pursuant to subdivision (a) of Section 10427.1.
(3)CA Streets and Highways Code § 10427(d)(3) Cause the preparation of new auditor’s records to reflect the adjusted principal amount of the remaining assessment. All subsequent assessment installments shall be based upon the adjusted principal amount of the assessment as reflected in the revised auditor’s record.
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Section § 10427.1
If there's no extra assessment, any surplus funds will be credited back to the assessment or used to pay off bonds. If there's an extra assessment, surplus can be credited to the main or extra assessment or used for bonds, based on what the city decides. The amount credited is proportional to each person's assessment share. Any bonds paid off use a specific process.
If someone paid their assessment in full after January 1, 1991, they get their credit back in cash if they prove payment. If an assessment isn’t fully paid, credits are applied to the unpaid amount, either in full or in installments after two years after bond sale proceeds.
Surplus not claimed in four years, or if bonds were issued, goes to the city's general fund. Any interest from surplus below $50 goes to the city, but if over $50, the interest, minus costs, goes back to the assessment.
(a)CA Streets and Highways Code § 10427.1(a) If there is no supplemental assessment, the entire amount of the surplus shall be applied as a credit to the assessment or, as an alternative, any portion of the surplus may be used to call outstanding bonds. If any supplemental assessment has been levied, any portion of the surplus shall be applied as a credit to the assessment or supplemental assessment, or both, or, as an alternative, may be used to call outstanding bonds, as the legislative body may determine. Any credit upon the assessment or any supplemental assessment shall be made in the proportion which each individual assessment, or installment of principal thereof, bears to the total of all individual assessments in the assessment or supplemental assessments upon which the surplus is to be credited. Any bonds called pursuant to this section shall be selected in accordance with Section 8768.
(b)CA Streets and Highways Code § 10427.1(b) Where an individual assessment, or any installment of the principal thereof, has been paid in cash after January 1, 1991, the credit shall be returned in cash to the person or persons owning the property for which the assessment or installment has been paid upon their furnishing satisfactory evidence of payment.
(c)CA Streets and Highways Code § 10427.1(c) Where all or any part of an individual assessment remains unpaid, if the individual assessment is not payable in installments, the credit shall be applied in its entirety upon the individual assessment.
(d)CA Streets and Highways Code § 10427.1(d) Where all or any part of an individual assessment remains unpaid and is payable in installments, the amount apportioned to each parcel shall be credited against the next installment or installments unpaid upon it after the two-year period specified in this subdivision. When any of the surplus is to be applied as a credit upon the assessment, payable in installments, no credit may be paid or credited as provided in this section until after a period of two years from the date of receipt of proceeds of the sale of bonds by the legal entity conducting the proceedings.
(e)CA Streets and Highways Code § 10427.1(e) There shall be transferred to the general fund of the city (1) any portion of the surplus which has not been paid to or claimed by the persons entitled thereto within four years from the date of recordation of the assessment and any supplemental assessment or, if bonds have been issued, within four years after the due date of the last installment upon the bonds or of the last principal coupon attached thereto, and (2) any interest earned from the investment of any moneys constituting all or any part of the surplus when the surplus attributable to an individual remaining assessment is fifty dollars ($50) or less. If the surplus attributable to an individual remaining assessment is greater than fifty dollars ($50), any interest earned thereon, less administrative cost of investing and crediting, shall be applied as a credit to the assessment.
surplus funds credit to assessment outstanding bonds supplemental assessment proportionate credit cash refund unpaid assessment installment payments two-year period general fund transfer interest on surplus bond sale proceeds owner cash refund surplus interest allocation administrative cost deduction
Section § 10427.2
This law section explains how any leftover money in the improvement fund should be used. If there is extra money, a city or another authority that helped pay for an improvement can get a credit. This credit is given based on how much they contributed compared to the total assessment. The credited amount is returned to them in cash. After giving these credits, any leftover surplus is then used as described in another section (Section 10427.1).
If, pursuant to Section 10427, the legislative body determines that any surplus remaining in the improvement fund shall be used as a credit upon the assessment or any supplemental assessment, the legislative body may also determine that such surplus shall be applied as a credit to the city or any local, state or national agency or authority which shall have made a contribution towards the costs and expenses of the improvement. A credit on account of any contribution shall be made in the proportion which such contribution bears to the total amount of the assessment or supplemental assessment prior to the deduction of all such contributions. All such credits shall be returned in cash to the city, local, state or national agency or authority making such contribution. The surplus remaining in the improvement fund after making credits on account of contributions shall then be applied as a credit in the manner provided in Section 10427.1.
surplus improvement fund credit supplemental assessment legislative body contribution costs and expenses cash return local agency state agency national agency authority improvement project financial credit process Section 10427.1 application
Section § 10427.5
This law states that if any construction work planned for a specific property lot is removed, the extra money in the improvement fund, due to this cancellation, can be refunded to the property owner, following the process outlined in another section.
If any work to be performed under this division is deleted from a specific lot fronting on the improvement, the surplus in the improvement fund resulting from the deletion of such work may be returned to the owner of that lot, in the manner provided in Section 10427.1.
construction work cancellation refund to property owner surplus improvement fund deleted construction work lot-specific work deletion property improvement refund refund procedure improvement fund surplus return Section 10427.1 specific lot fronting property lot adjustment improvement fund management work removal financial surplus property owner refund process
Section § 10428
This law states that once a special assessment is officially recorded, it becomes a lien on the property assessed. This lien takes priority over other liens, except for earlier assessments and taxes. It's valid for 10 years from when it's recorded unless it's linked to a bond, in which case it lasts until four years after the last bond payment is due. Everyone is considered legally aware of this lien from the moment it's recorded.
From the date of the recordation pursuant to Sections 3114 and 3115, each special assessment levied under this division is a lien upon the land upon which it is levied. This lien is paramount to all other liens, except prior assessments and taxation. Unless sooner discharged, the lien continues for a period of 10 years from the date of the recordation or, if bonds are issued to represent the assessment, until the expiration of four years after the due date of the last installment on the bonds or of the last principal coupon attached thereto. All persons have constructive notice of this lien from the date of the recordation.
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Section § 10429
This law says that any liens tied to bonds or assessments on a property will be secondary to any special assessment liens that were already there. However, they will take priority over any new special assessment liens placed on the property later.
The lien, whether bonds issued to represent the assessment or otherwise, shall be subordinate to all fixed special assessment liens previously imposed upon the same property, but it shall have priority over all fixed special assessment liens which may thereafter be created against the property.
subordinate liens priority over liens special assessment liens liens on property fixed liens bond-related liens previously imposed liens property lien priority subordinated liens subsequent liens property assessment lien hierarchy real estate liens bond assessment priority lien priority order
Section § 10430
This law section explains that when a reassessment or a refunding assessment is made, it maintains the same level of importance, or priority, as the original assessment it is connected to. It also states that a supplemental assessment is considered a completely new assessment.
The lien of a reassessment and a refunding assessment shall have the same priority as the original assessment to which it relates. A supplemental assessment is a new assessment.
lien priority reassessment refunding assessment original assessment supplemental assessment assessment priority property lien assessment relationship new assessment assessment hierarchy
Section § 10506
This law allows a city or town's governing body to decide, with a two-thirds majority vote, to carry out improvement projects themselves without asking for bids from outside contractors, as long as it's after the preliminary approval of a certain report.
At any time after the preliminary approval of the report provided for in Section 10300, by resolution adopted by a vote of two-thirds of all its members and without calling for bids, the legislative body may order that the municipality itself execute any or all of the improvement in accordance with the specifications and plans adopted for the work.
municipality improvement two-thirds vote preliminary report approval execute improvements city project execution no bid required specifications and plans local government decision self-executed projects legislative body resolution
Section § 10507
This law allows a city's legislative body to approve the hiring of workers and the purchase of materials, tools, and supplies needed for a city-managed construction project. The city can also obtain the necessary resources to complete the improvement work.
The legislative body, on ordering the municipality itself to execute the improvement, may authorize the municipality to employ the labor, and provide the material, appliances, supplies, and illuminating agent necessary to carry out the work.
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Section § 10508
This law says that if a city does a public improvement project itself, it should use a special improvement fund to pay for it. However, they can only use as much money as they would have paid to the winning bidder. If they didn't ask for bids, they can only use the amount they estimated beforehand. If the project ends up costing more than these limits, the extra money has to come from a different general fund.
The cost and expenses of work executed by the municipality itself shall be paid out of the improvement fund, but the amount appropriated and used from the fund for this purpose shall not exceed the amount of the bid upon which the award of the contract was made, or if no bids are received or the work is ordered without asking for bids, the cost and expenses shall not exceed the amount of the estimate provided for in subdivision (c) of Section 10204. If the cost and expenses do exceed the amount of the bid, or of the estimate in case no bids are received or the work is ordered without asking for bids, the excess shall be paid from the general fund in the treasury.
municipality work expenses public improvement project funding municipality self-executed work improvement fund limitations contract bid amount cost management in public projects exceeding project estimate general fund usage lack of bids handling subdivision (c) of Section 10204 bid and estimate limitations
