Multifamily Improvement DistrictsFormation
Section § 36710
This section allows for the creation of multifamily improvement districts under specific rules. However, cities cannot establish these districts after January 1, 2022, unless a new law changes or extends that deadline.
Section § 36711
This law states that a county can't create a district inside a city without getting permission from that city's governing council. Similarly, a city can't establish a district in the unincorporated areas of a county without approval from the county's board of supervisors. Lastly, one city can't create a district inside another city without consent from that city's council.
Section § 36712
This law outlines the process for establishing a special district within a city. If property or business owners, who will bear the cost, agree to pay more than two-thirds of the proposed assessment, they can submit a petition to the city council. The petition must include a map of the district, a description of activities and improvements, and how it will be financed, including any bond issues.
The city council can then pass a resolution to consider forming the district. This resolution must briefly describe the proposed improvements, the assessment details, and whether the assessment targets properties or businesses. It shall have enough information for an owner to understand what is involved and where the district will be. Additionally, it orders the creation of a management plan by a professional engineer.
Section § 36713
This section outlines what a management district plan must include. The plan needs to have a detailed map showing property and business locations, along with the district's name. It must describe district boundaries without overlapping existing districts and detail improvements, activities, and their costs for each operational year. It specifies the total annual expenditure on district improvements, maintenance, operations, and debt service. The plan should outline the financing sources, assessment methods, and whether bonds will be issued. Additionally, it explains how assessments will be collected and their duration, which can't exceed five years unless renewed for up to ten years, or twenty if financed by bonds. The plan must also include implementation timelines, rules, a list of assessed properties or businesses, and any specific requirements set by the city council.
Section § 36714
This law outlines the procedures a city council must follow when proposing new or increased assessments on property or businesses. For property assessments, if more than one-third of the votes on the assessment are against it, the city cannot proceed with the assessment. These votes are weighted based on the amount of assessment each property is subject to. For business assessments, the city must notify the business owners directly about the proposed assessment.
Section § 36715
After a public hearing about creating a district, a city council can decide on assessments and changes to improvements funded by those assessments. They can only lower assessments and adjust district boundaries to exclude unbenefited areas. Changes must be documented in the notice and map as per Section 36718.
Section § 36716
This law section outlines the steps a city council in California needs to take to establish a new district after a public hearing. If they decide to go ahead, they must adopt a 'resolution of formation' that includes a description of proposed activities and improvements, the boundary of the district, and how assessments will be levied on properties or businesses. The resolution should also cover whether any protests were noted.
If more than a third of submitted ballots protest the assessments, the district can't be established. It also states that the district’s properties or businesses will be subject to amendments, and the assessed funds can only be used for specified purposes within the district. The adoption also finalizes the levy of assessment for fiscal years as per the district plan.
Section § 36717
After a public hearing, if a city council wants to create a new district and hasn't made major changes to the assessment plan, they must pass a resolution to set up that district. This resolution should include specific details listed in another related section but doesn't need to mention any preliminary resolution if it wasn't previously made.
Section § 36718
Once a special district is created under Sections 36716 or 36717, an official notice and map need to be recorded by the clerk. If the district's fees apply specifically to businesses, the notice must say so. Other unrelated rules from Division 4.5 do not apply to these districts.
Section § 36719
The city council has the power to create special areas, called benefit zones, within a district. Each zone is set up based on how much the area will benefit from local improvements or activities. The council can charge different fees in each zone.
If the fees are charged to businesses, the council can also categorize businesses based on how much they benefit. Different businesses, even within the same zone, might have different fees based on this categorization.
Section § 36720
This law allows a city council to impose fees, called assessments, on businesses or property owners, or both. The purpose is to fund local improvements and activities. The council decides how these fees are divided, based on who benefits the most from the improvements.
Section § 36721
This section explains that any rules or procedures that apply to creating, changing, or getting rid of a district also apply to benefit zones or business categories. To make changes to these zones or categories, the city council must follow the same steps required for districts.
Section § 36722
If a management district reaches its expiration date, as specified by certain rules, it's possible to create a new plan and establish a new district under the guidelines of this section.