Whenever the legislative body deems it necessary for the community
facilities district to incur a bonded indebtedness, it shall, by resolution,
set forth all of the following:
A.
A declaration
of the necessity for the indebtedness.
B.
The
purpose for which the proposed debt is to be incurred.
C.
The
amount of the proposed debt. The legislative body may provide for
a reduction in the amount of proposed debt in compliance with the
provisions of Section 53313.9 of the Act.
D.
The
time and place for a hearing by the legislative body on the proposed
debt issue.
(3417-6/99, 3546-4/02, 3751-11/06)
The amount of the proposed bonded indebtedness may include all
costs and estimated costs incidental to, or connected with, the accomplishment
of the purpose for which the proposed debt is to be incurred, including,
but not limited to, the estimated costs of construction, improvement
or acquisition of buildings, or both; acquisition of land, rights-of-way,
water, sewer, wetlands mitigation or other capacity or connection
fees; lease payments for school facilities, satisfaction of contractual
obligations relating to expenses or the advancement of funds for expenses
existing at the time the bonds are issued pursuant to this Code; architectural,
engineering, inspection, legal, fiscal, and financial consultant fees;
bond and other reserve funds; discount fees; interest on any bonds
of the district estimated to be due and payable within two years of
issuance of the bonds; election costs; and all costs of issuance of
the bonds, including, but not limited to, fees for bond counsel, costs
of obtaining credit ratings, bond insurance premiums, fees for letters
of credit, and other credit enhancement costs, and printing costs.
(3417-6/99, 3546-4/02, 3751-11/06)
A.
The
legislative body may sell bonds pursuant to this Code only if it determines
prior to the award of sale of bonds that the value of the real property
that would be subject to the special tax to pay debt service on the
bonds will be at least three times the principal amount of the bonds
to be sold and the principal amount of all other bonds outstanding
that are secured by a special tax levied pursuant to this Code on
property within the community facilities district or a special assessment
levied on property within the community facilities district. Any determination
made pursuant to this subsection shall be based upon the full cash
value as shown on the ad valorem assessment roll or upon an appraisal
of the subject property made in a manner consistent with the policies
adopted pursuant to Section 3.56.100(A)(5) by a state certified real
estate appraiser as defined in subdivision (c) of Section 11340 of
the California Business and Professions Code. The City Treasurer and
the Finance Director may recommend definitions, standards, and assumptions
to be used for these appraisals. These definitions, standards, and
assumptions are advisory only, and the definitions, standards, and
assumptions to be applied to appraisals will be those adopted by the
local agency pursuant to Section 3.56.100(A)(5).
B.
Notwithstanding the provisions of subsection A of this section, if the legislative body selling the bonds finds and determines that the proposed bonds do not present any unusual credit risk due to the availability of credit enhancements or for other reasons specified by the legislative body, the provisions of subsection A may be disregarded.
C.
Notwithstanding the provisions of subsection A of this section, if the legislative body selling the bonds finds and determines by a vote of not less than four-fifths of all of its members that the proposed bond issue should proceed for specified public policy reasons, the provisions of subsection A may be disregarded.
D.
A finding
and determination by the legislative body pursuant to this section
shall be final and conclusive upon all persons in the absence of actual
fraud, and neither the legislative body nor the district shall have
any liability of any kind whatsoever out of, or in connection with,
any finding and determination.
(3417-6/99, 3546-4/02, 3751-11/06)
The bond indenture or other bond documents may provide that
the legislative body agrees to notify one or more parties, including
the underwriter or other first purchaser of the bonds, an appropriate
national repository for bond information approved by the Securities
and Exchange Commission, or the California Debt Advisory Commission,
in the event that specified events occur which may affect the market
value of outstanding bonds. These events may include, but are not
limited to, the following, for example:
A.
Withdrawal
of funds from any reserve fund for the bonds, such that the balance
in the fund falls below a specified percentage of the amount required
by bond documents.
B.
Draw
upon a letter of credit or other credit enhancement for the bonds.
C.
Filing
for bankruptcy by a developer or other owner of more than a specified
percentage of the area or property value within the district.
D.
Unforeseen
discovery of toxic materials or rare and endangered plant or animal
species within areas of the district proposed for development.
(3417-6/99, 3546-4/02, 3751-11/06)
A.
As a
cumulative remedy, if debt is outstanding, the legislative body may,
not later than four years after the due date of the last installment
of principal thereof, order that any delinquent special taxes levied
in whole or in part for payment of the debt, together with any penalties,
interest, and costs, be collected by an action brought in the superior
court to foreclose the lien of special tax.
B.
The
legislative body may, by resolution, adopted prior to the issuance
of debt under this Code covenant for the benefit of debt holders to
commence and diligently pursue any foreclosure action regarding delinquent
installments of any amount levied as a special tax for the payment
of interest or principal of any bonds that are issued, and, at any
time may assign the causes of action arising from the foreclosure
to a trustee or joint powers authority to do so on behalf of the debtholders.
The resolution may specify a deadline for commencement of the foreclosure
action and any other terms and conditions the legislative body determines
reasonable regarding the foreclosure action.
C.
Except as provided in Section 3.56.470, all special taxes, interest, penalties, costs, fees, and other charges that are delinquent at the time of the ordering of a foreclosure action shall be collected in the action. In the event that a lot or parcel of property or a possessory interest has not been sold pursuant to judgment in the foreclosure action at the time that subsequent special taxes become delinquent, the court may include the subsequent special taxes, interest, penalties, costs, fees, and other charges in the judgment or modified judgment.
D.
For
purposes of financing delinquent special taxes pursuant to Section
26220 of the California Government Code, the legislative body may
act as if it were a board of supervisors.
E.
Notwithstanding
any other provision of this Code, no trustee or joint powers authority
shall be obligated to accept the tender of bonds in satisfaction of
any obligation arising from a delinquent special tax, although either
may do so if authorized to do so by the legislative body.
F.
An action to determine the validity of any bonds issued, any joint powers agreement entered into, and any related agreements entered into, by a joint powers agency acting pursuant to this section may be brought by the joint powers agency pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. Any appeal from a judgment in the action shall be commenced within 30 days after entry of judgment.
(3417-6/99, 3546-4/02, 3751-11/06)
The foreclosure action shall be brought in the name of the local agency or trustee on behalf of the bondholders pursuant to Section 3.56.440, and may be brought within the time specified in Section 3.56.440. The complaint may be brief and need only include the following allegations:
A.
That
on a stated date, a certain sum of special taxes, levied against the
subject property or possessory interest (describing it) pursuant to
this Code, became delinquent.
B.
On that
date, bonds issued pursuant to this Code, payable in whole or in part
by the subject special taxes, were outstanding.
C.
That
the legislative body or trustee has ordered the foreclosure.
(3417-6/99, 3546-4/02, 3751-11/06)
A.
Any
judgment shall decree the amount of the continuing lien against each
parcel or possessory interest to be foreclosed, and shall order the
parcel to be sold on execution as in other cases of the sale of real
property or possessory interests by process of the court except:
1.
Notwithstanding
Section 701.545 of the Code of Civil Procedure, notice of sale of
any lot or parcel or possessory interest included in the judgment
may be given pursuant to Section 701.540 of the Code of Civil Procedure
any time after the expiration of 20 days after the date notice of
levy on the interest in real property was served on the judgment debtor
or debtors, provided that the lot or parcel to be sold is not a dwelling
for not more than four families and provided that all parties whose
liens are extinguished by the foreclosure judgment were either defendants
in the foreclosure action or, for those parties who acquired an interest
in a lien on the parcel after the recording of notice of the pending
foreclosure action, received constructive notice of the action.
2.
Whenever notice of sale may be given after the expiration of 20 days after the date notice of levy was served as provided in subsection (A)(1) of this section, the 30-day time period contained in subdivision (h) of Section 701.540 of the Code of Civil Procedure shall be reduced to 10 days.
3.
Upon proof that the lot or parcel or possessory interest to be sold is not a dwelling for not more than four families, and upon determining that all parties whose liens are extinguished by the foreclosure judgment were either defendants in the foreclosure action or, for those parties who acquired an interest in a lien on the parcel after the recording of notice of the pending foreclosure action, received constructive notice of the action, pursuant to Section 716.020 of the Code of Civil Procedure, the court shall order that subsections (A)(1) and (2) of this section apply to any judgment previously entered.
4.
The minimum bid amount provided in Section 3.56.470 shall apply instead of subdivision (a) of Section 701.620 of the Code of Civil Procedure.
5.
The local agency may bid at the price provided in Section 3.56.470 by giving the levying officer a written receipt crediting all or part of the amount required to satisfy the judgment. If the local agency becomes the purchaser pursuant to bid, the local agency shall pay the amount of its credit bid into the redemption fund within 24 months of the date of the foreclosure sale.
6.
Notwithstanding subdivision (c) of Section 701.620 of the Code of Civil Procedure, if the minimum price required to be paid for a lot of parcel pursuant to Section 3.56.470 is not obtained at a foreclosure sale, upon written request of the local agency, the levying officer shall retain the writ of sale and, provided that the writ of sale has not been returned to the court pursuant to paragraph (1) of subdivision (a) of Section 699.560 of the Code of Civil Procedure, give notice of sale pursuant to Section 701.540 of the Code of Civil Procedure without relevying on the property.
7.
As
provided elsewhere in this Code.
B.
The
judgment amount shall include reasonable attorneys' fees to be fixed
by the court, together with interest, penalties, and other authorized
charges and costs (all calculated up to date of judgment).
C.
The
foreclosure action shall be governed and regulated by the provisions
of this Code, and also where not in conflict with this Code, by other
provisions of law generally applicable to foreclosure actions.
(3417-6/99, 3546-4/02, 3751-11/06)
Property or possessory interests sold hereunder may not be sold
for less than the amount of the judgment plus post-judgment interest
and authorized costs without the consent of the owners of 75% by value
of the outstanding bonds.
(3417-6/99, 3546-4/02, 3751-11/06)
No special tax installment, interest or penalties thereon, or
deed shall be held invalid for any error in computation if the error
is found to be comparatively negligible, or is found to be in favor
of the owner of the real property affected thereby.
(3417-6/99, 3546-4/02, 3751-11/06)
Provided the legislative body permits bonds or debt to be tendered for special taxes and the penalties and interest thereon pursuant to Section 3.56.320, if the highest bid for a lot or parcel sold pursuant to a judgment of foreclosure and order of sale exceeds $5,000.00 and the highest bidder elects to treat the sale as a credit transaction pursuant to subdivision (c) of Section 701.590 of the Code of Civil Procedure, the balance due as provided in that section may be paid in full or in part by tender of bonds or debt, provided, however, that bonds or debt may not be tendered for costs of foreclosure, including attorney's fees, and administrative charges incurred by the local agency with respect to removing the special taxes from the rolls of the treasurer or tax collector, or other administrative charges.
A.
Tender
of bonds or debt shall be made to the local agency within seven days
of the date of the sale. The local agency shall be charged with authenticating
the tender and shall, within 10 days of the date of the sale, submit
a written receipt to the levying officer who conducted the sale for
the amount of the bond or debt tender accepted by it.
B.
Tender
of cash or certified check or cashier's check shall be made to the
levying officer within 10 days of the date of the sale.
C.
The
levying officer shall total the cash, certified checks and cashier's
checks, and any agency written receipts for bonds or debt to determine
if the amount of the bid, plus accruing costs and interests, has been
paid. In no event shall the tendering party be entitled to receive
cash or other compensation in return for all or any part of the value
of a tendered bond or bonds, except for recognition of their value
in satisfying the amount bid.
(3417-6/99, 3546-4/02, 3751-11/06)
A.
The legislative body shall, no later than 30 days prior to the sale of any bonds pursuant to this article, give written notice of the proposed sale to the California Debt and Investment Advisory Commission by mail, postage prepaid, as required by Chapter 12 (commencing with Section 8855) of Division 1 of Title 2 of the California Government Code
B.
Each
year after the sale of any bonds, including refunding bonds, pursuant
to this article, and until the final maturity of the bonds, the legislative
body shall, not later than October 30th of each year, supply the following
information to the California Debt and Investment Advisory Commission
by mail, postage prepaid:
1.
The
principal amount of bonds outstanding.
2.
The
balance in the bond reserve fund.
3.
The
balance in the capitalized interest fund, if any.
4.
The
number of parcels which are delinquent with respect to their special
tax payments, the amount that each parcel is delinquent, the length
of time that each has been delinquent, and when foreclosure was commenced
for each delinquent parcel.
5.
The
balance in any construction funds.
6.
The
assessed value of all parcels subject to special tax to repay the
bonds as shown on the most recent equalized roll.
C.
In addition,
with respect to any bonds sold pursuant to this article, regardless
when sold, and until the final maturity of the bonds, the legislative
body shall notify the California Debt and Investment Advisory Commission
by mail, postage prepaid, within 10 days if any of the following events
occur:
D.
Neither
the legislative body nor the California Debt and Investment Advisory
Commission shall be liable for any inadvertent error in reporting
the information required by this section.
(3417-6/99, 3546-4/02, 3751-11/06)
