Laserfiche WebLink
Metadata
Document management portal powered by Laserfiche WebLink 9 © 1998-2015 Laserfiche. All rights reserved.
If the City requires letters of credit or other security, the credit enhancement shall be issued <br /> by an institution, in a form and upon terms and conditions satisfactory to the City. Any security <br /> required to be provided by the applicant may he discharged by the City upon the opinion of a <br /> qualified appraiser, retained by the City, that a value - to-lien ratio of three to one has been attained. <br /> As an alternative to providing other security, the applicant may request that a portion of the <br /> bond proceeds be placed in escrow with a corporate agent in an amount sufficient to assure a <br /> value - to-lien ratio of at least three to one on the outstanding proceeds. The proceeds shall be <br /> released at such times and such amounts as may be necessary to assure a value - to-lien ratio of at <br /> least three to one on the aggregate outstanding bond proceeds and other indebtedness secured by <br /> real property liens as required. <br /> VI. DISCLOSURE REQUIREMENTS FOR PROSPECTIVE PROPERTY PURCHASERS. <br /> A. Disclosure Requirements for Developers. Developers who are selling lots or parcels that <br /> are within a CFD shall provide disclosure notice to prospective purchasers that complies with all of <br /> the requirements set forth in Section 53341.5 of the Government Code. The disclosure notice must <br /> be provided to prospective purchasers of property at or prior to the time the contract or deposit <br /> receipt for the purchase of property is executed. Developers shall keep an executed copy of each <br /> disclosure document as evidence that disclosure has been provided to all purchasers of property <br /> within a CFD. <br /> B. Disclosure Requirements for the Resale of Lots. The City Department of Finance shall <br /> provide a notice of special taxes to sellers of property (other than developers) which will enable <br /> them to comply with their notice requirements under Section 1102.6 of the Civil Code. This notice <br /> shall be provided by the City within five working days of receiving a written request for the notice. <br /> A reasonable fee may be charged for providing the notice, not to exceed any maximum fee <br /> specified in the Act. <br /> VII. EQUITY OF SPECIAL TAX FORMULAS AND MAXIMUM SPECIAL TAXES. Special <br /> tax formulas for CFDs shall provide for minimum special tax levels which satisfy the following <br /> expenses of a CFD: (a) 110 percent debt service coverage for all CFD bonded indebtedness, (b) the <br /> reasonable and necessary administrative expenses of the CFD, and (c) amounts equal to the <br /> differences between expected earnings on any escrow fund and the interest payments due on <br /> bonds of the CFD. Additionally, the special tax formula may provide for the following: (a) any <br /> amounts required to establish or replenish any reserve fund established in association with the <br /> indebtedness of the CFD, (b) the accumulation of funds reasonably required for future debt service, <br /> (c) amounts equal to projected delinquencies of special tax payments, (d) the costs of remarketing, <br /> credit enhancement and liquidity facility fees, (e) the cost of acquisition, construction, furnishing or <br /> equipping of facilities, (f) lease payments for existing or future facilities, (g) costs associated with the <br /> release of funds from an escrow account, and (h) any other costs or payments permitted by law. <br /> The special tax formula shall be reasonable and equitable in allocating public facilities' <br /> costs to parcels within the CFD. Exemptions from the special tax may be given to parcels which are <br /> publicly owned, are held by a property owners' association, are used for a public purpose such as <br /> open space or wetlands, are affected by public utility easements making impractical their utilization <br /> for other than the purposes set forth in the easements, or have insufficient value to support bonded <br /> indebtedness. <br /> The total projected property tax levels for any CFD shall not exceed any maximum specified <br /> in the Act (the residential property criteria limits the total of all taxes and assessments to 2% <br /> assessed value). The annual increase, if any, in the maximum special tax for any parcel shall not <br /> exceed any maximum specified in the Act. The increase in the special tax levied on any parcel as a <br /> consequence of delinquency or default by the owner of any other parcel shall not exceed any <br /> maximum specified in the Act. <br /> -3- <br />