2007 California Streets and Highways Code Chapter 5.5. Alternative Procedure For Division Of Land And Bond

CA Codes (shc:6490-6494)

6490.  This chapter provides an alternative to the procedure for
division of land and bond set out in Chapter 5 (commencing with
Section 6480).


6490.5.  The legislative body may provide in the resolution of
intention, along with its determination to issue bonds, that the
bonds shall be divisible pursuant to this chapter.  This chapter
shall apply only if it is clearly stated on the bond that it is
divisible pursuant to this chapter.



6491.  (a) If any lot or parcel of land upon which there is an
unpaid assessment represented by bonds issued under this division and
to which this chapter is applicable is subdivided, including a
division into condominium interests as defined in Section 783 of the
Civil Code, or the ownership of a portion of the lot or parcel of
land is transferred to another person, the owner of any interest in
any of the lots or parcels into which the original lot or parcel has
been divided, may file an application in writing with the legislative
body.
   (b) The application under subdivision (a) shall indicate how the
original lot or parcel has been divided or transferred, and request
the legislative body to apportion the amount remaining unpaid on the
assessment in accordance with this chapter.
   (c) The application shall be accompanied by a fee in an amount to
be determined by the legislative body, for each separate part or
parcel of land into which the original lot or parcel has been divided
or transferred.  All application fees shall be deposited in the
treasury.



6491.5.  Upon receipt of the application and fee, the street
superintendent shall determine, or cause to be determined, an
apportionment of the unpaid assessment to each separate part of the
original lot or parcel of land, as if the lot or parcel of land had
been so divided at the time the original assessment was made.




6492.  After the apportionment has been determined pursuant to
Section 6491.5, an application signed by all persons owning an
interest in the original lot or parcel of land may be filed with the
legislative body, requesting that the assessment as apportioned be
adopted.



6492.5.  (a) The clerk of the legislative body shall send a notice,
by certified or registered mail, to the registered holder of any
outstanding bond secured by the assessment to be apportioned, stating
that an apportionment of an assessment has been requested, and
indicating the numbers and amounts of the proposed apportionment.
The notice shall also state that, unless a request for a hearing is
received within 45 days from the date of mailing of the notice, the
apportioned assessments shall become final and be recorded in the
office of the street superintendent.
   (b) If a request for a hearing under subdivision (a) is received,
the legislative body shall file a report and conduct a hearing
pursuant to Part 10 (commencing with Section 8730) of Division 10.



6493.  (a) At the time and place set for the hearing pursuant to
subdivision (b) of Section 6492.5, and after hearing all protests,
the legislative body may determine to divide the bond according to
the proposed apportionment, or as amended by the legislative body
during the hearing, upon a finding of both of the following:
   (1) That the apportionment is in accordance with the proportionate
benefits to be received by each of the resulting lots or parcels.
   (2) That the apportionment does not impair the value or security
of the outstanding bonds secured by the land being apportioned  and
that the lien-to-value ratio of each apportioned parcel is not less
than that ratio for the original parcel based on an appraisal by an
individual designated by a nationally recognized appraisal
association.  The value calculations shall exclude site improvements
constructed subsequent to the date of confirmation of the assessment.

   (b) The determination of the legislative body pursuant to
subdivision (a) is final and conclusive.
   (c) Upon that determination, the bond secured by the original
parcel shall be returned by the bondholder, canceled on the books of
the city, and exchanged for new bonds on the apportioned parcels in
the same aggregate principal amount, of the same maturity, and at the
same interest rate as the original bond.  Thereafter, payment of
principal and interest shall be due on the new bonds to the holder
thereof in the same manner and on the same dates as were applicable
to the original bond.



6493.5.  (a) If the clerk of the legislative body ascertains that
the application has been signed by all of the necessary persons, and
that no request for a hearing has been received, the clerk shall
amend, or cause to be amended, the recorded diagram and assessment to
conform to the proposed division and apportionment, and assign new
assessment numbers to each separate part of the original lot or
parcel of land.
   (b) The clerk of the legislative body shall file the amended
assessment with the treasurer, who shall annually enter upon the
assessment roll the installments becoming due on each component part
of the original parcel opposite a description of the respective
parcels.


6494.  If a city is the legislative body proceeding pursuant to this
chapter and collections upon the assessments are made by county
officials, the street superintendent shall transmit a copy of the
amended assessment to the county treasurer.