SB 692 Expands Public Services that May be Financed by a Community Facilities District, Among Other Changes

by Best Best & Krieger LLP
Contact

January 1 Changes to Mello-Roos Community Facilities Act and Marks-Roos Local Bond Pooling Act

Senate Bill 692, effective January 1, 2014, makes several changes to the Mello-Roos Community Facilities Act and the Marks-Roos Local Bond Pooling Act that are beneficial to public agencies seeking to fund public services and improvements.

The Mello-Roos Community Facilities Act allows counties, cities, special districts, and school districts to finance public works projects and a limited list of public services by levying special taxes (parcel taxes). A Mello-Roos Community Facilities District (CFD) may also issue bonds against these special taxes to finance the public works projects.

The Marks-Roos Local Bond Pooling Act allows public agencies to use Joint Powers Agencies (JPAs) to finance infrastructure. These JPAs issue Marks-Roos Act bonds and loan the capital to local agencies for public works, for working capital, and for insurance programs. The Marks-Roos Act allows a JPA to take title to, and sell, lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and other interests in lands located within the state that the authority determines are necessary or convenient for the financing of public capital improvements.

Among other matters, SB 692 makes the following changes to the two Acts:

(1) Expands the list of public services that may be financed by a CFD to include the maintenance and operation of any real or other tangible property with an estimated useful life of five years or longer that is owned by the local agency or by another local agency through an agreement entered into pursuant to a specified statute. “Maintenance” is also expanded to include the replacement and the creation and funding of a reserve to pay for replacement.

(2) Adds leases to the list of property interests that JPAs can use to finance public capital improvements.

(3) A CFD can finance facilities to be owned or operated by a public agency other than the agency that created the district pursuant to a joint community facilities agreement or joint exercise of powers agreement. SB 692 declares that specified provisions in the Mello-Roos Act must not be construed to limit a JPA’s ability to exercise powers authorized by the Joint Powers Act.

(4) Federal law requires some property owners in a CFD to disclose certain information on a continuous basis through an information clearinghouse established by the Municipal Securities Rulemaking Board (MSRB). SB 692 allows a local agency to execute and record in a county recorder’s office a notice of the owner’s disclosure agreement for the purpose of providing notice to a subsequent transferee. The owner’s written consent must be attached to the notice. SB 692 requires a subsequent transferee of the property to be subject to the disclosure obligation.

(5) A certified public accountant (CPA) must certify that proceeds and investments kept in a fund for a CFD’s refunding bonds are sufficient to meet specified statutory requirements. In the case of a current refunding, SB 692 allows a “refunding fund” to be structured to avoid the necessity of providing a CPA certification of the sufficiency of the proceeds and investments in the “refunding fund.”

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Best Best & Krieger LLP | Attorney Advertising

Written by:

Best Best & Krieger LLP
Contact
more
less

Best Best & Krieger LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.