STREETS AND HIGHWAYS CODE
SECTION 8830-8837
8830.  (a) As a cumulative remedy, if any assessment or reassessmentor installment thereof, or of any interest thereon, together withany penalties, costs, fees, and other charges accruing underapplicable taxation provisions are not paid when due, the legislativebody may order that the same be collected by an action brought inthe superior court to foreclose the lien thereof as provided by thispart. (b) The legislative body may, by resolution adopted prior toissuance of bonds under this division, covenant for the benefit ofbondholders to commence and diligently prosecute any foreclosureaction regarding delinquent installments of any assessments orreassessments which secure the bonds that are to be issued, and, atany time, may assign the causes of action arising from theforeclosure to a trustee to do so on behalf of the bondholders. Theresolution may specify a deadline for commencement of the foreclosureaction and other terms and conditions as the legislative body maydetermine to be reasonable regarding the foreclosure action. (c) Except as provided in Section 8836, all installments,interest, penalties, costs, fees, and other charges that aredelinquent at the time of the ordering of a foreclosure action shallbe collected in the action. If a lot or parcel of property has notbeen sold pursuant to judgment in the foreclosure action at the timethat subsequent installments and interest become delinquent, thecourt may include the subsequent installments, interest, penalties,costs, fees, and other charges in the judgment or modified judgment. (d) For purposes of financing delinquent assessments pursuant toSection 26220, the legislative body may act as if it were a board ofsupervisors. (e) Notwithstanding any other provision of this chapter, notrustee or joint powers authority shall be obligated to accept thetender of bonds in satisfaction of any obligation arising from adelinquent assessment, although either may do so if authorized to doso by the legislative body. (f) An action to determine the validity of any bonds issued, anyjoint powers agreement entered into, and any related agreementsentered into, by a joint powers agency acting pursuant to thissection may be brought by the joint powers agency pursuant to Chapter9 (commencing with Section 860) of Title 10 of Part 2 of the Code ofCivil Procedure. Any appeal from a judgment in the action shall becommenced within 30 days after entry of judgment.8831.  Costs in the action shall be fixed and allowed by the courtand shall include a reasonable attorney's fee, interest, penaltiesand other charges or advances authorized by this division, includingreasonable administrative costs incurred by the city in pursuing theforeclosure, and when so fixed and allowed by the court the costsshall be included in the judgment.8832.  (a) The court shall have the power to adjudge and decree alien against the lot or parcel of property covered by the assessmentor reassessment for the amount of the judgment and to order thepremises to be sold on execution as in other cases of the sale ofreal property by the process of the court except: (1) Notwithstanding Section 701.545 of the Code of CivilProcedure, notice of sale of any lot or parcel included in thejudgment may be given pursuant to Section 701.540 of the Code ofCivil Procedure any time after the expiration of 20 days after thedate notice of levy on the interest in real property was served onthe judgment debtor or debtors, provided that the lot or parcel to besold is not a dwelling for not more than four families. (2) Whenever notice of sale may be given after the expiration of20 days after the date notice of levy was served as provided inparagraph (1), the 30-day time period contained in subdivision (h) ofSection 701.540 of the Code of Civil Procedure shall be reduced to10 days. (3) Upon proof that the lot or parcel to be sold is not a dwellingfor not more than four families, pursuant to Section 716.020 of theCode of Civil Procedure, the court shall order that paragraphs (1)and (2) apply to any judgment previously entered. (4) Subdivision (b) of this section shall apply instead ofsubdivision (a) of Section 701.620 of the Code of Civil Procedure. (5) Notwithstanding subdivision (c) of Section 701.620 of the Codeof Civil Procedure, if the minimum price required to be paid for alot or parcel pursuant to subdivision (b) is not obtained at aforeclosure sale, upon written request of the city, the levyingofficer shall retain the writ of sale and, provided that the writ ofsale has not been returned to the court pursuant to paragraph (1) ofsubdivision (a) of Section 699.560 of the Code of Civil Procedure,give notice of sale pursuant to Section 701.540 of the Code of CivilProcedure without relevying on the property. (6) As provided elsewhere in this division. (b) Except as provided in Section 8836, the lot or parcel may notbe sold unless the amount to be paid pursuant to the bid equals orexceeds the sum of all of the following amounts: (1) The amount of the judgment with costs and interest thereon. (2) Costs and interest on the judgment accruing after issuance ofthe writ pursuant to which the sale is conducted. (3) The levying officer's costs. (4) Any other amounts which are required by law to be bid in orderthat the lot or parcel may be sold. (c) The city may bid at the price provided for by subdivision (b)by giving the levying officer a written receipt crediting all or partof the amount required to satisfy the judgment, except that the cityshall pay all of the following amounts in cash or by certified orcashier's check: (1) The levying officer's costs remaining unsatisfied. (2) The amount of any preferred labor claims. (3) Exempt proceeds. (4) Any other claim that is required by law to be satisfied. (d) If the city becomes the purchaser pursuant to bid as providedfor by subdivision (c), the city shall pay the amount that isrequired to satisfy the judgment into the redemption fund within 24months of the date of the foreclosure sale. From the amount that thecity is required to pay into the redemption fund, the city shallreimburse the special reserve fund, if any, the amount, if any, offunds advanced from the special reserve fund to the redemption fundto cover delinquent installments of the assessment or reassessmentand interest with respect to the lot or parcel of property which issold. To the extent that the city has advanced funds other than, orin addition to, funds from a special reserve fund and the funds areincluded in the judgment, the obligation of the city to pay into theredemption fund is reduced by a corresponding amount. (e) Notwithstanding subdivision (d), the city is not required topay into the redemption fund any amount that exceeds in the aggregatethe sum of all of the following: (1) The amount required to bring current delinquent installmentsof the assessment or reassessment and interest with respect to whichthe lot or parcel of property is sold. (2) Simple interest on all the amounts from the dates ofdelinquencies until the date of sale, at the rate or rates of thebonds. (f) If the lot or parcel of property is sold at the execution saleto a purchaser other than the city, the city shall pay the saleproceeds that it receives into the redemption fund. From the amountthat the city is required to pay into the redemption fund, the cityshall reimburse the special reserve fund, if any, the amount, if any,of funds advanced from the special reserve fund to the redemptionfund to cover delinquent installments of the assessment orreassessment and interest with respect to the lot or parcel ofproperty which is sold. If the special reserve fund, if any, isthereby reimbursed, the city may reimburse other funds advanced bythe city to cover delinquent installments and interest, and may payinterest and penalties, costs, fees, and other charges, to the extentthat they are included in the sale proceeds received. (g) Notwithstanding subdivision (f), attorney fees and costsawarded by the judgment and postjudgment interest are not required tobe paid into the redemption fund. (h) The foreclosure action shall be governed and regulated by thisdivision, and where not in conflict with this division, by theapplicable laws of this state.8833.  (a) When any foreclosure actions are ordered by the localagency or legislative body, or when subsequent installments andinterest that are also to be made the subject of a foreclosure actionthereafter become delinquent, and the foreclosure action is notcommenced and a notice of pendency of action is not concurrentlyrecorded, prior to the actual removal of the delinquent installmentfrom the tax roll, the local agency or legislative body responsiblefor the foreclosure action on the delinquent installment shall do oneof the following: (1) Prior to the actual removal of the delinquent installment fromthe tax roll, the local agency or legislative body shall record orcause to have recorded in the county recorder's office in the countyin which the real property is located, a Notice of Intent to RemoveDelinquent Assessment Installment from the Tax Roll, which containsthe information set forth in subdivision (b). If action is takenunder this paragraph, all of the following apply: (A) Upon presentation of written proof of the recordation and arequest for removal by the local agency or legislative body, thecounty auditor shall remove the delinquent installments from the taxroll. "Proof of recordation" includes, but is not limited to, acertified copy of the notice set forth in subdivision (b), or a copyof the recorded notice containing the county recorder's assigneddocument number, or a copy of the recorded notice containing a copystamp from the office of the county recorder. (B) From the date of the recordation, the county tax collectorshall be credited upon the current assessment roll with the amountcharged against him or her on account of the delinquent assessmentsor reassessments. If any person pays the delinquent installmentreferred to in the Notice of Intent to Remove Delinquent AssessmentInstallment from the Tax Roll to the county auditor prior to orsubsequent to the actual removal of that delinquent installment fromthe tax roll, the county tax collector shall forward that payment tothe local agency or legislative body responsible for the foreclosureaction. (C) From the date of recordation pursuant to this section, theassessment or reassessment or installment thereof or interestthereon, and penalties, costs, fees, and other charges accrued underapplicable statutes, that are to be collected in a foreclosureaction, shall no longer be collectible by the county tax collector. (D) The county tax collector, in addition to the costs recoveredin foreclosure, may charge the actual costs incurred in removingthese sums from the tax roll or the performance of any other relatedduties as set forth in this section. (E) Installments, interest, penalties, costs, fees, and othercharges that do not become the subject of a foreclosure action shallremain collectible by the county tax collector as otherwise providedby applicable law. (2) As an alternative to the notice requirement set forth inparagraph (1), the Counties of San Bernardino and Riverside may,simultaneously with the removal of the delinquent special assessmentinstallment from the secured tax roll, provide notification on thesecured tax roll that the installment has been removed from the rollfor each parcel for which the delinquent special tax assessment wasremoved. The notice shall be displayed in a manner that conveys thatthe removal has occurred, and shall include the name and telephonenumber of the person or entity to be contacted to receive furtherinformation. (b) The Notice of Intent to Remove Delinquent AssessmentInstallment from the Tax Roll shall be completed and recorded by orcaused to be recorded by the local agency or legislative bodyresponsible for the foreclosure action, and shall contain all of thefollowing: (1) The name of the local agency or legislative body, city, orother assessment district responsible for the foreclosure action. (2) The legal description or assessor's parcel number of theproperty affected by the notice. (3) The specific tax year and installment intended to be removedfrom the tax roll. (4) The title, address, and telephone number of the employee, cityofficial, or other authorized official who should be contactedregarding the delinquent assessment installment amount. (5) The name of the owner shown on the last equalized assessmentroll. (c) Any local agency or legislative body that removed or caused tobe removed a delinquent assessment installment from the ad valoremtax roll prior to January 1, 1997, shall record, by July 1, 1997, aNotice of Intent to Remove Delinquent Assessment Installment from theTax Roll or shall request the tax collector to retain the notice ofdelinquent assessment installment on the tax roll as set forth inparagraph (2) of subdivision (a). If the foreclosure action has beenfiled and a notice of pendency of action has been recorded in thecounty recorder's office prior to July 1, 1997, this requirement doesnot apply. (d) All costs associated with the county tax collector's and localagency's responsibilities as set forth in this section shall berecoverable by the local agency or legislative body through theforeclosure action. (e) The recording of a notice of pendency of action in the countyrecorder's office in the county in which the real property islocated, concurrent with the commencement of a foreclosure actionordered by the local agency or legislative body and commenced priorto the actual removal from the tax roll of the delinquent installmentthat is the subject of the foreclosure action, constitutescompliance with the notice requirements of this section.8833.5.  At any time after the tax collector has been relieved offurther duty with regard to amounts charged against him or her onaccount of the assessments or reassessments described by Section 8833and prior to a judgment of foreclosure, the city shall dismiss theforeclosure action upon payment of the sum of all of the followingamounts: (a) The amount of any delinquent installments of principal orinterest of the assessment or reassessment, together with interestand penalties, costs, fees, and other charges accrued thereon to thesame extent that they accrue against real property for nonpayment ofgeneral property taxes, to the date of payment. (b) Costs of suit, including, but not limited to, service andrecording fees and the costs of abstract or report of search of, orlitigation guaranty with respect to, all claims of interest in theland. (c) Attorneys fees authorized by the city. (d) The tax collector's costs authorized by Section 8833.8834.  The foreclosure action shall be brought in the name of thecity or a trustee employed on behalf of the bondholders pursuant toSection 8830, and may be brought at any time prior to the expirationof four years subsequent to the last maturity of the principal ofbonds secured by the assessment or reassessment. The complaint may bebrief and include substantially only the following allegations withreference to the assessment or reassessment sought to be collected: (a) That, on a date stated, the legislative body passed itsresolution ordering certain work to be done, without describing thesame. (b) If the assessment was levied pursuant to the Improvement Actof 1911 (Division 7 (commencing with Section 5000)), that work wasdone pursuant to the resolution. (c) That an assessment to pay the cost of the work was duly madeand was authorized to be collected, but remained unpaid on a stateddate. (d) That certain property (describing it) was assessed orreassessed a stated amount and that bonds upon the security of theassessment or reassessment were duly issued under this division,giving the date or dates of the bonds, their interest rate or rates,and the number of years the last maturity of the bonds were to run,but it is not necessary to state the amount, number, denomination, orother terms of the bonds. (e) That, on a date stated, a certain sum came due against thedescribed property on the assessment or reassessment and had not beenpaid and that the legislative body, or a trustee acting on behalf ofthe bondholders, had ordered the action to foreclose.8835.  The amount of penalties, costs and interest due shall becalculated up to the date of the judgment.8836.  (a) In the event a lot or parcel of property fails to sellfor the minimum price required by Section 8832, the city may petitionthe court to modify its judgment and authorize the property to besold at a lesser minimum price or without a minimum price. (b) Written notice of hearing on the petition under subdivision(a) shall be given by certified or registered mail to all registeredowners of any outstanding bonds secured, in whole or in part, by thedelinquent assessment or reassessment, to the original purchaser ofany of the bonds from the city, to the city treasurer, and to anyauthenticating agents, transfer agents, registrars, and paying orother agents of the city appointed with respect to any of the bonds.If any of the outstanding bonds are payable to bearer and notregistered to other than bearer, notice of the hearing shall also begiven by publication at least once in a financial publication withnational circulation and additionally as the court shall reasonablyrequire. The hearing shall be held not earlier than 10 days after thenotice is given. (c) The court may, after a hearing held pursuant to notice asprovided for by subdivision (b), modify the judgment and authorizethe property to be sold at a lesser minimum price or without aminimum price, if the court determines, based on the evidenceintroduced at the hearing, any of the following: (1) Sale at the lesser minimum price or without a minimum pricewill not result in an ultimate loss to the bondholders. (2) Owners or holders of 75 percent or more of the outstandingbonds, by principal amount, have consented to the petition and thesale will not result in an ultimate loss to the nonconsentingbondholders. (3) Owners or holders of 75 percent or more of the outstandingbonds, by principal amount, have consented to the petition and all ofthe following apply: (A) By reason of determination pursuant to Section 8769, the cityis not obligated to advance available funds to cure a deficiency. (B) No bids equal to or greater than the minimum price have beenreceived at the foreclosure sale. (C) No funds remain in the special reserve fund, if any. (D) The city has reasonably determined that a reassessment andrefunding proceeding is not practicable, or has in good faithendeavored to accomplish a reassessment and refunding and has notbeen successful, or has completed reassessment and refundingarrangements which will, to the maximum extent feasible, minimize theultimate loss to the bondholders. (E) No other remedy acceptable to owners or holders of 75 percentor more of the outstanding bonds, by principal amount, is reasonablyavailable. (d) The assessment or reassessment lien upon property soldpursuant to this section at a lesser price than the minimum priceshall be reduced by the difference between the minimum price and thesale price. (e) The court shall permit participation by the bondholders in itsconsideration of the petition as necessary to its determinations. (f) Neither the property owner nor the holder of a securityinterest in the property, nor any other defendant in the foreclosureaction, nor any agent thereof, may purchase the property at theforeclosure sale for less than the minimum price determined pursuantto Section 8832. Each purchaser at less than the minimum price shallcertify in writing to the levying officer at the sale the purchaser'scompliance with the requirements of this subdivision. (g) The court may make provisions for the payment of attorney feesand costs incurred in proceedings pursuant to this section as thecourt deems proper, and need not require that the fees and costs bepaid out of the proceeds of any sale authorized pursuant to thissection.8837.  This section applies if delinquent assessment installments,together with any penalties, interest, and costs, are collectedthrough the sale of the property by the tax collector pursuant toChapter 7 (commencing with Section 3691) of Part 6 of Division 1 ofthe Revenue and Tax Code. (a) If the property is sold for at least the total amountnecessary to redeem plus costs, as defined in Section 3698.5 of theRevenue and Taxation Code, the sale of the property shall extinguishthe delinquent assessment installments, interest, penalties, andcosts included in the sale price. (b) If the property is sold for less than the total amountnecessary to redeem plus costs, as defined in Section 3698.5 of theRevenue and Taxation Code, the following applies: (1) The portion of the sales price paid by the tax collector tothe local agency on account of the delinquent assessment installmentsshall be credited by the local agency first to delinquent interestand redemption penalties, and then to delinquent principal. (2) The remainder of the delinquent assessment installments andredemption penalties, if any, shall remain due and owing. (3) Redemption penalties shall continue to accrue on remainingunpaid delinquent assessment installments. (4) The remaining unpaid amount, with penalties, may be added aspostjudgment delinquencies to any existing unsatisfied foreclosurejudgment against the property, or may be collected in a newforeclosure action filed pursuant to this chapter.