What is a 1915 Act bond?
1915 Act bonds are commonly issued by an assessment district to raise money needed to build infrastructure (sewer trunkline, utility line, roads, etc.). The properties that directly benefit from the improvements are then assessed an annual amount on the property tax bill. Normally this will be listed as an Assessment District or Assessment Bond line item on your tax bill. It is important to note that the assessments are secured by a lien on your property, and the district has the right of accelerated foreclosure if assessments are not paid when due.
A 1915 Act bond direct levy is a special assessment imposed on those real property owners within a development area. 1915 Act bonds are for public financing usually for improvements, such as streets, curbs, gutters and underground sewer and water infrastructure that generally enhance land value and give land utility. When a developer finances such improvements through a 1915 Act bond, developers pass on the debt to each home buyer as an assessment bond obligation specific to the buyer’s lot. If the annual property tax bill includes a 1915 Act bond and it is not paid in full by June 30, the property may subject to the accelerated judicial foreclosure process. After June 30, those special assessments subject to the accelerated judicial foreclosure are removed from the unpaid tax bill and the districts are responsible for collection enforcement. 1915 Act bonds are levied on the tax bill on behalf of the 1915 District and are not levied by the Assessor, Auditor-Controller or Tax Collector.
