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HomeMy WebLinkAboutBIL 054 Draft 01 2010-2012 _ • JN tY�OS ............... COUNTY OF HAWAII ST OF HAWAII BILL NO. 54 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 12, ARTICLE 3, OF THE HAWAII COUNTY CODE 1983 (2005 EDITION, AS AMENDED), RELATING TO IMPROVEMENTS BY ASSESSMENTS. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Purpose. The purpose of this bill is to amend two sections relating to the administration of Improvement Districts to improve efficiency and reduce costs by allowing additional options in tax assessment frequency and by amending the default criteria to allow for consolidation of delinquencies for foreclosure proceedings when it is in the best interest of the County. SECTION 2. Chapter 12, Article 3, Section 12 -34, Hawai`i County Code 1983 (2005 Edition, as amended), relating to Payment of installments, is amended to read as follows: Section 12 -34. Payment of installments. (a) In case of an election to pay any assessment in installments, the assessment shall be payable in not less than five nor more than twenty annual installments of principal; provided that, in the case of improvements financed by bonds issued to secure loans from the federal government, the maximum number of annual principal installments may be increased so as to permit the repayment of the principal of such bonds over a period not to exceed thirty -five years from the date of issuance; and provided further that the council may, in its discretion, determine the date on which payment of such annual installments shall commence, which date shall be no more than three years from the thirty -first day following the last publication of the ordinance required to be enacted pursuant to section 12 -29. The annual installments shall be in such amounts as determined by the council, and each annual installment may be made payable in up to twelve equal monthly or other periodic installments; provided that principal, interest or both on any bonds outstanding due prior to collection of annual assessment shall be paid in accordance with section 12- 49, and except as provided in sections 12 -44, 12 -45, and 12 -46 regarding temporary advances, shall not be paid out of any moneys available in the County treasury. Interest in all cases shall be paid on the unpaid principal, at such rate or rates as may be determined by the council. (b) The date on which such annual installments shall commence, the number of such annual installments, the respective amounts of the annual installments, the period of payment, and the rate of interest shall be as determined by the council. Interest for each year may be computed and collected up to the next succeeding date for payment of principal and interest on the bonds issued pursuant to sections 12 -44, 12 -45, and 12 -46, no deduction being made by reason of any installment being due and payable prior to such date; provided, that after the annual installments are determined and fixed if it appears to be of advantage to the assessee, the council may permit the director of finance to accept payments in monthly installments as hereinabove provided. SECTION 3. Chapter 12 Article 3, Section 12 -40, Hawaii County Code 1983 (2005 Edition, as amended), relating to Sale for default is amended to read as follows: Section 12 -40. Sale for default. (a) In case of default in the payment of any installment of principal and interest when due, the director of finance [shall] may within one hundred twenty days after such default commences advertise and sell the assessment unit concerning which default is made for the whole of the unpaid assessment thereon, interest and costs. The period of default shall not exceed one year before foreclosure action is initiated. The purchaser of such assessment unit shall be permitted to pay in cash the total amount of the delinquent installment or installments of principal and interest and penalty, and the balance in equal annual or monthly installments as originally provided, in which event the lien of the unpaid assessment shall remain in full force and effect until final payment of such balance. Such sale and advertisement shall be made by the director of finance in the same manner, under the same conditions and penalties and with the same effect as provided by general law for sales of real property for default in payment of property taxes. (b) In the event of the failure of the director of finance to so commence and diligently complete advertisement and sale of the assessment unit pursuant to the provisions of this section, the director of finance shall not be personally liable for such failure, but if a default exists in payment of principal or interest upon bonds, issued to represent an assessment for which any such installment of principal and interest is in default, or if the levy [provided for by section 12 51*] has been made or it appears probable that the levy will be required to be made, the holder of such bonds in the former case, and any persons who are owners of the assessment units subject to such levy and liable to pay same in the latter case, or both, shall have the right to enforce performance of the duties of the director of finance hereunder by action in the nature of mandamus, as provided by law. SECTION 4. Material to be repealed is bracketed and stricken. New material is underscored. In printing this ordinance, the brackets, bracketed and stricken material and underscoring need not be included. 2 SECTION 5. Severability. If any provision of this ordinance, or the application thereof to any person or circumstance, is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this ordinance are declared to be severable. SECTION 6. This ordinance shall take effect upon its approval. Mi 10, Hawai`i Date of Introduction: Date of 1st Reading: Date of 2nd Reading: Effective Date: REFERENCE, C INTRODUCED BY: '-14t— COUNCIL MEMBER, COUNTY OF HAWAII June 15, 2011 June 15, 2011 July 7, 2011 July 20, 2011 215 3