The Foreclosure of Local Special Assessment Liens: What, Where, Why, and How of the Civil Action and Enforcement Methods

In these difficult times, local governments are struggling to collect money. This article explains the rules and steps for a local government to take action against property owners who haven’t paid special assessments. It covers things like giving notice to the property owner, when to file a lawsuit, and what happens after the court makes a decision. This article is a good place to start, but local government officials should also look at their own local rules and laws. A special assessment is a charge imposed by a local government for specific benefits to property. In order for a special assessment to be valid, it must meet two requirements: the property must receive a special benefit, and the assessment must be fairly apportioned based on the benefits received. Special assessments can be used for capital improvements and certain services, but must be authorized by legislation. The priority of a special assessment lien over other liens is determined by local government ordinances. It is important to record special assessment liens to ensure their validity and enforceability. Chapter 173 allows cities and counties to foreclose on special assessments and taxes if they are not paid. The process is similar to foreclosing on a mortgage, and it can include multiple pieces of land. The government must give notice to the property owner and any lien holders before filing a lawsuit. If the special assessment is not paid within a year, the government can file the lawsuit to collect the unpaid amount. If a town has unpaid special assessments from landowners, they can file a lawsuit in court to foreclose on the land. They don’t have to name the owner of the land in the lawsuit. The town has to publish a notice in the newspaper for interested parties to see, and then the parties have a chance to respond in court. If they don’t respond, the court can make a decision without them. If someone doesn’t pay a special assessment, the court can order their property to be sold at an auction to pay the overdue amount, plus interest, penalties, and the costs of the lawsuit. Before the sale, the owner can pay the overdue amount or make a deal with the plaintiff to keep their property. The court might also order the owner to pay the full amount or in installments. The buyer at the auction gets the property free and clear, but they still have to pay any other taxes or assessments. Any extra money from the auction goes to the court to be given out later. The Ch. 173 procedures for special assessments are optional for cities, and can be used as an extra or different way to collect overdue assessments. It’s important to also check the city’s own rules in its charter and code for more specific guidance.

Source: https://www.floridabar.org/the-florida-bar-journal/the-foreclosure-of-local-special-assessment-liens-what-where-why-and-how-of-the-civil-action-and-enforcement-methods/