Explanation Special Assessment Disclosure for Lakeshore East
SPECIAL ASSESSMENT DISCLOSURE
LAKESHORE EAST DEVELOPMENT
You are purchasing property that is within a Special Assessment District established pursuant to a court proceeding adopted by the City of
The Assessment Confirmation authorized the levy, extension, and collection of a Special Assessment upon the Property, in connection with certain “Public Improvements” that will confer a special benefit on the Property (including, without limitation, parks, streets, storm and sanitary sewer, and a potable water system). In connection therewith, the City of
These Special Assessment bonds have a 30 year life. Your property will be assessed a fee that is billed and payable semi-annually commencing in the beginning of the year 2005 and ending in the year 2032. This assessment will pay off principal and interest of the Special Assessment Improvement Bonds. Estimated initial assessments are included in the Exhibits to your Property Report. The maximum Assessment on the Property may increase on average by no more than 1.5% each year between the first year of the levy and 2032.
If you sell your property, you will be responsible to the City of
You are purchasing the Property subject to the Special Assessment and you will not object to the Special Assessment. You agree that the City validly created the Special Assessment and that the Special Assessment is rationally related to the benefit that the Public Improvements confer on the Property. You will be responsible for the Special Assessment on your Property from and after the Closing Date.
By taking title to the Property, you hereby agree to accept title subject to the Special Assessment and all rights and impositions and obligations thereby imposed, including, without limitation, the Special Assessment, which obligations shall be covenants running with the land. The deed that you, the Purchaser(s), will receive at Closing shall contain a recitation of such covenants, conditions, and restrictions as a permitted exception to title.
June 22nd, 2009 at 10:29 am
which buildings in LSE are obligated to pay this special assessment tax?
June 22nd, 2009 at 5:57 pm
All Buildings in Lakeshore East except Aqua Tower (aqua townhomes are obligated) and Site O which is now undeveloped.
June 25th, 2009 at 2:11 pm
How were buyers informed about this? What sort of disclosure is there? What is the formula being used and is this shown to buyers before purchase?
June 26th, 2009 at 3:04 pm
The information regarding the special assessment tax was disclosed to Purchasers as part of their Property Report, which is given to a Purchaser at the time of contract signing. The amount of the assessment that is attributable to each building has been pre-set pursuant to a determination made by a judge of the predicted parcel value for each building. The amount of the assessment attributable to each unit is then simply calculated by multiplying the percentage of ownership for that unit times the condominium association’s percentage of the assessment (which may be less than 100% if there are other uses in the building) times the actual assessment. The estimated amounts of these assessments, on a unit by unit basis, are also disclosed in the Property Report, right next to the estimates for the condominium monthly assessments.