capital improvement; financing program

HB2824 - 572R - I Ver

REFERENCE TITLE:
capital improvement; financing program

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2824

Introduced by

Representatives
Lopez: Liguori, Martinez, Pe�a, Travers, Weninger

AN
ACT

amending
title 9, chapter 4, article 8, Arizona Revised Statutes, by adding section 9-499.19;
amending section 11-201, Arizona Revised Statutes; amending title 49,
Arizona Revised Statutes, by adding chapter 12; relating to capital
improvements for water and energy conservation.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 9, chapter 4, article 8,
Arizona Revised Statutes, is amended by adding section 9-499.19, to read:

START_STATUTE
9-499.19.

Authority to establish c-pace program; definitions

A. A city or town may provide for or
allow the construction, installation or modification of critical capital
expenditure improvements on qualifying property by establishing a C-PACE
program pursuant to title 49, chapter 12.

B. This section does not allow a city
or town to enter into a financing agreement for the direct financing of a
qualifying improvement.

C. For the purposes of this section,
"C-PACE program", "critical capital expenditure
improvement", "financing agreement", "qualifying
improvement" and "qualifying property" have the same meanings
prescribed in section 49-1601.
END_STATUTE

Sec. 2. Section 11-201, Arizona Revised
Statutes, is amended to read:

START_STATUTE
11-201.

Powers of county

A. The powers of a county shall be exercised only by
the board of supervisors or by agents and officers acting under its authority
and authority of law. It has the power to:

1. Sue and be sued.

2. Purchase and hold lands within its limits.

3. Make such contracts and purchase and hold such
personal property as may be necessary to the exercise of its powers.

4. Make such orders for the disposition or use of
its property as the interests of the inhabitants of the county require.

5. Levy and collect taxes
, including
non-ad valorem assessments,
for purposes under its exclusive
jurisdiction as are authorized by law.

6. Determine the budgets of all elected and
appointed county officers enumerated under section 11-401 by action of the
board of supervisors.

7. Provide for or allow the
construction, installation or modification of critical capital expenditure
improvements on qualifying property by establishing a C-PACE program
pursuant to title 49, chapter 12. This paragraph does not allow a county to
enter into a financing agreement for the direct financing of a qualifying
improvement. For the purposes of this paragraph, "C-PACE
program", "critical capital expenditure improvement",
"financing agreement", "qualifying improvement" and
"qualifying property" have the same meanings prescribed in section 49-1601.

B. Except for the purposes of acting as an
intermediary in a license transfer or sale, a county shall not own a commercial
cable television system or any other pay television system.

C. Section 11-251.05, subsection A, paragraph 1 does
not authorize a county to levy and collect taxes for any purposes beyond those
otherwise specifically authorized by statute.
END_STATUTE

Sec. 3. Title 49, Arizona Revised Statutes, is
amended by adding chapter 12, to read:

CHAPTER 12

COMMERCIAL PROPERTY ASSESSED CAPITAL
EXPENDITURE FINANCING PROGRAM

ARTICLE 1. GENERAL PROVISIONS

START_STATUTE
49-1601.

Definitions

In this Chapter,
unless the context otherwise requires:

1. "Authorizing
county" means a county that forms a C-PACE program pursuant to this
chapter.

2. "Authorizing
municipality" means a city or town that forms a C-PACE program
pursuant to this chapter.

3. "Capital
provider" means a private entity, or its designee, successor or assignee,
that finances or refinances a qualifying improvement pursuant to this Chapter.

4. "C-PACE
Program" or "Program" means a special assessment program that
provides commercial property assessed capital expenditure financing for
eligible improvements and that is established pursuant to this chapter.

5. "Critical
capital expenditure improvement" means an improvement to an existing
structure or a component of new construction that provides or contributes to
the structural and mechanical support or function of the STRUCTURE or that
increases utility use efficiency to a structure and that has a weighted average
useful life of ten years or more.

6. "Energy
efficiency improvement" means a device that is intended to decrease energy
consumption or demand through the use of efficiency technologies, products or
activities that reduce or support the reduction of energy consumption.

7. "Financing
agreement" means an agreement under which a private property owner agrees
to repay a capital provider for the special assessment financing, including
details of finance charges, fees, debt servicing, accrual of interest and
penalties and terms relating to treatment of prepayment and partial payment of
the special assessment financing.

8. "Governing body" means
the body or board that by law is constituted as the legislative department of
the authorizing county or authorizing municipality.

9. "Local government" means
an authorizing county or authorizing municipality.

10. "Local program
authority" means an official, other than the county treasurer, or agency
designated by a local government to perform certain obligations related to
entering into special assessment agreements, imposing special assessments and
enforcing and collecting special assessments pursuant to this chapter.

11. "Notice
of assignment of special assessment lien" means a written notice in the
form prescribed by the local government to be recorded with the assignment of a
special assessment by a local government to the applicable capital provider and
each subsequent assignment of the special assessment.

12. "Notice
of delegation of authority" means a written notice executed by a local
government that assigns the billing, collection and enforcement duties to a
capital provider.

13. "Notice
of special assessment lien" means a written notice of a special assessment
lien in the form prescribed by the local government to be recorded with a
special assessment agreement and lien on a benefited property.

14. "Program
administrator" means an official, agency OR PRIVATE THIRD PARTY that is
designated by a local government to administer a c-pace program
ESTABLISHED pursuant to this CHAPTER.�

15. "Program
guidebook" means a comprehensive document adopted by a local government
that establishes appropriate guidelines, specifications, approval criteria and
other standard forms consistent with administering a c-pace program and
not detailed in this chapter, including forms for a special assessment
agreement, notice of assignment of special assessment lien, notice of special
assessment lien, notice of delegation of authority and project application.

16. "Project
application" means an application submitted to a program administrator to
demonstrate that the proposed improvements qualify for special assessment
financing pursuant to a c-pace program.

17. "Property owner" means
the owner listed on a qualifying property's legal documents on file in the
county recorder's office, the owner of an improvement on a possessory right or
the owner of an estate for years or leasehold created pursuant to
a written ground lease agreement OR government property lease
excise tax development agreement.

18. "Qualifying
improvement" means a permanent affixed critical capital expenditure
improvement installed on qualifying property as part of the construction or
renovation of the qualifying property.

19. "Qualifying property"
means either of the following:

(
a
) Privately
owned commercial, industrial or agricultural real property or multifamily
residential real property with five or more dwelling units, an improvement on a
possessory right or property owned by a nonprofit or tax-exempt entity
other than a residential property with not more than four dwellings.

(
b
) Real
property that is owned by this state or a local governmental entity but is
leased to a privately owned entity or real property improvements owned by a
private party pursuant to a written ground lease agreement, government property
lease excise tax development agreement or similar agreement whose owner of
record, including this state or any local government in addition to a private
entity, consents in writing to a special assessment being levied on the real
property pursuant to this chapter.

20. "Region"
means the geographic area within the corporate limits of a municipality, the
unincorporated area of a county and the incorporated areas of a county with the
consent of affected municipalities in which the county seeks to impose a
special assessment pursuant to this chapter.

21. "Special
assessment" means an assessment that may be imposed on a qualifying
property by a local government pursuant to this article for the total amount of
special assessment financing pursuant to a special assessment agreement.

22. "Special
assessment agreement" means a written agreement between the applicable
local government and the property owner in the form prescribed by the local
government that sets forth the terms and conditions of the special assessment
and allows the local government to impose a special assessment on the
qualifying property to repay the special assessment financing.

23. "Special
assessment financing" means financing and refinancing provided by a
capital provider pursuant to a financing agreement for qualifying improvements
pursuant to this article.

24. "Special
assessment lien" means a lien to secure the special assessment that
remains on the qualifying property until paid in full.

25. "Water
conservation improvement" means measures, equipment or devices that:

(
a
) Decrease the consumption of or demand for water.

(
b
) Recycle, recapture or store water.

(
c
) Address safe drinking water or eliminate lead from water
used for drinking or cooking.
END_STATUTE

START_STATUTE
49-1602.

C-pace program; establishment

A. a governing body may adopt a resolution or ordinance to
establish a c-pace program.

B. Before
adopting a resolution or ordinance to establish a program, a governing body
shall hold a public hearing to consider establishing the program.

C. The
resolution or ordinance to establish the program shall include:

1. A
statement that financing qualifying improvements thaT ARE repaid by special
assessments is in the interest of the public health, safety and welfare.

2. A
statement that the local government intends to authorize direct financing
between property owners and capital providers to finance qualifying
improvements.

3. A statement that the local
government intends to authorize special assessments that are entered into
voluntarily by a property owner with the local government by means of a written
special assessment agreement to repay the special assessment financing.

4. A
description of the local government's procedures for billing and collecting
special assessments, including whether a local program authority or capital
provider is responsible for billing and collecting the special assessment.

5. A
statement that the enforcement method for a delinquent special assessment
installment by a local program authority is the procedure prescribed by article
2 of this chapter and that the enforcement method for a delinquent special
assessment installment by a capital provider is the procedure prescribed by
section 49-1606, subsection D.

6. A
statement that identifies, authorizes and directs the local program authority
to do the following:

(
a
) Execute special assessment agreements and other documents
on behalf of the local government related to project applications approved by
the program administrator pursuant to this chapter.

(
b
) Bill and collect special assessment installments unless
otherwise delegated pursuant to section 49-1606, subsection B,
paragraph 2.

(
c
) Enforce
delinquent special assessments in the manner set forth in article 2 of this
chapter, unless otherwise delegated pursuant to section 49-1606,
subsection B, paragraph 2.

(
d
) Undertake
any other obligations that the local government assigns to the local program
authority and any actions necessary to effectuate the delegated obligations.

7. An incorporation by reference of
the program guidebook and provision that authorizes the local government to
amend the program guidebook.

8. A description of the boundaries of
the region in which qualifying property owners may finance qualifying
improvements.

9. A
description of proposed arrangements for administering the program.

D. A
program may be amended in accordance with the resolution or ordinance that
establishes the program.

END_STATUTE

START_STATUTE
49-1603.

Intergovernmental agreements; exemption

A. An
authorizing municipality that is authorized pursuant to a resolution or
ordinance adopted pursuant to this chapter may enter into an intergovernmental
agreement with another local government consistent with section 9-461.11,
subsection E to administer a program.

B. An
authorizing county that is authorized pursuant to a resolution or ordinance
adopted pursuant to this chapter may enter into an intergovernmental agreement
with another local government consistent with section 11-952 to
administer a program.

C. Any
intergovernmental agreement entered into pursuant to this section is exempt
from title 41, chapter 23.
END_STATUTE

START_STATUTE
49-1604.

Special assessment agreements; project application; financing
agreement; fees

A. Local
program authorities may enter into special assessment agreements with property
owners to secure special assessment financing pursuant to this
chapter. Before entering into a special assessment agreement, a
property owner shall submit a project application to the program administrator
on a form prescribed by the program guidebook.� The project application shall
include both of the following:

1. Certification
that the person requesting the proposed qualifying improvements is the property
owner and that there are no delinquent taxes or assessments on the property.

2. The
name of the capital provider that provides the special assessment financing and
the proposed terms of the financing agreement, including:

(
a
) The full special assessment financing amount, including
any fees or costs authorized by this section.

(
b
) The applicable interest rate.

(
c
) The Administrative fees paid to the local program
authority or program administrator.

(
d
) A schedule of the special assessment installments.

(
e
) The number of years the special assessment will be
imposed on the property.

(
f
) The delinquent interest rate or penalties.

(
g
) The conditions by which the property owner may prepay and
permanently satisfy the debt owed pursuant to the financing agreement and
remove the special assessment lien from the property.

B. Before
entering into a special assessment agreement, the local program authority shall
receive:

1. Written
consent from any holder of a lien, mortgage or security interest in the
qualifying property that the property may participate in the program and that
the special assessment lien shall have priority superior to all liens, claims
and titles except for general property taxes and prior special assessments.�
The local program authority shall make the written consent publicly available
and post the consent in a conspicuous location on the property to ensure all
interested parties are aware of the existing property liens.

2. Certification from the program
administrator that the proposed improvements, qualifying property and property
owner qualify for special assessment financing pursuant to the program.

C. a capital provider shall provide
and directly disburse special assessment financing to fund qualifying
improvements subject to a financing agreement.

D. Notwithstanding the obligation of
the local government pursuant to section 49-1606, subsection B, paragraph
4 to remit a special assessment installment received from a property owner to
the applicable capital provider, a financing agreement shall specify that the
local government is not liable for the debt of the property owner, is not a
third-party obligor and is not pledging or lending credit to the property
owner or the capital provider. A capital provider does not have any right or
cause of action against the local government for nonpayment of the special
assessment financing and shall look solely to the property owner for recourse.�

E. Costs
that are capitalized into the special assessment financing principal amount may
include:

1. The
cost of materials and labor necessary for installing or modifying a qualifying
improvement.

2. Permit
fees.

3. Inspection
fees.

4. Capital
provider's fees.

5. Program
administrative fees.

6. Project
development and engineering fees.

7. Third-party
review fees.

8. Verification
review fees.

9. Capitalized
interest.

10. Interest
reserves.

11. Escrow
for prepaid property taxes and insurance.

12. Any
other fees or costs that may be incurred by the property owner and that are
incident or ancillary to installing, modifying or constructing a qualifying
improvement on a specific or pro rata basis.

F. A
financing agreement may authorize the property owner to directly purchase the
related equipment and materials for installing or modifying a qualified
improvement or contract, including through lease, power purchase agreement or
other service contract, for installing or modifying a qualified improvement.

G. Notwithstanding
amounts retained by a local government, local program authority or program
administrator pursuant to section 49-1606, a local program authority or
program administrator may charge a property owner program administrative fees
that reflect the reasonable costs of the program authority or program
administrator to provide administrative services under this section for the
program but not more than the lesser of one percent of the principal amount of
the special assessment financing or $50,000.
END_STATUTE

START_STATUTE
49-1605.

Special assessment; imposition; amount; collection; lien

A. On entering into a special
assessment agreement, the local program authority shall record, or delegate to
the capital provider to record, a notice of special assessment lien on the
subject property in the county recorder's office of the county in which the
property is located.

B. The
recording of the notice of special assessment lien pursuant to subsection A of
this section shall include all of the following:

1. The
legal description of the property.

2. The
county assessor's parcel number of the property.

3. The
name of each property owner or party claiming a possessory interest in the
property.

4. The
date on which the special assessment lien was created.

5. The
principal amount of the special assessment lien.

6. The
term of the special assessment lien.

7. A copy
of the special assessment agreement.

C. A
special assessment lien is effective for the period in which the special
assessment is imposed until the special assessment is paid in full and has
priority superior to all liens, claims and titles except for general property
taxes and prior special assessments.

D. A
special assessment lien runs with the land and the portion of the special
assessment lien that has not yet become due is not accelerated or eliminated by
foreclosure of the special assessment lien or any lien for taxes or other
assessments imposed by this state or a local government or district against the
property on which the special assessment lien is imposed or by the foreclosure
of the qualifying property.

E. At the
same time the notice of special assessment lien is recorded, the local program
authority shall execute and record a notice of assignment of special assessment
lien from the local government to the applicable capital provider on the subject
property in the county recorder's office of the county in which the property is
located. The notice of assignment of special assessment lien shall
contain all of the following:

1. The
legal description of the property covered by the special assessment lien.

2. The
county assessor's parcel number of the property.

3. The
grantor's name, which is the local government imposing the special assessment
lien.

4. The
grantee's name, which is the applicable capital provider and the capital
provider's successors and assigns.

5. The
date on which the notice of assignment of special assessment was created.

6. The amount and terms of the
special assessment assigned.

F. On execution of a notice of
assignment of special assessment lien, the applicable capital provider shall
have and possess the delegable powers and rights at law or in equity as the
local government would have if the special assessment had not been assigned
with regard to:

1. The precedence and priority of the
special assessment lien.

2. The proceeds of special assessment
installments.

3. Accrual of penalties and fees
related to the special assessment.

G. The assignee of a special
assessment enforced by the local government pursuant to section 49-1606,
subsection B, paragraph 2 has the right to enforce the special assessment and
special assessment lien pursuant to section 49-1606, subsection D.

H. When the underlying special
assessment financing has been satisfied, the applicable capital provider shall
notify the local program authority and the local program authority shall record
a release of the special assessment lien by the local government.
END_STATUTE

START_STATUTE
49-1606.

Special assessment; collection; enforcement

A. Special
assessments shall be collected in installments pursuant to the terms of the
special assessment agreement.

B. Special
assessment installments due under this chapter shall be billed and collected as
follows:

1. The
local program authority may bill, collect and enforce the special assessment
installments.

2. The
local program authority may execute a notice of delegation to assign the
billing, collecting and enforcing of special assessment installments to the
capital provider. The notice of delegation shall:

(
a
) be Attached to the notice of assignment of special
assessment lien at the time of the notice of assignment of special assessment
lien.

(
b
) Be substantially in the following form: "By virtue
hereof, I (
name of local program authority
), by virtue of the authority
vested in me as said local program authority, do authorize and empower (
name
of capital provider
), the capital provider's agents or assignees, to demand
and receive the assessment hereto attached, and to enforce the special
assessment pursuant to section 49-1606, subsection D, and this shall be
the delegation for the same."

3. as
described in the special assessment agreement.

4. Special
assessment installments collected or received by the local program authority
shall be held in a segregated account and remitted to the applicable capital
provider.

5. Delinquent
special assessment installments shall incur interest and penalties as specified
in the financing agreement.

6. The
local government and the local program authority shall provide in the special
assessment agreement for the payment of the local program authorities'
collection expenses directly related to the special assessment installments.
The expenses must be included as additional amounts added to the special
assessment installment amounts and be directly related to the actual expenses
of collecting the special assessment installments. The local program authority
may impose an additional surcharge of not more than twenty-five percent
of the fee charged for furnishing a copy, printout or photograph.

C. If a local program authority is
billing and collecting special assessment installments pursuant to subsection
B, paragraph 1 of this section, in the event of a nonpayment of a special
assessment installment, the local program authority, on or before one year
after the date on which the special assessment installment became delinquent,
shall collect the delinquent special assessment installment pursuant to article
2 of this chapter.

D. If the local program authority
fails to collect the delinquent special assessment installment pursuant to
article 2 of this chapter or has executed a notice of delegation of authority
to the capital provider, at any time after one year after the date of
delinquency of an unpaid special assessment installment, and without waiving
any other available relief, the capital provider may initiate a suit for
foreclosure against the property owner of the qualifying property to recover
all delinquent special installments and any interest and penalties specified in
the financing agreement.� The suit for foreclosure shall follow the procedures
for judicial foreclosure of a mortgage under title 33, chapter 6,
article 2.� The portion of the special assessment lien that has not yet
become due is not accelerated or eliminated by foreclosure of the special
assessment lien.
END_STATUTE

ARTICLE 2. DELINQUENT
INSTALLMENTS

START_STATUTE
49-1611.

List of delinquent installments; notice; sale of delinquent
property

A. Within twenty days after the date
of delinquency, the local program authority shall prepare a list of the special
assessments on which any installment is delinquent.� The list shall contain:

1. A description of each parcel of
qualifying property and the name of the property owner as stated in the special
assessment.

2. The amount of the delinquent
special assessment installment and penalties and costs due, including the cost
of advertising.

B. The local program authority shall
notify the property owner that unless each delinquent special assessment
installment and the penalties and costs due are paid, the qualifying property
on which the special assessment is a lien will be sold at public auction at the
time and place specified in the notice.� At least ten days before the date of
the sale, the notice shall be mailed to the owner of the qualifying property or
parcel on which a special assessment installment is delinquent at the address
shown on the most recent property tax roll.

C. The time of the sale may not be
less than ten days after the notice is mailed.� The place of public auction
shall be in or in front of the office of the local program authority or at the
place otherwise designated in the notice.

END_STATUTE

START_STATUTE
49-1612.

Payment after delinquency and before sale

A. At any time before the sale of any
qualifying property subject to a delinquent special assessment installment, any
party that has an interest in the qualifying property may pay the delinquent
special assessment installment on the qualifying property together with the
penalty and costs due, including the cost of advertising.

B. On payment pursuant to subsection
A of this section, the local program authority shall note in the record the
date of payment, the name of the person by or for whom the payment is paid and
the amount paid.

END_STATUTE

START_STATUTE
49-1613.

Notice to lien claimants

A. Before the date fixed for the sale
or before the date to which the sale has been postponed, the local program
authority shall obtain a record search that shows the names and addresses of
record of all lien claimants on, and other persons with an interest in, all
properties or parcels on which a special assessment installment is delinquent.�
The cost of a record search may be added to the special assessment and is
deemed to be a portion of the delinquent special assessment installment.

B. At least ten days before the sale
date or the date to which the sale has been postponed, the local program
authority shall mail a notice of the date and place of the sale or postponed
sale to the property owner and to each of the lien claimants and other persons
with an interest as shown by the search of records.� The notice shall state:

1. The date of the sale, the amount
of the delinquent special assessment installments, including penalties, costs
of advertisement and costs of the record search.

2. That the whole amount of the
special assessment installments and costs and penalties are due at the time of
the sale.

3. That, unless redeemed within the
time allowed by law, a deed will be delivered to the purchaser and the deed
shall convey title to the lands described in the deed free and clear of all
interests and liens, except for the lien for general property taxes and prior
special assessments, including special assessment lien for the unpaid portion
of the special assessment imposed pursuant to this chapter.

C. A final sale may not be held
unless the local program authority has provided notice by mail as prescribed by
this section to all lien claimants and other persons with an interest
discovered in the search of records.� The mailing may occur either before the
date originally set for the sale or before the date of any postponed sale, and
only one mailing and one record search are required.

END_STATUTE

START_STATUTE
49-1614.

Sale procedure

A. On the date set for the sale, at
ten o'clock a.m. or any time thereafter to which the sale may be adjourned, the
local program authority shall begin the sale of the property
advertised. The local program authority may postpone or continue the
sale from day to day until all the property is sold.� Each property separately
assessed shall be offered for sale separately.� The sale shall be for the
delinquent special assessment installment and not for the entire assessment.

B. If
there is not a purchaser for any qualifying property offered for sale, the
qualifying property shall be struck off to the capital provider as the
purchaser if all outstanding taxes and prior assessments are paid by the
capital provider. The capital provider may sell any qualifying
property that was purchased after the expiration of the time for redemption
pursuant to section 49-1616 at public or private sale.

C. All proceeds of a sale of the
qualifying property or purchase of a deed pursuant to this section related to a
delinquent special assessment installment shall be remitted to the applicable
capital provider, except the local program authority shall retain the actual
and reasonable costs the local program authority incurred to enforce a
delinquent special assessment installment.

END_STATUTE

START_STATUTE
49-1615.

Certificate of sale; lien record

A. After making the sale, the local
program authority shall execute, in duplicate, a certificate of sale that
states the description of the qualifying property sold, the name and address of
the owner and all lien claimants as given by the record search prescribed by
section 49-1613, that the qualifying property was sold for a delinquent
special assessment installment, specifying the improvements for which the
special assessment was made, the amount for which the qualifying property was
sold, the date of the sale, the name of the purchaser and the first date on
which the purchaser may apply for a deed. The local program authority shall
file one copy of the certificate in the local program authority's office and
deliver the other to the purchaser.

B. On filing the copy of the
certificate in the office of the local program authority, the lien of the
delinquent special assessment installment shall vest in the purchaser and is
only divested by a redemption of the qualifying property, as provided by this
article.� This subsection does not extinguish or change the lien for the
remaining special assessment installments.

C. The local program authority shall
also enter on the record of the special assessment installment lien, opposite
the description of each qualifying property offered for sale, a description of
the part thereof sold, the amount for which the qualifying property was sold,
the date of the sale and the name of the purchaser.

END_STATUTE

START_STATUTE
49-1616.

Redemption

A. Redemption may be made by any
party that has an interest in the qualifying property at any time before the
execution and delivery of a deed for the qualifying property by paying to the
local program authority the amount for which the qualifying property was sold
and five percent thereon if paid within three months from the date of sale, ten
percent if paid within six months, twelve percent if paid within nine months,
fifteen percent if paid within twelve months or twenty percent if paid at any
time after twelve months from the date of sale.

B. When
redemption is made, the local program authority shall note that fact on the
duplicate certificate of sale in the local program authority's office and
deposit the amount paid with the capital provider. The capital provider shall
credit the purchaser named in the certificate of sale with the amount paid and
pay the sum to the purchaser or the purchaser's assignee on the surrender of
the certificate of sale.
END_STATUTE

START_STATUTE
49-1617.

Failure to redeem; notice; affidavit; execution of deed

A. After the expiration of twelve
months from the date of sale, the local program authority shall execute to the
purchaser or the purchaser's assignee, on application, if the purchaser has
fully complied with the provisions of this section, a deed to the property sold
in which shall be recited substantially the matters contained in the
certificate, any assignment thereof, and that a person has not redeemed the
qualifying property. The local program authority shall receive from
the applicant for a deed $1 for making the deed.

B. The purchaser, at least thirty
days before applying for a deed, shall mail to the owner, all lien claimants of
record, all persons of record with an interest in the qualifying property and,
if occupied by a person other than the owner, to the occupant of the qualifying
property, a written notice that the qualifying property, giving the
description, has been sold for a delinquent special assessment installment,
specifying the improvements for which the special assessment was made, the
amount for which the qualifying property was sold, the amount necessary to
redeem at the time of the notice, the time when the purchaser or assignee will
apply to the local program authority for a deed and that, on issuance of the
deed, all interests in the qualifying property, whether of record before or
after the delinquent assessment lien, will be extinguished, except for the lien
for general property taxes and prior special assessments, including the unpaid
portion of the special assessment imposed pursuant to this chapter. If
the owner cannot be found after due diligence, the notice shall be posted in a
conspicuous place on the qualifying property at least thirty days before the
time stated in the notice of the application for a deed.

C. The applicant shall file with the
local program authority an affidavit showing that notice of the application has
been given, and if the mailed notice was returned to the sender, that due
diligence was used to find the owner.� If redemption of the qualifying property
is made after the affidavit is filed and more than twelve months from the date
of sale, the person making the redemption shall pay, in addition, for payment
to the purchaser, $10 for the service of notice and the making of the
affidavit.

D. The deed of local program
authority is prima facie evidence of the truth of all matters recited therein
and of the regularity of all proceedings before the execution thereof and of
title in the grantee.� The deed of the local program authority shall convey to
the purchaser fee title to the lands described therein, free and clear of all
interests, liens, claims and encumbrances whether of record before or after the
special assessment lien, except for the lien for general property taxes and prior
special assessments and the special assessment lien for the unpaid portion of
the special assessment imposed pursuant to this chapter.
END_STATUTE

START_STATUTE
49-1618.

Proof of notice; affidavit; validity of notice; costs; definition

A. Unless otherwise provided by this
chapter, proof of mailing, of publishing or of posting the notices required by
this article shall be made by affidavit of the person required to mail, publish
or post the notice. The affidavit shall:

1. State the manner of mailing,
publishing or posting the notice.

2. State the date the notice was
mailed, published or posted.

3. Have attached to the affidavit a
copy of the publication or notice that was mailed or posted.

4. Be filed in the office of the
local program authority.

B. An affidavit prepared pursuant to
this section is prima facie evidence of the posting, publishing or mailing
described.� The failure of any person to receive a mailed notice does not
affect the validity of any notice that was mailed as prescribed by this article.�
The failure to mail a notice to one or more persons does not affect any notices
mailed to other persons. An error or informality in a notice does
not invalidate other portions of a notice.

C. The costs of mailing and
publishing provided in this section are a valid incidental expense pursuant to
this chapter.

D. Notice served on a married person
is deemed notice on the person's spouse, notice served on guardians and
administrators constitute notice to heirs and wards and notice served on an
attorney-in-fact constitutes notice to the attorney's principal.

E. For the purposes of this section,
"mail", "mailed" or "mailing" means deposit of
the notice or document with the United States postal service first class
postage prepaid.

END_STATUTE