KCC §26-7.3

Bond limit based on property value

Read the official text at ecode360.com ↗

This section limits how much a district can borrow with bonds compared to the value of the property that will be taxed to pay them back. The property value is set by a special appraiser. The County Council can ignore this limit in certain situations, like if the bonds are low risk or for a public purpose.

countiesdeveloperslandowners

The ordinance, as written (Kauaʻi County) — Minimum Value-to-Lien Ratio

A copy, taken August 22, 2026. The version published by Kauaʻi County is the one that governs, and it may have changed since. Check it before relying on anything here.

The principal amount of bonds issued and outstanding under an indenture or certificate pursuant to which such bonds are issued for a district shall not exceed one-third of the value of the real property upon which a special tax is levied for payment of the debt service on the bonds. The "value of the real property" shall be the fair market value of the land and special improvements, within the meaning of Section 26-1.7, to be constructed within or financed by the district, as shown upon an appraisal of the subject property made by a Member of the Appraisal Institute (MAI) real estate appraiser.Notwithstanding the provisions of Subsection (a) of this Section, if the Council finds and determines that the proposed bonds do not propose any unusual credit risk due to the availability of credit enhancement or because a sufficient portion of the principal amount of a bond issue has been deposited in a selffinancing and self-liquidating escrow account under conditions such that it cannot be withdrawn until the value of real property subject to special taxes has increased sufficiently so that the requirements of Subsection (a) of this Section will be met or for other reasons specified by the Council, the provisions of said Subsection may be disregarded.Notwithstanding the provisions of Subsection (a) of this Section, if the Council finds and determines by a vote of not less than four-fifths of its members that the proposed bond issue shall proceed for specified public purpose reasons, the provisions of Subsection (a) of this Section may be disregarded.

Read the official text at ecode360.com ↗as published Jan 1, 2026our copy taken Aug 22, 2026

The County of Kauaʻi publishes this code through eCode360 and states that it is provided for information only and should not be considered the official version of the Code.

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.