How the County can sell property for unpaid special taxes

Pursuant to Chapter 26, Kaua'i County Code 1987, as amended, the County may establish community facilities districts and levy special taxes upon properties within such districts and, in the event the special tax is not paid when due with respect to any such property, may foreclose the lien of the special tax by way of advertisement and sale without suit, in the same manner, except as otherwise approved by Council, under the same conditions and penalties, and with the same effect as provided by general law for sales of real property pursuant to default in payment of property taxes. In the case of properties within a community facilities district, the lien of delinquent real property taxes and the lien of delinquent special taxes shall be foreclosed together in a single sale to satisfy both liens, together with all applicable charges for interest, penalties, costs and expenses; provided, however, that: (1) the lien of delinquent special taxes may be foreclosed separately in the case of properties within a community facilities district for which bonds have been issued and remain outstanding pursuant to Chapter 26; and (2) in the event of a delinquency in either, but not both, the real property tax or special tax on a property, the lien of the delinquent real property tax or special tax, as applicable, may be foreclosed separately if so directed by the Director of Finance.Sales upon foreclosure pursuant to Subsection (a) of this Section shall be conducted in the manner provided in this Chapter for foreclosures of real property tax liens, subject to the following further provisions:In the case of a single sale upon foreclosure to satisfy both the lien of real property taxes and the lien of special taxes, the proceeds of the sale shall be applied first to satisfy both the delinquent real property taxes and delinquent special taxes, together with all applicable charges for interest, penalties, costs and expenses, and surplus sale proceeds, if any, shall be applied as set forth in Sections 5A-5.1 and 5A-5.9.In the case of a separate sale upon foreclosure of the lien of special taxes, the proceeds of the sale shall be applied first to satisfy the delinquent special taxes, together with applicable charges for interest, penalties, costs and expenses, and surplus sale proceeds, if any, shall be applied as set forth in Sections 5A-5.1 and 5A-5.9, which shall be applicable to the foreclosure in the same manner as in the case of foreclosures of real property tax liens. Any such foreclosure of the lien of special taxes shall not be deemed to satisfy, extinguish or otherwise affect the lien of real property taxes on the property, whether then due or delinquent or thereafter coming due, except to the extent that such surplus sale proceeds are applied to the payment of real property taxes pursuant to Sections 5A-5.1 and 5A-5.9, nor shall such foreclosure prevent or restrict any subsequent sale of the property upon foreclosure of the lien of real property taxes.In the case of a separate sale upon foreclosure to satisfy the lien of real property taxes, the proceeds of the sale shall be applied first to satisfy the delinquent real property taxes, together with all applicable charges for interest, penalties, costs and expenses, and surplus sale proceeds, if any, shall be applied as set forth in Secs. 5A-5.1 and 5A-5.9. Such foreclosure shall not be deemed to satisfy, extinguish or otherwise affect the lien of special taxes on the property, whether then due or overdue or thereafter coming due, except to the extent that such surplus sale proceeds are applied to the payment of special taxes pursuant to Secs. 5A-5.1 and 5A-5.9, nor shall such foreclosure prevent or restrict any subsequent sale of the property upon foreclosure of the lien of special taxes.In each case, title to the property shall be conveyed subject to the liens of all real property taxes and special taxes not satisfied by the foreclosure, and the conveyance instruments for the property shall so provide, notwithstanding anything to the contrary in this Chapter, including, without limitation, any provisions to the contrary in Sec. 5A-5.6 or 5A-5.9.Notwithstanding the foregoing, if the County issues bonds for a community facilities district pursuant to Chapter 26, the enforcement of the lien of special taxes on properties within the district may be subject to such further covenants and agreements of the County as may be set forth in the bond indenture or other applicable documents pursuant to which the bonds are issued.