Formation of a Local Improvement District (LID) provides a method by which improvements can be made on a county road or local access road with the cost of the improvements being assessed against the benefitting properties. Once the roadway project is completed the ongoing maintenance of the roadway either remains with or will become the responsibility of Jackson County. The process of forming an LID has several steps with many of them connected to Oregon Revised Statutes and County Ordinances. A typical LID formation involving several property owners will take 2 to 3 years from the submittal of the completed petition to the end of construction and final assessment. Typically, construction will occur during the summer construction season of April through October with the final assessment determined and approved that winter. In addition to the commonly asked questions which follow, please see the attached PDF below which describes many of the steps in significant detail.
COMMONLY ASKED QUESTIONS
Who draws up the petition for a Local Improvement District (LID)?
Jackson County Roads will assist the petitioner in drawing up the petition.
What is the most common use of an LID?
This is a way to improve a local access road to county standards. Another less common use would be to improve an existing county-maintained road such as changing it from gravel to a paved surface.
Will Jackson County accept the local access road as a county road when the improvement is completed?
Yes, if the road is constructed to county standards.
Can improvements to local access roads be made using the LID method if the improvements are less than the county standards?
No, not at this time.
What is the method of assessment?
The most common method of assessment is by zoning unit (the smallest lot size allowed using the zoning at the time of the assessment). Other methods of assessment are by dwelling unit, by front-foot, by area, or a combination of these methods.
Will my property be assessed even if I vote 'No'?
Since the overall project is determined by a majority of property owners, the reality is that even property owners who vote 'No' can be assessed and have a lien placed on their property. Although different than a tax or bond measure in many ways, the concept of everyone paying for a project/service which only 75% of the voters wanted to happen holds true. Communication with your affected neighbors is a critical component to avoid misunderstandings.
For how many years can the assessment be financed?
Assessments can be financed for a maximum of 15 years. There are no penalties for early payoffs.
What is the interest rate?
The interest rate is set in part using either the T-bill rate at the time of the final hearing or the bond interest rate which is received when the bonds are issued. An additional 1.25% is added to the T-bill/bond rate to come to the final rate which will be used for payments over time.
When are payments due if I choose to finance over time?
For property owners who choose to finance the assessment, semi-annual payments are due by June 10 and December 10 each year with interest beginning to accrue when the final assessment is made.
Can I payoff my LID assessment at any time?
Yes. Property owners can pay the LID assessment in full within 30 days of final assessment and will therefore avoid the lien being placed on their property. Additionally, if the property owner chooses to finance the amount over time, they can make early or additional payments at any time without penalty.
Can my lien/loan be subrogated to a secondary position to allow additional home refinancing option?
No. State law prohibits the government lien to be subrogated and moved to a lesser standing. Many lenders will desire to fully pay off an LID lien/loan when refinancing a home mortgage. Contact our office for a payoff amount based on a date of your choosing.
What are the County's policies related to late payments?
State law requires the County to initiate foreclosure proceedings on any property which is delinquent in excess of 12 months. Property owners are therefore strongly encouraged to keep their account current and in good standing.