Benefit Assessment District

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An area within a public agency’s boundaries that receives a special benefit from the construction of one or more public facilities. A benefit assessment district has no legal life of its own and cannot act by itself. It is strictly a financing mechanism for providing public infrastructure as allowed under the Streets and Highways Code. Bonds may be issued to finance the improvements, subject to repayment by assessments charged against the benefiting properties. Creation of a benefit assessment district enables property owners in a specific area to cause the construction of public facilities or to maintain them (for example, a downtown, or the grounds and landscaping of a specific area) by contributing their fair share of the construction and/or installation and operating costs.

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