When Brian Bolain contacted the City of Los Angeles about drainage concerns near his home in Hollywood Hills, he was shocked to learn that the storm drain near his house is his responsibility.
That’s because, back in the early 1980s, the original architect and owner agreed to put in a storm drain and maintain it for perpetuity. At the time, it was the only house on the street and there wasn’t any public infrastructure. In order to get a permit from the city, the original owner had to agree to foot the bill for a new storm drain.
It’s been almost 45 years since.
“The city has permitted and added 12 more homes,” Bolain told ABC7 Los Angeles. “They never asked another owner or developer to add drainage. They never made any accommodation for drainage. The city acknowledges that they know the street needs better drainage.”
But, because of this 45-year-old agreement, the City of Los Angeles won’t take any responsibility for drainage conditions on the street. That falls to Bolain, who is now worried about his potential legal exposure.
New drainage infrastructure would cost about $3.7 million. “They say they don’t have the money to do it,” Bolain said, “and they ask me to please continue to maintain my private drain.”
Homeowners could be on the hook for more than they know
While this may seem like an unlikely scenario, local governments can legally force you to make infrastructure upgrades — or send you a bill for upgrades they’ve already made — when those public improvements impact your property.
While local projects are typically funded through property taxes, in some cases your city or municipality might tack a special assessment tax onto your tax bill to cover a specific public improvement project, such as building a sidewalk, putting in a new water line or upgrading the sewer system.
Local and state laws determine which types of infrastructure projects could be supported by special assessments.
“Less complex projects like water and sewer connections, curb cuts and first-time paving of streets and sidewalks may entail a one-time fee levied against the adjacent benefiting properties,” according to the U.S. Department of Transportation.
Typically, the amount you pay is based on your property value.
In some cities, homeowners are also responsible for maintaining and repairing the sidewalk alongside their property, even though it’s a public walkway. This is the case in Los Angeles and New York City, while in Chicago the responsibility is split between homeowners and the city.
For example, in San Jose, CA, more than 100 homeowners were surprised to find themselves on the hook for expensive sidewalk repairs last year. If they fail to hire contractors to make the repairs, they could face a lien on their property tax bill, reports Realtor.com.
In some instances — like the one faced by the original architect of Bolain’s home — the city can require developers to install infrastructure, such as utility hookups, drainage systems and road access, at their own expense before granting permits.
“They can also charge upfront impact fees to offset the burden your new development places on the surrounding public infrastructure,” according to the U.S. Department of Transportation.
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What can you do about it?
Most homeowners believe that their property taxes will pay for the ongoing maintenance of the community’s essential infrastructure. But city and state ordinances vary widely, which adds to the confusion and could leave you with an unexpected bill.
For example, one city might use municipal taxes to pay for sidewalk repairs, while a nearby city sends the bill to impacted homeowners.
Understanding local laws is an important first step. You can do this by contacting your local county assessor’s office or municipal clerk’s office. If you’re planning to buy a house, find out first if there are any special assessments planned for that neighborhood.
While you may not be able to avoid footing the bill for legally passed assessments, you can dispute errors, file a protest or negotiate a payment plan. But it’s not all bad. The money will go toward boosting your property value.
However, it’s a potential cost that many homeowners aren’t aware of and aren’t prepared for. That’s why it’s a good idea to build an emergency fund (if you don’t already have one) that can cover unexpected costs, like a sidewalk repair in front of your home.
In Bolain’s case, the situation is complicated, since he’s unwittingly found himself responsible for both his and his neighbors’ drainage. He’s hoping to reach an agreement with the city, even if he has to pay for the work himself before handing the storm drain off to the city.
“I’ll do anything to get rid of the ownership of this because I don’t want the liability,” he told ABC7 Los Angeles. “So yes, if it costs me $40,000 to fix it and then gift it to the city, I’m happy to do it.”
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Vawn Himmelsbach is a veteran journalist who covers tech, business, finance and travel. Her work has been featured in publications such as The Globe and Mail, Toronto Star, National Post, CBC News, Yahoo Finance, MSN, CAA Magazine, Travelweek, Explore Magazine and Consumer Reports.
