A. The board adopts by reference California Government Code Section 66499. Pursuant to that section, the director of public works has the authority to approve and accept any of the following types of security as payment from the developer of a subdivision for the required parcel map:
1. Bond or bonds by one or more duly authorized corporate sureties
2. A deposit, either with the local agency or a responsible escrow agent or trust company, at the option of the local agency, of money or negotiable bonds of the kind approved for securing deposits of public moneys
3. An instrument of credit from an agency of the state, federal, or local government when any agency of the state, federal, or local government provides at least twenty percent of the financing for the portion of the act or agreement requiring security, or from one or more financial institutions subject to regulation by the state or federal government and pledging that the funds necessary to carry out the act or agreement are on deposit and guaranteed for payment, or a letter of credit issued by such a financial institution
4. A lien on the property to be divided, created by contact between the owner and the local agency, if the local agency finds that it would not be in the public interest to require the installation of the required improvement sooner than two years after the recordation of the map
5. Any form of security, including security interest in real property, which is acceptable to the local agency and specified by ordinance thereof, or
6. In the case of parcel map subdivisions of four or fewer lots ("minor subdivision"), a lien upon real property approved by the director of public works.
B. The director of public works shall have the discretion to accept or reject liens upon real property offered as good and sufficient security for minor subdivisions. In considering proposed liens, the director of public works may consider any relevant factors and may require the developer to submit any information the director deems necessary.
C. The developer\'s application requesting the director\'s approval of a lien against one or more lots in the minor subdivision as security for the parcel map shall contain the following:
1. A current appraisal prepared by an independent appraiser commonly accepted by financial institutions or a certified copy of the Del Norte County assessor\'s appraisal
2. A current preliminary title report
3. A current credit report
4. A contract for the installation of the subdivision improvements unless the subdivider is licensed to perform such work
5. A loan commitment or other source of funding for the construction
6. Two copies of the tentative map and letter of approval
7. An application fee in the amount set by resolution of the board of supervisors and
8. Any other information the director deems necessary.
D. Subdivision real property liens shall be senior to all other liens and shall not exceed seventy percent of the appraised unsubdivided value of the property.
E. Upon approval, the developer shall open an escrow with a responsible escrow agent or trust company providing for the preparation of the deed of trust, issuance of a standard form title policy in favor of the county in the amount of the lien, closure of escrow within forty-five days, and payment of all escrow costs, fees and expenses by the developer.
F. The lien is a blanket encumbrance upon the subdivision property. The developer may not sell or lease such lots unless the lien contains an unconditional release or the developer has complied with all provisions of California Business and Professions Code Section 11013.2. Alternatively, the director of public works may grant partial releases as long as sufficient security remains to cover uncompleted improvements.
(Ord. 91-16 § 1, 1991.)