Special Assessment Districts (SAD)
A SAD is a defined grouping of properties especially benefitted by the improvement. While statute allows for a township to initiate a SAD, it is typically done by petition of the property owners in a designated area who wish to make an authorized improvement. The township then acts in an administrative capacity by establishing the district, gathering the cost estimates and plans for the improvement, providing funding or financing for the cost of the improvement, and the levying and collection of the special assessment to pay off the debt.
How a SAD is Started
Special assessment districts can be initiated by the township and/or by citizen petition. Some townships prefer the citizen petition process in order to demonstrate public support for an improvement by special assessment. Although the Charter Township of Union prefers citizen petitions for the initiation of SADs, it reserves the right to consider and establish SADs without a petition.
