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BACKGROUND GHAD Purposes and Description Geologic Hazard Abatement Districts (GHADs) are districts formed specifically to address geologic concerns. A GHAD may be formed for the purpose of prevention, mitigation, abatement or control of a geologic hazard; also for mitigation or abatement of structural hazards that are partly or wholly caused by geologic hazards. A "geologic hazard" is broadly defined as an actual or threatened landslide, land subsidence, soil erosion, or any other natural or unnatural movement of land or earth. However, damage that is the result of an earthquake or fault movement is specifically exempted from coverage by the GHAD, in part because the assessments to include protection from land movement due to earthquake would be prohibitively high. Accordingly, residents should not consider the existence of a GHAD as a substitute for earthquake insurance. To the extent open space, including City -owned open space, is included in GHAD boundaries, the GHAD would only respond to geologic hazards in the open space that are threatening improvements benefiting the private property owners paying the assessments. Therefore, for example, the GHAD would not respond to a landslide in the middle of an open space area that is not a threat to adjacent improvements. The natural landslide condition would be allowed to remain in the open space area without remediation. A GHAD is a political subdivision of the State and is not an agency or instrumentality of a local agency. A GHAD may acquire, construct, operate, manage or maintain improvements on public or private lands and may exercise the power of eminent domain. A GHAD may include lands in more than one local agency (city or county) and the lands may be publicly or privately owned. The lands comprising the GHAD need not be contiguous so long as all are specifically benefited by the proposed construction to be undertaken by the GHAD. In addition, land may be annexed to an existing GHAD. A GHAD is authorized to finance improvements through the Improvement Act of 1911, the Municipal Improvement Act of 1913, and the Improvement Bond Act of 1915. A GHAD may also accept financial or other assistance from any public or private source and may borrow funds from a local agency, and the state and federal governments. A GHAD may assess landowners for operation and maintenance of improvements acquired or constructed under the GHAD law. These assessments, which attach as liens on property, may be collected at the same time and in the same manner as general taxes on real property. Page 2 of 6