c. Examples

VA may find the following types of superior liens acceptable:

·   Liens for taxes, assessments, and ground rents.

·   Liens by private entities to secure assessments or charges for municipal-type services and facilities which

-   are clearly governmental in nature

-   a municipality could support out of public tax revenue if it provided the service, but

-   the municipality does not provide them.

·   Liens to implement or augment a service or facility if the government’s provision of such service or facility is inadequate.

·   Liens for services or facilities in locations where the services or facilities are adequately supplied by local government generally will not be approved by VA.

·   Liens created by recorded covenants in favor of private entities to secure the homeowner’s share of the costs of the management, operation, maintenance, services or programs for the benefit of a development.

·   Liens (on existing properties) previously retained by trustees, improvement associations or other nongovernmental entities for community-type services and facilities in a given area or subdivision, such as maintenance of streets, parkways, playgrounds, water systems, sewage systems, police and fire protection, or street lighting.