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HomeMy WebLinkAbout112 Sepcial Assessment DefermentSECTION 112 SPECIAL ASSESSMENT DEFERMENT SUBSECTIONS: 112.100: PROCEDURE ESTABLISHED 112.200: ELIGIBILITY 112.300: HARDSHIP DETERMINATION 112.400: TERMINATION OF DEFERMENT 112.500: EXCEPTIONAL AND UNUSUAL CIRCUMSTANCES 112.600: CERTIFY TAXES PAID 112.100: PROCEDURE ESTABLISHED: The City Council may defer the payment of any special assessment on the homestead property owned by a person who qualifies under this Section. 112.101 The homeowner shall make application for deferred payment of special assessments on a form prescribed by the Scott County Auditor and supplemented by the Prior Lake City Manager. The application shall be made within thirty (30) days after the adoption of the assessment roll by the City Council and must be renewed each year by the filing of a similar application no later than September 30. This Section will be effective for all assessments levied beginning in 1985. 112.102 The City Manager shall review the application for complete information and details and make a recommendation to the City Council to either approve or disapprove the application for deferment. The City Council, by majority vote, shall either grant or deny the deferment and if the deferment is granted, the City Council may require the payment of interest due each year. Renewal applications may be approved by the City Manager for those cases where the original conditions for qualification remain substantially unchanged. 112.103 If the City Council grants the deferment, the City Manager shall notify the County Auditor who shall in accordance with Minnesota Statutes, section 435.194, record a notice of the deferment with the County Recorder setting forth the amount of the deferred assessment. 112.200: ELIGIBILITY: A deferment is available for homestead property which is either (a) owned by a person 65 years of age or older or retired by virtue of a permanent and total disability for whom it would be a hardship to make the payments; or (b) owned by a person who is a member of the Minnesota National Guard or other military reserves who is ordered into active military service, as defined in Minn. Stat. Sec. 190.05, subdivision 5b or 5c, as stated in the person's military orders, for whom it would be a hardship to make the payments. 112.300: HARDSHIP DETERMINATION: A hardship is deemed to exist if the applicant meets all of the following conditions: (1) The annual gross income of the applicant does not exceed the 50% income limits for Scott County established annually by the U.S. Department of Housing and Urban Development for the year preceding the year in which the application is made. Calculation of the total family income shall be determined by the summation of all available income sources of the applicant and spouse. Income specified in the application should be the income of the year preceding the year in which the application is made, or the average income of the three (3) years prior to the year in which the application is made, whichever is less. (2) The total special assessments to be deferred exceeds one thousand dollars ($1,000.00). (3) Interest shall be charged on any assessment deferred pursuant to this Section at a rate equal to the rate charged on other assessments for the particular public improvement project the assessment is financing. If the City Council grants an assessment deferment to an applicant, the interest may also be deferred, or the interest may be due and payable on a yearly basis. The decision as to whether the principal and interest or just the principal is deferred shall be decided by the City Council when considering the application. 112.400: TERMINATION OF DEFERMENT: The option to defer the payment of special assessments shall terminate and all amounts accumulated plus applicable interest shall become due and payable upon the occurrence of any one of the following events: (1) The death of an owner when there is no spouse eligible for deferment. (2) The sale, transfer, or subdivision of all or any part of the property, if such transaction creates an increase of property value equal to or greater than the amount of the deferred amount. Any transaction that produces a lesser result shall be reviewed by Council as to its effect upon the deferred assessment as a whole. A proportionate amount of the deferred assessment may be required to become current, if such transaction occurs on a piecemeal basis, to prevent overloading of assessments on residual property. (3) Loss of homestead status on the property. (4) Determination by the City Council for any reason that there would be no hardship to require immediate or partial payment. (5) Failure to file a renewal application within the time prescribed in this Section. Upon the occurrence of one of these events the City Manager shall notify the County Auditor and County Assessor of the termination, including the amounts accumulated on unpaid principal installments, plus any applicable interest, which shall become due and payable as a result of the termination. The City Manager may negotiate and establish a payment schedule on the principal and interest owed after the deferment terminates. 112.500: EXCEPTIONAL AND UNUSUAL CIRCUMSTANCES: Nothing herein shall be construed to prohibit the City Council from considering an application of hardship on the basis of exceptional and unusual circumstances which are not covered by the standards and guidelines as set forth in this Section. This consideration and determination must be made in a nondiscriminatory manner so as not to give the applicant an unreasonable preference or advantage over other applicants. (Ord. Amd. 119-09, publ. 11/09/2019)