§ 94-18. Deferred payments of special assessments based on hardship.

(a)

The city may grant deferrals of special assessment payments of persons who, in the opinion of the city commission, by reason of hardship are unable to contribute toward the cost thereof, in accordance with the provisions of this section.

(b)

An owner may apply for deferment of any or all installment payments of special assessments due in a particular year on the owner's homestead. The application shall be made upon an affidavit form available from the city treasurer.

(1)

The affidavit form shall contain the following:

a.

The name, or names if owned jointly, and social security number of the applicant.

b.

The homestead address and sidewall number.

c.

The home and business telephone number of the applicant.

d.

The length of ownership of the homestead by the applicant.

e.

Total household income for the past calendar year. The applicant shall attach copies of the most recently filed federal and state income tax forms of all members of the household, including all schedules, to the application.

f.

Current place of employment. If the applicant is unemployed, the date of termination or resignation from employment shall be stated.

g.

A statement of the net worth of all household members as of the date of the application.

h.

The number of dependents, as defined in 26 U.S.C. 1, et seq., of the Internal Revenue Code, as amended, residing with the applicant at the homestead.

i.

If the applicant is over 65 years of age or totally and permanently disabled, the applicant shall attach a copy of the notice from the treasurer denying deferment of special assessment under MCL 211.765, as amended, to the application.

j.

The amount of the special assessment installment payment for which deferment is requested and the date such installment comes or was due.

k.

A statement located immediately above the applicant's signature: "It is understood that if this deferment is authorized, the City will place a lien on your property."

l.

The form shall be signed by the applicant and notarized. If the homestead is owned jointly by husband and wife, both shall sign and file the affidavit.

(2)

In addition to the above, copies of the following documents shall be attached to the application:

a.

Recorded deed and land contract or mortgage for the homestead property.

b.

The cover page of the current homeowners or hazard insurance policy covering the homestead.

c.

A death certificate or divorce decree, if such document affects the title to the homestead property.

d.

Any other document that the city may require to process the application for deferment.

(c)

Application for deferment of an installment payment of a special assessment must be made no later than 30 days after the due date of a special assessment or installment for which deferment is requested.

(d)

To qualify for a deferment of an installment payment, the applicant must meet all of the following requirements:

(1)

Total household income attributed to the applicant in the past calendar year cannot exceed the level adopted by the state for its special assessment deferral program, plus an additional amount equal to the deduction allowed by state income tax law for each dependent residing with the applicant at the homestead;

(2)

Total net worth of all members of the household cannot exceed $10,000.00;

(3)

The homestead must be the primary residence of the applicant;

(4)

The homestead must have been owned and occupied by the applicant for at least three years;

(5)

The applicant cannot be eligible for deferment of special assessment under MCL 211.761, et seq., as amended;

(6)

The amount of the installment payments to be deferred on special assessments exceeds $300.00 per year;

(7)

Property taxes on the homestead property should not be more than two years delinquent.

(e)

Immediately upon receipt of the affidavit form, the treasurer shall stamp the application with the time and date of receipt. The treasurer shall promptly examine the application to determine if the applicant meets the requirements of this chapter.

(1)

The treasurer shall request the Manager to make an inspection of the property and property records and conduct an investigation and survey as the treasurer deems necessary. An applicant shall not be compelled to supply information not reasonably necessary to a proper determination of the eligibility of the owner and the homestead for the relief provided under this section.

(2)

The treasurer shall promptly make a decision and shall notify the applicant of this decision not later than 30 days after the receipt of the application by the treasurer. The decision of the treasurer shall be final.

(f)

The payment of any installment payment on a special assessment due and payable on a homestead in a year in which the owner meets all the eligibility requirements of this section shall be deferred until the occurrence of the first of the following events:

(1)

The homestead or any part of the homestead is conveyed or transferred to another, provided however, that:

a.

The original applicant for the deferral may convey or transfer an interest in the homestead to another person jointly with the applicant provided that the original applicant continues to reside at the homestead, or

b.

An owner who owns the property jointly with another may convey or transfer that interest to the original applicant for the deferral provided that the original applicant to whom the property is conveyed continues to reside at the homestead;

(2)

A land contract selling the homestead is entered into;

(3)

The owner fails to maintain adequate homeowners and hazard insurance as required herein; or

(4)

One year after the original applicant's death, subject to further order of the probate court; however, the death of a spouse shall not terminate the deferments of special assessments for a household owned by husband and wife as long as the spouse does not remarry.

(g)

Payment of deferred amounts.

(1)

Any special assessment deferred under this section may be paid at anytime.

(2)

Upon the occurrence of any one of the events terminating a deferment of an installment payment under subsection 94-18(f), above, the deferred amount plus interest shall be paid in full.

(3)

If the owner fails to make such payment when the deferment is terminated, the provisions of this chapter regarding the collection of special assessments shall again apply to the deferred payment as if no deferment had been granted and the city may enforce the lien upon the property in any manner permitted by law.

(h)

Interest shall accrue on deferred installment payments at the monthly rate provided for nondeferred installment payments within the special assessment district.

(i)

The treasurer shall send to the owner, by first-class mail, a yearly statement showing the amounts of deferred assessments on the homestead and the interest outstanding thereon.

(j)

Notice of lien.

(1)

Upon grant of a deferment or grant of the initial deferment if deferments are granted in subsequent years, the city shall record a notice of lien in its favor at the Oakland County Register of Deeds stating that there exists a lien upon such property for deferred special assessments. The lien created shall include the amount of interest provided hereunder.

(2)

The owner shall sign all documents necessary for the filing of such lien as a condition to receiving a deferral.

(3)

If subsequent deferments are granted, the treasurer shall ascertain whether the notice of the previously filed with the register of deeds is still in effect. If it is not, a new notice of lien shall be filed against the property with the register of deeds.

(k)

For the duration of the deferment, the owner shall maintain homeowners and hazard insurance on the homestead in an amount not less than the amount of the deferred assessment(s) and accrued interest plus the balance of any mortgage or other lien or encumbrance superior to the city's lien. On or before June 1st of each year for the duration of the deferment, the owner shall provide the treasurer with proof of such homeowners and hazard insurance in the form of a certificate of insurance, and such certificate of insurance shall show the city as an additional insured and shall further contain a clause requiring the insurance company to give the city 30 days advance notice of cancellation, termination or material change in the insurance coverage.

(l)

All deferments made under this section apply only to the installment payment for the year granted and for the specific special assessment district for which the deferment has been granted. An owner can apply for further deferments in any given year that installments are due if the eligibility requirements are met and this chapter remains in effect.

(m)

Nothing in this chapter shall give any person a vested right to receive a deferment or in the standards to be applied in granting such a deferment.

(1)

The city commission may change, modify, or delete any of the terms and conditions of this section or repeal it in its entirety at any time without notice to any applicant or recipient of a deferment.

(2)

However, once a deferment is granted, it cannot be revoked and payment be required prior to the time set forth in this section.

(n)

Penalties.

(1)

In addition to all other penalties imposed by this chapter, if any person shall make a false or misleading statement on an application for deferment under this section, such person shall be guilty of a misdemeanor and all amounts deferred shall be immediately due and payable.

(2)

Failure to pay such deferrals within 30 days of receiving notice from the treasurer shall result in the foreclosure of the liens placed upon the subject property pursuant to this section.

(Ord. No. 1637, 3-24-97; Ord. No. 1962, 4-21-08)