09-10250rRESOLUTION NO. 10250
RESOLUTION ESTABLISHING PROCEDURES FOR DEFERMENT OF SPECIAL
ASSESSMENTS AGAINST OWNER-OCCUPIED HOMESTEAD PROPERTIES
IN HARDSHIP CASES FOR QUALIFYING OWNERS
WHEREAS, under Minnesota law, cities are authorized to defer the payment of
special assessments for any homestead property 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 assessment payments; or a person who is a member of the
Minnesota National Guard or other military reserves who is ordered into active military
service as stated in the person's military orders for whom it would be a hardship to
make the payments.
WHEREAS, Minnesota Statutes 435.193 requires that any City desiring to
defer special assessments in such instances must establish, by ordinance or resolution,
standards and guidelines for determining the existence of a hardship and for
determining the existence of a disability.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Richfield as follows:
The City of Richfield hereby adopts a policy, as set forth in the attached
Exhibit A to this resolution, to consider requests for the deferment of
special assessments upon homestead properties owned by (a) a person
65 years of age or older or retired by virtue of a permanent total disability,
for whom it would be a hardship to make payments of special
assessments, or (b) 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 section 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
2. The policy previously adopted by Resolution No. 9531 is hereby rescinded
and superseded by the policy as set forth in the attached Exhibit A.
Adopted by the City Council of the City of Richfield, Minnesota this 9th day of
June, 2009.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibb ity Clerk
Exhibit A
POLICY FOR DEFERMENT OF ASSESSMENTS
BASED ON HARDSHIP AND AGE OR DISABILITY
The City of Richfield hereby establishes a program to defer all or a portion of the
special assessments of qualifying persons under the provisions of Minnesota Statutes
435.193 through 435.195. Under the program, the City Council and the City Manager
may defer the payment of all or a portion of certified special assessments by qualifying
property owners.
A. Eligibility
A person is eligible for a deferment if the person satisfies requirements related to
property classification, owner status, and financial hardship.
The property upon which the assessment is deferred must be classified as
homestead in the records of the Hennepin County Property Tax Division.
2. The property must be owned by a person:
a. Who is at least 65 years of age on January 1st of the year in which
payment of the first installment of the subject assessment levy is due;
or
b. Who is retired due to permanent and total disability. For purposes of
this policy, "permanent and total disability" means a condition that is
permanent by nature and that totally incapacitates the person from
working at an occupation that would generate income to the person.
c. Who is a member of the Minnesota National Guard or other military
reserves who is ordered into active military service, as defined in
section 190.05, subdivision 5b or 5c, as stated in the person's military
orders.
3. The applicant must have a "financial hardship" defined as:
a. An annual income for the applicant's household size which is at or
below the "Very Low Income" limit established annually by HUD for
the Minneapolis and St. Paul Metropolitan Area; and
b. The aggregate total of special assessment installments from
previously-existing special assessment levies plus the first year of
the current levy will exceed 1.5 percent of the applicant's annual
income.
B. Calculation of Amount to be Deferred
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The portion of the current levy eligible for deferment is that portion of the levy
against the applicant's property which requires a first year installment
payment which, when added to the applicant's annual payments from
previously existing special assessment levies, would result in an aggregate
total of special assessment installments totaling more than 1.5 percent of the
applicant's annual household income. The applicant may not defer the
portion of the current levy that, when aggregated with annual payments from
previously existing special assessment levies, is equal to or less than 1.5
percent of the applicant's annual household income.
2. Special assessments levied due to the applicant's failure-to-pay charges for
City services or failure to comply to City codes (e.g., delinquent utility
assessments, assessments for weed removals, assessments for nuisance
abatement, etc.) will not be deferred, and installment payments for existing
levies for such services will not be included in calculating the maximum 1.5
percent aggregate payment defined in paragraph B.1. above.
C. Interest.
Simple interest at the rate of that particular assessment levy will be added to the
deferred assessment, calculated from the date interest started to accrue on the
original levy (usually the October 1 immediately following the certification date) to
the date of payment of the deferred portion of the assessment.
D. Termination.
The option to defer the payment of special assessments will terminate and all
amounts accumulated, plus applicable interest, shall become due upon the
occurrence of any of the following events:
The death of the owner, provided that the spouse is otherwise not eligible for
the benefits.
2. The sale, transfer, or subdivision of the property or any part thereof.
3. If the property should for any reason lose its homestead status.
4. The City Council determines that a hardship no longer exists.
E. Application and Approval Process.
Application for deferral of payment of special assessments must be made on
forms prescribed by the Hennepin County Auditor. The applicant must also
provide such supplementary documentation as may be required to establish
the following:
a. The legal description and tax parcel number of the property.
b. The street address of the property.
c. The status of the homestead classification for the property.
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d. The description or designation of the local improvement for which
assessments are to be or have been levied.
e. The name of the homestead owner-occupant.
f. The age or disability status of the applicant.
g. The applicant's annual household income.
2. Within 30 days after the application is filed with the City manager, the City
Manager should review the application for conformance to the standards
and guidelines prescribed above and either grant or deny the application.
The City Manager must notify the applicant in writing of the City Manager's
decision. If in the judgment of the City Manager exceptional or unusual
circumstances exist that are not covered by the standards and guidelines,
the City Manager may report to the City Council within 30 days after the
application is made, along with a recommendation as to whether the
application should be granted or denied.
3. If the City Manager denies an application, the applicant has the right to have
the City Council consider the application. The applicant must request City
Council review within 20 days after the mailing date of the City Manager's
notice of decision.
4. When the City Council considers an application, the Council will grant or
deny the application by resolution, based on the standards and guidelines
set forth above. The City Council also may grant a deferment if it
determines that a hardship exists on the basis of exceptional and unusual
circumstances not covered by the standards and guidelines set forth above,
provided that the determination is made in a nondiscriminatory manner and
does not give the applicant an unreasonable preference or advantage over
other applicants. The City Council's decision to grant or deny an application
is final.
5. At any time while a special assessment remains deferred and unpaid, the
City Manager may request the applicant to provide current and updated
information as set forth at paragraph E.1. above, so that the City Manager
may verify and determine whether eligibility for the deferral has ended.
This policy is adopted by Resolution No. 10250, approved by the Richfield City Council on
June 9, 2009.
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