The URL can be used to link to this page

IV.3. Special Assessment Deferral Request – 11 Interlachen Road; BishopNovember 4, 2020 Council Report 2020-082 Special Assessment Deferral Request 11 Interlache� Rd, PID 20-117-21-32-0055 2019-10 Street Improvement Project Pro�osed Action. Staff recommends that the Council approve the following motion: Approve the ap�lication for Deferral of S ecial Assessment for Vir inia A. Kirscht of 11 Interlachen Rd. for as lon = as she meets the eli i�y requirements. Overview: The assessment roll for City Project 2019-10, 2020 Interlachen Park Street & Utility Improvements was adopted by the City Council on March 16, 2020. City Code Section 2-120 allows for deferment of special assessments upon request for any homestead property owned by a person who has attained the age of 65, or has not attained the age of 65, but is retired as a result of a permanent and total disability, and it is determined to be a hardship for said owners to make the payrnents. The hearing notices mailed to all affected property owners stated the procedures to apply for such deferment are available from the Assessment Clerk. It was not necessary to file an appeal at the assessment hearing. Ms. Kirscht has now applied for the deferment. Ms. Kirscht has attained the age of 65 and indicates it is a hardship to pay the special assessment. Ms. Kirscht's 2020 income falls below the income limit set in Section 2-120. Primar�- Issues to Consider: • Should the City grant the deferment? Su ortin Information: • Application for Deferral of Special Assessment • Hopkins City Code Section 2-120 — Deferment of Special Assessment • MN Statutes 435.193 Hardship Assessment Deferral for Seniors, Disabled, or Military Persons • MN Statues 435.195 Termination of Right to Deferred Payrnent Analysis of the Issues: Should the City grant the deferment? Ms. Kirscht has demonstrated meeting the financial hardship requirements by providing documentation from the Social Security �dministration stating her income as of O1/15/2020. Staff recommends granting the deferment. The special assessment of $9,967.40 will be secure by virtue of a lien filed against the property. This deferral terminates upon Ms. Kirscht's death, sale of the property, loss of homestead status, or her annual income exceeds the annual income limit. This deferral must be renewed annually during the term of the deferment not later than September 30 of each year. Alternatives • 1. Approve the special assessment deferment of $9,967.40 for Ms. Virginia A. Kirscht of ll Interlachen Rd., Hopkins MN, PID #20-117-21-32-0055. 2. Do not approve the deferment. Staff recommends alternative #1. Melanie Ortiz Accounting Technician, Special Assessments �� '}� �[3�K3N� I-��F�%€ ��}i��, ��iI�E�4T'� App�ic�i�n f�r �f�nral Qf S�ci�l Assessm�nt I�t�r�hy m�lce applicat��an f�r defemai vf special assessment tl�ti� ''� +��day of 4 tT4�,� �L.. � 2(� .Z.�C3 fc�r the follnwi��; ��e�sm+ent: , L.�'�.�.�•�#ta� ��`��.`�" t�{{--lt� �`�.+�� t��.�tl�M��..rT ��°�.��- � �-�-,�.{-�a.- �ass � r ��-��c�t�� ;�-r� �� qr��. �� I t��ders�d th�t this cfefenai can c�nl� b� granted on horr�esiead �r�perty if my anrtuai inc�me €�c�es r��t �s��d th� sum crf�39,39�.t�f� � c�f �tant�ary i, 2�2€� {sut��ect tca annua} adjustrr�ent by t3t� ��s�:. � P`�e� tn€i�x ft�r the T�r� �ity �}, t�a# I a� �5 �� ars c�f age c�r ��der, c�r t� t � p�m�nentty t�r t+�t�lly di�abled �regardless of age). 1 aiso und�rstand that I must su��y ��rif�e�ti�� c+#'r�� is�c�rne ir� t�e fc�rra� ��rny �atest Feder�i Inccar�e T� f��, c�� vritteee� i�� verifie�.�ic�r� ��rn th� �o�i� Security Ag��cy, ar a cc�py n�rr�y la�t S�ci�1 S��ity +��, I� th� cas� vf disabilit3�, I rnust subrnit veriF�cation in t}ze iarm of a physi�ian's stat�ment. F��exrn��, ��erst�z�d ih�€ i must renew tiae �ef��nt ann�aPiy during tla;e term af the deferment �d aii requirec� sup�orting ��€iments c�r infarm�.tic►n ��ust b� delivered to the �ity n�t later th�n �pte��r 3t� af e�ch year. Deferr�d �sessments sh�II accr�e si�pie interest duri�g the def�rment per�c�d at t�e r�te establi�h�cfi fc�r p�yinent c�iFassesstnents at the time the �ss�ssment ��1 w�s acivpted. t3pt�n fail�re tv rene� the €Ieferment cer�ification �r u�n {�) th� �e�tt� vf the €��ner, prc�vic�d �xt t�e ��zruiving �r successc�r c�wner �s at}��rwise noi eiigible fc�r t�� defee��t$ (b) the sale, �sfer c�x s��a€�i�fisi�n af �he gr�r�rty� €�r any part t�erec�f; {c} if the prc�pert�� shQ�td f�� an� re�son iase its h�rr�estea� �tat�� t�� (d} ff fiar any r��c�n ihe �City sI�all deterrr�ane that tl�er� w�uid b� nr� hardship tt� require ir�r�edi�te or p�rti�l paym��t; �� deferm�nt shalt t�arnn��ate aEn.€l the City Clerk shal� �rarr►ptly certify to �he ��unty Aud�tor th� a�caunt o�`the c��ferre�i as��rnent �nc�utfing irtterest tc� be i�set�ed on ihe tax �sessr�ze�zt �r in fu�� if the �rc��rty v��s �c�l� t�r ihe �ri�d c�ft�me f�r repayrnent €�f the originai assessme�t l� e�t�ired. �'�� c � � .�— w� � �� .-��..� 1�-� u_.s� I,�� .. . _aa�r w_ �. � �rN.�.. � �... � �. � ._ � �� --�.� �. �-�.� � � �.� . � ��,�.�ti �_ .� c � - � � �',3 ------- �� « � _..�_ .,: �...�� t�dda�s c�f grc�perty erwner� (Te�eph�ne} � ` #-'� c��K-t tJ. � .��.,� ,.� t-� c`-) ,. ��P, ,.__ -.�� St�bscrib�� and s�vr�m t� �fore me tl�as �� day of V��}�2.�! .�, 2f12� . . _.�MN� � ��i� �Cil3i'iC2� �C�2L)il: I��ferraI graz�ted I�eferr�ll ��r►ied I3ate: MElANIE ORTII SCHIAPKQNI Notary Publia-Minnasota WM � �'w .len s�. a0?A Hopkins, MN Code of Ordinances Sec. 2-� 20. - Deferment of special assessment. Page 1 of 2 (a) Discretionary deferral. The city council may, in its discretion, defer the payment of any � . special assessment on homestead property owned by a person who is 65 years of age or older, or who is retired by virtue of permanent and total disability. Such deferment shall be based on the propertjr owner demonstrating he meets the following standards: (1) The applicant must apply for the deferment not later than 90 days after the assessment is adopted by the council; (2) The applicant must be 65 years of age, or older, or retired by virtue of permanent disability; (3) The applicant must be the owner of the property; (4) The applicant must occupy the property as a principal place of residence; and (5) The applicant's income from all sources does not exceed the low-income limit as established by the department of housing and urban development as used in determining the eligibility for section VIII housing. (b) Eligibility. The deferment will be granted for as long a period of time as the hardship exists and the conditions as aforementioned have been met. The applicant must notify the administrator of any change in applicant's status that would affect eligibility for deferment. (c) lnterest on deferred assessments. Deferred assessments shall accrue simple interest during the deferment period at the rate established for payment of assessments at the time the assessment roll was adopted. (d) End ofdeferment. The entire amount of deferred special assessments is due within 60 days after loss of eligibility by the applicant. If the special assessment is not paid within 60 days, the administrator must add thereto interest at the applicable rate for the bond issue for the project. If there is no bond issue for the project, interest will be fixed by resolution of the council. The total amount of principal and interest from the due date through December 31 of the following year must be certified to the county auditor for collection with taxes the following year. If the applicant demonstrates, to the satisfaction of the council, that full repayment of the deferred special assessment would cause the applicant particular undue financial hardship, the council may order that the applicant pay within 60 days a sum equal to the number of installments of about:blank 10/27/2020 Hopkins, MN Code of Ordinances deferred special assessments outstanding and unpaid to date (including principal and interest) with the balance thereafter paid according to the terms and conditions of the original special assessment. Page 2 of 2 (e) Renewaland termination ofdeferment. The certification of deferment shall be renewed annually by the owne,r during the term of the deferment and all required supporting documents or information delivered to the city not later than September 30 of each year. The deferment shall terminate upon failure to renew the deferment certification or upon: (1) The death of the owner, provided that the surviving or successor owner is otherwise not eligible for the deferment; (2) The sale, transfer or of the property or any part thereof; (3) The loss for any reason of the homestead status of the property; or (4) Determination by the city that there would be no hardship to require immediate or partial payment. Upon termination of the deferment, and the city clerk shall promptly certify to the county auditor the amount of the deferred assessment including interest to be inserted on the tax rolls and collected in the period of time remaining in the original assessment or in full if the property was sold or the period of time for repayment of the original assessment has expired. (fl Col%ction ofdelinquentassessments. In addition to the city's authority to certify amounts due to the county for collection with property taxes, the city may also charge delinquent accounts to a property owner's taxes as service fees as authorized pursuant to M.S.A. §§ 429.101, 415.01, 366.011, and 366.012. These fees shall be charges on the property owners' taxes, which shall be in addition to and distinct from any pending special assessments levied pursuant to state law. (Code 1986, §§ 703.01, 703.03, 703.05) about:blank 10/27/2020 MINNESQTA STAATUTES 2017 435.193 '� 435.193 HA�S�i�P ASSESSM�NT DE�ERRAL FOR SEl�1I4RS, DISAB�,�D, OR M�ITARY PERSONS. (a) Notwithstanding the provisions of any 1aw to the cantrary, any county, statutnry or hame ruie charter city, ot town, making a special assessment m�,y, at its dascreti4n, defer the payment of that assessment for arry homestead prdperty: (1) owned by a person 65 yeats of ag� or older or retired by virtue of a germanent and total disability . for wrho�n it would be a hardship to make the payments; or (2) awned by a person who is a rnember of the Minnesata Na#ional Guard or other military reserves wha �s ordered into active military seruice, as defined in section 1q0.05, subdivision Sb or 5c, as staxed in che person�s miTirary orders, for whom it �arould be a hardship to make the payments. (b) Any county, statutory or hame rule charter ci�#y, or town electing to defer special assessments shatl adopt an ordinance or resolution establishing standards and guidelines fc�r de#ermining ihe exis%nce vf a hardsiup and for detern�ini�►g the eaistence of a disabiiity, but nothing herein shall be construed to prohibit the determination of hardship on the basis of exceptionai a�td unusual circumstanees not covered by the siandards and guidelines where the detetrnination is tnade in a nondiscriminatory manner and does no# give the applicant an unreasonable preference ar advant�ge over other applica�ts. �Iistory: 1974 c 2f1S s 7; 19i6 c 195 s 3; 1981 c 80 s 1; 2008 c 154 art � s 28 +Copvright � 2017 by the Revisor of Stakutrs, State of Minnesotm. Ail Ri�hts Reserved. MII�FN�SC}Tt15TAT`UT'�S 2f�17 435.I95 435195 TERMINAT[QN OF RIG�T'i'tJ UEF��[tED PAYIV�ENT. The o�t�nn to defsr i�e payment of spe�ial assessments shall terminate and aii ar�ount� accumuiated plus applicabi� interes#, shali beecc�me due upt�n the t�ccurrenc� ��" any o� the following events: {a) ihe death af the ovdmer, pro�v�de� that ihe s�u�e zs othenvise nat elig�bte for the tsen�fi�s hereunder; (b} the sale, transfer �r subdivi�iun of the prm�rty �r any par# thereof; {c) if the properiy should for a�y reason Iose its homestead status; or (d) if fvr any reason �he ta�cing acttharit� tt�fer�ing �he payn�ents shafl c��tenmir�e thai there wou�d i� n� hardship to require irn�nediate or partial paymsni. His#ory: 19'�1 c 2�6 s 9 �4Py�i�t � 2017 by the Rea�isor �f Statutes, State oi Minnesota. A1[ Rights Resen�ed.