B Review Assessment Deferral Policy
CITY OF
CHANHASSEN
7700 Market Bou levard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
f3
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MEMORANDUM
TO:
Todd Gerhardt, City Manger
Paul Oehme, Dir. of Public Works/City Engineer "0 () \
June 11,2007 '\ O~
FROM:
DATE:
SUBJ:
Review Assessment Deferral Policy - PW399
DISCUSSION
It has been the City's practice to consider assessment deferrals on past assessment
projects. Minnesota State Statue 435.193 allows cities to defer special assessments and
establish standards and guidelines for determining the existence of hardship and for
determining the existence of a disability. Staff would like Council to consider adopting a
standard policy for assessment deferrals.
Staff has incorporated Minnesota State Statutes 435.193 - 435.195 in developing
standards and guidelines as stated in the attached Resolution. If the City Council decides
to allow deferrals, a Resolution would authorize the City Council, in its discretion, to
defer the payment of an assessment for any homestead property owned by a person for
whom it would be a hardship to make the payment if the owner is a person who is 65
years of age or older or a person who is retired by virtue of a permanent and total
disability. The applicant must meet certain criteria and the very low income limits as set
by the Department of Housing and Urban Development CHUD); verify that the property
being assessed is their principal place of domicile to be eligible. Staff has used the HUD
income limits because they are set by their research reports about housing and economics
in demographic areas. However, State Statue does not set precedence as to what income
limits may be used by a City. Any persons requesting a deferral would do so at the City
Council meeting which the assessment is to be adopted, and then fill out a no-fee
application and submit it within 30 days of the adoption of the assessment to staff to
determine eligibility. Upon determining eligibility, staff would ask the City Council to
consider approving a resolution allowing deferment of the assessment.
The deferment may not be deferred for a period longer then the time set by the City
Council as the tiIlleover which the project is to be assessed; interest will be charged at
the rate adopted at the time of the assessment and such interest shall accrue on said
principal until the assessment is paid in full. The option of the homeowner to defer the
payment of special assessments shall terminate and all amounts accumulated plus accrued
interest shall become due and payable upon the occurrence of any of the following
events: sale, transfer or subdivision of the property or any part thereof, or in any way
conveyed to another person; the subject property loses its homestead status for any
reason; the death of the owner qualified for deferral status unless a surviving spouse is
eligible for benefits, or if the City Council determines that a hardship no longer exists.
Attachments
The City of Chanhassen · A growing communitv with clean lakes.llua1itv...schoo1s" a charmino rlowntown. thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play.
g:\eng\fortns\assessments\U5 I lOT bkgCl "ssessment deterra!.doc
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE:
RESOLUTION NO:
2007 -
MOTION BY:
SECONDED BY:
A RESOLUTION ESTABLISHING A HARDSHIP ASSESSMENT DEFERRAL FOR
SENIOR CITIZENS OR RETIRED AND DISABLED PERSONS
WHEREAS, Minnesota Statutes Sections 435.193 - 435.195 makes it possible for a
statutory city to pass a resolution establishing standards and guidelines for determining the existing
of a hardship and for determining the existence of a disability and;
WHEREAS, immediate payment of special assessments or installments on special
assessments may cast an undue hardship on some persons owning homestead properties who are 65
years of age or order or retired by virtue of a permanent and total disability for whom it would be a
hardship to make payments and;
NOW THEREFORE BElT RESOLVED, the City of Chanhassen hereby establishes the
standards and guidelines for determining eligibility as stated below:
1. In order to request a deferral of an assessment, the homeowner must request a deferment at
a public hearing in which the assessment may be adopted and make application on the form
prescribed by the City Clerk within thirty (30) days after the adoption of an improvement
assessment by the City Council, and;
2. The deferral procedure shall apply only to property owned and occupied by persons 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 payments. Permanent and total disability shall have the same definition
for purposes of assessment deferral as is used for social security purposes, and;
3. This deferral procedure shall not be construed as to prohibit the determination of hardship
on the basis of exceptional and unusual circumstances not covered by the standards and
guidelines herein so long as determination is made in a nondiscriminatory manner and does
not give the applicant an unreasonable preference or advantage over other applicants, and;
4. The property must be the applicant's principal place of domicile and classified on the real
estate tax rolls as the applicant's homestead, and;
5. The applicant(s) must submit Federal Income tax returns from the year prior to the
assessment to verify that all sources of income to dot exceed the low income limits for the
Minneapolis-St. Paul Area as established by the Department of Housing and Urban
Development, and;
6. No special assessment shall be deferred for a period longer than the time set by the City
Council as the time over which the project is to be assessed, and;
7. Interest on deferred assessments shall be subject to and charged at the interest rate set by the
City Council on its resolution adopting the special assessment, and such interest shall accrue
on said principal until the special assessment is paid in full and;
8. The option of the homeowner to defer the payment of special assessments shall terminate
and all amounts accumulated plus accrued interest shall become due and payable upon the
occurrence of any of the following events:
a. The sale, transfer or subdivision of the property or any part thereof, or in any way
conveyed to another person;
b. The subject property loses its homestead status for any reason;
c. The death of the owner qualified for deferral status unless a surviving spouse is eligible
for benefits hereunder;
d. If for any reason the City Council determines that there would be no hardship to require
an immediate or partial payment of the deferred special assessment.
Passed and adopted by the Chanhassen City Council this 11 th day of June, 2007.
ATTEST:
Todd Gerhardt, City Manager
Thomas A. Furlong, Mayor
YES
NO
ABSENT
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MiIinesota Statutes 2004,435.193
Page 1 of 1
Legislature Home I Links to the World I Help I Advanced Search
House I Senate I Joint Departments and Commissions I Bill Search and Status I Statutes, Laws, and Rules
Minnesota Statutes 2004, 435.193
Copyright 2004 by the Office of Revisor of Statutes, State of Minnesota.
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Table oL~ontent_~ fQ,E.:.. ChapJ.:_E?_L4,,~.!?_
435.193 Hardship assessment deferral for seniors or
disabled.
Notwithstanding the provlslons of any law to the contrary,
any county, statutory or home rule charter city, or town, making
a special assessment may, at its discretion, defer the payment
of that assessment 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
payments. Any county, statutory or home rule charter city, or
town electing to defer special assessments shall adopt an
ordinance or resolution establishing standards and guidelines
for determining the existence of a hardship and for determining
the existence of a disability, but nothing herein shall be
construed to prohibit the determination of hardship on the basis
of exceptional and unusual circumstances not covered by the
standards and guidelines where the determination is made in a
nondiscriminatory manner and does not give the applicant an
unreasonable preference or advantage over other applicants.
HIST: 1974 c 206 s 7; 1976 c 195 s 3; 1981 c 80 s 1
Please direct all comments concerning issues or legislation
to your House Member or State Senator.
,
For Legislative Staff or for directions to the Capitol, visit the ..contaG.!:JJl? page.
General Q.uestions or comments.
hrtp,:/ /www.revisor.1eg.state.mn.us/bin/getpub.php?pubtype=STAT_ CHAP _ SEC&year=current§ion=4... 8/4/2005
FY 2007 Income Limits Documentation System -- Summary for Carver County, Minnesota
Page 1 of 2
FY 2007 Income Limits Documentation System
FY 2007 Income Limits Summary
I Carver County, Minnesota
FY FY 2007
2007 Median Income 1 2 3 4 5 6 7 8
Income
Limit Income Limit Person Person Person Person Person Person Person Person
Area Category
VerYmLow I $27,500 II $31,400 II $35,350 II ~9,250 II ~2,400 II ~5,550 II ~S,650 I $51,So(
(5.0%)
In~o_me
l".imU~
I;.xtremely
Carver Low
County $77,600 (30~Q) $16,500 $18,850 $21,200 $23,550 $25,450 $27,300 $29,200 $31 ,1 OC
Income
Limits
Low I $41 ,700 II ~ 7, 700 II $53,650 II $59,600 II $64,350 II $69, 150 I I $7S,65C
(8JJ~Q) $73,900
Income
LimU$
NOTE: Carver County is part of the Minneapolis-St. Paul-Bloomington, MN-WI MSA. The Minneapolis-St. Paul-Bloomington,
MN-WI MSA contains the following areas: Anoka County, MN ; Carver County, MN ; Chisago County, MN ; Dakota County, MN ;
Hennepin County, MN ; Isanti County, MN ; Ramsey County, MN ; Scott County, MN ; Sherburne County, MN ; Washington County,
MN ; Wright County, MN ; Pierce County, WI; and St. Croix County, WI.
Income Limit areas are based on FY 2007 Fair Market Rent (FMR) areas. For a detailed account of how this
area is derived please see our associated FY 2007 Fair Market RenLdQQum~DJaJiQns)'-$lel1J.
Select a different county or county equivalent:
Aitkin County
Anoka County
Becker County
Beltrami County
Benton County
Big Stone County
[
Selectc;ounty or County EqLJiYCllent
]
Data file last updated Wed., Apr 18, 2007.
http://www.huduser.orgldatasets/il/il2007/2007summary .odb ?INPUTNAME=METR033460M33460*270 19... 6/1/2007
Date Rec' d:
Fee:
CITY OF CHANHASSEN
APPLICA TION FOR ASSESSMENT DEFERRAL
PLEASE PRINT
Applicant:
Applicant (spouse):
Name:
Address:
Name:
Address:
Contact:
Phone:
Property Identification No.
Contact:
Phone:
Property Identification No.
1. Applicant(s) is/are 65 years of age or older: 0 Yes 0 No Please provide identification verifying age.
DOB:
2. As of January 2, _ or June 1, _, I owned or occupied the above property as my homestead and
such occupancy began on
3.
My interest in the ownership of the above property was acquired on
as follows:
,_,andis
· Sole ownership 0 Yes D No
· J oint Tenancy held with
· Other undivided interest (specify)
4. Applicant(s) is/are retired by virtue of a permanent and total disability: 0 Yes 0 No
(Please attach a sworn affidavit by a licensed medical doctor attesting to the fact that you are unable to be gainfully employed due to a
permanent and total disability)
Please specify:
5. If Applicant(s) is/are not 65 years of age or older and is/are not retired by virtue of a permanent and total
disability, the following exceptional and unusual financial circumstances should be considered in
evaluating my ability to pay the assessment installments without deferment:
********
That my annual gross income for myself (and my spouse) as reported on Applicant's most recent income tax
return (attach a copy of last year's Federal Income Tax Return), plus non-taxable income received (i.e. pension,
Social Security, worker's compensation, insurance proceeds or similar payments) is $
(amount must NOT exceed $25,000).
That my total assets (except homestead) and the present fair market value of each are:
$
$
$
(amount must NOT exceed $60,000)
That the installments for improvements on the special assessments duly adopted by the City of Chanhassen as
of , 20_, which have been allocated against the subject property, would create undue
personal hardship on my behalf and I respectfully request that payment be delayed and that such installments be
so deferred for the year 20_.
That the average annual payment for these assessments exceeds 3% of my above gross income.
The special assessments to be deferred exceed $400.00.
I hereby declare under penalties of perjury that to the best of my knowledge, I have answered the above
questions truthfully and correctly. Any falsification of answers to the proceeding questions will result in denial
of this application. The credit information contained herein will be used solely for the purposes of establishing
eligibility for the deferment. All health information will be kept confidential.
Signed:
(Owner)
Dated
FOR CITY USE ONLY
I, , clerk of the City of Chanhassen in Carver County, State of Minnesota, do
hereby certify that the application of , above named, has been duly reviewed and that in
accordance with the minutes of official record in said chambers was duly 0 APPROVED or 0 DENIED as of , 20 _.
City Project County Assessment Total Amount Years of Collection Interest Rate
Name of Assessment Number No. (inclusive)
g:\eng\forms\assessments\application for assessment deferral.doc
STATE OF MINNESOTA)
(
COUNTY OF CARVER )
The foregoing instrument was acknowledged before me this
20_.
day of
Notary Public
g:\eng\forms\assessments\application for assessment deferral.doc