I. Deferments.
Deferments are a postponement of assessments. These assessments shall be due and payable at such time in the future as the condition justifying the deferral ends.
A. Full Deferments.
Property owners subject to an assessment may apply for a deferment of the full amount of such assessment on the grounds of financial hardship as provided for by Ohio R.C. 727.251. Grounds for claiming financial hardship shall include, but not be limited to the following:
(1) The property owner has filed for bankruptcy;
(2) The property owner is a welfare recipient;
(3) The proposed annual assessment is greater than five percent (5%) of the property owner's gross annual income;
(4) An assessment deferment for the property has been recommended by the Mayor, subject to the approval of the City Council, as provided for under the City's Economic Development Incentive Plan.
B. Partial Deferments.
Deferments may be given on assessments for particular improvements under the conditions stated below, which shall be deemed to be financial hardships, but all other assessments against the property not deferred or waived shall be due and payable.
(1) Water or Sewer Improvements.
The City Council reserves the right to require all owners to tap into water and sewer lines as soon as they become available to the property. Council shall ordinarily make this "tap-in" determination prior to adopting the ordinance to proceed. However, if Council chooses on a particular project not to require immediate tap-in, the owner may request a deferral of the assessment for these utilities.
In such a case where Council grants such a deferral, the owner shall normally be required to begin making assessment payments at the date the next assessment payments become due and payable after the time the "tap-in" is requested.
(2) Sidewalks.
If a property is zoned residential but the owner is required to pay for more than 120 feet of sidewalk because the property is deemed by the City Engineer to be underdeveloped at the time of assessment, Council may grant a deferment of the amount of the sidewalk assessment in excess of 120 feet.
In such a case where Council grants such a deferral, the owner shall normally be required to begin making assessment payments at the date the next assessment payments come due and payable after the earliest of:
(a) The subdivision of the property;
(b) The property being rezoned upon the request of the owner to a zoning district other than one of those stated above; or
(c) A zoning permit being granted for a new principal structure to be constructed on the property.
(3) Roadway Improvements.
If a property is zoned as a residential district but the property is declared to be underdeveloped property by the City Engineer at the time of assessment, Council may grant a deferment of up fifty percent (50%) of the amount of the roadway improvement assessment to the owner after any applicable waiver has been applied.
"Roadway improvement" shall include base and pavement, curbs and gutters, and associated storm drainage, but shall not normally include sidewalks.
In a case where Council grants such a deferral, the owner shall normally be required to begin making assessment payments at the date the next assessment payments become due and payable after the earlier of:
(a) The subdivision of the property;
(b) The property being rezoned upon the request of the owner to a zoning district other than one of those stated above;
(c) A zoning permit being granted for a new principal structure to be constructed on the property.
C. Application For Deferments.
Application for a deferment of assessment shall be submitted to the City Council not earlier than the adoption of assessment pursuant to Ohio R.C. 727.25. Applications are available from the Clerk of Council.
The application should also include the parcel tax identification number and the proposed terms of the deferment requested.
D. Council Action.
Council shall review the applicant's request for a deferment at a Council meeting. A deferment request shall be deemed to be rejected unless it is approved by resolution of the Council within forty-five days after the ordinance of assessment is adopted.
Council shall examine the applicant's financial condition only to the extent necessary to determine whether or not timely payment of the assessment will cause a financial hardship. If Council determines that timely payment will cause such a financial hardship, as defined above, it may by majority vote provide for a deferred payment of all or part of the amount of the assessment until the earliest of the following:
(a) Such future date or dates as Council deems reasonable;
(b) Such time as the property is sold or transferred by the applicant and the buyer does not qualify for continuation of the deferral;
(c) Such time as the property becomes subject to estate taxes under the Ohio R.C. Chapter 5731.
E. Deferment Fees.
Any charges, fees or other costs incurred by the City as a result of additional accounting requirements or borrowing made necessary by the deferment shall be known as "deferment fees". Deferment fees shall not include interest costs incurred by the City as a result of the deferment in excess of the interest added generally to the principal assessment for anyone else in the district who chooses to pay their assessment over time. The deferment fees shall be added to the amount of the assessment at the end of the deferment and collected in the same manner as the assessment.
F. Deferred Assessments a Lien.
The amount of any assessment deferred shall be a lien upon the property until full payment is received by the City, even if the length of the deferral exceeds the length of time for repayment of the assessment by others in the special assessment district. The applicant shall have a duty to notify the City at such time as the condition of deferral ends. The City shall notify the County Auditor annually of properties which are entitled to continued deferrals.
G. Procedure When Deferral Ends.
Once the condition justifying deferral ends, the assessment and deferment fees shall become immediately due and payable. The City shall delete the property from its list of deferred properties. The County Auditor shall then assess on the next tax bill all unpaid principal and interest amounts and deferment fees.
(1) If the special assessment has not yet been fully repaid by the other properties in the special assessment district, the principal and interest due and payable in that installment shall also be due and payable along with the deferred principal and interest and deferment fees.
(2) If the special assessment has been fully repaid by the other properties in the special assessment district, the principal and interest and deferment fees shall be due and payable.
Deferment which ends during a tax year shall be prorated on the basis of the number of days which have elapsed since December 31 compared to the number of days in the calendar year. This prorated amount shall be added to the subsequent year's assessment.
II. Waivers.
Where assessments are waived, the City shall make such payments so long as the condition stated in the resolution has not ceased to exist and ended the waiver. The property owner or future owner shall have no duty to repay the City for payments made on the assessments by the City. If the special assessment payments for the project have all been made by the City before the condition stated in the resolution ceases to exist, the owner of the property does not have to pay any of the assessment.
A. General Conditions for Waivers.
Property owners subject to an assessment may apply for a waiver of the assessment on the grounds that there exists unique circumstances associated with the owner's property that would render the imposition of the assessment an undue hardship. The City may choose to grant a waiver of some or all of the assessments where it finds the conditions are met. Grounds for claiming such a hardship shall include, but not be limited to, the following:
(1) The use of the property;
(2) The existence of improvements provided by the property owner in the past or future;
(3) The existence of unique site characteristics such as access or topography;
(4) An assessment waiver for the property has been requested or has been successfully processed for a Community Reinvestment Tax Abatement;
(5) The property impacted is owned by a church or other nonprofit organization.
B. Roadway Improvement Waivers.
In regard to roadway improvement, defined as base and pavement, curb and gutters and associated storm drainage, but normally not including the sidewalks, an owner may apply for a waiver under the conditions set out below:
For roadway improvements on roadways, properties zoned residential shall be eligible for a waiver of approximately fifty percent (50%) of the local share so long as they remain so zoned. Since the City pays fifty percent (50%) of the local share also, these owners will then have no assessments for the roadway improvements so long as the waiver exists.
C. Application for Waivers.
Applications for a waiver of assessment may be submitted to Council not earlier than the adoption of the ordinance to proceed with the improvement and not later than fifteen days after adoption of an ordinance of assessment. Applications shall be available from the Municipal Building. The application will state the specific basis for the hardship claimed. The application will also include the parcel tax identification number and whether full or partial waiver is being requested. If a partial waiver is requested, the percentage of the amount requested to be waived will be stated.
D. Council Action.
Council shall review the applicant's request for a waiver at a Council meeting. A waiver request shall be deemed to be rejected unless it is approved by resolution of Council within forty-five days after the ordinance of assessment is adopted.
If Council determines that timely payment will cause an undue hardship it may, by majority vote, adopt a resolution waiving payment by applicant of part or all of the assessment. Such a waiver shall be conditional.
E. Waived Assessments a Lien.
The assessment shall be placed as a lien against the property and the City shall make such part of the annual payments (as stated in the resolution) so long as the stated conditions in the resolution continue to exist, as provided in the resolution. Until such condition ceases to exist and the waiver ends, the City shall make the assessment payments for the property as they become due and payable. The applicant shall have the duty to notify the City at such time as the condition of waiver ends.
A certified copy of the resolution waiving the assessment shall be placed in the records of the County Auditor. The City shall notify the County Auditor annually of properties for which the assessments are waived for the next year.
F. Procedure When Waiver Ends.
After such condition ceases to exist and the waiver ends, the property owner shall make all future assessment payments for the property as they come due and payable.
Waivers which end during a tax year shall be prorated on the basis of the number of days which have elapsed since December 31 compared to the number of days in the calendar year. This prorated amount shall be added to the subsequent year's assessment.
III. Notice.
In each special assessment proceeding, Council shall notify all owners of assessed property of the availability of deferrals and waivers. Such notice shall be in the form Council shall prescribe from time to time.
(Ord. 33-99. Passed 9-7-99.)