Chapter 14.10 COLLECTION OF LID ASSESSMENT

"Person responsible for payment of an assessment" means the owner of property to be assessed (including life tenants) and other persons, who under the terms of a recorded contract of purchase, recorded mortgage, recorded deed of trust transaction or recorded lease is responsible under penalty of forfeiture, foreclosure or default as between vendor/vendee, mortgagor/mortgagee, grantor and trustor/trustee and grantee, and beneficiary and lender, or lessor and lessee for the payment of the local improvement district assessment.

A person responsible for payment of an assessment may qualify as economically disadvantaged when:

His or her current income does not exceed the income eligibility criteria scaled by family size prepared annually by the city manager from data supplied by the United States of America Department of Labor to indicate an income necessary for such a person and family to live frugally but adequately within the city;

§ 14.10.030 Deferral – Terms and conditions.

His or her net personal assets (exclusive of the home, reasonable furniture, fixtures, and appliances and equipment necessary for maintaining life, health, or movement of infirm or handicapped persons) does not exceed $10,000.

(3)

Joint or community owners may qualify when their aggregate income does not exceed the income eligibility criteria for a family with the same number of persons and the net personal assets of each owner individually, as defined above, do not exceed $10,000.

(Ord. 1939 § 2, 1979)

Whenever an ordinance creating a local improvement district shall hereafter authorize deferral of collection of local improvement assessment upon the properties benefited thereby pursuant to Chapter 137, Laws of 1972, First Extraordinary Session, the following terms and conditions contained in the statute shall apply:

The amount of the assessment or an installment thereof, the collection of which has been deferred, shall be paid out of the local improvement guaranty fund;

The local improvement guaranty fund shall have a lien on the benefited property in an amount equal to the amounts paid by such fund, together with interest as provided by the ordinance creating the district;

(3)

The collection of any particular installment shall not be deferred longer than two installment periods; provided the foregoing shall not preclude the deferral of collection of other installments of such assessment;

(4)

Local improvement assessment obligations, the payment of which has been deferred, shall become due and payable upon the earliest of the following dates:

Upon the date and pursuant to the conditions established by the agreement for deferral of collection,

Upon the sale of property which has a deferred assessment lien upon it, from the purchase price, or

(c)

Upon the death of the person to whom the deferral was granted from the value of his estate; except a surviving spouse shall be allowed to continue the deferral of collection, which shall be payable by the spouse as provided by the terms and conditions of the deferral in accordance with this chapter;

(5)

The time during which collection is deferred shall not be a part of the time limited for commencement of an action to collect the amount deferred or to enforce the local improvement assessment lien;

(6)

The collection of an assessment shall in no event be deferred beyond the time of the dissolution of the local improvement district;

(7)

The party granted the deferment of collection of an assessment, or installment thereof, shall provide assurance of property security acceptable in form and substance to the finance director for the payment of such assessment, or installment thereof.

(Ord. 1939 § 3, 1979)

§ 14.10.040 Deferral – Application.

Applications for deferral of collection of an assessment that involve any of the following must be made in writing at or before the hearing of the city council for confirmation of the assessment roll:

Deferral of collection or an installment payment plan for payment of an assessment levied for total immediate payment;

Deferral of collection of the first installment of an assessment payable over multiple installments; and

(c)

Deferral of collection of assessments by a plan providing phased payments during the duration of the district, with a series of multiple deferrals of successive installments.

§ 14.10.050 Deferral period – Interest rate.

An application for deferral of collection of one or more particular installments subsequent to confirmation of the assessment roll may be made on or before such installment becomes delinquent, should death of a spouse or head of household, disabling injury, or other serious adversity render a person responsible for payment of an assessment economically disadvantaged.

(Ord. 1939 § 4, 1979)

The assessment, or the installments thereof, upon which collection has been deferred shall bear interest during the period of deferral at the same rate as borne by the note, warrant or bonds issued by the city to pay the cost and expense of the improvement.

(Ord. 1939 § 5, 1979)

§ 14.10.060 Deferral – Terminal interests.

The period of deferral of collection of an assessment or an installment thereof shall not extend beyond a fixed date of termination of occupancy of the person responsible for payment of an assessment under a leasehold or fee or definite duration, unless the owner of the reversion or the remainder assents to such deferral.

(Ord. 1939 § 6, 1979)

§ 14.10.070 Application of payments.

Moneys received for payment of assessment installments shall be applied toward the earliest unpaid installment unless the party making the payment shall direct otherwise.

(Ord. 1939 § 7, 1979)

§ 14.10.080 Administration by city officials.

The director of finance shall administer the deferral of collection of assessments, except as such duties are assigned by this chapter or by law to other city officials. The director of finance shall have the power and authority to:

Give notice to property owners of the availability of ordinance procedures for deferral of collection of assessments;

Accept and process applications for deferral of collection of assessments, and amendments thereof as appropriate;

(c)

Conclude with the persons responsible for the payment of an assessment and agreement setting the terms and conditions consistent with this chapter and state law, including, on request and at his discretion, without charge, provision for billing and payment of installments on a monthly basis;

(d)

Secure execution and filing of necessary instruments, and note satisfaction thereof;

(e)

Terminate the deferral of collection of assessments upon occurrence of conditions that render the assessment or installments thereof due and payable;

(f)

Determine the amounts to be paid from the local improvement guaranty fund to the fund; of such local improvement district upon the making of such deferral;

(g)

Take such other actions as are necessary and appropriate to administer this chapter in accordance with RCW 35.54.100.