Memorandum 16-135 Amendments to HCC 17.04.190(b) Deferred Assessments

Memorandum 16-135

TO:                       MAYOR WYTHE AND THE HOMER CITY COUNCIL

FROM:                 JO JOHNSON, CITY CLERK

DATE:                  AUGUST 16, 2016

SUBJECT:         AMENDMENTS TO HOMER CITY CODE 17.04.190(B) DEFERRED ASSESSMENTS

Ordinance 16-44 removes the requirement for a person to request deferment of an assessment on or before the first payment is due. The amendment allows a person to seek deferment of an assessment when the annual payment is due. The applicant must have an annual family income that is less than 125 percent of the current U.S. Health and Human Services Poverty Guidelines for Alaska.

The amendment provides consideration to a person who may fall into financial hardship while the assessment is pending. It allows a person to apply for a deferment of an assessment in subsequent years of the pending assessment instead of the first year.

All provisions of a deferment of assessment payments remain if the person:

1. Has an annual family income that is less than 125 percent of the current U.S. Health and Human Services Poverty Guidelines for Alaska;

2. Owns or has a life tenancy in the assessed property, and permanently resides in a single-family dwelling on the property; and

3. Is not determined by the City, after notice and hearing, to have been conveyed the property primarily for the purpose of obtaining the exemption.

An assessment payment deferment is subject to approval by the Council. A person receiving an assessment payment deferment must file with the City by April 15th of each subsequent year a new application proving eligibility as of January 1st of that year in order to retain the exemption.  Assessment payment deferments are subject to the availability of funds appropriated for that purpose.

RECOMMENDATION:

Introduce Ordinance 16-44 to provide consideration to a person with a financial hardship to request a deferment of assessment in any year that the annual assessment is due.