Mountain View Municipal Code Art. VI Procedure for Deferral of Assessments for Certain Eligible Persons And…

This article shall be cited and referred to as the deferred assessment program of the City of Mountain View.

(Ord. No. 27.78, 8/14/78; Ord. No. 4.00, 2/8/00.)

The city council finds and declares that its purpose in adopting this article is to alleviate financial hardship caused to persons of low or very low incomes or to eligible tax-exempt nonprofit organizations required to pay special assessments levied against their property to pay for costs and expenses of constructing and installing public improvements. By alleviating financial hardship, the community can move forward with the renovation, construction and improvement of needed public facilities within the City of Mountain View in a timely manner.

(Ord. No. 27.78, 8/14/78; Ord. No. 4.00, 2/8/00.)

For the purposes of this article, the following words and phrases shall be defined as follows:

Acquisition or improvement. "Acquisition" or "improvement," when used, shall have the meanings ascribed to them by Sec. 17.2 of Article I of this chapter.

Assessed lot. "Assessed lot" means the entire parcel of land as shown on the assessment diagram of the assessment district within which the assessed lot is located, which parcel of land bears liability for payment of a particular amount of assessment as a result of any proceeding undertaken by the city pursuant to the provisions of this chapter or state law. For an individual person who is an owner of an assessed lot, it means the assessed lot on which is situated a single-family dwelling which is occupied by the owner thereof as his residence dwelling, or on which is situated no more than four (4) dwelling units of which one (1) dwelling thereon is occupied by the owner as his residence dwelling. For a tax-exempt nonprofit organization, it means an assessed lot owned, used and occupied by the organization for the purposes of the nonprofit organization. Any other assessed lot owned by the same nonprofit organization and within the same assessment district is also eligible for the deferred assessment program.

Assessment deferral committee. "Assessment deferral committee" means that three-member committee comprised of the city manager, or his designee, the public works director, or his/her designee, and the assessment deferral officer, or his designee, which committee is hereby created for the purposes of reviewing applications for the deferral of assessments, reviewing repayment obligations of owners to whom the deferral of assessments has been approved, and considering the request of owners for extensions of due dates based on severe financial hardship.

Assessment deferral officer. "Assessment deferral officer" means that city employee designated in writing by the city manager to administer the deferred assessment program.

Building. "Building" means a structure and appurtenant facilities on an assessed lot owned by a nonprofit organization.

Deferred assessment. "Deferred assessment" means that specific amount or sum of assessment, measured in terms of dollars, for which payment is postponed until such time as one of the events described in Sec. 17.212 of this article occurs.

Deferred assessment program. "Deferred assessment program" means the procedure set forth in this article for postponing or deferring payment of part or all of a special assessment by a person or a nonprofit organization qualified for such postponement or deferral pursuant to the provisions of this article.

Deferred assessment revolving fund. "Deferred assessment revolving fund" means that fund which is hereby created as a depository to house moneys which the city council of the city may from time to time appropriate for the purpose of carrying out the provisions of this article.

Deferred assistance schedule. "Deferred assistance schedule" means that graph following this article and labeled as Table 17.202, set out at the end of this article, and incorporated herein by reference, which establishes the percentage of assessment to be deferred for each eligible owner based upon the size of an owner's family and the amount of the owner's family's gross income.

Dwelling. "Dwelling" means any building or portion thereof designed or used as a residence or sleeping place of one (1) or more persons.

Dwelling unit. "Dwelling unit" means one (1) room or a suite of two (2) or more rooms, designed for and used by one (1) family for living and sleeping purposes, and having not more than one (1) kitchen or kitchenette.

Household. "Household" means any individual, or a group of not more than five (5) persons, excluding servants, who need not be related by blood or marriage, living together as a single housekeeping unit.

Household income. "Household income" means the aggregate of the total gross annual incomes of the owner and all members of the owner's household as disclosed by the most recently filed federal income tax returns of all such persons preceding the date upon which an application for deferral of assessment is filed. For the purposes of this article, such shall be deemed to be the income of the owner.

Household member. "Household member" means and includes all persons resident in the dwelling of an owner whose principal place of residence is the owner's residential dwelling. In determining who is a member of the owner's household, the city may rely on information contained on the owner's most recently filed federal income tax return preceding the date of application for deferral of assessment.

Household size. "Household size" means the total number of persons, including the owner and the members of the owner's household, who are resident in the owner's residential dwelling.

Lot. "Lot," "land," "piece," or "parcel of land," whether used singly or in combination, includes real property owned by any person or a nonprofit organization.

Median household income. "Median household income" means that amount of gross annual income, expressed in terms of dollars, for a household of four (4) persons living in the County of Santa Clara; which sum shall be based on the median household income for a family of four in Santa Clara County as established and as defined by the Housing and Urban Development (HUD) Department for the United States Government, as amended from time to time.

Nonprofit organization. "Nonprofit organization" means a nonprofit organization formed under the federal and/or state laws for religious, charitable or educational purposes and exempt from taxes pursuant to Internal Revenue Code Section 501(c)(3).

Owner. "Owner" means any natural person or persons or a nonprofit organization(s) owning the fee, or any person or persons or a nonprofit organization(s) in whose name the legal title to the assessed lot appears, by deed duly recorded in the office of the county recorder for the County of Santa Clara.

Senior. "Senior" means a natural person who is an owner of a dwelling and who is sixty-two (62) years of age or over.

Single-family dwelling. "Single-family dwelling" means a unit designated for or used exclusively for residence purposes by one (1) household, a condominium unit as defined in Section 1350 of the Civil Code of the State or a separately deeded townhouse.

Special assessment. "Special assessment" means any fixed lien special assessment levied against any assessed lot in the city by the city council as a result of proceedings undertaken pursuant to the provisions of this chapter, for the purpose of paying a portion of the cost and expenses of acquiring, constructing and installing any work or improvement on any public property, or, to the extent permitted by law, on any assessed lot. This term, however, shall not be deemed to include real property taxes, personal property taxes, any assessment levied by any other taxing agency, or any other tax, charge or assessment of any kind whatsoever.

Time at which assessment district formed. "Time at which assessment district formed" means the date upon which the city council, acting pursuant to the provisions of this chapter, adopts a resolution confirming assessments and ordering that the work and improvements be done.

Work or improvement. "Work" or "improvement," when used, shall have the meanings ascribed to them by Sec. 17.2 of Article I of this chapter.

(Ord. No. 27.78, 8/14/78; Ord. No. 40.79, 11/13/79; Ord. No. 9.99, 7/13/99; Ord. No. 4.00, 2/8/00.)

TABLE 17.202

CITY OF MOUNTAIN VIEW DEFERRED ASSESSMENT PROGRAM REVISED JULY, 1991

The sum of two hundred thousand dollars ($200,000), which sum has been appropriated to the deferred assessment program by previous actions of the city council, is hereby directed to be placed into the deferred assessment revolving fund and made available to the assessment deferral committee to carry out the provisions of this article, including the city's expenses incurred in administering the deferred assessment program. Additional sums may be appropriated to this fund from time to time by appropriate action of the city council. Nothing in this article shall be deemed to preclude the city council from approving the transfer of moneys from the deferred assessment revolving fund to any other city fund. Where available moneys in the deferred assessment revolving fund become insufficient to provide funding for all eligible applicants, the city shall have no obligation to transfer additional moneys into this fund from any other city fund.

(Ord. No. 27.78, 8/14/78; Ord. No. 4.00, 2/8/00.)

The deferred assessment program, as set forth in this article, shall be available to any owner of an assessed lot which is located within any assessment district formed by action of the city council, pursuant to the provisions of this chapter, on or after July 1, 1976; provided, however, that such owner establishes his eligibility pursuant to the provisions of this article.

(Ord. No. 27.78, 8/14/78; Ord. No. 4.00, 2/8/00.)

(a) The deferred assessment program shall operate as follows:

(1) The owner of an assessed lot shall file an application with the city for the deferral of assessment;

(2) The application shall be reviewed by the assessment deferral officer;

(3) The application, along with the recommendation of the assessment deferral officer, shall be forwarded to the assessment deferral committee for action;

(4) If the assessment deferral committee approves the application, the owner, as a condition of the city's approval deferring the assessment, shall do the following:

(A) Execute a promissory note secured by a deed of trust agreeing to repay the amount of assessment deferred, plus interest, late charges and attorney's fees should the city be required to institute proceedings to collect the amount of assessment deferred; and

(B) Execute an agreement with the city which sets forth the amount of the deferred assessment, the terms and conditions of repayment, and provides that the city shall have a lien on the owner's assessed lot in a sum representing the amount of the deferred assessment, plus interest, late charges and attorney's fees as set forth above, and that the owner's obligation to repay the amount of the deferred assessment shall also be deemed a personal or, in the case of a nonprofit organization, a corporate obligation of the owner.

(5) Upon approval of an application for the deferral of assessment, the city, acting through the assessment deferral committee or the city council, shall order the withdrawal, from the deferred assessment revolving fund, of that sum of money representing the amount of assessment deferred, and place that sum, on behalf of the owner, into the construction fund for the assessment district which is being formed and within which the assessed lot of the owner is located.

(6) The amount of the deferred assessment, including interest and late charges, shall be repaid by the owner upon the occurrence of any of the events specified in Sec. 17.212 of this article.

(7) All repayments of deferred assessments, including interest and other types of charges, shall be placed by the city into the deferred assessment revolving fund for future use in accordance with the provisions of this article.

(A) In terms of priority as to other liens on the assessed lot, regardless of the time of their creation, the contractual lien representing the amount of the deferred assessment shall have that priority as is established by Chapter 2 of Part 4 of Division 1 (commencing with Section 2186) of the Revenue and Taxation Code of the State.

(B) The contractual lien on the owner's assessed lot established by this article shall not be deemed a transfer of a property interest in the owner's assessed lot but rather a form of security for repayment of the deferred assessment. If the amount of assessment deferred is not repaid by the owner upon the occurrence of any of the events specified in Sec. 17.212 of this article, the city shall be entitled to use all legal remedies given to it by the lien instrument, as well as other remedies provided by law, to ensure that the amount of assessment deferred is repaid to the city and to the deferred assessment revolving fund.

(C) Should an owner suffer either voluntary or involuntary bankruptcy at any time prior to repayment of the amount of the deferred assessment, the lien held by the city to secure the owner's promissory note to repay the same shall be entitled to that priority of payment as is provided for by federal law.

(D) The city shall also be entitled to record a notice, pursuant to Civil Code Section 2924b, that it be sent a copy of any notice of default and notice of sale under any earlier recorded deed or trust or mortgage on the assessed lot.

(Ord. No. 27.78, 8/14/78; Ord. No. 4.00, 2/8/00.)

The following requirements must be satisfied in order for an owner to be eligible for the deferral of assessment:

(a) The owner must provide evidence to the satisfaction of the city's deferred assessment committee that the scheduled payments of the special assessment would create a significant financial hardship.

(b) In the case of a nonprofit organization, it must also demonstrate to the satisfaction of the city's assessment deferral committee that:

(1) Such payments would significantly curtail its services and programs;

(2) That its services and programs benefit the community;

(3) It relies primarily on grant funding, contributions and donations for its operations; and

(4) A deferral would enable the organization to plan and budget the cash flow to pay the assessments.

(c) The assessed lot must be improved by no more than four (4) dwelling units at the time at which the assessment district is formed;

(d) For an owner who is a natural person, the owner must reside on the property and must occupy one (1) of the dwelling units. If more than one (1) unit exists on the property, only one (1) unit can produce rental income. Any units in addition to the owner-occupied unit and that unit which produces rental income must provide housing free of rent and utilities to the tenants. This free rent and utilities condition must have been in existence at least one (1) year prior to the formation of the assessment district, and must remain in such condition for continued eligibility for deferral;

(e) All dwelling units situated on the assessed lot must be used for residential purposes at the time the assessment district is formed, except that a nonprofit organization may use any dwelling unit or other building on its assessed lot for residential or nonresidential purposes;

(f) For a natural person, the amount of the owner's or senior's annual gross household income shall fall within the income ranges established and set forth on the deferred assistance schedule, which follows this article and is labeled as Table 17.202; and

(g) For a nonprofit organization, the nonprofit organization must satisfy the definition in Sec. 17.202 as a tax-exempt nonprofit organization owning and using the assessed lot for the nonprofit purposes of the organization.

(Ord. No. 27.78, 8/14/78; Ord. No. 40.79, 11/13/79; Ord. No. 4.00, 2/8/00.)

(a) For all deferred assessments. The amount of assessment eligible for deferral for a particular assessed lot shall be the amount confirmed by the city council, less the following amounts to be determined by the assessment deferral committee:

(1) Any supplemental assessments levied by the city council subsequent to the initial levy of assessment for the assessment district improvements;

(2) Moneys paid to the owner for the acquisition of rights-of-way in connection with the assessment district exclusive of:

(A) That portion, if any, which is required to be applied toward the reduction of pre-existing liens on the assessed lot; and

(B) That portion, if any, necessary to restore the property remaining after the acquisition.

(b) For an owner who is a natural person. The amount of assessment to be deferred for an eligible owner is found by using the deferred assistance schedule to determine the number of members of the owner's household and then by matching the household's gross annual income with the gross household income figures set forth on the left-hand side of the schedule; said figures being expressed in terms of percentages of the median household income for a household of four (4) persons living in the County of Santa Clara.

(1) The amount of assessment to be deferred for an eligible senior with a household size of one (1) to four (4) persons is found by using the deferred assistance schedule and under the column for a household size of four (4) persons, match the household's gross income with the gross household income figures set forth on the left-hand side of the schedule; said figures being expressed in terms of percentage of median household income for a household of four (4) persons living in the County of Santa Clara.

(c) For a nonprofit organization. The amount of assessment to be deferred for an eligible tax-exempt nonprofit organization is as follows:

(1) The nonprofit organization may defer up to one hundred (100) percent of the special assessment for a period not to exceed ten (10) years. At the end of ten (10) years, the full amount of deferred assessment plus all interest shall be repaid to the city. An extension of the due date of up to five (5) additional years may be allowed if all eligibility requirements are still met and if at least thirty (30) percent of the deferred assessment principal has been repaid to the city by the end of the initial ten (10) year deferral term.

(2) The nonprofit organization may apply to the city council for a further extension of the due date beyond the fifteen (15) year period set forth above if it can demonstrate continuing and severe financial hardship and continued eligibility.

(3) Interest will be charged on the unpaid amount of the deferred assessment at the same rate and terms set forth under Sec. 17.213.

(4) The amount eligible for deferral is reduced by any payment received for right-of-way acquisition.

(Ord. No. 27.78, 8/14/78; Ord. No. 4.00, 2/8/00.)

An owner of an assessed lot who meets the eligibility criteria set forth in Sec. 17.206 may apply for a deferral of assessment by executing and filing an application, on a form provided by the city, together with the other written materials required by Sec. 17.209, with the assessment deferral officer. An application must be filed between the date the city council approves the engineer's preliminary report for the assessment district and sixty (60) days after the council forms the assessment district by confirming the assessments and ordering that the work or improvements be made.

(Ord. No. 27.78, 8/14/78; Ord. No. 4.00, 2/8/00.)

In addition to completing the application form, an owner wishing to defer all or part of his assessment shall also file with the assessment deferral officer the following documents:

(a) A copy of a recorded deed and preliminary title report showing that title to the assessed lot is held in the name of the owner.

(b) For an owner who is a natural person:

(1) Satisfactory evidence and proof that the owner is the recipient of a homeowner's exemption on the assessed lot for the year in which the assessment district is formed either by being listed on the last published Santa Clara County assessor's roll or by verification of such status on the basis of available information in the county assessor's office; or in the situation where evidence of exemption is impossible to obtain, the owner shall sign a declaration which indicates the reason or reasons why the owner failed to take advantage of the homeowner's exemption which the owner was otherwise eligible to receive;

(2) A written declaration signed by the owner that the level of residential development on the assessed lot does not exceed four (4) dwelling units, and that all dwelling units on said lot are used exclusively for residential purposes, and that any dwelling units in excess of two (2) have been provided rent and utilities free for at least twelve (12) months prior to the formation of the assessment district and will continue to be so provided for the duration of the deferral of assessment, and is an express condition of continued eligibility for deferral;

(3) A written declaration signed by the owner containing a statement of total household gross annual income for the calendar year represented by the most recently filed federal income tax return, or, if no such return was filed, by such other evidence as is acceptable to the assessment deferral officer; and

(4) A completed Internal Revenue Form No. 4506 for use by the city in obtaining a certified copy of the most recently filed federal income tax return for each of the household members with reportable income; or in the alternative, a certified copy of the most recently filed federal income tax return for each household member with reportable income.

(5) Satisfactory proof of age for a senior.

(c) For a nonprofit organization:

(1) Satisfactory evidence and proof that the organization is a tax-exempt nonprofit organization;

(2) A declaration describing the purposes of the nonprofit organization, its programs and services and the benefits of the programs and services to the community.

(3) Completed tax forms for use by the city in obtaining a certified copy of the most recently filed federal and state income tax return of the nonprofit organization or a copy of said filed tax returns; and

(4) A declaration explaining the significant financial hardship created by the scheduled assessment payments and explaining how the deferral will allow for payment at a later date.

(Ord. No. 27.78, 8/14/78; Ord. No. 40.79, 11/13/79; Ord. No. 4.00, 2/8/00.)

(a) Duties of assessment deferral officer. The assessment deferral officer shall review the completed application, along with the accompanying documents and declarations, for the purpose of determining the eligibility of the applicant and the amount of assessment eligible for deferral. The assessment deferral officer shall not be required to take action on any application which the assessment deferral officer deems is not complete. Within thirty (30) days of receipt of the completed application, the assessment deferral officer shall recommend to the assessment deferral committee whether the application should be approved or disapproved. Included with assessment deferral officer's recommendation shall also be the reason or reasons of the assessment deferral officer for his/her recommendation.

(b) Review of application by assessment deferral committee. The assessment deferral committee, upon receiving the recommendations of the assessment deferral officer, shall act within twenty (20) days of receipt thereof, to either approve or disapprove the application on the basis of the requirements set forth in this article, except that for a nonprofit organization, the assessment deferral committee shall forward its recommendation to the council. If the application for deferral of assessment is approved, the committee shall specify the amount of assessment to be deferred and shall direct that the appropriate sum of money be withdrawn from the assessment deferral revolving fund.

(c) Denial of an application. For a natural person, if the application is denied, the assessment deferral committee, within ten (10) days of its decision, shall provide the owner with a written statement of the grounds for such action and shall advise such owner of his or her right to appeal the committee's action pursuant to the provisions of this section.

(d) Right of appeal. Any owner who is a natural person whose application for a deferral of assessment has been denied may appeal such decision to the city council by filing a written notice of appeal with the city clerk within ten (10) days after being notified of the committee's decision. Such appeal shall be heard by the city council within sixty (60) days after the filing of the appeal. The city council shall not be required to hold a duly noticed public hearing but the owner shall be given at least five (5) days prior written notice of the day and time of the hearing. At the hearing, the owner shall be allowed to present evidence on his or her behalf as to why he or she is entitled to a deferral of assessment. The city council's decision on such appeal shall be final and no further application on behalf of the applicant for a deferral of assessment pertaining to the formation of an assessment district within which the owner's assessed lot is located shall be considered by the city. In passing upon an appeal from a decision of the assessment deferral committee, the city council shall be governed by the criteria for approving or disapproving applications as set forth in Sec. 17.206 of this article.

(Ord. No. 27.78, 8/14/78; Ord. No. 4.00, 2/8/00.)

Pursuant to subsections (i) and (n) of Section 6254 and Section 6255 of the Government Code of the State, all applications for a deferral of assessment, as well as all supporting information and documents which an owner submits as part of his or her application, shall be treated as confidential and unavailable for public review.

(Ord. No. 27.78, 8/14/78; Ord. No. 4.00, 2/8/00.)

(a) For a natural person, each owner of an assessed lot who has received a deferral of assessment pursuant to the provisions of this article shall immediately repay to the city the full amount of the deferred assessment, plus all interest and late charges, if any, and all reasonable costs expended by the city for collection of moneys due under the provisions of this article, if any, upon the occurrence of any of the following events:

(1) Upon any change in record title to the assessed lot (including inheritance, except to a surviving spouse) or portion of such assessed lot, if the owner thereof subdivides the lot;

(2) Upon any increase in the square footage of any one (1) of the dwellings situated on the assessed lot at the time the assessment was deferred, which increase in square footage exceeds six hundred (600) square feet, or upon the construction or creation of any new dwelling units on the property;

(3) Upon the termination of the owner's use of the assessed lot for residential purposes;

(4) Upon the discontinuance of rental and utilities free occupancy for dwelling units in excess of two (2) on the property;

(5) Upon the city's determination that false or misleading information was given by the owner as part of his application for a deferral of assessment.

(b) For a nonprofit organization, each owner of an assessed lot who has received a deferral of assessment pursuant to the provisions of this article shall immediately repay to the city the full amount of the deferred assessment, plus all interest and late charges, if any, and all reasonable costs expended by the city for collection of moneys due under the provisions of this article, if any, upon the occurrence of any of the following events:

(1) Upon any change in record title to the assessed lot or portion of such assessed lot, except for a transfer to a successor nonprofit organization;

(2) Upon subdivision of the assessed lot other than a merger or lot line adjustment;

(3) Upon redevelopment of the assessed lot;

(4) Upon the construction or creation of any new buildings on the property or construction of substantial improvements on the property exceeding twenty-five (25) percent of the value of the land and building;

(5) Upon the termination or abandonment of the owner's use of the assessed lot for nonprofit purposes;

(6) Upon the city's determination that false or misleading information was given by the owner as part of his application for a deferral of assessment;

(7) Upon a loss of eligibility for any reason; or

(8) In the event of a refinancing of the assessed lot, unless otherwise specifically accepted by the city in writing.

(c) In cases of extreme or unusual hardship, the due date for repayment may be extended by the assessment deferral committee, subject to the following provisions: for a natural person, Sec. 17.207(a) and (b) and Sec. 17.215; and for a nonprofit organization, Sec. 17.207(a) and (c) and 17.215 of this article.

(d) No provision of this article shall prevent an owner to whom a deferral of assessment has been granted, from repaying to the city, at his or her option, at any time prior to the due date of repayment, all or a portion of such deferred assessment along with any accrued interest.

(Ord. No. 27.78, 8/14/78; Ord. No. 40.79, 11/13/79; Ord. No. 4.00, 2/8/00.)

Interest shall be charged on any unpaid balance of the deferred assessment owed to the city, at an annual rate which is two (2) percent less than the effective average interest rate of all bonds sold to cover unpaid assessments for all of the assessed lots within the assessment district in order to finance the project. Said interest rate shall be compounded annually and shall accrue on the date of sale of the bonds for said assessment district.

(Ord. No. 27.78, 8/14/78; Ord. No. 4.00, 2/8/00.)

Upon the occurrence of any of the events specified in Sec. 17.212 of this article, but in no event later than thirty (30) days after the occurrence thereof, any owner to whom a deferred assessment has been granted shall notify the city in writing of the occurrence of such event. As part of his or her written notification, the owner shall remit repayment of the amount of the deferred assessment, plus interest, and any other charges due, to the city. If the event specified in subsection (a)(5) of Sec. 17.212 occurs, an owner shall remit repayment of the amount of the deferred assessment, plus interest, to the city, within thirty (30) days from the date of the city's written demand for repayment. As to all other owners to whom deferred assessments have been granted, each year, within sixty (60) days from the anniversary date of the recordation of the promissory note and contractual lien securing the same, (i) for a natural person, each owner of residential property shall provide the assessment deferral officer with a written declaration reaffirming that the residential dwelling or dwellings on the assessed lot are still being exclusively used for residential purposes, and that the owner continues to maintain his or her record ownership in, and his or her occupancy of, said assessed lot, and that any dwelling units in excess of two continue to be provided rent and utilities free to the occupants; and (ii) for each nonprofit organization, owner shall provide the assessment deferral officer with a written declaration reaffirming eligibility.

(Ord. No. 27.78, 8/14/78; Ord. No. 40.79, 11/13/79; Ord. No. 4.00, 2/8/00.)

Prior to but no later than thirty (30) days after the occurrence of any of the conditions establishing the due date for immediate repayment of the full amount of the deferred assessment, any owner required to make said repayment may apply in writing to the assessment deferral committee for a hearing to review the owner's obligation for repayment under the provisions of this article, or to present reasons for the granting of an extension of the due date on the basis of hardship. Said hearing shall be held within twenty (20) days after the application has been filed. The owner shall be given at least five (5) days prior written notice of the date and time of the committee's hearing. At said hearing, the committee shall consider the information provided by the assessment deferral officer, and any evidence presented by the owner, in reaching a decision as to either deny the owner's request for an extension of the due date, or to approve the same. If satisfactory proof of hardship is received from the owner, the committee shall have the authority to extend the due date upon any terms and conditions as it deems to be reasonable. If the application of the owner to extend the due date is denied by the assessment deferral committee, the owner shall have the right to appeal this decision to the city council in the manner set forth under Sec. 17.210 of this article. The actions of the assessment deferral committee and the city council, on appeal, in considering an owner's application for an extension of the due date, shall be governed by subsections (b), (c) and (d) of Sec. 17.210.

(Ord. No. 27.78, 8/14/78; Ord. No. 4.00, 2/8/00.)

If the amount of the deferred assessment, plus interest, is not repaid to the city within thirty (30) days of the occurrence of the due date for repayment, as specified in Sec. 17.212 of this article, the interest rate shall then increase to nine (9) percent compounded annually and will be added to the amount owed to the city, together with attorney's fees and other reasonable court costs expended by the city for collection of moneys due.

(Ord. No. 27.78, 8/14/78; Ord. No. 4.00, 2/8/00.)

Upon receipt of repayment to the city by the owner of all amounts due and payable, the assessment deferral officer shall prepare a "notice of release of lien" evidencing the satisfaction of the obligation. The assessment deferral officer shall cause said notice to be recorded in the office of the recorder of the County of Santa Clara.

(Ord. No. 27.78, 8/14/78; Ord. No. 4.00, 2/8/00.)

Any and all sums which are or may become payable on account of any approval of deferred assessment under the provisions of this article shall be paid into the deferred assessment revolving fund to be thereafter used for any purpose consistent with the deferred assessment program.

(Ord. No. 27.78, 8/14/78; Ord. No. 4.00, 2/8/00.)

The city council shall have the right at any time to terminate the deferred assessment program. If such action is taken, the deferred assessment revolving fund shall be kept in existence until such time as all of the deferred assessments have been repaid or determined by the city to be uncollectable. If the deferred assessment program is terminated, no further applications for the deferral of assessments shall be accepted.

(Ord. No. 27.78, 8/14/78; Ord. No. 4.00, 2/8/00.)

No action taken pursuant to the provisions of this article shall affect any lien established by the levy of any special assessment upon the assessed lot of any owner for the construction of public improvements which has been taken pursuant to the provisions of this chapter. The provisions of this article shall serve only to delay the collection of the deferred portion of the assessment. The lien established by the levy of a special assessment on the assessed lot shall be for the full amount assessed, and the sale of bonds to finance unpaid assessments shall be based on that portion or all of the assessment of each assessed lot within the district which has not been deferred or paid in cash within thirty (30) days of the date of the city council's action forming the district.

(Ord. No. 27.78, 8/14/78; Ord. No. 4.00, 2/8/00.)