San Diego Municipal Code Div. 21 Advancement and Deferral for

Limited–Income Property Owners of Preparation Costs for Undergrounding of Utilities (“Advancement and Deferral for Limited–Income Property Owners of Preparation Costs for Undergrounding of Utilities” added 3–13–1978 by O–12314 N.S.)

The purpose and intent of this Division is to provide qualified limited–income property owners with a method for fulfilling their obligation under Section 61.0513 of this Article, to provide all necessary work for continuance of utility service when such services are placed underground. The Council finds and declares that California Public Utilities Commission orders and City ordinance requiring property owners to provide all work and facilities necessary to receive underground service pursuant to the conversion and relocation procedures of the San Diego Underground Utilities Procedural Ordinance and state law often results in financial hardship to limited– income property owners.

Because of this finding and declaration, the City Council, in the exercise of the Council’s charter power to make suitable provision for the aid and support of the poor, determines and declares that it is in the public interest for the City to provide a method for advancement and deferral of payment of these costs for qualified limited– income owners until such time as the property served is transferred or refinanced. The Council further finds and declares that all expenditures and investments made pursuant to this Division are incidental to the accomplishment of the primary purpose of making suitable provision for the aid and support of the poor. (“Purpose and Intent” added 3–13–1978 by O–12314 N.S.)

This Division is adopted pursuant to the City’s charter powers to make and enforce all ordinances and regulations in respect to municipal affairs. To the extent of any inconsistencies between the provisions of this Division and those of Public Utilities Commission orders or other state laws, the provisions of this Division shall control. (“Inconsistencies with State Law” added 3–13–1978 by O–12314 N.S.)

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San Diego Municipal Code Chapter 6: Public Works and Property, Public Improvement and Assessment Proceedings (6-2000)

This Division is limited to qualified limited–income owners residing within the City of San Diego and to proceedings provided for by the San Diego Underground Utilities Procedural Ordinance. There are no age restrictions for qualified limited– income owners. (“Scope of Preparation Cost Deferral” added 3–13–1978 by O–12314 N.S.)

The meaning of the various terms in this Division shall be as follows:

(a) PREPARATION COSTS shall mean those costs incurred or to be incurred
pursuant to San Diego Municipal Code Section 61.0515.

(b) UNDERGROUND OR UNDERGROUNDING shall mean the placement,
construction and maintenance of underground utility services as provided for
in Chapter VI, Article I, Division 5, San Diego Municipal Code and under
commission order or ruling.

(c) COMMISSION shall mean the Public Utilities Commission of the State of
California.

(d) CITY shall mean The City of San Diego.

(e) COUNCIL shall mean the City Council of the City.

(f) CITY MANAGER shall mean the City Manager and any officer, department,
or division of the City designated by him for the administration of this
Division.

(g) APPLICANT shall mean the person or persons filing for preparation cost
deferral or whose application has been finally approved by the Department.

(h) LIEN AGREEMENT has the meaning set forth in Section 61.2108.

(i) INCOME shall mean all income of any nature from any source derived,
including, but not limited to, salaries, wages, dividends, interest, capital gains,
rents, income from the operation of a farm or business, income from the sale

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San Diego Municipal Code Chapter 6: Public Works and Property, Public Improvement and Assessment Proceedings (6-2000)

or exchange of property, gifts, inheritances, Social Security payments, other
retirement benefits, welfare benefits, alimony and support payments and any
other things of economic value.

(j) LIMITED–INCOME OWNER shall mean an owner (1) whose income is
within the guidelines for low–income citizens and families set by the United
States Department of Housing and Urban Development, Economic Marketing
Analysis Division, as adjusted annually for the San Diego Metropolitan
Statistical Area and (2) whose net assets do not exceed $10,000.

(k) NET ASSETS shall mean all real and personal property of any character
which a limited–income owner owns or has an interest in, including stocks,
bonds, and savings accounts but excluding the real property subject to
preparation cost deferral.

(l) OWNER shall mean the person or persons owning and occupying real property in the City of San Diego which is included in an Underground Utility District of the City and successors in interest or the legally appointed representatives of such person or persons.

(m) REFINANCING shall mean any new indebtedness incurred by an owner after
delivery to the City of a lien agreement pursuant to this Division and any
extension, modification, or additional advances made upon any indebtedness
previously incurred by an owner, where such indebtednesses are secured by a
mortgage on all or any part of the real property in which the City has a
security interest.

(n) SECURITY or SECURITY INTEREST has the meaning set forth in Section
61.2108.

(o) TRANSFER, when referring to real property, shall mean any sale, exchange,
gift, or lease of real property or any interest therein, whether made by the
original owner, any successor in interest or legally appointed representative of
the owner or made pursuant to the laws of inheritance and succession.

(p) UNDERGROUND UTILITY DISTRICT has that meaning as provided in the
Underground Utilities Procedural Ordinance.
(Amended 1–14–2002 by O–19032 N.S.)

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San Diego Municipal Code Chapter 6: Public Works and Property, Public Improvement and Assessment Proceedings (6-2000)

The City Manager shall establish rules and regulations for the administration of this Division. Among other things, the rules and regulations may specify the exceptions to the requirement that an applicant be a resident of the real property for which the preparation cost deferral is sought and may set forth the form or contents of applications, information statements, lien agreements, notes, and any other documents necessary or convenient for the administration of this Division; provided, however, that any exception to the requirement that the limited– income owner be an occupant of the real property for which the assessment deferral is sought shall be granted only upon the express consideration and approval of the City Council. (“Rules and Regulations of City Manager” added 3–13–1978 by O–12314 N.S.)

A qualified limited–income owner must meet the following eligibility requirements:

(a) Owner’s income must be within the guidelines for limited– income citizens
and families set by the United States Department of Housing and Urban
Development, Economic Marketing Analysis Division, as adjusted annually
for the San Diego Metropolitan Statistical Area.

(b) The value of owner’s net assets cannot exceed $10,000.

(c) The real property for which preparation cost deferral is sought must be
owner–occupied unless otherwise excepted and approved by the City Council.
(“Qualification of Limited–Income Owners” added 3–13–1978 by O–12314 N.S.)

Before giving final approval to any application for preparation cost deferral, the City Manager shall obtain security for all amounts paid by the City pursuant to this

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Division. Said security shall consist of an agreement between the limited–income
property owner and the City that the City shall have a lien upon the property of the
owner for all amounts advanced under this Division. Said lien agreement shall have
provisions regarding repayment of amounts advanced by the City as either:

(a) specific times or

(b) in accordance with the provisions of Section 61.2111.
(“Security for Preparation Cost Deferral” added 3–13–1978 by O–12314 N.S.)

The City Manager, for and on behalf of the City, may pay all preparation costs necessary to receive installation of underground utility services upon any applicant’s real property. Expenditures made for the purpose of paying preparation costs shall be paid from the appropriate Federal Revenue Sharing Funds available to the City pursuant to Federal law. (“Cash Payment of Preparation Costs” added 3–13–1978 by O–12314 N.S.)

When an owner has been advanced preparation costs and a lien agreement has been executed, said amount shall come due and be paid:

(a) upon transfer of the property;

(b) upon determination that the owner no longer qualifies for deferral;

(c) upon refinancing of the property.

A property owner may remove the lien at any time by payment of the amount
advanced to the City Manager. All payments received by the City Manager shall be
deposited in the General Fund.

The City Manager shall deliver to the owner a receipted statement showing the full
amount of the advancement, the amount of payment made, and the balance, if any,
remaining unpaid on the date of payment.

Upon full payment, the City Manager shall cancel the note and discharge the lien.
(“Repayment of Amounts Advanced” added 3–13–1978 by O–12314 N.S.)

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The note shall be in a principal amount equal to the preparation cost paid by the City for the limited–income owner.

The principal amount of the note shall bear simple annual interest at a rate equal to the average annual interest rate earned by the City on its long–term investments.

The entire unpaid principal amount of the note, together with all interest due thereon, shall become immediately due and payable to the City upon and before any transfer or refinancing affecting the real property described in the lien agreement. (“Interest” added 3–13–1978 by O–12314 N.S.)