HomeMy WebLinkAbout1998-10-26 98-434 ORDERthem No,98-434
Date: 10.2698
Item/8ubjees: ORDRR, Adopting Polley for Processlag and Reviewing Hardship Abatements
Responsible Deparbmme CSby Manager
Commm�beresip aahacssits. icyis areawato pmvideguidelinee tosmffmd Coaly tax irprocrosing avd
revieatng hardship abatements. As you are aware, erecta lawpmovul reasonable propmly tai abatements for
seasonso0 parmitymbsess. State law doanot,
ba hoxrevce,pmvideeaYdemil h the good
ofa. howeRigabatis
standard W path red cases. The PolicYattempta bprovidegreeter definition udW the goal afhendlvgabatanent
requeus W afav and equimblemama.
The entasia for gmating a hardahip abatement ale so feth in Section 4. Under these pmvisinns, art abatement
shall be granted ithe household meets Abe federal government's defbution ofpovmy and the hiseas td's
reasonable and mcessary living expanses exceed its Wcssoe. Aa abalemwt may also be provided if household
R above the Naaly level but below the meth® household income of the City and reasonable and
ecessay expensesexceed asame even after a good baba effort by thea hurl m reduce such expsins.
The Policy also outlines the staff iowlvement and responsibilities in the Process with a view towad wsudng that
dor necessary information is avaJable for Council and, whore appropriate that We applicant is Provided m
opportunity to take advantage Of other City programs to assist taxpayers in tasseling their reaportabdaim
This policy has been reviewed by the Finmce Committee. The Committer requested that Section 3.4 be changed
m define "basic utilities". This has baa done with a defm'tim that include wmff, sewer, electricity, ProPone
mlarxl gas, home beating oil, and telephone. With this ebange, the Committee rewmmends your approval.
Department Head
Manager's Commenm: Recommead approval.
City Manager
Assoclated Iaformadon: Order, Poecy
Budget Approval:
Finmce Diteclor
Legal Approval:
City obcitor
In ,cd for
f Pwsage
First Reading Page—of
Referral
98-434
Aumipedto C aor Crawley October 26, 1998
A�pp
CITY OF BANGOR
(TITLE.) (Orbim Adopting Policy for Processing and Beylewwg l shtl` Abatemer's
By IM City Council of Ilw afy of Bever.,
ORDERED,
TEAT the attacbM Policy for Processing and Reviewing}GxdsbiP Abatements
is bereby adopted.
IN CITY COUNCIL
October 26, 1998
Motion for Passage Made d Seconded
Peened
CI CLERK
98-414
ORDER
Title, Adopting Policy for Processing
and Reviewing Nardsbip Abatements
............. I........................
etc[
Chi ....
98-434
POLICY FOR
PROCESSING AND REVIEWING HARDSHIP ABATEMENTS
1.0 PURPOSE
To outline the process to be used m handling hardship abetemevts; the criteria to be used
in evaluating these applications; and the role of respective staff members M this process.
2.0 POLICY
Maine Law, Title 36 MRSA¢841(2) permits the municipal officers von their own
knowledge or on written application therefor (to) make such abatements a they believe
reasonable on me real and personal tines on all persona who, by mason of infirmity or
poverty, are m theirjudgement unable to contribute to the public charges."
It is the policy of the City of Hunger to not Come the sale of residential property in order
to collect bares from those otherwise arable to pay where the property owner makes a
good faith effort to meet their obligations and meets the criteria for an abatement as
outimedbelow. The applicent for the abatement has the burden ofproofto show that
they are enable to contribute in the public charge.
It is also the policy of the City of Bangor to handle all hardship abatement requests in a
fair, equimble and confidential rescuer consistent with Maine Law and to reommeD that
the majority of our residents, regardless of economic circumstances, find ways to meet
their obligations.
3.0 DEFINITIONS
3.1 Infirmity shall be defined as airy condition much carders the taxpayer incapable
of earning an income which maintains them and their dependent family members
above the most recent poverty level as established by the Federal Office of
Management and Budget.
3.2 Poverty shall be defined as am condition where the combined gmas income
meamed and unsamed) from all members (adult any minor) of the applicanes
household combined with the maker value of all nonessential and readily
marketable tangible assets (excluding the primary residence) for all members of
me household fails to exceed 100% of the poverty level as established by the
Federal Office of Management and Budget.
3.3 Median household income is defined as the median household income for the City
ofPartner as established by the United States Department of Housing and Urban
Development
MM
3.4 Necessary Living Expenses. Necessary living expenses ere those expenses
necessary to maintain the immediate health and welfare of the applicant and his or
ha homehold and to lnsum condnmtim ofhousehold income. " ecessary living
expenses" shell include reasonable expenses for: mortgage payments, tares, basic
utilities, health care expenses, food, work related expenses, basic clothing, and
automobile, home, and health insurance. Basic utilities shall malude water,
sewer, electricity, pmpme, natural gas, home heating oil, and telephone.
4.0 CRITERIAFORGRANTEJGAHARDSHH'ABAM4EH7
4.1 A hardship abatement shall be granted if all of the following criteria are met:
4.1.1 Taken together, the applicant and all members of the applicmfs household
meet the definition ofpovery as outlined above dtuing the year fm which
the abatement is requested.
4.1.2 the household's reasonable and necessary living expenses exceed the
household's income for the some period.
4.1.3 The almsment request isfor the applicmt's primary residence which was
occupied on a regular and on-going basis at the time of the application and
during the year for which the abatement has been requested. If the
applicant's residence is a single unit in a multi -unit building an abatement
may be granted only for the mit occupied by the applicant.
4.2 A hardship abatement may be granted if the following criteria are met:
4.2.1 The household income is above the poverty level but below the median
household income of the City for the year for which the abatement is
requested.
4.2.2 The household's reasonable and necessary living expenses exceed the
household's income for the some Period and the applicant is unable, by
reasonable, good faith efforts, to reduce living expenses below the
household income level.
5.0 APPLICATION PROCESS
5.1 Anyone requesting an abatement for taxes of infirmity or poverty must apply to
themornminl officem inwriing. In order to be considered, such applications
most be for taxes which are concern due and payable or past due m the time the
application is filed. Applications for taxes which are not yet due will be
automatically denied a premature, with the exception of second half =as for the
cumatyem.
98-434
5.2 Written applications shall be forwarded to the City's Tax Collector. The Furnace
Deparnam shall compile all necessary information regarding the property in
question and taxes and other amounts due to fire City and shall anevge for the
applicant to meet with Personnel of the Department of Health and Welfare in
document the applicam's financial condition for the year(s) for which the
abatement is requested.
5.3 The Department of Health and Welfare shall document the applicant's household
income, reasonable and necessary expenses, and assets Factors to be documented
shall include but not be limited m:
5.3.1 Conant and projected household income;
5.32 Assets, which shall include bat not be limited to beak accounts, retirement
accounts, other investments,automobiles, recreational vehicles, boats, and
real estate.
5.3.3 Actual living expenses especially those which may be reduced or
eliminated, or which sre considered nonessential to the basic bea1N and
welfare of the applicant and his or her household;
5.3.4 Other sources of income including governmental assistance programs,
coined income tan credits, and other programs such as the State Circuit
BreakerProgram;
5.3.5 Other alternatives to alleviate financial distress such as relatives,
reflruncivg, and Public assistance moluding Oenenl Assistance;
5.3.6 Other outstanding debt and the monthly payments associated with that
debt as well as the purposes for which slut debt was incurred.
5.4 The Department of Health and Welfare shall record this information on a form
provided for this propose and may require such supporting evidence as the
Director of Health and Welfare believes in be appropriate to support the
application. This may include but is not banned to: annual tax rearms, paycheck
stubs, bank statements, payment receipts, etc.
5.5 The Department of Health and Welfare shall forward this information to the
Director of Finance who shall review the information and make a Preliminery
determination as m the potential eligibility of the applicant; for an abatement. The
Finance Director shall Nen contact the applicant and'mfarm Nem of Us
demrminatim, outline the alternatives available to Nem in accordance with the
City's adopted "Distressed Real Property and Ram Payer Policy," and, upon
request, schedule the applicant for a hearing before the Finance Committee ofthe
City Council. Should the applicant chose to withdmw the abatement request and
purma: other alternatives, the application shall mission on file until the taxes in
question have been paid or otherwise discharged.
5.6 Within twery-one(21) days of the data an application for a hardship abammert
has been made, a hearing will be scheduled before the Finance Committee of the
98-434
City Council. The applicant will be notified of the data time and place of the
hearing a least forty-eight (48) hours in advance and will be requested to appear.
5.7 Attire hearing, the Director ofFwance, Health and Welfare Director, or one of
their designees shall present the application and supporting documentation to the
Committee and address the criteria outlined in Section 4 above. Staff shall
present a fording ss to whatha the abatement request meets Nese eligibility
criteria.
5.8 Applicants shall he permitted to clarify any information ad to provide additional
information tor Committee consideration as well as to answer questions from
Committee members aredl staff.
5.9 The Finance Committee shall take fomal action on the application by voting to
dmytherequeaorgmnt fere uestmwholeminpart Iftherequestisdewed,
the Committee may direct staff to enter into other payment arrargements with the
applicant
5.10 All hearings on the application shall be conducted in executive session, and shall
ort be smatter of public record. Theapplicationandallinformationrelatingto
the applicant's personal situation and financial condition shall remain confidential,
pursuant 036 MRSAg84l(2)(E). The final vote of the Finance Committee and
written notice of decision shall be matters of public =010.
5.11 The City Solicitor shall entity applicants, N writing, ofthe decision ofthe
Finance Committee within ten (10) days of the date the decision is made.
6.0 hHSCELL EOUS
6.1 The Furnace Committee may deny any abaernsat requests Where the applicant is
unable or unwilling to provide any financial information reasonably deemed to he
necessary by the Commitlee in order m determine eligibility.
6.2 Applications for hardship abatements will be deemed procedure unless taxes
owned by the applicant for which an abatement M sought are correctly due or poet
due. The Commhteem wmidame dhalftaxesforthecorreatyeaandmay
abate them if the Committee finds it is unlikely that the applicants financial
condition will change prior to rhe due date for those taxes.
6.3 Upon rttluest by the applicant, the Committee or City staff may delay action on an
application until just prior to the date of lien foreclosure should the Committee or
staff have reason m believe that the correct financial circumstances of the
applicant may improve or change prior to the Nen foreclosure data so as to tender
such abatement unnecessary. Applicants must provide a written request for such
delay. The Finance Director is responsible for monitoring the status of such
98-434
applicants and for scheduling a hearing on the application at least thirty (30) days
prior to foreclosure. Interest shall condnue to accrue during such periods.
6.4 Consideration shall also be given to the Stale Circuit Hanker program. All
applicants "I be required to apply for this progtmn for the current not year if the
deadline for application has not passed. Applicants shell be required to apply any
rebates received toward tan amounts which are due should the abateonerd be
granted
7.0 APPEAL RIGHTS
7.1 Applicats who have had dmr request fac a poverty ab&anent denied, is whole
or thpeor or whose requests have not been acted upon within thirty (30) days of
the data of application (if they have not agreed to a delay) have the right to appeal
the denial within sixty (60) days of receipt of the notice of decision or of the
failure of the Finance Conord"m to take ection on than request Appeals shall be
made m the Board of Assessment Review.
7.2 The City Solicitor shall(nforry applicants of then appeal rights in the notice of
decision reyuired in Section 5.11 above.
8.0 RESPONSIBLE CITY OFFICIAL
The Finance Director or his designee shall by the City Official with overall responsibility
for the administration of this policy.
9.0 EFFECTIVE DATE
This policy stall become effective on the date of affirmative Council Action for its
adoption.
Council Order 98.
98-434
To:
Ron Heller,Mary-Anne Chahla, Erik Stumpfel
From:
Edward A. Barrett, City Manager
Subject
Hardsldp Abatement Policy
Data:
August 7, 1998
Per recent discussions with the Finance Committee and based in part on some information and
ideas presented by Mary -Anne Chabla, I have dratted the attached Hardship Abatement Policy. I
would appreciate your review and cormnems.
In order to schedule a discussion of this polity witb the Finance Committee at its first meeting no
September, I would appreciate your comments by August 24th
Edward A. Barnett
City Manager
EAB/j
Enclosure