What is a special assessment deferral?
Qualified property owners may defer payment of special assessments for up to 20 years. The assessment obligation is not reduced or canceled, only deferred. Payment will be due and payable in full at some future date. For each year the assessment is deferred, interest amounts are calculated and added to the total amount due.
How do I qualify for the special assessment deferral?
All of the following requirements must be met:
1) At least one property owner must be 65 years old or permanently disabled
2) The property must be homesteaded
3) The annual amount owed on assessments against the property must exceed 1% of the property owner’s annual income
If you are applying for deferral of a paving/grading/lighting assessment under the Residential Street Vitality Program, you need to meet requirements 1 and 2 only.
How do I apply for a special assessment deferral?
Read through the Deferment of Special Assessment material provided in the link below and return the required documents to The Office of Financial Services, 25 W. 4th Street, 1000 City Hall Annex, Saint Paul, MN 55102. Please call 651-266-8858 if you have questions or need assistance with the application.
Deferment of Special Assessment
What can I do if my application is denied?
Real Estate/Assessments staff review an application to determine if all requirements have been met. Staff will approve or deny the application. You may appeal a staff decision to the City Council.
When does a deferral end?
An assessment deferral will automatically terminate if:
- The property owner dies and the spouse is not otherwise eligible for the deferral
- The property is sold, transferred, or subdivided
- The parcel loses its homestead status
- The City determines the owner or the owner’s spouse no longer qualifies for the deferral
- The property owner terminates the deferral
- The term of the special assessment has elapsed
Once a deferral is terminated, the property owner must pay all principal and interest amounts that would have been due and payable had there been no deferral. Any remaining principal may be paid off at once or over the remaining term of the assessment.