Special assessment deferment plan approved

By Dana Casadei

The Bloomfield Township Board of Trustees on Monday, February 24, approved special assessment district (SAD) deferred payment plan.

“This idea has been percolating for a while as I’ve seen these SADs come through here, and seen them getting more expensive,” said treasurer Michael Schostak. “We can’t influence construction costs or interest rates, but I wanted to see if there was something we could do to help people out who truly need it.”

“Why not invest a small piece of those funds in our residents for those struggling with these hefty assessments?” he said.

Schostak’s recommendation to the board was a special assessment deferment program for those in need of assistance on their annual SAD payment.

Currently, there are 24 of these types of annual SADs for road or water/sewer in repayment, that go as far back as 2007, and the sheer amount of SADs have been on the increase since then. Almost 1,500 Bloomfield Township property owners still own balances on their assessments, with only about 10 percent paying the amount due up front and in full, he said.

This type of SAD isn’t slowing down in the township, with two more upcoming for Bloomfield Village, and another that passed for Vernor Estates at the board’s Monday night meeting.

“It’s just a good example of good government and all the leadership you’ve shown on it,” said clerk Martin Brook. “I’m so happy we as a board have this in front of us.”

The program – which passed 7-0 – will go into affect this year on township residents winter tax bill, where SAD payments usually are. SAD payments are a once a year bill for residents.

With the program’s passing on Monday night, the program will also allocate up to $150,000 for its first year, and a letter about the program will be sent out to notify the 1,456 peopled who still own on their SAD.

Schostak said that this $150,000 won’t impact the Bloomfield Township budget for the year because it’ll be more like a loan, with people eventually repaying it. That amount can also be adjusted as the program continues. Schostak plans to present a yearly review to the board on the program, during which time adjustments can be made, or sooner if it seems necessary. The annual review is built into the program.

“I think that’s a good idea because our intent is to help as many as we can as long as we have the money,” said trustee Chris Kolinski.

The township’s general fund reserves will be used to cover the deferred assessments as they make bond payments. A lien will also be placed on the resident’s property and the township will get repaid when the resident decides to sell their home; refinance their house; the resident transfers their home, even to a related party (except a spouse); or after the funds have been deferred by 10 years.

A non-compounding interest rate of three percent per year will also be paid, along with the deferred amounts. Once payment is complete the township will record a discharge of lien within the county.

“I know we’ve seen so many SADs come through during my time on the board and we know that can be very stressful,” said trustee Valerie Murray. “I think this is like an awesome pilot program, it’s like a safety net.”

Schostak estimates this could help between 30-60 residents, a significant increase from the 19 residents who qualified last year for the Property Tax Hardship Exemptions, a program required by state law and administered by the assessor’s office. Those who do qualify for this exemption – one that has incredibly strict qualifications – will automatically qualify for the special assessment deferment program.

Those who qualify for the special assessment deferment program will do so if they can demonstrate a hardship to defer their payment of an annual special assessment.

A hardship is being defined in this program as when a homeowner’s annual special assessment, expressed as a percentage of their total house gross income – which can’t be more than be $150,000 per year, an amount decided by Schostak due to it being the median income in Bloomfield Township, according to the U.S. Census.

For those looking to apply for the program they will have until the end of June, and then will be notified in the fall if they qualify.

“This is very exciting as far as helping the residents, because we all have ups and downs,” said supervisor Mike McCready.