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Rook _ .. aq, 32 CONSIDERATIONS: Under Section 206.07, Indian River County Code, special assessments are `valid and binding first liens upon the property against which the special assessments were made, until paid in full," which means they take precedence over mortgages and other liens and are co -equal with taxes. Because the homestead protection against a forced sale does- not extend to assessments, foreclosure against homestead property is not prohibited by Article X, Section 4, Florida Constitution. Some owners of the assessed property are on fixed incomes and just cannot pay the assessment. Foreclosure of the lien and sale of the property in this situation could be a harsh extraction. POSSIBLE COURSES OF ACTION: As stated above, the special assessment becomes a lien on the property benefited. The liens are higher in dignity than mortgages and can be the basis for a forced sale of property even homestead- Therefore, the collection options for the County are many. For example: 1. Foreclose on all property where a special assessment is unpaid. 2. Limit foreclosures to non -homestead property. 3. Provide a special assessment deferral based on the same terms and conditions that homestead tax deferral is now permitted i.e., income - age (§197.252, F.S.) except that the person would not have to re -file each year. A copy of application for deferral is attached. 4. Do nothing and wait until the. property is sold or refinanced. 5. Limit the "do nothing" to homestead property only where the owner is not entitled to a deferral. PROPOSED PROCEDURE: At the end of the payment period, usually two years, all persons with an unpaid balance would be notified by the Tax Collector with a date for payment (60 days). This would be the last bill issued by the Tax Collector. 2. If a person fails to pay after the last notice, the Tax Collector would notify the County Attorney. 3. The County Attorney would notify, by regular mail the person who has an outstanding balance that payment is required by a date certain (30 days) unless that person can establish through the office of the Tax Collector that he is entitled to a homestead tax deferral. The consequence of failure to pay would be explained. The payment would be made to the Tax Collector and he would accept only full payment, including interest. If there is a known mortgagee, the mortgagee will be copied. 4. After passage of the date certain, any person with an unpaid balance would be subject to the following courses of action that would be appropriate based on the particular facts of the case. a) _ No action by the County if the person establishes, through the office of the Tax Collector, that he is qualified for a homestead tax deferral as defined in Chapter 197, F.S. b) Foreclosure on all other property that is not qualified for homestead tax deferral as defined in Chapter 197 F.S. In all of the above situations, interest, at the rate set in the special assessment resolution would be running until final settlement of the unpaid balance. "RM 11 1997 26 M M