(a) The principal of the special assessment lien on real property owned and occupied as the primary residence and permanent place of abode by a Kenai resident who is indigent may be deferred as provided in this section. The deferral of payment on the principal of the special assessment lien means that such payment will be postponed, but not forgiven. Interest will continue to accrue on the assessment during the period of deferral.

(b) For purposes of this section, a resident is indigent if the person’s adjusted gross income is less than two hundred percent (200%) of the current U.S. Health and Human Services Poverty Guidelines for Alaska. An application for indigence may be filed on a City form with the City Clerk no later than February 1st of each calendar year.

(c) Deferral is for the principal balance only. Individuals who qualify for the deferral must pay the accrued interest by the due date each year.

(d) The deferred assessment, including all unpaid accrued interest, becomes due and payable in full when the property ceases to be owned or occupied by the Kenai resident who qualified for the deferral. Any remaining balance due shall be paid on the same schedule as would have been in place if no deferral had applied.

(e) If the resident who previously qualified for the deferral no longer qualifies, but continues to own and occupy the property, then payments on the principal will resume, starting with the next payment due.