Deferment program could help Bloomfield Township residents with ‘burdensome’ special assessments

BLOOMFIELD TOWNSHIP — Qualifying residents in Bloomfield Township now have the option to defer their annual water/sewer or road special assessment through the Special Assessment Deferment Program.

Roads in Bloomfield Township are owned by Oakland County, meaning the township can not levy a tax to reconstruct roads. However, the county prioritizes reconstruction of major roads rather than neighborhood roads.

“Our neighborhood roads, being an older community, have reached the end of their useful life, and so a lot of neighborhoods want new roads,” Michael Schostak, Bloomfield Township treasurer, said.

Through the special assessment process, a neighborhood can decide to tax themselves to pay for a new road. In this process, the township sells bonds to pay for the roads, and the tax assessments that they collect over 15 years go towards paying back the bond, according to Schostak.

When the township started doing special assessment districts 15 years ago, the payments were around $1,000 per year. However, more recently, Schostak said, the assessments have become “burdensome” for some residents.

For example, last year, the Bloomfield Village neighborhood did an assessment that is going to be about $5,000 per year for the next 15 years.

The deferment program does not offer forgiveness of debt; rather, it defers the payment. This year, $150,000 in township money is allocated to go toward this program

“This allows you to stay in your home, and the payment will be made for you. Then, once you get back on your feet again, you can just pay it back,” Mike McCready, Bloomfield Township supervisor, said.

In many cases, residents have a fixed income, but they have value in their home.

“We’re saying, ‘We’ll let the value in your home pay for this assessment in the future,’” Schostak said. Meaning, it could be paid out of the proceeds of the sale of the house.

Residents must qualify for “financial hardship” to have access to the program. This is determined based on a threshold set by household size and total household gross income. To qualify, a homeowner’s total household gross income must be $150,000 per year or less. A homeowner’s assets are also taken into consideration.

More qualifications and specific threshold information can be found at bloomfieldtwp.org/sadp.

“The goal of this program is to help people, and I think we’ve set the qualifications at a fair level that it will still help people, but not give away money to people who can otherwise afford it,” Schostak said.

While there is a 10-year cap on the deferment, Schostak said it is “intended as a check-in point rather than an end-point.” Qualifying residents have the opportunity to extend the deferment past this 10-year mark.

Participation in this program requires homeowners to pay a simple (non-compounding) interest of 3% per year.

A lien will be put on the house — the township will record a Discharge of Lien with Oakland County once the payment is made. 

“I think it’s fair to all parties. It’s fair to the resident who’s needing the deferment. It’s also fair to the other taxpayers in the community in that we’re making sure that we’re protected and that we’re going to get our money back,” Schostak said.

Call Staff Writer Mary Genson at (586) 498-1095.