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City of Portland

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5.31.025 Collection Process.

A.  The Auditor shall establish a collections process and shall be authorized to:

1.  Establish in writing, rules and procedures to carry out provisions of this Section.  Maintain a record of the rules and procedures and make the rules available to the public.

2.  Establish fees including a billing and rebilling fee to recover the cost of collecting the delinquent lien amount;

3.  Establish penalties and increases in the interest rate to encourage early payment of delinquent lien accounts; and

4.  Report delinquent lien accounts to a credit rating bureau to encourage payment if directed by the Department of Environmental Quality and the Council.

B.  The Auditor will notify the Bureau of Environmental Services when an account becomes 60 days past due.  The collection process shall begin after the account becomes 90 days past due.  The Bureau of Environmental Services may delay the collection process up to 12 months if it notifies in writing to the Auditor and the Department of Environmental Quality.  Such notification will include the account number, the principal balance, the past due amount, and the extenuating circumstances that would justify a delay in the collection process.  The collections process at a minimum shall include the following steps:

1.  The property owner and mortgage holder shall be notified of the delinquent assessment or connection charge for each of three months prior to the sale.

2.  The notice shall state that if the account is not brought current, the property will be sold at a foreclosure sale.

3.  The Department of Environmental Quality shall be given a copy of the foreclosure list at least three months before the sale.

C.  A one-time penalty equal to one-half of one percent (.005) of the principal balance shall be added to the amount due at the date any assessment or installment payment becomes delinquent.  The penalty accumulates with each installment payment until the lien is brought current or paid in full.

D.  Interest shall be added to delinquent liens and shall be calculated daily based on the amount of the unpaid principal balance and the interest rate set by the installment contract.

E.  The Auditor may waive delinquent interest, penalties and charges if a delay in receiving payment is caused by an oversight, omission or error by City staff.

F.  The Auditor is authorized to void the installment payment provisions of a sewer safety net contract, as follows:

1.  After a sewer safety net assessment becomes delinquent and prior to the Auditor placing the property on the foreclosure list, the Auditor may void the installment payment provisions and require the property owner to renegotiate new installment payment arrangements.

2.  After a sewer safety net assessment becomes delinquent and the Auditor has placed the property on the foreclosure list, the Auditor shall void the installment payment provisions and require the property owner to renegotiate new installment payment arrangements.