(1) To the extent a funding source is available from a public entity or any other source approved by the council at the time the project is initiated that will provide the city with sufficient funds to ensure no initial cost to the city or affected property owners for the construction of the local improvements, parcels with an owner occupied single family dwelling or an owner occupied duplex dwelling assessed for street improvements may defer payment of the assessment until sale or transfer of the parcel.

(2) The deferred assessment shall become a lien on the property. The lien shall accrue interest from the date it is levied until the deferral ends at a variable rate to be adjusted annually to reflect the city’s costs in providing the funding source. When the deferral ends, payment of the assessment and accrued interest shall be made as provided in section 7.190.

(3) An assessment deferred pursuant to this section is not subject to the requirements and criteria set forth in section 7.195 – 7.220 of this code.

(4) Property owners deferring payment pursuant to this section are not eligible to participate in the Improvement Assistance Program.

(5) A deferral under this section shall terminate if: