(1) The City may apportion a special assessment imposed upon a single tract or parcel of real property among all the parcels formed from a subsequent partition or other division of that tract or parcel, if the subsequent partition or division is in accordance with ORS 92.010 to 92.160 and is consistent with all applicable comprehensive plans as acknowledged by the Land Conservation and Development Commission under ORS 197.251. The proportionate distribution of a special assessment authorized under this subsection may be made whenever the special assessment remains wholly or partially unpaid, and full payment or an installment payment is not due.

(2) The City shall apportion a special assessment under this section when requested to do so by any owner, mortgagee or lienholder of a parcel of real property that was formed from the partition or other division of the larger tract of real property against which the special assessment was originally levied.

(3) Apportionment of a special assessment under this section shall be in accordance with an order or resolution of the city council. The order or resolution shall describe each parcel of real property affected by the apportionment, the amount of the assessment levied against each parcel, the owner of each parcel and such additional information as is required to keep a permanent and complete record of the assessments and the payments thereon. A copy of the order or resolution shall be filed with the finance director, who shall make any necessary changes or entries in the lien docket.

(4) When a special assessment is being paid in installments under the Bancroft Bonding Act or ORS 268.485, 450.155, 450.897 or 451.530, if the special assessment is apportioned among smaller parcels of real property under this section, the installments remaining unpaid shall be prorated among those smaller parcels so that each parcel shall be charged with that percentage of the remaining installment payments equal to the percentage of the unpaid assessment charged to the parcel upon apportionment.