MURRIETA -- The city will initiate foreclosure proceedings on as many as 400 homes, the City Council decided Tuesday.

The city's move is not intended to take away people's homes but, rather, is an attempt by the city to help people stay in them, officials said.

The majority of the 400 homes are owned by financial institutions that are taking their time in paying property taxes to the county and various assessments that belong to the city.

For the estimated 5 percent of the properties owned by individuals, city officials say the move is one that puts the city into the position of being able to work with homeowners and help them catch up on the bills they owe the city without losing their homes.

City Attorney Leslie Devaney explained the situation during the City Council meeting as a series of procedural steps the city must take to isolate its tax bills from the county's property tax bills.

"This is a time like no other," Devaney said. "There will be no human being (facing foreclosure) at the end of this who we haven't talked to."

Murrieta property owners pay thousands of dollars each year to the county in property taxes and for other services. Included in those bills are taxes due to the city for firehouses, parks, street lights and sewer services. The city portion of the bill comes to between $4,000 and $6,000 annually per household, Devaney said.

The California development code requires that property owners cannot be more than one year delinquent on those community facilities district and assessment district taxes.

While the county allows property owners up to five years on property tax delinquencies, cities are required after one year of delinquency to "aggressively pursue" collection of city fees by putting liens on properties and initiating foreclosure proceedings.

At this stage, however, the city is not allowed to enter into individual agreements with property owners. And though property owners can set up payment plans with the county for the entire bill, it may be so large that they can't make payments, Devaney said.

"They are concerned that they cannot pay their entire property tax bill to the county, but they don't want their homes foreclosed on," Devaney read to the council from prepared remarks. "Residents can work with us directly instead of having to pay the entire amount to the county."

Of 400 properties that have fallen delinquent throughout the city, more than 70 property owners have already paid their debt to the county, but another 20 or so are believed to be in their homes and struggling to make payments on the large all-encompassing property tax bill. More than 300 homes, Devaney believes, are actually owned by financial institutions who are not stepping up to pay bills.

Only by initiating foreclosure on the properties that have not cleared their debt can the city remove its share of the taxes from the county's bill. Then, the city can work directly with property owners to negotiate payment plans to avoid further delinquencies and, in the process, determine once and for all which properties are owned by people and which are owned by banks and lenders.

City Manager Rick Dudley said that, though the notice of foreclosure will likely cause angst and confusion, when all is explained, property owners will understand that the city is actually trying to help ease financial burdens during this period of economic strife.

"The whole point of this is to try to work it out with them," Dudley said.

Those who have received a notice that they are delinquent on community facilities district and assessment district taxes should contact City Attorney Leslie Devaney at her law office, (619) 232-3122 for information on how to set up payment plans.