A push to compel more than 3,000 property owners to make good on their overdue tax bills netted more than $1 million for the City of Niagara Falls.
A spokesperson for Mayor Robert Restaino’s office confirmed the revenue total heading into Tuesday’s payment deadline, telling the newspaper the administration is “extremely pleased” with the number of payments that have been made since the city delivered foreclosure notices to delinquent property owners in May.
City hall spokesperson Philip Wells of the firm E3 Communications said the administration anticipates starting foreclosure proceedings around Sept. 15. Once a proceeding is filed, Wells said all homeowners on the city’s list will be allowed to fill out and submit hardship applications seeking an installment plan in accordance with the city’s local law. Such an installment plan requires a 25% payment and the maximum term of an installment agreement may not exceed 24 months, according to Wells.
Under a local law passed by the city council, Wells said the administration had no legal authority to allow property owners to enter into payment plans until after the foreclosure proceedings were commenced.
“There is a process under the law for those property owners who may be experiencing a hardship and are unable to make a full foreclosure payment,” Wells said in a statement issued in response to questions from the newspaper.
Wells also addressed a concern raised by some property owners who received notices from the city in May. Several property owners who contacted the Gazette questioned a $2,500 per parcel “foreclosure fee” written notices warned would be charged unless taxes were paid prior to the city’s June 30 payment deadline.
Wells indicated the fee would be imposed on owners in instances where properties are sold during a foreclosure auction. The fee is designed to cover costs incurred by the city during the foreclosure process, including filing a list of delinquent taxes, title searches, notices to property owners and all lien holders, preparation and filing of a petition, individual settlement conferences with the court, the auction itself and recording of deeds to purchasers.
“As part of the foreclosure proceedings, property owners can be charged a fee for the proportionate cost of the foreclosure proceeding that can be as high as $2,500 if a property makes it all the way to sale. These fees ensure that homeowners who pay their taxes on time do not pay for costs resulting from owners who do not,” Wells said.
Wells added that the goal of the city throughout the process is to collect back taxes, not to take anyone’s home or property.
“That will continue to be the city’s goal now and moving forward and in those instances where a legitimate hardship can be demonstrated, work out a payment plan where the city collects the taxes it is owed, resulting in residents being able to keep their properties,” he said.