Board of Estimate & Contract:
RESOLVED, that a resolution adopted by the City Council on January 8, 2025, and signed by the Mayor on January 9, 2025, authorizing the Submission of the List of Delinquent Taxes and Approving Procedures for Tax Lien Sales and In Rem Foreclosure Proceedings, as follows:
|
|
Taxes Due |
Interest & Penalties |
Total Due Amount |
|
Installment Plan Request |
10,679,932.44 |
7,286,496.34 |
17,966,428.78 |
|
Commercial/Non-Residential |
6,047,578.84 |
4,587,051.08 |
10,634,629.92 |
|
Residential (more than 5 years) |
5,628,804.40 |
4,354,668.64 |
9,983,473.04 |
|
Residential (under 5 years) |
2,246,286.99 |
831,818.19 |
3,078,105.18 |
|
Open Taxes Issues |
2,171,261.78 |
7,440,359.21 |
9,611,620.99 |
|
Bankruptcy / Court Case |
164,306.35 |
135,209.32 |
299,515.67 |
|
|
26,938,170.80 |
24,635,602.78 |
51,573,773.58 |
be, and the same is hereby approved.
City Council:
AN ORDINANCE AUTHORIZING THE SUBMISSION
OF THE LIST OF DELINQUENT TAXES AND
APPROVING PROCEDURES FOR TAX LIEN SALES
AND IN REM FORECLOSURE PROCEEDINGS
Whereas, by letter dated December 19, 2024, the Comptroller has requested legislation authorizing the City Council to acknowledge receipt of the List of Delinquent Taxes as submitted on December 19, 2024; and
Whereas, pursuant to Chapter 783 of the Laws of New York governing foreclosure proceedings in the City of Mount Vernon, the City Council is authorized to implement processes for the collection of delinquent property taxes, interest, and penalties; and
Whereas, as of December 19, 2024, the City of Mount Vernon has a total of $51 million in outstanding property taxes, interest, and penalties, including $26.9 million in property taxes and $24.6 million in interest and penalties; and
Whereas, the City has prepared a comprehensive List of Delinquent Taxes identifying properties subject to tax lien sale or foreclosure proceedings, categorized as follows:
• Properties with two or more years of tax liens;
• Properties requesting installment plans for repayment; and
• Properties requiring exclusion from tax lien sales due to unresolved tax discrepancies, bankruptcies, or other legal matters; and
WHEREAS, the proposed legislative process requires the submission of these lists for review and approval at a City Council meeting, with final action to be taken no sooner than seven days after the initial agenda appearance; and
WHEREAS, the City has analyzed the delinquent tax categories and the anticipated outcomes of advancing both a tax lien sale and In Rem Foreclosure proceedings, as follows:
|
|
Taxes Due |
Interest & Penalties |
Total Due Amount |
|
Installment Plan Request |
10,679,932.44 |
7,286,496.34 |
17,966,428.78 |
|
Commercial/Non-Residential |
6,047,578.84 |
4,587,051.08 |
10,634,629.92 |
|
Residential (more than 5 years) |
5,628,804.40 |
4,354,668.64 |
9,983,473.04 |
|
Residential (under 5 years) |
2,246,286.99 |
831,818.19 |
3,078,105.18 |
|
Open Taxes Issues |
2,171,261.78 |
7,440,359.21 |
9,611,620.99 |
|
Bankruptcy / Court Case |
164,306.35 |
135,209.32 |
299,515.67 |
|
|
26,938,170.80 |
24,635,602.78 |
51,573,773.58 |
Whereas, it is anticipated that advancing the sale of tax liens for commercial/non-residential properties and residential properties with five or more years of arrears will generate approximately $20.5 million, with a minimum recoupment of $8.9 million in outstanding taxes; and
Whereas, the City intends to concurrently initiate in-rem foreclosure proceedings for residential properties with less than five years of arrears, utilizing the expertise of the Law Department or an external contractor; and
Whereas, over 135 property owners have requested installment plans, representing $18 million in arrears, and approximately $10 million remains tied to unresolved tax issues; and
Whereas, the City Council is committed to ensuring due process and equitable treatment of all property owners, while maintaining fiscal responsibility and transparency in the administration of tax collection processes; Now, Therefore, Be It Resolved That
The City of Mount Vernon, in City Council convened, does hereby ordain and enact:
Section 1. List of Delinquent Taxes. The City Council hereby acknowledges receipt of the List of Delinquent Taxes as submitted on December 19, 2024, which includes:
• Complete list of properties with two or more years of tax liens;
• List of properties requesting installment plans; and
• List of properties excluded from tax lien sale due to open tax issues, unresolved discrepancies, bankruptcies, or other legal matters.
Any updates or edits to these lists shall be submitted to the City Council prior to the commencement of foreclosure and/or tax lien proceedings.
Section 2. Tax Lien Sale Process. The City Council authorizes the advancement of the tax lien sale process for:
• Commercial and non-residential properties with five or more years of arrears; and
• Residential properties with five or more years of arrears.
The anticipated outcomes include:
• Recoupment of at least $8.9 million in outstanding taxes; and
• Potential negotiation of additional revenue from interest and penalties.
Section 3. In REM Foreclosure Process. The City Council authorizes initiating in-rem foreclosure proceedings for residential properties with less than five years of arrears. The Law Department or a qualified third-party contractor shall be engaged to facilitate this process.
Section 4. Payment Plan Requests and Open Issues. The City Council acknowledges the following:
• Over 135 property owners have requested installment payment plans, representing an aggregate amount of $18 million in arrears.
• Approximately $10 million in arrears is tied to unresolved discrepancies, bankruptcies, or other legal matters.
The City Administration shall continue to:
• Work with property owners to obtain payment documentation;
• Review assessment records in coordination with the Assessor’s Office; and
• Collaborate with title companies to resolve outstanding issues.
Section 5. Timeline and Approval Process. In accordance with the In Rem Law, the submitted lists was passed by the City Council at a meeting seven (7) days following it first appearance on the City Council Agenda.
Section 6. Effective Date. This Ordinance shall take effect immediately upon its approval by the Board of Estimate & Contract.