By Katherine Jones
Baltimore Watchdog Staff Writer
Some Baltimore homeowners who are delinquent on their city property taxes will be spared from having their tax liens sold later this month to private investors who could eventually foreclose on their property, Mayor Brandon M. Scott announced Monday.
The mayor said his decision to remove first-time, owner-occupied tax liens from the city’s annual tax lien sale scheduled for May 17 is designed to help those who are having trouble paying their bills because of the coronavirus pandemic.
Scott said in a statement that he has directed the city administrator and finance director to take necessary action to protect Baltimore’s most vulnerable legacy homeowners prior to this year’s sale.
To ensure each resident is helped accordingly, Scott said, the Finance Department will be dedicating three full-time employees to individually assist homeowners.
The mayor’s action comes after Scott’s statement in the 2021 State of the City Address in which he promised to use all possible tools and resources to help prevent homeowners from losing their homes to tax lien sales during the pandemic.
“Today’s announcement is about being targeted and strategic in our approach to protect our legacy homeowners and center equity,” Scott said.”This is about taking the action we can take now, not simply kicking the can down the road, and working to address the underlying issues in this process to keep our most vulnerable residents housed.”
Each year, Baltimore City sells its residents’ liens, or unpaid city tax bills, to outside bidders. Those bidders can then charge interest and additional fees, allowed under state law, to property owners to recoup their costs. If a homeowner does not pay back the bidder within nine months, the bidder can file a lawsuit to foreclose on the property. An owner-occupied property is eligible for tax sale if their combined total of city liens is $750 or more.
Residents experiencing issues related to the tax sale can call 410-396-3556 to speak with a member of the Bureau of Revenue Collections who is familiar with the tax sale process.
The announcement follows a local ordinance sponsored by Councilwoman Danielle McCray, D-District 2, and passed by the City Council that goes into effect July 1.
The new law will withhold owner-occupied liens from the tax sale for older adults, people receiving federal disability benefits, and households with a combined income less than $40,000.
“We must continue to do everything in our power to protect our most vulnerable homeowners,” McCray said in a statement. “Including our seniors, low-income families, and people with disabilities.”
In mid-March, Councilwoman Odette Ramos, D-District 14, and other advocates for Baltimore homeowners spoke in front of City Hall asking for Scott to follow through with his promise of helping homeowners avoid foreclosure during the pandemic.
“I am excited that Mayor Scott and the administration has dedicated so much time to ensure homeowners avoid this year’s tax sale,” Ramos said in a statement. “The efforts of advocates, volunteers and my office to help people get out of tax sale have been heroic. This is a first step, and I am grateful the administration is taking this seriously enough to come up with a solution.”
Fight Blight Bmore is an organization that holds a pilot program entitled the Stop Oppressive Seizures Fund (SOS Fund) to help legacy homeowners avoid losing their homes to tax sale foreclosure.
In an official statement from the SOS Fund, Scott’s tax sale plan “doesn’t fully meet the mark” by only including new homeowners.
“Solely removingnew homeowners from the city’s annual auction does not fully address the deeply harmful and multigenerational impact of the tax sale on Baltimore City’s most precious homeowners,” the statement said. “We encourage Mayor Scott to continue the process of eliminating these arcane practices that harm Black communities specifically and Baltimore City as a whole.”
Scott and his administration said they will pursue local and state policy changes that would give the city more local control over the tax sale process.