Ramos Tax Sale Prevention Package passes the City Council
I am grateful for the support of my colleagues who voted unanimously for the tax sale prevention package I introduced this year. While there is more work to do to reform our predatory tax sale system - including significant changes that need to pass in the General Assembly - we showed our commitment to this issue by passing these bills in our first year of our term. These, along with the entire housing stability package passed by the City Council, reflects our commitment to help keep people in their homes during the COVID emergency and beyond.
21-0058 was passed unanimously by the City Council October 18th and awaits the Mayor’s signature. It requires the Department of Finance to create a program where people can pay their property taxes monthly. This is particularly targeted to those who do not have a mortgage that pays their property taxes - so older adults who have paid off their mortgages and those who have inherited homes. This will allow for people to pay taxes monthly instead of two times a year, and remove a major burden in paying taxes. While the Future Tax Savings Plan and periodic payments are available, these are not formal programs and there is no way to accurately check the balance owed. The Department of Finance has committed to creating an entirely new accounting system to improve accuracy and to implement this legislation.
21-0078 was signed by the Mayor on Monday October 18, 2021. It ensures that buyers know if they are buying a home with a vacant building notice on it. Prior to this legislation, there were home buyers who bought what they thought were fully rehabbed homes, only to find out that the seller/contractor/developer never filed the Use and Occupancy Permit to remove the Vacant Building Notice. Constituents received citations and fines but thought they were in error. These citations and fines could cause someone to go into tax sale if unaddressed. In addition, contractors need to do the right thing and actually rehab the property properly and file that Use and Occupancy before selling the home. We have too many cases of less than standard rehab work that do not get inspected because the Use and Occupancy permit - which triggers the inspections - was never filed. My bill forces sellers to disclose if there is a vacant building notice on the property. Thanks to the Greater Baltimore Board of Relators, the disclosure is in the Baltimore contract that enables a buyer to walk away from the sale.
21-0099 was passed unanimously by the City Council October 18th and awaits the Mayor’s signature. It requires the Department of Finance to provide the City Council with a report regarding the inaccuracies in accounting that we found during the tax sale, and the remedies they will take. The challenges included: residents paying the taxes but the taxes going to a different year or different account, inaccuracies with amounts owed, inaccuracies as to owner-occupied versus non-owner occupied homes, and more. The Department of Finance has committed to a new accounting system and will address each of the issues outlined in the legislation. We will see the report 120 days after the Mayor signs the legislation.
21-0042R is a resolution - not a law - that was passed unanimously by the City Council on August 16th. This resolution called for a hearing about the current tax sale system and potential remedies. The Ways and Means Committee heard from advocates, victims of tax sale, and the Department of Finance about the current system and what can be done. This legislative oversight spelled out all of the challenges with the current predatory system in preparation for the tax sale reform work that will be taking place in the coming months.
I am honored to be in a position where we can work together on these important issues. I am continuing the work that I started in my previous career and I am proud to work with so many council members and advocates on ensuring that everyone has a stable home.