New York City homeowners appear to be on the verge of a meltdown.
While home sale prices and tax rates increased last year, the tax delinquency rate soared, according to a new report.
A Dept. of Finance spokesperson blames the uptick in homeowner delinquency on a mid-year rebilling plus a rate increase in the same bill. “It’s confusion, not hardship,” said Sam Miller. For Class I properties – one- to three-family homes – the number of delinquent parcels at the end of fiscal year 2003 (from July 1, 2002, to June 30, 2003) rose 50 percent to 137,578, while the amount owed increased 16 percent to $62.9 million. Comparing Class I delinquencies from March 31, 2003, to March 31, 2004 – stats not available in the report – the number of delinquent parcels rose to 81,543 from 127,581. The number of delinquent Class II condominiums, whose owners are responsible for their own taxes, increased to 15,688 in 2003 from 8,840 in 2002, going from a 3.3 percent delinquency rate to 4.6 percent. Another 3,000 condos in Class I were also delinquent, versus 1,907 the year before.
An 18.5 percent across-the-board tax increase became effective last year. City Hall is seeking a rebate, which needs Albany’s OK.