IT doesn’t make much sense, but the Bloom berg administration has allowed one of its most successful property-tax collection programs to lapse in an attempt to pressure legislators to authorize tougher collection methods against water and sewer deadbeats.
But the squeeze play isn’t working.
And now, the city is stuck on two fronts: It can’t go after the water and sewer scofflaws, and it doesn’t have the right to sell liens when homeowners default on their property taxes.
This strange turn of events began unfolding last year, when the law allowing the city to sell property-tax liens expired.
“They chose not to ask for a renewal,” recalled Councilman David Weprin (D-Queens), chairman of the finance committee. “I indicated that, clearly, it would have been no problem [to renew].”
“They were willing to see that expire,” said James Gennaro (D-Queens), chairman of the council’s environmental protection committee. “It’s pretty startling.”
The administration wanted authorization for both property-tax and water-lien sales and wasn’t willing to settle for the property-tax legislation alone.
The property-tax lien sales have been an unqualified success, pulling in $2 billion since the program began in 1996.
But, while few people noticed, there was no such sale this year.
Officials estimated 1,640 property liens could have been on the block. Based on previous history, more than $25 million might have been raised for the city treasury.
Of course, the unpaid property bills are still on the books, and the city could sell the liens next year.
But there’s no sign the stalemate between the council and the administration will be resolved any time soon.
Mayor Bloomberg said last week he was “optimistic” a compromise was near.
But Weprin and Gennaro both still express strong reservations about water-lien sales, saying the faulty water-billing system has to be entirely overhauled first.
“I think the stand-alone water-lien sales are not the panacea some people are making it,” Weprin said.
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State Sen. Ruben Diaz Jr. is having second thoughts about supporting the deal that allowed the city to build a water-filtration plant under Van Cortlandt Park in The Bronx.
“Things aren’t what they told us before,” he said. “We’ve been misled at best, lied to at worst.”
Diaz is being mentioned as a candidate for Bronx borough president in 2009, probably in the Democratic primary against City Councilman Joel Rivera.
Rivera’s father, Assemblyman José Rivera, was the point man in the water-filtration deal, securing some $240 million for Bronx parks in the process.
The assemblyman, however, wasn’t ready to criticize Diaz.
“He might have some reservations about it,” he said. “He’s entitled to it.”