Comptroller: Mount Vernon to hold tax-lien sale in June, offers amnesty and payment-plan options

Mount Vernon Comptroller Moore told the City Council on a night the body discussed multiple agenda items that the city must move forward with a tax-lien sale “no later than the June,” and said staff are developing an online auction process to handle the volume of delinquent liens.

The comptroller said the city has published lists of delinquent taxes and exclusions, is preparing to file material with the county clerk, and plans to offer both installment payment plans and a short amnesty period that would waive interest and penalties as the law permits to encourage repayment before liens are sold. “Because of the enormity of the number of them, we have been working in my office to develop an online process,” Moore said. “It says that the comptroller or the deputy, must be the auctioneer and auction off of them as a public auction.”

Why this matters: The process determines whether individual property owners can cure arrears directly or whether third parties will purchase liens, which affects homeowners, small landlords and the city’s ability to recover unpaid taxes.

Details from the council discussion

- Deadline and procedure: Moore said the charter sets a June deadline for commencing tax-lien sales. He said his office has issued and publicized the list of delinquent taxes and will file relevant materials with the county clerk so the court will also have the lists. “We are on schedule for us to be ready by the June, to try to meet the requirements in the charter,” Moore said.

- Online auction and role of the comptroller: Because so many liens are involved, Moore said conducting an in-person auction on a single day would be difficult and that an online bidding platform is the most efficient option. “I figured the most efficient way to do that is to develop an online process for them to be able to bid on it,” he said, adding that the comptroller (or deputy) must act as auctioneer under the charter.

- Amnesty, payment plans and eligibility: Moore said the city can offer limited amnesty that would waive interest and penalties (within legal limits) to encourage payment. He explained the city previously could not waive school taxes for certain years because of outstanding school obligations; now that the city has paid those obligations, interest waivers become more practicable. Moore said prospective participants would need to be in good standing on school, city and county taxes for eligibility.

- If there is no bidder: Councilman Boteet asked whether properties with no bidders revert to the city. Moore said they do not automatically revert, and explained the municipality could either purchase liens itself or, if necessary, pursue an in rem foreclosure process to recover unpaid taxes: “If there's no bidder on them... then we will have to make the decision to do an in rem, foreclosure.”

- Title issues for city-owned properties: Moore said some properties previously foreclosed or otherwise owned by the city have title or documentation gaps. Per corporation counsel guidance, the real-estate committee has been asked to review and the city may offer properties for sale with title conditions disclosed to buyers.

Next steps and uncertainties

Moore said his office will return to council with finalized details and the technical design for the online auction platform, and that the council will finalize the installment-plan terms on the council agenda. He described the tax-lien sale as the city’s first of this scale and said staff are learning and adapting as they proceed.

No formal vote on the tax-lien process occurred during the meeting; the comptroller presented the plan and answered council questions. Council members requested follow-up details and timelines from the comptroller’s office and from the real-estate committee.