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Committee recommends waiving potential insurance lien for two 79‑e tax‑relief properties
Summary
The Finance, Organization and Personnel Committee recommended unanimously that the city council forego recording a lien on flood and casualty insurance proceeds for two previously granted 79‑e community revitalization tax‑relief properties (1 12 Washington LLC and 34 Court LLC), citing financing hurdles and limited city use for such proceeds.
The Finance, Organization and Personnel Committee on Monday moved unanimously to recommend that the City Council forego including a lien on flood and casualty insurance proceeds in the covenants recorded for two previously granted 79‑e community revitalization tax‑relief properties, 1 12 Washington LLC and 34 Court LLC. City Attorney told the committee the lien is permissible under state law but that if the city received insurance proceeds it would be “obligated to use them to finish that project.”
The City Attorney said such a lien had in past cases made it harder for property owners to secure financing because banks were wary of a lien senior to their mortgage; the city previously handled similar cases through subrogation. A council member moved to recommend that the city council forego the lien for 1 12 Washington LLC; after a separate motion on the 34 Court LLC property the committee voted unanimously on both recommendations. The committee record does not include a roll‑call vote or individual tallies.
