City Council

City of Mount Vernon, New York I ROOSEVELT SQ. RM. 104 CITY HALL, MOUNT VERNON, NEW YORK 10550 & VIA FACEBOOK.COM/MO{JNTVERNONNY Meeting Agenda Final Monday, January 27, 2025 5:00 PM CITY COUNCIL CHAMBERS - ROOM 206 City Council Special Meeting City Council Special Meeting Meeting Agenda - Final January 27, 2025 A SPECIAL MEETING OF THE CITY OF THE MOUNT VERNON CITY COUNCIL HELD ON MONDAY, JANUARY 27, 2025 Scheduled for 5:00 pm in the City Council Chambers, City Hall, Mount Vernon, New York. *** This meeting was held in the City Council Chambers, with virtual participation via ZOOMand CMVNYFacebook. The meeting was not closed to the public. *** PRESIDING: Danielle Browne, President OTHERS: Nicole Bonilla, Deputy City Clerk; Antoinette Anderson, Legislative Aide; Johan Powell, Asst. Corporation Counsel CALL TO ORDER / PLEDGE OF ALLEGIANCE Council President Danielle Beowne called the meeting to order and provided general house-keeping rules, including encouraging citizens to share the meeting on social media and what to do "in case of emergency" REFERRAL SESSION Roll Call administered by Deputy City Clerk Nicole Bonilla REPORTS OF STANDING COMMITTEES AND ACTION THEREON To the Council: FINANCE AND PLANNING 1. Office of the Comptroller: An Ordinance Authorizing the Submission of the List of Delinquent Taxes and Approving Procedures for Tax Lien Sales and In Rem Foreclosure Proceedings Code: FP OTHER BUSINESS/CLOSING COMMENTS Page 1 of 1  ?' 2s"(Jal'7:J1 f4'l'0"l aaJ'> ( PECIAL AN ORDINANCE AUTHORIZING THE SUBMISSION OF THE LIST OF DELINQUENT TAXES AND APPROVING PROCEDURES FOR TAX LIEN SALES AND IN RF,M FORECLOSURE PROCEEDINGS Whereas, by letter dated December 19, 2024, the ComptroLLer has requested Legislation authorizing the City Council to acknowLedge receipt of the List of Delinquent Taxes as submitted on December 19, 2024; and Whereas, pursuant to Chapter 783 of the Laws of New York governing foreclosure proceedings in the City of Mount Vernon, the City Council is authorized to implement processes for the collection of delinquent property taxes, interest, and penalties; and Whereas, as of December 19, 2024, the City of Mount Vernon has a total of $51 million in outstanding property taxes, interest, and penalties, including $26.9 million in property taxes and $24.6 million in interest and penalties; and Whereas, the City has prepared a comprehensive List of Delinquent Taxes identifying properties subject to tax lien sale or foreclosure proceedings, categorized as follows: * Properties with two or more years of tax liens; Properties requesting installment plans for repayment; and * Properties requiring exclusion from tax lien sales due to unresolved tax discrepancies, banktuptcies, or other legal matters; and WHEREAS, the proposed legislative process requires the submission of these Lists for review and approval at a City Council meeting, with final action to be taken no sooner than seven days after the initial agenda appearance; and WHEREAS, the City has analyzed the delinquent tax categories and the anticipated outcomes of advancing both a tax Lien sale and In Rem ForecLosure proceedings, as fo[[ows: Taxes Due Interest & Total Due Penalties Amount Installment Plan 10,679,932.44 7,286,496.34 17,966,428.78 Request Commercial/Non- 6,047,578.84 4,587,051 .08 10,634,629.92 Residential Residential (more 5,628,804.40 4,354,668.64 9,983,473.04 than 5 years) Residential (under 2,246,286.99 831,818.19 3,078,105.18 5 years) Open Taxes Issues 2,171,261.78 7,440,359.21 9,611,620.99 Bankruptcy / Court 164,306.35 135,209.32 299,515.67 Case 26,938,170.80 24,635,602.78 51,573,773.58 Whereas, it that advancing the sale of tax liens for is anticipated commercial/non-residential and residential properties with five or properties more years of arrears will generate approximately $20.5 million, with a minimum recoupment of $8.9 million in outstanding taxes; and  " +.":t:'<'i'-%)7 aao%ll.(') SPECIAL Whereas, the City intends to concurrently initiate in-rem foreclosure proceedings for residential properties with less than five years of arrears, f utilizing the expertise of the Law Department or an external contractor; and Whereas, over 135 property owners have requested installment plans, representing $18 million in arrears, and approximately $10 million remains tied to unresolved tax issues; and Whereas, the City Council is committed to ensuring due process and equitable treatment of all property owners, while maintaining fiscal responsibility and transparency in the administration of tax collection processes; Now, Therefore, Be It Resolved That The City of Mount Vernon, in City Cormcil convened, does hereby ordain and enact: Section 1. List of Delinquent Taxes. The City Council hereby acknowledges receipt ofthe List of Delinquent Taxes as submitted on December 19, 2024, which includes: * Complete list of properties with two or more years of tax liens; List of properties requesting installment plans; and List of properties excluded from tax lien sale due to open tax issues, unresolved discrepancies, bankruptcies, or other legal matters. Any updates or edits to these lists shall be submitted to the City Council prior to the commencement of foreclosure and/or tax lien proceedings. Section 2. Tax Lien Sale Process. The City Council authorizes the advancement of the tax lien sale process for: * Commercial and non-residential propertxes with five or more years of arrears; and Residential properties with five or more years of arrears. The anticipated outcomes include: Recoupment of at least $8.9 million in outstanding taxes; and * Potential negotiation of additional revenue from interest and penalties. Section 3. In REM The City Council Foreclosure Process. authorizes initiating in-rem for residential properties foreclosure proceedings with less than five years of arrears. The Law Department or a qualified third- party contractor shall be engaged to facilitate this process. Section 4. Payment Plan Requests and Open Issues. The City Council aclaiowledges the following: Over 135 property owners have requested installment payment plans, representing an aggregate amount of $18 million in arrears. * Approximately $10 million in arrears is tied to unresolved discrepancies, bankruptcies, or other legal matters. " II 'a:"a" ;SJJ2 '-' L" "':s'l The City Administration shall continue to: I Work documentation; with property owners to obtain payment * Review assessment records in coordination with the Assessor'S Office; and @ Collaborate with title companies to resolve outstanding lssueS. Section 5. Timeline and Approval Process. In accordance with the In Rem Law, the submitted lists was passed by the City Council at a meeting seven (7) days following it first appearance on the City Council Agenda. Section 6. Effective Date. This ordinance shall take effect immediately upon its approval by the Board of Estimate & Contract. APPROVED AS To FORM Assistant Corporation Counsel o o APPROVED 'j-ac ojte APPROVED Dept. Mayor