Clinton County to go second year without foreclosure auction
May 17—PLATTSBURGH — Clinton County will again forgo holding a foreclosure auction this year.
The decision was made after the state extended a moratorium put in place by the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 through Aug. 31.
SHIFT TO NEXT YEAR
Clinton County Treasurer Kimberly Davis explained that, in a normal year, the county would have foreclosed on properties in April. The initial suspension, which expired April 30, caused a shift in that timeline.
"With this second extension, we would already be starting to prepare for next year's foreclosure by the time it ended," she told The Press-Republican.
That involves preparing filings, mailings and legal notices.
"If we are already going to be starting to advertise for people headed to foreclosure (for next year), we wouldn't do another for people in this year.
"There would be no reason to have to do it twice. It's just not worth the cost and manpower to us."
DOWN THE ROAD
In Davis' opinion, the moratorium just kicks the problem down the road.
"Right now, people are receiving stimulus checks and tax refunds. If people can't pay their taxes now, how are they going to pay them next year?"
She noted that people owing two years' worth of property taxes will have to pay three next year, and dozens left over from last year will have to pay four years' worth.
The one benefit, Davis continued, is that property owners who would have faced foreclosure this year now have more time to get into long-term installment contracts.
She said people must set up appointments to do that with her office by Sept. 23.
SALES TAX OFFSET
Gov. Andrew Cuomo signed the extension into law May 4, four days after the initial moratorium expired.
Though there was chatter about the impending extension leading up to and during that interim period, Davis' office "can't go on assumptions" and did file the notice of foreclosure with the courts May 3.
Once the governor signed the extension, the notice was withdrawn, she confirmed.
Davis has said that the county planned for $375,000 in revenue from a tax sale this year.
She noted that sales-tax revenue is currently $2.4 million ahead of projections and will help offset that loss.
LANDLORD BURDEN
State legislators who represent the tri-county area all opposed the extension of the moratorium, saying the burden has fallen on small landlords.
State Sen Dan. Stec (R-Queensbury) said earlier this month that the law made sense early in the pandemic when there was tremendous uncertainty, but argued that the state should be looking to get back on track.
"Some landlords haven't been paid rent in well over a year and another moratorium is going to make matters worse."
He added that the focus should be on getting financial assistance to tenants suffering hardship.
The state's budget enacted a COVID-19 Emergency Rental Assistance Program with $2.3 billion in federal aid for both renters and tenants.
As of Friday, the program's website said, "Applications will be accepted soon."
FIX DAMAGE
State Assemblyman D. Billy Jones (D-Chateaugay Lake) said it is well past time for the state to assist small landlords who have continued to provide housing for tenants.
"As we reopen and return to some sense of normalcy, we must now focus on fixing the financial damage that has been done, not add to it."
Jones has cosponsored a bill, passed unanimously in both the Assembly and Senate, that he said "would address the additional housing expenses small landlords have been burdened with, such as mortgages, taxes and utilities, and clarify the qualifications for supplemental costs associated with the emergency rental assistance program."
State Assemblyman Matt Simpson (R-Horicon) said the extension will have terrible effects on small landlords, many of whom have fixed incomes or are just looking to provide for their families.
"The legislature has provided millions of dollars for tenants to access if they are experiencing hardships. It is past time that we level the playing field and provide the small landlords with some protections before it is too late."
Email Cara Chapman:
Twitter: @PPR_carachapman
