Extending the tax foreclosure moratorium is the ‘only option’
As efforts to eradicate the coronavirus progress, both county and local governments continue to deliver vital services and find ways to help our constituents and customers wherever possible while upholding our legal and ethical responsibilities.
To this end, my staff and I diligently work to assist Oakland County residential and commercial property owners to retain their property and avoid tax property foreclosure through payment plans and other available resources. Although property owners are still responsible for paying their property taxes along with accruing penalties, interest and fees, they’re able to make affordable payments to reduce their delinquent tax balance.
During thousands of conversations with Oakland County residential and commercial property owners, since the pandemic crisis began, we have witnessed families and business owners showing extraordinary resilience and grit. We experienced many poignant moments that help illustrate the seriousness of the financial challenges caused by the coronavirus, and also the strength of the human spirit in the face of a daunting threat.
We’ve also talked with many taxpayers who have interacted with the Oakland County government in ways they never had before, including receiving grants and support provided by Executive Dave Coulter’s Administration and our colleagues on the Oakland County Commission. Oakland County has provided several grants to assist veterans, restaurants, residents, small businesses and local governments throughout the pandemic.
Last year, the Michigan
State Housing Development Authority’s Step Forward program ended. Funded by federal TARP funds and operational in 2013-2020, this program was an incredible resource that enabled homeowners to request up to $30,000 to pay back taxes, stabilized neighborhoods and reduced mortgage and tax foreclosures. Approximately $30 million of assistance was provided to Oakland County residents and property owners.
Recognizing the increasing economic and social pressures as the pandemic response continues, the federal and state government should actively work to renew and expand the Step Forward program to provide much-needed property tax assistance for Michigan residents and businesses.
As Oakland County Treasurer, my fiduciary and statutory responsibilities require the collection of property taxes annually. However, amid this prolonged and unprecedented pandemic, I also have a moral obligation to provide assistance within the constructs of my responsibilities where possible. It’s not only a good thing to do. It’s also the right thing to do.
Last month, I extended the moratorium on the property tax foreclosure on 2,616 parcels throughout 2021 in recognition of the protracted economic, social and other challenges resulting from the pandemic. While the extension does not erase the delinquent property taxes or the accruing penalties, fees or interest payments, it provides an opportunity for retention of both residential and commercial property.
We encourage all Oakland County property owners with delinquent property taxes to contact my office for assistance with payment plans and other available resources and to continue making payments on their delinquent property taxes to lessen the financial burden in the future. More than 50% of taxpayers continue making payments on their delinquencies despite a pandemic and unprecedented economic displacement.
We will continue to monitor conditions on the ground in Oakland County that reflect on the financial wellness of our families and business owners, and we will continue to make the right decisions and adapt to meet our changing needs. Clearly, extending the tax foreclosure moratorium for Oakland County in 2021 is the only option.