1,500 listed on tax sale

John Howell
Posted 11/11/14

The city’s water division and sewer authority are chasing hundreds of unpaid bills and assessments, which, unless payments are made, will result in one of the largest tax sales in recent memory. …

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1,500 listed on tax sale

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The city’s water division and sewer authority are chasing hundreds of unpaid bills and assessments, which, unless payments are made, will result in one of the largest tax sales in recent memory. The sale is scheduled for Dec. 5 at 10 a.m. at City Hall.

“We hear a lot of personal situations and they’re tough,” said City Treasurer David Olsen yesterday.

Olsen said the city seeks to be “as compassionate as we can,” but some sewer assessments as well as water and sewer usage fees have gone unpaid for years.

According to a legal advertisement in the Warwick Beacon in Thursday’s paper, more than 1,500 names appear on the tax sale list. Some of those names appear more than once, as both water and sewer payments are due.

Olsen said the list started off with 2,500 names and has been reduced since notices of the sale were sent to property owners. All those who are delinquent are sent a letter 90 days before the tax sale, followed by a certified letter 40 days from the sale and yet another notice 20 days before the sale.

Olsen said both the Water Division and the Warwick Sewer Authority offer delinquents a program to make payments and be removed from the tax sale. In the case of the Water Division, a minimum of 20 percent of the amount and a payment schedule is sufficient. The Sewer Authority requires a minimum of 25 percent, Olsen said.

Olsen said whatever plan is implemented, people need to remember it does not include current fees.

“Future bills are not included in a payment plan,” he said.

If the case goes to the tax sale, the city will be paid the money it is owed, plus title fees and notification costs, including mailing and advertising. Olsen put those costs at around $250.

A lien is placed on the property that has one year to clear before the tax sale purchaser can bring action to foreclose on the property.

Under the guidelines, the lien can be lifted with full payment plus a 10 percent penalty within the first six months of the tax sale. After that, the penalty increases by 1 percent per month up to 16 percent for the year.

Olsen said there was a surge of payments following the first two notices as people sought to avoid their names and properties listed.

While Olsen finds the “economy is rebounding,” he said he is also hearing many stories of people being out of work and finding it difficult to make ends meet.

“People are just in tough times, and that’s the problem,” he said.

Olsen is not seeing as many delinquents, which he suspects is a result of bank escrow accounts. As water and sewer fees are based on usage, escrow accounts are not practical, although, he agreed, they could work for sewer assessments.

Olsen did not have a total of what is owed in sewer and water payments, but individual amounts range from $700 to more than $5,000.

Janine Burke, director of the Warwick Sewer Authority, said yesterday they have seen an increase in payments since letters about the tax sale went out.

It has been several years since sewer assessments have been listed for tax sale. About 100 delinquent assessments were withdrawn from the tax sale about 18 months ago, at the request of the administration.

As of Monday, the Beacon was projecting the list would make up seven pages of the newspaper. Lisa Bourque, of the Beacon’s production department, said she has never seen such a long tax sale list in the 20 or so years she has worked at the Beacon.

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  • Pmaloneyjr

    One of the reasons I ran for office in Warwick was to help people stay in their homes. Year after year of tax increases, increases in water, sewer, electricity and other utilities is forcing people to leave and just give up. My neighbor of 13 years just left her house a year ago. It is my understanding it was a short sale through the bank. It was heartbreaking that only a month ago my neighbor of over 10 years from across the street was forced to just leave her house. They packed everything up and just left. They tied to work with the banks to lower the mortgage by just $200 a month and they wouldn't budge. My guess is that if the taxes and utilizes didn't go up each year she could have afforded the $200 a month. Instead, there will be another empty house on my street. Abandoned property is NOT good for home values and is unsafe.

    My neighbors house was broken into while it was empty and a crack addict was living in the basement until it was sold. The police were called when the new owner went into the house and found drug paraphernalia in the house. It was extremely scary to know that right next door to my wife and children was a person that broke into the house and was doing drugs. I haven't turned my front light off in my driveway for 12 months when someone tried to break into my car. I thought enough was enough and people wanted a change but nearly every person who was elected in Warwick was re-elected.

    I am convinced that I would have won the City Council seat had the residents of Warwick who were here 2 years ago didn't give up and just leave Warwick. They did leave and those that stayed are looking at 2 more years of tax increases and our neighbors will continue to move away. Please be sure to attend the city council meetings and school committee meetings and demand a change.

    1500 people will have their houses taken away but I am sure many of these people have just given up already and left Warwick. If we are truly in the top 16 cities in the US as the literature distributed by Mayor Avedisian and Councilman Colantuono then how is it that "Lisa Bourque, of the Beacon’s production department, said she has never seen such a long tax sale list in the 20 or so years she has worked at the Beacon.?"

    Why is it that nearly a thousand people have left Warwick each year? Why is the city population in decline? Why is the school population in decline? Why is it that I counted 70 businesses on Warwick Ave, West Shore Rd and Post Rd are empty, not in business anymore, not employing people? Why did 24,000 people leave RI in the Last 10 years since the last census?

    We can pretend things are going great, we can pretend the Emperor is wearing the finest threads but in fact... the Emperor has no clothes, Warwick is not doing well and we are losing people at an unsustainable rate. Those that remain will have to pay for the services provided. While the costs for services remain constant and less are hear to pay what will the result be... taxes will go up.

    I miss my neighbors. They were great neighbors. They would smile and wave as they went off to work. They would plant flowers and tell me how their kids were doing in school. They would invite me over to have a burger or ask my kids to help plant a garden. I won't have to go over this winter to help shovel the driveway or jump start the battery in the car when they left the light on overnight. The houses are dark, the houses are empty now. There is no one smiling or waving as they go off to work. They are not going to the local market and spending money in our restaurants.

    I go to work. I work longer hours. I see my family less often and I get higher taxes with no additional services but some company from another State said we were the 16th best city in the US at least we have that going for us.

    Tuesday, November 11, 2014 Report this

  • RoyDempsey

    All we get are puff stories from the Beacon regarding how great things are and how Avedisian is doing such a great job. The truth is in the numbers. Fourteen straight years of tax increases along with escalating sewer and water rates have taken a heavy toll. The cities' finances are in disarray. Liabilities are approaching 1 Billion with no reserves set aside for retired employee health care costs or for basic infrastructure needs such as sewer and water line maintenance. There is little to no economic growth. The extent of the tax sale notifications indicates the stress that is presently on Warwick's homeowners.

    Tuesday, November 11, 2014 Report this

  • imallrightjack

    Business is business and even the Beacon gets to make a few extra $$$ out of this tragedy, selling seven extra pages...good for them!

    Tuesday, November 11, 2014 Report this

  • FASTFREDWARD4

    i.ll be at the tax sale this yr like I been going for the last 25 yrs thank-you. for the people that cry so much GINA IS GOING TO SAVE YOUR LIFES

    Wednesday, November 12, 2014 Report this

  • allent

    got my mortgage reduced by $175. might still bail next year. I think taxes are going to go through the roof to pay for all these pensioners and roads.

    Thursday, November 13, 2014 Report this

  • Norm88

    @ hepdog bail who is going to buy your home? It is not like homes in Warwick are selling..... look around

    Thursday, November 13, 2014 Report this

  • allent

    I'm underwater by $50k due to buying one of the only 2 or 3 houses in Warwick under $200k in 2005. "Buy now before your priced out!". Yea sure!

    Stopped paying in Feb, otherwise I was walking....right down to Charleston SC. They did lower my rate, but I'm not confident tax increases aren't really going to hit high gear now.

    Thursday, November 13, 2014 Report this

  • doesitmakesense1

    Why not do what National Grid does to help homeowners reduce their gas and electric bills? NG offers a free home energy assessment for homeowners to save money on gas and electric bills. City can offer something similar to homeowners to offer advice and assistance to reduce water usage. Visit these homes to assess homes for leaking faucets or pipes that need repair or need water efficient shower heads. Advise that doing laundry and running the dryer in the evenings will save money. City should figure out how each homeowner compares to their neighbors just like NG does. NG sends me a home energy report each month to see how I compare. It makes me pay attention and work a little harder to see how I can save myself a few more bucks each month.

    Wondering where the city can get the money to start a program similar to NG's home energy assessment program? Avoid spending any money on hiring consultants to rework why schools should be closed. Hard works been done. Make a decision. If the families in the Warwick Vets school district want to delay the closings, take the money needed to extend the life of the schools from the hides of people in that school district alone. Mayor Avedisian is right about questioning the extra money needed to hire consultants. It's time for the school committee to put on their big boy pants.

    Thursday, November 13, 2014 Report this

  • Pmaloneyjr

    doesitmakesense1, I agree residents can make sure they are reducing their use of electricity and water but it wlll not off set the local tax burden that has gone from $67 Million on the city side to $97 Million from 2008 to 2014. This is $30 Million more each year in spending on the city side alone. The schools over the same time period have gone up only $500,000 in comparison. I was on the school committee when we cut spending by over $6.5 million annually and negotiated for a 20% co-pay for all employees. The school committee has done their part AND I expect them to do more. The city has to do their part too. I do not believe that turning off some lights and making sure they watch water consumption will negate the tax increases that are coming. If people leave they will not be using electricity or water.

    Friday, November 14, 2014 Report this

  • Pmaloneyjr

    Update: doesitmakesense1, National Grid must have read our last comments about saving money by turning off lights to conserve energy as a way to save money to pay taxes. They put in for a 23% increase. So much for "saving" money to give money to pay taxes.

    Saturday, November 22, 2014 Report this