Friday 13 September 2013

[WardFive] Tax Liens: Predatory Practices Against Poor, Black Senior Citizens

From: Steptoe, Carolyn C.(ANC 5B04)
Sent: Friday, September 13, 2013 7:48 PM
To: vgray@dc.gov; ATD EOM3; Mendelson, Phil (COUNCIL); Catania, David A. (COUNCIL); vorange@dccouncil.us; dgross@dccouncil.us; abond@dccouncil.us; Graham, Jim (COUNCIL); Evans, Jack (COUNCIL); Cheh, Mary (COUNCIL); Bowser, Muriel (COUNCIL); kmcduffie@dccouncil.us; Wells, Thomas (COUNCIL); Alexander, Yvette (COUNCIL); Barry, Marion (COUNCIL); dtolliver@dccouncil.us; Moore, Brian (COUNCIL); Duffie, Celeste (COUNCIL); cjones@dccouncil.us; Young, Benjamin (COUNCIL); jbrown@dccouncil.us; gfisher@dccouncil.us; chenderson@dccouncil.us; apritchard@dccouncil.us; cwilson@dccouncil.us; bmadison@dccouncil.us; Woodland, Calvin (COUNCIL); Stogner, Kevin (Council); Grant, Schannette (COUNCIL); Willingham, Jonathan (COUNCIL); dnewman@dccouncil.us; jgluckman@dccouncil.us; kkountzman@dccouncil.us; Holland, Joy (COUNCIL); jmobley@dccouncil.us; kmitchell@dccouncil.us; satkinson@dccouncil.us; Allen, Charles (COUNCIL); Norflis, Terrance (Council); Fisher, Edward (COUNCIL); cdurant@dccouncil.us; jclementssmith@dccouncil.us
Cc: Steptoe, Carolyn C.(ANC 5B04)
Subject: Tax Liens: Predatory Practices Against Poor, Black Senior Citizens

Dear Mayor Gray and All DC Councilmembers -

Like most in the city, I am deeply saddened and outraged to read the article about the tax lien & foreclosure practices against District citizens.  Worse, I also shocked to read that:

"both Gray and council members were warned 16 months ago in a letter from a coalition of community advocates and law firms that the District's collection system deprived homeowners of fair treatment and due process .... 

 [t]he current tax sale system deprives affected homeowners, many of whom are elderly or economically disadvantaged, of fair treatment, including constitutional protections."

http://www.washingtonpost.com/local/dc-politics/mayor-gray-calls-dc-tax-lien-practice-shocking-calls-for-moratorium/2013/09/09/0f34d3ae-194b-11e3-a628-7e6dde8f889d_story.html

For over five years now, the entire nation was been awash in congressional hearings involving illegal, predatory real property practices by big financial institutions.  AGs, the Federal Reserve, Consumer Financial, even federal bailouts.  These illegal, predatory homeowner practices remain breaking headlines wherein hardworking citizens are displaced, foreclosed and whose lives are upside down.  Many became financially and emotionally destroyed.

So, after reading the Post's initial investigative pieces - I am then appalled that the mayor and city council would feign outrage and anger about these practices when, according to the article, our officials knew "that the District's Office of the Chief Financial Officer had for years recovered outstanding tax debts by selling liens on resident's delinquencies to investors."

I am specifically struck with what is clearly a disingenuous, woefully callous mindset towards District citizen populations: (1) the long-term, black, poor property owners and (2) the long-term black senior citizen property owners.   The articles themselves reiterate these two populations as unilateral targets.

As a three-term black ANC commissioner in Ward 5, my constituency is diverse and includes a significant black senior citizen property owner population.  I am confused then, if not floored that, since 2005, it appears no councilperson nor mayor has initiated or raised investigative concern about citizens' disparate treatment at the hands of erroneously inflated legal fees and foreclosures; esp. since legal & housing advocates have raised these issues.  My constituents regularly contact me for issues, not the least includes their ability/inability to pay their property taxes. 

It stands to reason that any citizen facing foreclosure/unbridled tax debt is desperate.  Such desperation would generate contact to their councilmember, mayor, at-large, etc., for assistance.  Citizens contacted legal and housing advocates so it makes sense at least those legal elderly and housing advocates would initiate contact on their behalf. 

But why no prior intervention by the mayor or any council member?  Besides that many of the current members and mayor have held office for years now, this matter overlaps into several council committees. 

So is it the contention that the mayor and council (through their own legislative and committee processes) knew nothing whatsoever of these predatory practices against black senior citizens and the black poor?   In the interest of humor, does not the mayor or council's legal rep remain apprised of practices affecting the city's most vulnerable populations?  Is the onus on your chiefs-of-staff or legislative persons not appreciating the gravity of these issues and its impact of the least protected residents? 

Or, are we simply to wait for the next investigative piece to learn what is and is not a priority from our elected leadership? 

Further, as a DC native, I am troubled, that the city leadership remains unabashedly committed to all facets of gentrification, new residents and revitalization, yet callously oblivious of the long term residents, especially our black poor and black senior population.

Still, as horrible and negligent as this situation is, as the Council prepares for their stated emergency hearing and members appear scrambling to introduce emergency legislation, pls. add'l tangible legislative efforts and ignore OTR's Cordi's statements:

"Cordi, with the tax office, acknowledged that the agency never went back to review the bidding in the District for signs of wrongdoing after the Maryland criminal case became public. D.C. law requires the agency to cancel any sales where fraud is found.  Cordi also said the tax office doesn't have the authority to ban bidders who get in trouble in other places — and wouldn't necessarily want to. "If you exclude bidders, you take in less money," he said."

Council's emergency legislation must include:

(1) enacting a moratorium on all tax lien sales pending AG/federal investigation of the companies.  The article references many as currently under state investigation for bid-rigging and other illegalities; http://www.washingtonpost.com/sf/investigative/2013/09/09/suspicious-bidding/

(2) cease & desist/prohibit/sanction/ban any tax lien collection business currently under investigation in another jurisdiction from doing business in the District of Columbia (pending investigation outcome); 

(3) create special investigative task force to cross-review all OTR errors for erroneous tax liens/non-payments and immediately abate & reimburse citizens of all fines, penalties and costs; and

(4) compile, complete and send to the appropriate federal agencies and watchdog investigative groups (IRS, National Tax Lien Association, Consumer Protection Financial Review; Federal Reserve, FBI, IRS, Legal Counsel for the Elderly and Advanced Analytical Consulting Group to name a few) for financial audit and investigation of bid-rigging, fraud and business tax violations involving all the 200 foreclosures.

This is a miniscule start for our citizens to somehow salvage being stripped of their most valuable asset and personal dignity.  Many are deceased, clearly many are now in assisted living and/or suffer with debilitating conditions of old age and poverty.  All however are displaced.

As we vie for statehood, I find this atrocity does not (and should not) fundamentally bode well for city leadership in either its management or its care of District residents.  Instead, it perpetuates an aura that city leadership condones predatory annihilation targeting our poor and elderly citizens - and only when exposed - does leadership take action  human rights violations and targeted genocide.

I pray the city resolves this atrocity expeditiously and substantively.  I also pray our citizens receive more than belated lip service or another legislative dog and pony show.

 

Very kind regards,

 

Commissioner Carolyn C. Steptoe

Single Member District 5B04

Vice Chairperson, Advisory Neighborhood Commission 5B

GOVERNMENT OF THE DISTRICT OF COLUMBIA

5B04@anc.dc.gov

(202) 321-3860/ANC cell

(202) 636-8191/home

(pardon typos, etc.)

 

 ****************

WHAT IS AN ANC?

The Advisory Neighborhood Commissions (ANCs) are locally elected bodies which shall advise the Council of the District of Columbia, the Mayor and each executive agency, the Government of the District of Columbia, all independent agencies, boards and commissions with respect to all proposed matters of District of Columbia governmental policy including but not limited to decisions regarding planning, streets, recreation, social service programs, education, health, safety, and sanitation which affect the Commission area.  In each of these areas, the intent of the ANC legislation is to ensure input from an advisory board that is made up of the residents of the neighborhoods that are directly affected by government action. The ANCs are the body of government with the closest official ties to the citizens in a neighborhood.  Commissioners serve without compensation.  See PL 93-198 and DCL 1-21, as amended.

 

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