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CLS Expresses Concerns Regarding Proposal to “Securitize” Property Tax Liens

Homeownership and Consumer

CLS Expresses Concerns Regarding Proposal to “Securitize” Property Tax Liens

The City of Philadelphia is considering a proposal to ‘securitize’ property tax liens as a way to increase property tax collection.  “Securitization” is a complex process but it essentially involves selling delinquent property tax liens to a Trust.  The Trust then seeks to collect these tax liens which it has purchased at the discount.  Property tax delinquencies and foreclosures are now the most common issue for which individuals come to CLS’s North Philadelphia office seeking advice and assistance. CLS is concerned that “securitization” could make it harder for homeowners to preserve their homes while paying property taxes – leading to an increase in tax foreclosures on family homes. The ‘securitization” of property taxes could also negatively affect the efforts of the Philadelphia Landbank and others to put properties back to productive and community-based use.  Community Legal Services, Inc. has joined with the Philadelphia Association of Community Development Corporations (P.A.C.D.C.) and the Public Interest Law Center on the following statement expressing our concerns.