Gov. touts bill to help save homes from tax sale

Governor Donald L. Carcieri on Tuesday announced he is filing a bill to prevent homeowners from unknowingly losing their properties to tax lien sales, as happened to Madeline Walker of Providence in December. In honor of her struggle, the bill is called “The Madeline Walker Act of 2006”.

“Back in December we were all outraged when Madeline Walker was being evicted from her home of 50 years because she had failed to pay a $500 sewer bill,” Governor Carcieri said. “To put a frail, elderly woman out of her home over such a small amount is completely unacceptable.”

“This is about providing assistance to those who are most vulnerable and ensuring that they are armed with the information they need to avoid losing their homes,” the Governor continued. “The American dream is all about homeownership. We don’t want to see this dream taken away from our economically disadvantaged residents.”

This multifaceted bill is designed to protect Rhode Islanders from losing their homes due to relatively small debts. First, it authorizes Rhode Island Housing to create a new subsidiary called the Consumer Finance Protection Board. Cities and towns and other taxing authorities will be required to notify this Board of delinquent liens well in advance of planned public auctions of real estate liable for tax. Based on this information, the Board staff will begin a process to determine what factors have led to the inability of the homeowner to pay their liens. They will use Rhode Island Housing’s full array of low interest loan products, financial services, and counseling to make every effort to help enable the homeowner to stay in the home.

Urban League Executive Director Dennis Langley says the tax lien sales issue is a significant problem that affects many people. “It is important that Rhode Islanders recognize the depth of the problem among the elderly, females, widowers and the poor. They should make their outrage felt by calling their legislators to support this change in the law.”

Richard Godfrey, Executive Director of Rhode Island Housing said, “No one wakes up in the morning and decides not to pay their taxes. Delinquency is only the symptom of something that is going on in a homeowner’s life. We need a system that addresses both tax collection and the underlying reason for delinquencies.”