Another Voice: Pastor George Nicholas

This op-ed by Pastor George Nicholas can be found on the Buffalo News website here.

This year, a bill will be delivered to the governor for her signature that can make a huge difference for homeowners across New York State.

The state allows counties and municipalities to charge exorbitant interest rates on delinquent property that can have devastating consequences if you fall behind on payments. In Erie County, the delinquency interest rate on property taxes is 18%. Such high rates can lead to foreclosures and “zombie homes.” Property owners often did not anticipate an added 18% interest rate, which can cumulatively be more than the taxes they owe.

The Buffalo Center for Health Equity understands this as a burden for the community and asks Gov. Kathy Hochul to sign S967A, introduced by Sen. Sean M. Ryan, and passed by both the Senate and Assembly. With this legislation, individuals will still be required to pay their property taxes, and counties and municipalities can still charge interest for late payments, but it’s capped at more reasonable percentages than the current ones, which have remained unchanged for 30 years.

Sen. Ryan’s bill is crucial for preserving homeownership and promoting tools for prosperity, rather than worsening already difficult situations. This bill removes the current 12% minimum interest rate, instituting a maximum allowable rate instead. The new cap would be adjusted every five years to match the federal prime interest rate but could never exceed 16%. This adjustment mechanism ensures that the rates remain fair and manageable, reflecting broader economic conditions rather than trapping homeowners in an endless cycle of debt.
 
By reducing these punitive interest rates, we can help our families secure their homes, prosper and succeed. This legislation is not just about financial relief; it’s about giving our community a fair chance to thrive. It’s about transforming the way we support our most vulnerable citizens, ensuring they are not left behind due to outdated and exorbitant financial policies.
 
 
Imagine a single parent caring for a sick child or elderly parent while juggling other children and two part-time jobs. The demands of caring for a sick family member often led to work absenteeism, potentially resulting in unemployment. As this parent struggles to catch up on interest payments, they might fall behind on essential costs like food, utilities, and property taxes. When delinquent property taxes accrue, the high interest rates exacerbate the debt, creating a snowball effect. This situation can quickly escalate to foreclosure, homelessness, and the children potentially entering foster care.

Gov. Hochul, you can help prevent such scenarios by signing the legislation, providing families with a better opportunity to regain financial stability, and offering hope and stability to countless families throughout the state.