Pay Up Or Start Packing; The Tax Grinch Isn’t Waiting For Christmas; No Postmortem; A Well-Informed Citizenry (Or Not); Check Raise.

RVA 5x5 - August 25, 2023

No algorithms. No content filters. Honest and insightful analysis from Richmond, VA.

This week check out our five stories on:

• The city is going after tax delinquent properties to collect back taxes — while senior citizens are still living in them.

• It seems the Mayor and Administration are following one audit recommendation that combines equity with heartlessness while ignoring another audit recommendation that can help the seniors pay the taxes back.

• VCU leaders have decided there is no need for a postmortem in the wake of the disastrous real estate deal that cost them $80 million; just move on and look to the future.

• Casino advocates are happy a court ruling this week that dismissed a lawsuit and allowed the no-bid backroom deal to get back on the ballot.

• A comparison of local localities and their outreach efforts to keep residents informed and engaged with goings-on with their governments — assuming they want you to know what’s going on…

STORY #1 — The Tax Grinch Isn’t Waiting For Christmas
Ned Oliver at Axios had a somewhat astonishing story this week in which the city has decided to go after 21 tax delinquent properties that still have people living in them and have told them if they do not pay up then they need to start looking for new digs.

The city, by law, published the intent to pursue the properties via tax sale in two newspapers and at the same time mailed letters informing the residents of the city’s intended action. Chief Administrative Officer Lincoln Saunders said, "What we are doing is trying to make sure that households know that this is a serious issue and that we need them to come and work with us on getting caught up with their taxes.”

The goal apparently is to get property owners on a payment plan, but even there the city is offering no quarter. State law allows a locality to offer payment plans extending out to 72 months (6 years), but the city is enforcing its own rule of making owners pay up within 12-24 months. The city’s stance is that it can be extended, but only if homeowners know to ask for it because the city is not making a huge effort to let that be known it is an option at the outset.

Saunders told Axios it's up to individuals to negotiate for a plan that works for them. "They need to tell us that that's not affordable and to work with us from there," Saunders said, noting that 200 households have signed up since the city introduced the program last year.

In other words, “We’re from the government and we’re not really here to help.”

Oliver spoke with four different homeowners facing a tax sale auction — all of whom were senior citizens living on a fixed income from Social Security. One 70-year-old South Richmond resident told Axios the city's finance department said she would need to cover more than $20,000 in back taxes over the course of two years, beginning with a $3,145 down payment due this month.

"I got behind because it was difficult to make ends meet," said the resident, who spoke on the condition that she not be named publicly discussing her financial difficulties. "If I could just keep the lights on and food on the table, I felt like I was doing good."