Schenectady non-profits in jeopardy of foreclosure - NEWS10 ABC: Albany, New York News, Weather, Sports

Schenectady non-profits in jeopardy of foreclosure

SCHENECTADY, N.Y. - The City of Schenectady is now trying to come to the rescue after putting some buildings belonging to non-profit groups in jeopardy of foreclosure.

Schenectady Mayor Gary McCarthy says the problem started when a previous tax assessor required non-profits to file for their non-profit status each year, explaining "An assessor took an overly conservative view of the process and put them back on the tax roll."

The city then took it a step further by selling them to American Tax Funding, a debt collection agency.

John Polster, with Schenectady's Corporation Council explained, "The city received in the vicinity of $250,000 from ATF for liens." The Corporation Council says around 20 properties were on the list.

In August, some of them were granted a resolution and earned their non-profit status back. They were also exempt from paying taxes.

"The number of non-profit entities that did not get legislation from the state, their liens are pending," said Polster.

McCarthy said, "We are going through each one of those. We're trying for global solution." That solution could involve the city refunding money back to ATF. The mayor says they are negotiating a deal.

Members of the religious community will get together with the community and attorneys to address the situation and talk solutions on Thursday evening at 7 p.m. at Consecration Temple Church of God.