Schenectady non-profits facing foreclosure - NEWS10 ABC: Albany, New York News, Weather, Sports

Schenectady non-profits facing foreclosure

SCHENECTADY, NY -- 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.

City councilman Vince Riggi  said, "They are doing pro bono work and being put out of business."

Mayor Gary McCarthy says the problem started when a previous tax assessor required non profits to file for their non profit status every single year.

Mccarthy explained, "The assessor took an overly conservative view of the process and ended up putting them back on the tax roll."

Then the city took it a step further. Riggi added, "The real fault came when city sold these tax liens."

The city sold them to American Tax Funding a debt collection agency.

John Polster, with the city's corporation council explained, "The city received in the vicinity of $250,000 from ATF for liens."

The city's corporation council says around 20 properties were on the list. This past 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 profits 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're negotiating a deal. "I believe ATF has taken the position that we want to negotiate and take no further action," he said.