Sen. Young has introduced SB 62 which permits properties listed for tax sale to be sold (prior to the tax sale) to non-profits for the purpose of developing low and moderate income housing. As I read the bill, I think he has Habitat for Humanity as well as community development corporations in mind. I haven’t bothered to do the additional research, but I think the provisions of the chapter this new section is in would require the non-profit to pay the amount of the delinquent taxes to acquire the property, but by selling it prior to the tax sale, it would avoid the likelihood of the price being driven up by bidding. Not more than 10% of the tax sale properties listed could be sold in this fashion.
I suppose the owners who are delinquent in paying their taxes that this artificially lowers the amount their property would receive at tax sale. (The owners are entitled to the tax sale surplus after delinquent taxes and some other fees are paid.) But, even if that’s a valid complaint, there would still be a redemption period during which the owner could get the property back from the tax sale purchaser — the owner has to pay the delinquent tax amount plus 10% or something which goes to the tax sale purchaser (in this case the non-profit.)
Someone’s ox is always getting gored with legislation, but on its face, this strikes me as a positive initiative.