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Foreclosure Crisis Hits Norwich Land Trust

March 25th, 2008 by bhaveshbhatia Foreclosure Crisis

The Rose City Community Land Trust will have to face foreclosure due to taxes that have not been paid. The land-trust, which started operating in 1986 as a non-profit organization, owns property in the form of land and houses, all over the city. A paucity of funds and lack of participation on the part of the members of the board have affected their achievements over a period of time. Charles Glinski, the city Assessor had cancelled the nonprofit organizational status of the land trust two years back. This is because they failed to submit the necessary paperwork that was supposed to be given in every four years to prove that they were not required to pay property taxes.

He further said that the land trust board was forewarned of pending action, but they failed to respond. The tax bills, which were unpaid, started adding to the problems and Cathy Daley; a tax collector had to put two homes with the highest bills into foreclosure. The foreclosure filings surprised the trust officials, as they were unaware of the pending foreclosures in the city. The President of the Trust, Rick Gaumer declared that he planned to stabilize the trust by chalking out new payment plans. According to Daley, the group still has time to chalk out a new payment plan but that has to be carried out by a city attorney. The case would go out of her office once foreclosure begins.

However, from the financial aspect the situation was not very stable yet for the land trust. The income made from rent was limited to a mere 30 percent of the income of all the tenants. He says that since the incomes have not increased, most of the rents have not increased either. There will be a re-examination of income statements in June to see if the rents of a few units could be increased. The Vice President of the Land Trust, Laura Shelby as well as Gaumer rejected the idea of selling off trust properties and shutting it down. They were sure they would be able to make it work.

The historic structure at 702 New London Turnpike is probably the worst disaster owned by the trust. The property is in total disrepair and the tenants enjoy lifetime usage permission. Even if the trust were willing to sell this property, there would not be any takers who would honor the lifetime lease and will take care of the restoration as well. The fact that an authentic restoration is needed makes the task more difficult and expensive.

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2 Responses to “Foreclosure Crisis Hits Norwich Land Trust”

  1. A Word Of Caution For People Facing Foreclosure | Foreclosed Homes Articles Says:
    March 26th, 2008 at 12:55 pm

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  2. Foreclosures In The Neighborhood Affecting Prices Of Homes | Foreclosed Homes Articles Says:
    April 1st, 2008 at 9:06 am

    [...] Since last year, the foreclosure rate in the U.S has made a jump of 57 percent in the month of January. According to the records maintained by Realty Trac, about 230,000 houses were on the verge of foreclosure across the nation. The states of Nevada, California and Florida have recorded the highest number of foreclosures. Scattered suburban areas which were greatly popular among people buying homes for the first time, were hardest hit by the foreclosure crisis. [...]