WHEREAS, The City in 1997 entered into a $75.5 million dollar short term tax-lien securitization deal in which the city
sells its liens on properties that were extremely delinquent on taxes and which issues debt backed by the collections on those past-due taxes. If the taxes are not paid, the properties can be foreclosed to raise money to repay bondholders; and
WHEREAS, These taxable bonds were the obligations of the Philadelphia Authority for Industrial Development (PAID), the issuing entity, and not of the city
; and
WHEREAS, The
MBIA Insurance Corp., the original insurer of the debt, became the owner of these liens after PAID defaulted on the bonds this year; and
WHEREAS, It is the understanding of this Council that the law firm of
Linebarger Goggan Blair and Sampson, LLP was contracted to collect on these liens during the life of the bonds; and
WHEREAS, Ever since the default of this debt, Linebarger Goggan Blair and Sampson, LLP was somehow given the opportunity to begin collection efforts on behalf of the city for its real estate taxes, both delinquent and past due accounts; and
WHEREAS, The law firm of
Linebarger Goggan Blair & Sampson LLP is an Austin, Texas law firm that specializes in collecting overdue taxes, fees and fines for government agencies with approximately 1,000 employees around the country; and
WHEREAS, This firm represents approximately 1,600 government agencies with offices in Pennsylvania, California, Texas, Illinois, Tennessee, Florida and Louisiana; and
WHEREAS, This Council finds that despite the qualifications of this firm, there is a failure in communication between the firm’s collections efforts and the citizens of this city; now therefore
RESOLVED, BY THE COUNCIL OF THE CITY OF PHILADELPHIA, That the Committee on Finance hold hearings on the City's tax delinquency collection program.
End