Multiple landlords spoke against potential liens to their properties at the Gary Sanitary District’s biweekly meeting Friday.
GSD Executive Director Ragen Hatcher said an Indiana State Board of Accounts audit found that the department has a “number of outstanding bills.” Per state law, SBOA said GSD has three years to either put liens on the properties or make owners aware of the liens.
A property lien is a legal claim by a creditor to recover an unpaid debt or obligation, according to the National Association of Realtors.
GSD looked at accounts going back to 2022 to determine which need to be liened.
“There’s a couple (of) Indiana codes that regulate this, but basically, what they said is that you have to send notice so many days after the account is disconnected,” Hatcher said. “After that, you have up to three years to file the intent to lien or to send notice of the intent to lien.”
In April, the department sent lien notices for 2022, and sent 2023 lien notices in May. Notices for 2024 will be sent either at the end of June or beginning of July, Hatcher said.
“Unlike NIPSCO and unlike the Indiana water company, municipality-owned wastewater treatment facilities’ bills run with the property and not necessarily with the person whose name the account is under,” Hatcher said.
Gary landlords are worried about the liens because they will be charged to the property owners rather than renters who haven’t paid bills.
Darnail Lyles, a local attorney, said during the board meeting’s public comment that Hatcher failed to mention that there’s an exception in state statutes for homeowners who rent their property. The exception says that after 60 days delinquent and within 20 days of notice, the department can put a lien on the property, he said.
“Now, 60 days doesn’t mean give me a letter a year or two years or more after the tenant is gone,” Lyles said.
Notice should be given in a way that allows property owners to get money for the lien from renters who aren’t paying bills, Lyles said.
Ron Matlock, another Gary resident, spoke at the GSD board meeting. Matlock, who owns and rents a property, said tenants know how to work the system so they get away with not paying their bills.
“I’m getting these bills, and it’s very upsetting to me,” Matlock said.
Damien Lee owns a property in Aetna and was told that he owes $2,300 to the water company or a lien would be placed on his house. Lee said there’s no way his family used that much water within a two-month span.
He has three weeks to come up with the money before a lien is enacted, Lee said. The unpaid funds are from 2023, according to the notice Lee got.
“This is two years ago, and I’m finding out about it in May?” he said. “Then I’m told, ‘OK, you need to pay this amount in May.’ Why didn’t you go after the tenant back then or turn off the water.”
John Allen, a Gary resident, told the GSD board that he doesn’t have an issue with them collecting money, but it needs to be done in accordance with state statutes. He also believes properties that have not paid bills within about a year should be disqualified for consideration of collection.
If GSD worked with property owners, they could hold tenants accountable for missing payments, Allen said.
“I deal with a local of property management people and people in real estate, and collectively, there are people entertaining the idea of retaining counsel during a class action lawsuit over the issue,” Allen said. “I don’t want to see tax dollars wasted over this.”