Tax deferral program can assist elderly residents stave off tax sale

Terrie Morgan-Besecker, The Times-Tribune, Scranton, Pa.
·3 min read

Dec. 27—A tax deferral program for elderly Lackawanna County homeowners has had few applicants, but an official with the program expects more people will seek help as they face tax increases and soaring utility costs.

County commissioners in 2016 approved the Elderly Extension or Deferral Program, which gives homeowners age 65 and older facing financial hardship an additional three months to pay taxes to avoid a sheriff's sale or the option to defer taxes and have a lien placed on the property. The county can also assist homeowners in selling the property.

NeighborWorks Northeastern Pennsylvania has handled applications for the program since 2018, assisting 29 homeowners, most of whom sought a deferral or extension, said Mary Endrusick, coordinator of the agency's Aging in Place program.

Under the deferral option, the homeowner pays no taxes. The balance accrues, with interest, until the owner — or should they die, their heirs — sell or take possession of the property. The new owner or heirs are responsible to pay off the lien.

The program can be a lifeline for homeowners in severe financial distress. Endrusick said many homeowners are reluctant to apply for the deferral, however, because unpaid taxes are subject to a 9% interest charge.

"It does not stop the taxes from accruing," Endrusick said. "Your estate is still responsible for the taxes to stop a sheriff's sale."

Endrusick said Jason Kavulich, director of the Lackawanna County Area Agency on Aging, still encourages homeowners to apply because in most cases financial counselors with NeighborWorks are able to find other options.

"It is supposed to be a last resort to help people when there is no other solution," Kavulich said. "Hopefully we will see more people connecting with those services that help them without having to take advantage of the deferral program."

That assistance is even more crucial as some area residents, including those living in Scranton and Dunmore, are facing significant increases in taxes and utilities.

Under a rate hike recently approved by the state Public Utility Commission, Scranton and Dunmore homeowners will pay $576 more per year on average for water and sewer bills, a 41% increase.

"We definitely believe we will see an increase in the number of individuals applying for the program because of the increase in property taxes and the fact those on a fixed income have not seen a substantial increase in Social Security," Endrusick said.

Endrusick said counselors can assist homeowners working out a payment plan and in applying for programs, including property tax rebates and utility assistance.

"We make sure they understand the process and know that there are other options out there," Endrusick said.

To be eligible, all people living in the home must be 65 or older and have an annual income of $35,000 or less. The home must also be insured if the applicant is seeking a deferral. Applications can be obtained from the county tax claim bureau.

Contact the writer: tbesecker@timesshamrock.com; 570-348-9137; @tmbeseckerTT on Twitter.