Status Report to the Community Regarding the Delinquent Tax Collection Program in Harris County

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Bruce Chase
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1 Status Report to the Community Regarding the Delinquent Tax Collection Program in Harris County August 1, 2006

2 Our Delinquent Tax Collection Clients in Harris County Harris County-Wide Harris County HC Hospital District HC Flood Control Dist. Port of Houston Auth. HC Dept. of Education City of Houston City of Pasadena City of Webster City of South Houston City of Nassau Bay City of Seabrook City of Morgan s Point City of El Lago City of Jersey Village City of West University Place Houston Community College N. Harris/Montgomery Community College System Houston ISD CyFair ISD Katy ISD Deer Park ISD North Forest ISD 38 Special Purpose Taxing Districts

3 Our Roots are in Texas Property Tax Collection 30 years of experience Represent entities collecting about half of the property taxes in Texas 10 of the 12 largest entities in Texas Over 200 clients in Houston Office

National Growth and Diversification Leader in Texas municipal court & JP fines collections Local governmental entities nationally Denver, Philadelphia, Los Angeles County, Chicago, Cook County,

4 National Growth and Diversification Leader in Texas municipal court & JP fines collections Local governmental entities nationally Denver, Philadelphia, Los Angeles County, Chicago, Cook County, Miami-Dade State Collections Colorado, Ohio, Pennsylvania, Illinois, Texas, Vermont Federal Government FMS collector since 1997 Selected in March 2006 to be one of only three companies in the United States to perform collections for the Internal Revenue Service Represent over 1,800 governmental entities nationwide Largest U.S. Collection Law Firm

5 Harris County Delinquent Tax Collection Program Texas Delinquent Property Tax Collection Program July Mailing Mail Notices No Response Payments Problems Returned Mail Return mail & skip tracing Phone banks BPP Lawsuit Site Visit or Seizure Mailing Collectible Accounts Research Uncollectible Accounts Site visits and business property seizures No Response Telephone Collections Payments Problems Research Returned Mail Litigation Abstract Real Property Telephone Collections Special Letters Site Visit or Seizure City Lien collections Internet based foreclosure sales National bankruptcy representation Lawsuits Telephone Collections Service Setting Judgment Payments No Response Sale Notification Sale of Property Payments Next Cycle

6 Flexible Mailing Programs Harris County 2005 mail notices 188,818 Client Driven Account Selection, Text & Schedule OCR Coupon Capability

Up Call Routing Talk-off scripts, calling hours and campaigns tailored

7 Phone Banks Phone Banks in Houston, San Antonio, Chicago over 200 seats Predictive Dialer Capability Voice-Over IP Connectivity for Back Up Call Routing Talk-off scripts, calling hours and campaigns tailored to each client Harris County calls (incoming & outgoing) for ,079

8 State-of-the-Art Skip Tracing Resources Accurint Lexis Lexis Business TX Vehicle Registrations TX Motor Vehicle Records TX Drivers License Voters Registration Online Phone Directories Data from Client Base FDIC & NIC Prison Records (Lexis) Harris County Marriage Records Harris County Assumed Names Harris County Probate TX Department of Insurance Military Social Security Death Index TX Death Records City of Houston Water Records TX Comptroller Records All Full Name Age/DOB Address Dates Phone Information CYNTHIA L SPURLOCK 9815 RETHERFORD DR (281) HOUSTON TX Oct 01 - Feb 06 SPURLOCK PATRICK CYNTHIA BALL 9815 RETHERFORD DR Nov 01 - Feb 06 HOUSTON TX L SPURLOCK CYNTHIA 9815 RETHERFORD DR HOUSTON TX Aug 05 - Feb 06 DUC M PHAN 4545 CHANDLER BLVD RTE ST PHOENIX AZ Mar 04 - Sep 04 CYNTHIA L BALL GREEN PLAZA DR APT Jun 27, 1979 HOUSTON TX Dec 98 - Sep 01 CYNTHIA L SPURLOCK GREEN PLAZA DR APT HOUSTON TX Dec 98 - Mar 99 CYNTHIA L BALL FITZGERALD ST (713) Jun 27, 1979 HOUSTON TX Nov 97 - Jan 99 CYNTHIA L BALL FITZGERALD ST Jun 27, 1979 HOUSTON TX Nov 97 - Jan 99 CYNTHIA L SPURLOCK 6121 FITZGERALD ST HOUSTON TX Nov 97 - Aug 98

9 Litigation Programs Notice, Notice, Notice Title Research Joint Plant Membership Coordination with District Clerk, Constables & Courts Personal Property Seizures New Ad Litem Protocols

10 Litigation Results Tax Suits Filed in ,486 Accounts collected in litigation 9,865

11 Retooling of Tax Sales Automated preparation of orders of sale and sale notices 4,000 3,500 3,000 Total Tax Sale Foreclosure Postings Legislation and logistics allowing tabular notices Protocol with constable offices 2,500 2,000 1,500 1, Tax Foreclosue Sale Postings 1,221 2,072 2,587 3,500

12 Tax Foreclosure Listings on the Internet Over 400,000 hits in 2005 INTERNET TAX SALE MARKETING Linebarger Goggan Blair & Sampson, LLP The law firm of Linebarger Goggan Blair & Sampson, LLP places tax sale property listings online for the benefit of the public. You can search current listings by completing the following form:

Tax Foreclosure Sales Results 1998 Harris County Tax Sales 300 2005 Harris

13 Tax Foreclosure Sales Results 1998 Harris County Tax Sales Harris County Tax Sales 3,573 Total collected through foreclosures in 2005 $32,673,520

14 Putting Properties Back on the Tax Roll Struck-off April 2002 Sold at Resale Auction in August 2002 $5,000 Opening Bid Sold for $43, Appraised Value - $315,000

15 Putting Properties Back on the Tax Roll Sold at Auction in July 2003 for $7, Appraised Value - $74,439

16 Putting Properties Back on the Tax Roll Sold at Auction in July 2002 for $10, Appraised Value - $139,200

17 Putting Properties Back on the Tax Roll Sold at Auction in July 2003 for $21, Appraised Value - $122,932

Land Assemblage Redevelopment Authority (LARA) Purpose: To address neighborhood revitalization by returning abandoned tax delinquent properties to

18 Land Assemblage Redevelopment Authority (LARA) Purpose: To address neighborhood revitalization by returning abandoned tax delinquent properties to productive use while providing an increase in affordable housing 13 member board, appointed by Mayor (5), City Council (2), Harris County (3) and HISD (3)

19 LARA / Houston Hope Programs Redevelopment Subdivisions Acres Homes Clinton Park Independence Heights Settegast Sunnyside Trinity/Houston Gardens

20 The Vision of LARA and Houston Hope BEFORE AFTER

21 Project Houston Hope Statistics Total Properties: 2,928 (gross total) Properties acquired (Jan. 2006): 198 Average Property Value: LARA (3 rd & 5 th Wards): $10,793 Houston Hope: $4,388

Firm Investment in Technology Total annual investment in technology of

completed October 1for Harris County Sign off by Harris County Auditor

Jefferson, HISD) Direct costs for Harris County system paid by the

22 Firm Investment in Technology Total annual investment in technology of over $13 million New Oracle based tax office system Installation completed October 1for Harris County Sign off by Harris County Auditor Firm also provides system to 40 Texas offices (Dallas, Bexar, Nueces, Jefferson, HISD) Direct costs for Harris County system paid by the Firm - $4.5MM through StatementTool & Litigation Tracking BankTool

23 Tax Office Consolidation Common outside this area Other States 900 of 1050 school districts in Texas More convenient for taxpayers One tax bill More payment options Savings taxpayer money

Bankruptcy National bankruptcy representation Houston, Dallas, San Antonio, Austin & Philadelphia 9 Attorneys & over 50 support staff Proactive Claim Filing 2,660 claims filed in 2005 totaling

24 Bankruptcy National bankruptcy representation Houston, Dallas, San Antonio, Austin & Philadelphia 9 Attorneys & over 50 support staff Proactive Claim Filing 2,660 claims filed in 2005 totaling $8.9 million for Harris County Bankruptcy Litigation Appeals Out-of-State Chapter 11 Reorganizations Enron (New York case) - Over $8 million collected for taxing jurisdictions within Harris County

25 2005 Delinquent Business Personal Property Account Field Visits 2,801 Visits made to local businesses in Tax Warrants Executed (Property and Bank Account Seizures)

City of Houston Municipal Lien Collections Started in January 2003. Since that time we have.

26 City of Houston Municipal Lien Collections Started in January Since that time we have... Increased overall collections by more than 230% Collected more than $1,000,000 that the City had determined was uncollectible Automated document production, increasing efficiency and reducing costs

27 Other Financial Impacts Filing fees to district clerk for Constable service fees for Constable sales fees for $1.0MM $1.2MM $1.3MM Total other fees earned by Harris County $3,500,000

28 Delinquent Tax Collection Trends Total Delinquent Collections for Largest 10 Clients Within Harris County (Combined T,P & I) $200,000,000 $180,000,000 $160,000,000 $140,000,000 $120,000,000 $100,000, Total $ Collected $109,886,198 $135,450,651 $156,369,717 $176,310,225 $179,637,471

29 National Recognition U.S. Conference of Mayors Best Public-Private Partnership 2001 Dallas Delinquent Tax Collection Program 2004 Chicago Parking Fees & Fines Program Federal Debt Collection Top Performer for FY 05 (all four quarters)

charitable and civic organizations in 2005, including School District

30 Local Community Involvement Tutoring and mentoring partnership with J. Will Jones Elementary School Over $100,000 donated to Harris County charitable and civic organizations in 2005, including School District Educational Foundations and Scholarships Street Olympics Chambers of Commerce Boys and Girls Harbor

$35,000) Records Searches (HCAD, Utility, etc.

31 Hardship Safeguards Interlocal Committee Client imposed restriction on foreclosure (Harris County is currently $35,000) Records Searches (HCAD, Utility, etc.) Payment Arrangements (client sets guidelines) Physical Inspection Signs Photo Records

32 Pass Through Penalty = $0 Cost to County/Other Taxing Enities 20% Penalty added on July 1 Six months past due Three statements including May notice Waiver if not taxpayer s fault

33 Who are the Delinquent Taxpayers? Homes Under $100,000 11% Homes Over $100,000 16% BPP, Commercial, Apartments & Vacant Land 48% Residential Rental Properties 25%

34 Other Issues Working space in courthouse Payment of Ad Litems Default judgments Jones v. Flowers Alternative notice - Section 33.57

Harris County Appraisal District

Harris County Appraisal District Presentation to Houston ISD Board of Trustees 4/2/2015 1 Items covered Quick facts about HCAD Overview of the property tax process and timelines Roles and responsibilities