February 9, 2009
The city of Rochester is facing a $32-million dollar shortfall this year but I-Team 10 has discovered one way the city could shave half a million from that number. If one of the landlords in the city would pay his taxes that money could aid the shortfall.
This landlord not only owes the city but he owes others as well. Chuck Hain of Penfield rents several properties out through his company, Char-Bren development. I-Team 10 requested tax information on his properties and according to the city's Bureau of Treasury, as of the end of January he owed more than $556,000 in delinquent taxes on 43 of them.
“Obviously this is a cause for concern.” City Director of Neighborhood Service Centers Molly Clifford says they are closely monitoring Hain. “We have some back tax issues. There are some definite property code issues, some unhappy tenants and we have some unhappy neighbors. So, altogether it's a pretty serious situation."
But not only does Hain owe the city money, he owes many of the people who rented from him as well. There are more than a dozen judgments in small claims court, many from former tenants who say he has refused to return their security deposits.
“It got to the point where I didn't believe anything they would say." Katie Carrick rented an apartment from Hain, and moved out last May. But she is still waiting for the $475 security deposit she was promised. “Any concerns you had were belittled and your phone calls weren't returned and you got the run around."
It may explain why Char-Bren gets an "F" rating from the Better Business Bureau. What really angers Carrick is that while Hain can't seem to come up with her money, he continues to live comfortably in a 6-bedroom, $400,000 home in Penfield. The taxes on his house, incidentally, are paid up.
In an apparent effort to recoup some cash, Hain today auctioned off three of his properties. Afterward, he avoided the camera but by phone Hain tells I-Team 10 that in an effort to clear up his tax debts, all the rents are now being collected by the bank.
He blamed his recent financial woes on the economy and the inability to restructure many of the loans. Clifford says she hopes he can recover. “What we're trying to do is work on a resolution that hopefully works for everybody and holds Mr. Hain liable."
The problem is that the city says it has had no direct conversations with Hain, only his intermediaries. As for the security deposits, Hain tells I-Team 10 they are trying to pay them back one by one.
I-Team 10 contacted many of the people who have judgments and they say they still haven't received their money. However one woman said she was just contacted this week by an attorney for Char-Bren who says she can pick up a cashier's check next week.
The city says they haven’t started any foreclosure proceedings primarily because there are so many properties involved, that if it did foreclose, many tenants would be forced to vacate. For now they're content to try and work out a resolution and work with the bank.
Source :http://www.whec.com/article