Maryland Legal Aid has filed a federal lawsuit against Baltimore City challenging the constitutionality of the tax lien certificate sales policy. The organization claims that the current system, which allows the highest bidder to purchase property liens for unpaid taxes, disproportionately impacts Black and low-income residents and strips them of generational wealth. The lawsuit aims to reform the policy to ensure fair compensation for property owners.
The lawsuit was prompted by the case of the Edmonson Community Organization, whose property tax lien was auctioned off by the city for a fraction of the property’s actual value. The organization ultimately lost their property to an out-of-state investor who profited significantly from the sale. The lawsuit argues that the current system allows investors to exploit disadvantaged property owners and does not generate substantial revenue for the city.
Maryland Legal Aid points out that the city’s tax sale system rewards low bids and incentivizes investors to purchase liens without regard for the property’s true value. This results in a small group of investors purchasing a large number of properties, further exacerbating the impact on vulnerable residents.
The lawsuit calls for reform of the tax sale system to prevent the exploitation of property owners and ensure fair compensation for those at risk of losing their homes. Maryland Legal Aid aims to address the systemic issues that perpetuate inequality and drive vulnerable residents further into financial hardship.
Source
Photo credit www.baltimoresun.com
