By Dalia Diaz
On the January 8, 2019 edition, I wrote about the improprieties going on in Lawrence and particularly the case of District B City Councilor Estela Reyes. She owns several properties as I mentioned in my previous article, but this one deals only with the dilapidated house on 173-175 Haverhill St., next to the Oliver School.
It is a difficult case to explain and let’s face it, I was not clear enough in my description. In the interest of accuracy, I consulted with Attorney Francisco Paulino who helped me digest a mountain of documents. Let me tell you the system the city uses when someone fails to fulfill his or her obligations with the city coffers.
During Fiscal year 2017 (FY’17) in August of 2017, according to the records, Councilor Reyes received the first payment plan (although I have not seen a copy) and the monthly payments were agreed to $408.00. Payment plans are usually for 6, 12 and 24 months and this one probably was for 12.
A payment plan establishes that all new invoices must be paid so the first two quarters of 2018 which are billed on the second half of 2017, should have been included in the monthly installments.
On December 1, 2018, the city placed a LIEN on her property at 173 – 175 Haverhill St. because the two quarterly payments for 2018 had not been made. At the same time, it went to TAX TITLE which is the instrument the city uses to take possession of the property for a total of $7,512.49.
When that happens, a list is sent to the local newspaper for publication notifying those who owe property taxes to the city that they are placing a LIEN with the Registry of Deeds and the payment plan does not stop the process of TAX TITLE.
At the end of 2018, if the 2018 taxes were not paid, even though she paid on time her monthly installments, it should have gone automatically to the newspaper.
We are now ending FY’19 on June 30, 2019 and the quarterly payments that Reyes agreed to pay along with her monthly agreement, are not paid as yet; the automatic process of TAX TITLE was not applied this FY’18 like they do with everyone else.
The document sent to me reads “2018 RE R” when it should read “2018 LIEN or 2018 TL.”
I met with Kelly Oakes, city treasurer and she explained that only one LIEN is issued and that’s why there was none in 2018. Treasurer Oakes issued a letter on January 14, 2019 stating that, “The payment plan for 173-175 Haverhill Street dated November 1, 2018 is in good standing as of the date of this letter.”
The way that works is that payments should be applied to the oldest debt while keeping up with the current tax bills. While the $408.00 monthly payments were posted and apparently 2017 and 2018 were all paid, Councilor Reyes wasn’t paying the quarterly bills on the property. That’s why she ended the year with a $12,744.33 balance due.
The new agreement calls for $1,283.71 each month beginning November 1, 2018, besides the quarterly payments. Ms. Oakes hand wrote on the statement I received, “Payment plan: payment due 1/15/19 $1,283.71; 3rd quarterly tax installment due 2/1/19 $1,811.84; water bill #925848 due now $355.35; total due $3,450.90.”
She told me that Councilor Reyes is disputing the water bill since the building is not being used.
Why was she given another payment plan if she didn’t keep up with the first agreement? Evidence shows that she is a poor administrator of her finances. Besides the lien on the building at 173-175 Haverhill St., I found three Municipal Liens on her properties in the Northern Essex Registry of Deeds. In 2001 for 73-75 Abbott St. for $581.47; in March 2018 for 73-75 Abbott St. for $2,181.35; and on July 2018 on her home at 36 East Haverhill St. for $2,855.41 in taxes and $664.85 for utilities.
Making this issue more convoluted, I also found in the Northern Essex Registry of Deeds a decision of the Zoning Board of Appeals during their December 28, 2017, allowing for a variance from Section 29-15 of the Revised Zoning Ordinance of the City of Lawrence for the purpose of constructing a new two family dwelling at 36 East Haverhill St., which is located in a R-3 zoning district. Why is it that she continues getting approvals with such a bad record?
The purpose for outlining all of this is because I want you to understand that anyone else will not be benefiting from so many leniencies. The administration is colluding with her to stretch the time until the Oliver School renovations begin and she will make a killing asking for an exorbitant amount of money in exchange for the building and the lot of land in back.
Since the first article two weeks ago, several people approached me and I learned that in those cases, the city refuses to accept their payments and they must be sent to an attorney who handles those properties for the city. Councilor Reyes doesn’t have to do that.
I have no idea who reads Rumbo on Facebook but that article was shared 36 times with more than 3,700 views.
The traffic of influence is very clear. This is privileged treatment for a city councilor. It is not fair to those who pay as it is required and happen to fall behind but even more unfair for the many who have lost their homes at the hands of unscrupulous people.
