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The home of the Theta Chi fraternity has had a lien placed on its house.
The building’s, owners, the Theta Chi Building Association, has not paid its property taxes for the fiscal year of 2001, and has yet to pay taxes for the 2002 fiscal year that was due Feb. 7, 2003. The town of Orono is owed $7,995 as of March 3. The town records available showed 20 past liens on the property since 1972, Orono deputy tax collector, Sue Hart, said.
The previous lien on the property, before the existing 2001 fiscal year lien, came within four days of foreclosure when the bill was paid off on Dec. 9, the foreclosure date was Dec. 13, according to Hart.
“I would say they paid off the last one just before foreclosure time,” Hart said.
The foreclosure process takes 18 months following the initial issue of a lien by the town for past due taxes, when a 30-day demand letter is sent. A lien will be lifted when the association is up to date on all town bills including property taxes, sewer bill and all fees are paid.
If bills are not paid by the 18-month period, the property by that time will have two liens for two years worth of back taxes and will be foreclosed.
The foreclosure date for the existing lien on the property is set for Dec. 17, 2003. In the 18-month term, the Theta Chi Building Association can pay off the bill before the property is foreclosed. At any time the bill can be paid and the lien will be lifted.
“If the owners don’t pay it off by [18 months], then it becomes a tax-acquired property,” Hart said.
Hart says that Orono isn’t out to be in the real estate business.
“For the most part the town will work [with property owners] to buy them back,” Hart said. “The town works hard with people when this happens.”
As of Monday, “no payment has been made on the 2002 lien,” Hart said.
On the nearly $8,000 bill it included, the 2001 and 2002 fiscal year taxes, town foreclosure fee of $36.88, and, as of Monday, interest totaling $622.38. For every day the bill is not paid, interest of $2.04 is compounded to the bill.
The lien, from fiscal year 2001, a letter of a 30-day demand for the taxes was sent on May 8, 2002. On June 17, 2002 the lien for the property at 371 College Ave. was filed.
A notice of foreclosure was sent to other parties with interest in the property, EJ Roach, Greek Life coordinator, was alerted. He said it was done so someone at the university knew what was happening.
“I think the town does a good job on a case by case basis and not grouping all Greeks as a whole,” Roach said.
“If interested, we [Greek Life] assist them in some ways of fundraising, on that side of things,” Roach said.
The Theta Chi house is owned by the Theta Chi Building Association, which is owned by the alumni of the fraternity, Theta Chi Building Association Treasurer, Frank Emery, said.
Emery also serves as adviser to the fraternity and is an alumnus from the class of 1974. He said the tax bill will be paid and the house will not be foreclosed.
“Be assured [foreclosure] will not happen,” Emery said.
Emery said that a loan is in the works to catch the building association up on its taxes.
“The loan financing will take care of this,” Emery said.
In 1990 the fraternity had a water main break, leaving the building under 6 inches of water, Emery said.
He said the insurance company did not want to pay and they had to take them to court, which cost $20,000 in lawyer fees. He said the unbudgeted lawyer costs left them “in the hole,” but they are continuing to manage.
“Theta Chi certainly takes the liens seriously,” Emery said. “We do give the town all the real estate taxes.”
Theta Chi Vice President Jeff Jones said the fraternity is sound.
“I would like to assure the University of Maine community that Theta Chi fraternity is sound, from brotherhood to finances,” Jones said. “Furthermore, pending a decision at our international headquarters, we plan to repay our entire lien to the university by fall 2003.”
Bangor Daily News