Suffolk County Homeowners Face Hidden Foreclosure Risk from Mandatory Septic System Upgrades

A growing crisis is quietly threatening Suffolk County homeowners in 2024: environmental compliance requirements that can lead to financial ruin and foreclosure. As nitrogen pollution from aging septic systems continues to degrade Long Island’s water quality, nitrogen pollution from cesspools and septic systems has been identified as the defining cause for degraded water quality in Suffolk County. This pollution contributes to beach closures, restrictions on shellfishing, toxic algae blooms, and massive deaths of fish. What’s more, when nitrogen reaches surface waters, it further contributes to the degradation of our marshes, bays, and beaches.

The county’s response has created an unexpected foreclosure risk for property owners who cannot afford mandatory septic system upgrades. Suffolk County Legislature passed new changes in October 2020 that require septic improvement and innovative treatment systems, effective July 1, 2021. Nitrogen-reducing systems are required for new family residential construction, major reconstruction projects, new multi-family or non-residential projects, and all new commercial projects.

The Financial Burden of Environmental Compliance

The average total cost for nitrogen-removing I/A systems is approximately $25,000.00, plus the cost of attendant engineering and design services. For many Suffolk County homeowners already struggling with high property taxes and living costs, this represents an insurmountable financial obstacle. While grant programs exist, they have strict eligibility requirements that exclude many property owners from assistance.

Most concerning is that the property cannot have tax liens or be in foreclosure to qualify for county assistance programs. This creates a catch-22 situation where homeowners who most need financial help are automatically disqualified from receiving it. Property owners facing financial difficulties may find themselves unable to afford the mandatory upgrades, potentially leading to enforcement actions and liens against their property.

How Septic System Liens Can Trigger Foreclosure

When homeowners cannot comply with environmental mandates, Suffolk County has the authority to place liens on properties for unpaid septic system-related costs. For any parcel of real property to which the County of Suffolk acquires an interest pursuant to the provisions of the Suffolk County Tax Act for nonpayment of delinquent taxes, the prior owner and any other parties whose interests were extinguished by the foreclosure of the delinquent tax lien (“applicants”) may apply in writing to the Division of Real Property Acquisition and Management for a distribution of surplus, if any.

These environmental compliance liens can accumulate rapidly, especially when combined with interest and penalties. For purposes of this subdivision, surplus shall mean… the full value of the property as of the date of the transfer of title as determined by such other valuation method as the enforcing officer reasonably determines will result in just compensation to the former owner and other parties whose interests were extinguished by the foreclosure, minus the total amount of taxes due plus interest, penalties, and other Charges, as defined by Section 1102 of the Real Property Tax Law

Limited Financial Assistance Creates Additional Barriers

While Suffolk County offers some financial assistance through its Septic Improvement Program, the help is limited and comes with restrictions. The Suffolk County Septic Improvement Program provides up to $10,000 base grant. However, this amount covers less than half of the typical system cost, leaving homeowners to find additional funding.

The purpose of the loan is to provide “gap” funds to finance the difference between the Suffolk County grant and the contract amount needed to install the replacement septic system. Loan amounts cannot exceed $10,000. Even with maximum grant and loan assistance totaling $20,000, homeowners may still face significant out-of-pocket expenses.

The Foreclosure Process and Property Loss

When environmental compliance costs become overwhelming, property owners face the same foreclosure risks as those with unpaid property taxes. The county of Suffolk is empowered to purchase lots or parcels of land at such tax sale, and is further empowered to accept deeds and to foreclose the certificates of sale and perform all other acts to perfect the title of real estate thus acquired. The county treasurer shall annually furnish the county legislature with a report of real estate acquired by the county at such sales, which remains unredeemed and to which the county is entitled to a deed or upon which foreclosure proceedings may be commenced.

The foreclosure process can move quickly, and foreclosure auctions take place at each town hall as calendared by the Foreclosure Referee… Effective May 1, 2023, foreclosure auctions are to be conducted in accordance with AO/12/23 and Suffolk County’s Foreclosure Auction Rules and Procedures.

Legal Protection and Professional Guidance

Homeowners facing environmental compliance costs that threaten their financial stability need immediate legal counsel. A qualified Foreclosure Attorney Suffolk County can help evaluate all available options, including bankruptcy protection, foreclosure defense, and negotiating payment plans with the county.

The Law Office of Ronald D. Weiss, P.C., located in Melville, has been serving Suffolk County residents since 1993. A Suffolk & Nassau, Long Island lawyer specializing in bankruptcy law & foreclosure solutions. Our attorneys have represented clients from Suffolk & Nassau County in bankruptcy cases and preventing foreclosure. The firm understands the unique challenges facing Long Island homeowners dealing with environmental compliance costs and foreclosure threats.

The Law Office of Ronald D. Weiss, P.C. can consult with and represent individuals and businesses located on Long Island, New York City and Westchester in bankruptcy proceedings under all Chapters of the Bankruptcy Code. We also represent clients in negotiations, reorganizations, real estate, foreclosure defense, litigation defense, and landlord-tenant defense.

Taking Action to Protect Your Home

Suffolk County homeowners should not wait until facing foreclosure to seek help. Early intervention can provide more options for addressing environmental compliance costs while protecting property ownership. Professional legal guidance can help navigate the complex interaction between environmental regulations, financial assistance programs, and foreclosure law.

The combination of mandatory septic system upgrades and limited financial assistance has created a perfect storm for foreclosure risk in Suffolk County. Property owners must understand their rights and options before environmental compliance costs spiral beyond their ability to manage. With proper legal representation, homeowners can explore all available alternatives to protect their most valuable asset – their home.