|Inability to Place a Lien Against Fire Insurance Proceeds on Certain Properties|
The Mandate: Municipalities are prohibited from placing a lien for unpaid real estate taxes against the proceeds of a fire insurance policy on properties containing a one or two family structure.
The Cost: The burden for the non-payment of the taxes on these properties shifts to other property owners, as municipalities are forced to look for revenue elsewhere.
The Solution: Permit a municipality to place a lien for unpaid real estate taxes against the proceeds of a fire insurance policy on any real property located within a municipality. This solution would permit the municipality to be treated in the same manner as any other lienor that has made a claim to the insurance proceeds, and ease the burden imposed upon property owners.