Suffolk water authority collects $2M in past-due bills after threatening tax liens

The Suffolk County Water Authority's lien program is designed in part to "discourage a further accumulation" of debt by the utility. Credit: Howard Schnapp
The Suffolk County Water Authority on Tuesday said it has collected more than $2 million in past-due water bills from customers who owed $1,000 or more by threatening to put liens on their property taxes.
The program begun in May communicated with more than 2,800 customers who owed more than $1,000 for more than three months that they could avoid liens on their property by making payments before Aug. 31. About 1,240 customers have agreed to pay a total of about $2.4 million, reducing the arrears from a prior total of $5.1 million, said authority chief executive Jeff Szabo.
“We don’t want to turn people off and we do want to give them opportunities to enter payment plans,” he said, noting the utility has communicated with customers via calls, emails and letters.
Szabo noted the authority has had the ability to place liens on unpaying customers since passage of a state law in 2016, but it’s been used primarily to force payments from those who have closed accounts but didn’t pay their final bill in full. Tax liens placed on properties are included in the customers’ next property tax bills and are collected by the county.
WHAT TO KNOW
- The Suffolk County Water Authority said it has collected more than $2 million in past-due water bills from customers by threatening to put liens on their property taxes.
- The program begun in May told more than 2,800 customers who owed than $1,000 for more than three months that they could avoid liens on their property by making payments before Aug. 31.
- About 1,240 customers have agreed to pay a total of about $2.4 million, reducing the arrears from a prior total of $5.1 million.
Like other utilities across the state, the water authority saw an “unprecedented” increase in customer arrears following the COVID-19 pandemic, which left some unable to pay because of work furloughs, layoffs and other disruptions. It also left utilities across the state with more than $1 billion in uncollected bills.
But utilities this year began restarting programs of shut-offs and other approaches to entice customers to pay overdue bills, after state-backed moratoriums on collections and shut-offs were lifted.
The water authority’s lien program is designed in part to “discourage a further accumulation” of debt by the utility. Newly named authority chairman Charles Lefkowitz in a statement said it is “safeguarding the financial health of our operations and demonstrating our willingness to work with customers to get them back in good standing.”
But one utility watchdog said the use of tax liens puts greater pressure on those customers least able to pay past-due bills, and likely forces them to leave other bills unpaid or to reduce payments on items such as food.
“We understand SCWA’s need to preserve financial integrity, but their policy raises serious concerns for low- and fixed-income households who are already struggling to make ends meet,” said Ian Donaldson, spokesman for the Public Utility Law Project New York, which advocates for utility customers.
“If a customer is behind on their water bill, chances are they are also behind on other utilities or their mortgage payment,” Donaldson said.
Szabo noted that the authority still threatens water shut-offs for certain customers who don’t pay, but noted the vast majority of customers pay on time. Figures of shut-offs and arrears less than 90 days late weren’t immediately available.
Either way, Szabo said, “We make every effort to work with our customers who are struggling. Our intention is not to turn off water.”
Donaldson said another cause for concern is the imminent expiration of a federal program known as Low-Income Household Water Assistance Program, which offers up to $2,500 to eligible customers to help pay drinking-water service costs, including arrears. Expiration of the program this fall will “remove a critical safety net for eligible households,” Donaldson said, noting it’s been “tremendously helpful for homeowners and renters alike with overdue water and sewer bills. We’re disappointed that it didn’t get a dedicated funding stream in the federal budget …”
The water authority said the state Office of Temporary and Disability Assistance will accept applications for that program until Aug. 31.
PULP offers assistance for customers struggling with their water “or any other utility bill,” Donaldson said. PULP’s help hotline is at 877-669-4221 for assistance, which includes avoiding service terminations and negotiating affordable payment plans, he said. The water authority can be contacted at 631-698-9500 to discuss payment options.

Food, fun and fireworks: NewsdayTV's Fourth of July special NewsdayTV's Elisa DiStefano has your guide to Fourth of July fun across Long Island.

Food, fun and fireworks: NewsdayTV's Fourth of July special NewsdayTV's Elisa DiStefano has your guide to Fourth of July fun across Long Island.