City should give senior money from sale of home he inherited: ombudsman

The city's ombudsman urges city council to approve payment to the man, rather than make him go to court.

Thestar.com
Sept. 28, 2017
By David Rider

The City of Toronto should immediately give a vulnerable senior citizen $462,000 from the sale of his inherited home, city ombudsman Susan Opler said Thursday.

Opler noted, in a new report, that city staff took many steps to notify the unidentified man that his late mother's home would be sold for unpaid taxes, and, after the sale, that he could apply to get the leftover proceeds, but he took no action.

However, he is now facing eviction from his apartment and city council should immediately order staff to cut him a cheque, Opler wrote.

"In all the circumstances, it is neither reasonable, nor realistic, to expect the complainant to take the city to court to pursue a claim in the law of equity against the city to recover this money. He should not have to do so," wrote Opler, the official of last resort for citizens fighting city hall.

"Considering the information we gathered during our enquiry, it would be unfair and inequitable for the City to keep the surplus ... Basic fairness demands that the city return the surplus funds to him."

In 1974, the man and his mom moved into the house, ownership of which she transferred to a joint tenancy in 1993. In 2001, they moved into an apartment, but kept the house.

He remained in the apartment after her death in 2007 and failed to pay property taxes on the house.

The city sent notices to his apartment and the house in September 2012 that it would sell the house to recover the unpaid taxes, but heard nothing back.

A city staffer went to the house and was told by a neighbour it was long vacant.

At the man's apartment building, a property manager told city staff there was nobody by the name provided in residence. The late mother's lawyer put the city in touch with the man's sister, who was executor of the mom's estate.

In April 2013, the sister told the city the man did live in the apartment, suffers from mental issues, and that she had had little contact with him.

The house was sold for $525,000, and notices sent to the house and the man's apartment telling him he had one year to claim the remaining $462,534.53, after city taxes and costs, which had been paid into court. The man made no claim.

Three years later, the city successfully asked the court for the money, which was paid into general city revenues.

By March 2017 the man had no income, little savings and was facing eviction from his apartment. His sister got in touch with LOFT Community Services which got him $8,000 in retroactive Canada Pension Plan funds, which helped him pay back rent.

"The social worker recently told us that the complainant has now used up the lump sum he received from CPP and will be unable to pay his October rent," Opler's report states, adding he is living on only $629 per month in CPP and is awaiting Old Age Security payments.

A social worker has expressed concern for the "mental health and wellbeing" of the man, who has never been diagnosed with mental illness, and who has signed a continuing power of attorney for property to his sister.

Opler notes that a new law passed by Queen's Park, but not yet in force, extends the period to recover such home proceeds to 10 years.

A city revenue services official told Opler his department can't just cut the man a cheque. City council can, however, authorize a "discretionary grant."

As Opler finalized her report, she writes, the city's deputy manager and chief financial officer informed her "he believed that the city should pay the complainant the surplus. He told us he would welcome council's direction to pay the complainant."

Opler's report goes to city council next week.