HMC struggles to collect over $6 million in overdue rent
Published:Saturday | October 15, 2022 | 12:06 AMBryan Miller/Gleaner Writer
WESTERN BUREAU:
MAYOR OF Lucea Sheridan Samuels is fuming over what he claims is the total disregard being shown by tenants to pay over outstanding rental payments to the Hanover Municipal Corporation.
According to Samuels, the outstanding amount owed to the corporation is now over $6 million. He said the HMC will be initiating legal action against those tenants who owe in excess of three months’ rent.
Checks made by The Gleaner revealed that over 30 tenants, who are asked to pay rates between $1,500 and $7,500 monthly, depending on the amount of space and the location, are delinquent.
PARTIAL DEBT WRITE-OFF
The HMC chairman lamented that the arrears have mounted despite the tenants being granted reprieve, which includes partial debt write-off.
“I have spoken about it before, about the challenges that we (HMC) are facing with collections from persons who rent from us. At that time, it was three-point something million dollars that was outstanding,” he stated
He said much of the debt is incurred by persons who illegally set up businesses in the HMC transport centre.
“People went and captured our land, put shops on it, we regularised them for them to pay, now they are outstanding to the tune of some 4.3 three million dollars,” he explained.
Samuels said despite court action being taken against some of the perpetrators, resulting in stop orders being placed on their businesses, they have refused to settle their arrears.
“We have taken another step at the meeting (Commercial Services Committee), that all outstanding amounts over three months will be going to court,” he said.
“I can’t understand how you rent a place and for one year you are not paying any money. Where else can that happen?” he questioned as he sought to understand the rationale of the tenants. “To me, it seems as if because they think that it is the property of the HMC, (so) they should not be paying to us,” he opined.
The HMC chairman said the income from rental is a major revenue earner for the municipal body.
But with the HMC attracting interest from what Samuels described as multinational corporations wanting to rent commercial space in the town, the municipality will be moving decisively to recover possession from the delinquent tenants.