Three Erie Independence House properties serving people with disabilities remain on the Erie County upset tax sale list, despite recent inquiries and what officials describe as possible efforts to find a solution.
The properties — homes on West Fifth Street, East 26th and McClelland Avenue, and West Second Street — are scheduled for the county’s upset tax sale on Sept. 28.
Residents remain concerned about what could happen if the properties are sold, including whether they could eventually be forced to move to a hotel or find other housing.
The financial problems at Erie Independence House came to light last month. Residents and the limited staff remaining at the facilities described a decline in services and conditions. They blamed owner Tim Finegan, the son of the organization’s founder, and the loss of a management contract.
State Rep. Pat Harkins, D-1st District, became involved after learning about the situation last spring. He has raised concerns about unpaid obligations involving employees and the financial liabilities attached to the properties.
“It’s my understanding that the owner hasn’t paid into FICA, they haven’t paid into unemployment, they haven’t paid into the pension plans or 401K’s for the employees who are still with him. That in itself is criminal to me…but at the end of the day, the person that looks into these to buy them, I don’t want to see them saddled with so much baggage that it’s not worth it for them to take this over.”
Staff previously showed Erie News Now the tax sale notices, along with a lengthy list of unpaid vendors.
Since the original report aired, the Erie County Tax Office says it has received inquiries about the properties. However, officials say nothing has happened yet that would remove them from the Sept. 28 upset tax sale.
The properties are being described as “buyer beware,” because of IRS tax liens and other liabilities associated with them.
Harkins said his office has been banging on doors, reaching out to the PA Attorney General office and HUD, raising concerns about the future of the 40 people housed in the facilities, but is not getting any answers. “I’ve been trying to beat the drum on this and it’s just amazing that nothing’s resonating,” Harkins said.
Meanwhile, sources tell Erie News Now the U.S. Department of Housing and Urban Development has visited Erie to inspect the properties. Staff with the facilities tell us that any safety issues identified during those inspections have been corrected.
For now, the tax sale is still scheduled to proceed.
If a property is sold and a new owner decides to change its mission, residents could eventually face eviction. However, officials with the county tax office say that process likely would not occur until January or February of 2027.
Rep. Harkins said he will continue working to find a solution that keeps residents in stable housing. “I’ll push for anything we can to make sure these people stay stable,” Harkins said.
There are indications that Finegan may be working on a possible solution, but no details have been confirmed that would remove the properties from the upcoming tax sale.
Erie News Now will continue following the situation as the Sept. 28 tax sale approaches.