Neumann troubles still haunt buyers

Antioch homeowners living in three Neumann Homes subdivisions are going to see an increase next year on their property tax bills.

The tax hike -- expected to average 16 percent -- is the latest hit homeowners are taking since Neumann filed Chapter 11 bankruptcy Oct. 31.

"The ugly reality is finally setting in," said village Trustee Scott Pierce. "Everyone feels absolutely horrible about this, but it is just another unfortunate result of the bankruptcy."

Village board members learned this week residents of the Neuhaven, Clublands and Deercrest subdivisions will see the increase on their special service area tax beginning with the bills sent in June.

Homeowners in Neuhaven and Deercrest will pay an extra $20 per month and $50 per month in Clublands, Trustee Dennis Crosby said.

The village established two special service areas to fund sanitary sewer and water improvements in the subdivisions.

Under the special service area provision, property owners who benefit from the improvements are assessed an additional tax used to pay down the bonds.

Village Finance Director Joy McCarthy said 495 homeowners in Deercrest and Neuhaven will be responsible for one special service area, which is levied at $858,502 for 2007.

The other special service area is levied at $1.8 million for 2007 and will be paid for by 960 homeowners in Clublands.

Residents have already been paying the special service area tax, but their bill will be higher next year because they will have to cover the amount normally paid by Neumann Homes through its property taxes on land not yet developed.

McCarthy said the amount individual homeowners pay will depend on the value of their homes.

Homeowners could see some relief if a new developer takes over the subdivisions or if the bank handling the bankruptcy covers the difference.

If that happens, McCarthy said, homeowners will be responsible for the bill in 2008, but their special service area tax would decrease in 2009.

Right now, there are too many variables to make predictions, McCarthy said.

Crosby, who lives in the Clublands subdivision, said residents don't know about the increase yet and assumes people won't be happy.

Crosby wants the village to hold a meeting with homeowners next month so their questions can be answered.

"It is deplorable that this has happened," he said. "It is not the village's fault, but the fact is, we've got to keep these bonds in good condition so they don't go into default, otherwise we would be hurting all of the citizens of the village."