As people on fixed incomes continue to struggle with rising property taxes, the mayor of South Portland, Maine, recently recommended that seniors in the region explore reverse mortgages as a potential option to add financial flexibility. After lengthy reactions, Mayor Misha Pride has walked back his comments.
“Given the recent increase in real estate values, I suggested that some seniors might consider a reverse mortgage,” Pride wrote in an article letter to The editor of the Portland Press Herald on Thursday. “It was an inappropriate comment that came from my long experience as a senior lawyer. While it is a tool that I know has been useful in specific circumstances, it was never my intention to advocate it as a general approach.”
Pride went a step further, saying the comment was “regrettable,” while adding that he “sincerely apologizes.”[s]’for making it.
“That said, it should not be misinterpreted as an attempt to offset all the good I have advocated for and accomplished in my years of service to our city,” he said. “I share my fellow South Portlanders’ frustration with the state-mandated revaluation that has resulted in this year’s tax increases. I am currently working hard with the council and our state legislators to achieve the tax relief and fairness we are all striving for.”
Rising property taxes are an issue that many communities are grappling with, both nationally and internationally. At the August council meeting, Pride explained that one of the reasons for the increases comes from reduced commercial real estate activity, which has increased the property tax burden on residential property owners.
Pride argued that revising the percentages and potential reallocations for a senior-targeted tax relief program may not be worth it.
“I’m just throwing this out there because I’ve also been thinking a lot about how people on a fixed income in particular can deal with this,” Pride said during the August meeting. “It’s kind of a last resort, but since our property values are so high, seniors may want to consider a reverse mortgage.”
According to local reports, this led to “an audible gasp and unrest among those present at the August meeting.”
Pride is not a generalist when it comes to understanding issues specific to seniors. As he mentioned in his letter, he is an attorney at a Maine firm that specializes in estate planning and elder law. RMD attempted to contact Pride, but he could not immediately be reached.
The reasoning for Pride’s recommendation echoed similar reasoning expressed by a mayor in New Zealand earlier this year, but unlike Pride, that mayor doubled down on his suggestion.
