Treasurer Pete McGregor: foreclosures down to 15 parcels; short-term rentals complicate lodging tax collection

County Treasurer Pete McGregor reported to the Kent County Board of Commissioners that the county recorded just 15 foreclosed parcels this cycle and emphasized efforts to prevent property loss through payment plans, hardship deferrals and targeted outreach.

The treasurer said the county began March 1 with 1,462 parcels in forfeiture and reduced that number to 15 by April 1. "Towards the bottom, you can see, we only had 15 parcels that were foreclosed on on April 1," McGregor said, noting most were vacant or unbuildable lots. He added that the county’s average has been about 22 foreclosures per year over two decades.

McGregor described the county’s Home for Generations program as a coordinated prevention effort that pairs legal, probate and home-repair partners to keep families in their homes. He recounted a recent case in which a 19-year-old he identified as Nicole regained a probate-encumbered property after about a year of assistance: "It's an amazing accomplishment," he said, and said the county plans to expand outreach and communication about the program.

On lodging excise taxes, McGregor noted a 2025 ordinance raised the county rate from 5% to 8% and said most revenue still comes from hotels and motels (about 102 establishments). He described short-term rentals as a growing enforcement challenge because state rules generally assign tax-collection responsibility to the host platform rather than the county. "The state, you know, says that they assign tax collection ... exclusively to the host site," McGregor said, adding that the county is exploring options to make compliance easier for small-scale hosts without hiring new staff.

Commissioner Bujak urged an ordinance change to spell out that short-term rentals are included in the county’s hotel-and-motel excise tax so hosts cannot claim the tax does not apply to them. "In order to bring more individuals into compliance, the suggestion was that we look at that ordinance and amend it to say hotel, motel, and short term rental," Bujak said.

McGregor also summarized the U.S. Supreme Court’s decision in Peng v. Isabella and its local implications for excess-proceeds claims after foreclosure. He said the court rejected a claim that counties must pay foreclosed owners full fair-market value, instead affirming that public auction processes and the county’s 78t claims procedure determine potential excess proceeds. "It was unanimous and our U.S. Supreme Court said no," McGregor said, calling the decision a win for county treasurers.

Several commissioners thanked McGregor for the office’s outreach and foreclosure-prevention work. Commissioners and staff discussed possibilities for smoothing the 78t claims process, including improved online filing and legislative tweaks to claim deadlines and procedural clarity. McGregor said the county would continue coordinating with local treasurers, legal counsel and the legislature on next steps.

The board did not take a formal vote on policy changes during the meeting; McGregor said further adjustments could require legislative action or administrative changes to notice and claims procedures. The county will continue to promote bilingual outreach and digital options to help residents access exemptions and avoid foreclosure.

The treasurer took questions from multiple commissioners and offered to share podcasts and bilingual materials he referenced during the presentation; he said staff will keep the board informed as proposals move forward.