Up to 40 Blue Mountains properties may be sold because the owners haven't paid their council rates.
At a Blue Mountains City Council meeting last week, a council spokeswoman told the gallery "up to 40" owners could face their properties being sold out from under them due to their failure to pay their rates.
The council was told 562 residents were currently overdue on their rates and had been "referred for legal recovery". Some $2.3 million is owed in rates fees with overdue accounts ranging from 1 cent to $30,000.
News of the 40 owners was uncovered when Liberal councillor Chris Van der Kley had asked: "How many of those 562 residents that are so far overdue ... how many of those ones are we about to take action to sell their properties?"
A council officer then told the gallery it was "in the order of less than 10 per cent but I've got staff checking the actual number for the [June] review... possibly up to 40".
The news came to light after Labor councillor Annette Bennett, voted in during the recent by-election, asked for a review of Council's Hardship Relief Policy which looked into assisting low income and pensioner ratepayers.
Clr Don McGregor said the report showed "few people actually avail themselves of the hardship provisions" adding "Katoomba particularly was suffering from a high level of mortgage stress".
Less than 25 applications were made each year for 'special consideration' or 'financial hardship' which offers delayed payment options, with almost all approved.
Council was told outstanding rates money had decreased from $2.4 million owed back in 2002 and that 32,732 ratepayers [92 per cent] of the 35,738 ratepayers were up-to-date. Just under half of council's total yearly revenue comes from rates.
Meanwhile Member for Blue Mountains Roza Sage has joined the campaign to encourage residents to have their say on rate rises.
"Council has applied to an independent regulator for a special rate variation that will see average household rates go up by 40.4 per cent over the next four years," Mrs Sage said.
"This is by anyone's measure a significant increase particularly for those on fixed incomes."
The Independent Pricing and Regulatory Tribunal is inviting public comment on the application until March 16.
The Hardship Relief Policy will be reviewed and go back to council in June.