Share this article

print logo

Ryan calls for abolishing PHH tax breaks

Assemblyman Sean Ryan called for the Amherst Industrial Development Agency to cancel tax breaks for PHH Mortgage Corp., after the company disclosed plans to eliminate 91 jobs at its Amherst facility by year’s end.

“It’s time for the Amherst IDA to admit defeat and move on from the failed deal with PHH Mortgage,” said Ryan, D-Buffalo, in a statement.

PHH, which processes and services mortgages, announced it would cut about one third of its local workforce, following HSBC Bank USA’s decision to sell the servicing rights to about 139,000 mortgage loans subserviced with PHH.

PHH also said it will move out of a facility built by Zaepfel Development, and hasn’t specified its plans for its remaining local jobs.

PHH was authorized for $1.3 million in sales tax exemptions by the Amherst IDA a few years ago. But PHH has received only about $200,000 in sales tax breaks, since they were awarded only when the company made eligible local purchases.

Ryan, a frequent critic of tax breaks approved by IDAs, said PHH has been shrinking its workforce, rather than following through on plans to grow it, and should have its tax breaks revoked.

PHH’s sales tax letter with the Amherst IDA expired at the end of 2015 and was not renewed because of previous job cuts the company made, said David Mingoia, interim executive director of the Amherst IDA.

email: mglynn@buffnews.com

There are no comments - be the first to comment