Suffolk County, home to the Hamptons and some of the country’s poshest homes, accidentally missed an interest payment on its debt, CNBC reported. The gaffe, which includes a missed payment on $76.1 million of public improvement bonds, leaves the county technically in default.
Floridians are big spenders in the Hamptons market, owning 2.7 percent of all vacation homes there which cost a total of $1.2 billion, according to 2012 PropertyShark figures.
Though per-capita income in Suffolk County is well above the national average, it has been mired in recent financial difficulties, declaring a fiscal emergency last year after an independent task force predicted a three-year deficit of $530 million, according to CNBC. Local officials last month added that the county could see a $250 million deficit by the end of 2014.
To be sure, the missed payment was for the paltry sum of $722.65 and appears to have been purely an oversight on the part of M&T, the county’s escrow agent.
“The county informed M&T of its error, and the escrow agent immediately wired the $722.65 payment to DTC,” the regulatory filing said. [CNBC] –Hiten Samtani