The city will now hold off on selling the debt of property owners—who make the list if they owe taxes or water, sewer and emergency repair charges—until June 3. The extension “gives New Yorkers more time to take action and get help,” Department of Finance Commissioner Preston Niblack said.
Buildings in Brooklyn. (Photo by Adi Talwar)
The city will delay the return of its controversial tax lien sale for two additional weeks—an effort to give home and property owners more time to address their debts and avoid it, officials said Thursday. It will now take place June 3, rather than May 20 as originally planned.
Since the Giuliani administration, the city has attempted to collect on delinquent tax, water or emergency repair bills by selling the debt to an authorized buyer, usually a trust, which typically begins charging fees and interest on any unpaid liens. It can lead to foreclosure, and has historically hit homeowners in communities of color the hardest.
This year is the first time the city will hold the sale since the COVID-19 pandemic. Over the years, many housing advocates have called to abolish the practice, saying it puts vulnerable small homeowners at risk of homelessness or exploitation by predatory lenders.
“It’s the same areas that historically were redlined, it’s the same areas that were targeted, that had racial predatory lending. It’s the same areas that have suffered from discrimination for decades, almost a century,” said Kevin Wolfe, deputy director of advocacy and public affairs at the Center for NYC Neighborhoods, in an interview with City Limits last month.
In an effort to address that criticism, the City Council and the Adams administration passed reforms last year, including the creation of a new “Easy Exit Program“—under which eligible households can avoid having their debt sold for up to a year—and a $2 million outreach campaign that offers free counseling for homeowners.
There are other ways people can get their buildings off the sales list: they can pay their debts in full, enroll in a payment plan, apply for a property tax exemption, or submit a probate application.
“This extension gives New Yorkers more time to take action and get help,” said Department of Finance Commissioner Preston Niblack in a statement Thursday. “We’re doing everything we can to connect property owners with payment options and support services to help them avoid the lien sale and stay in their homes. If you or someone you know is at risk, now is the time to reach out.”
You can find more information and resources from the city here, or visit the Center for NYC Neighborhoods’ Homeowner Help Desk here.
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