The town’s property tax lien sale places many owners susceptible to dropping their houses as a result of it publicizes excellent tax and sewer money owed, notably for Black and Brown people, seniors, and veterans.
“For many New Yorkers, the tax lien sale is a little-known course of, however for a lot too many owners, a lot of whom ought to by no means have been on the checklist within the first place, it carries devastating penalties,” stated Khari Edwards, a candidate for Brooklyn borough president this 12 months. “The tax lien sale must be utterly overhauled to guard New Yorkers who could also be on the monetary brink, and till it’s, town and state should put a moratorium on any future gross sales.”
When a property is on the tax lien sale checklist, it means the proprietor owes property taxes or has water, sewer, and different property-related fees. The town can then promote the debt to a licensed purchaser who has the appropriate to gather what’s owed, opening up owners to predatory debt collectors. Industrial properties may be on the checklist for one 12 months, whereas a residential property can stand up to 3 years earlier than town strikes ahead with foreclosures.
Between 2017 and 2021, tax lien sale-affected rental properties and items had been concentrated in Black and Brown Metropolis Council districts, in keeping with a analysis temporary produced by the East New York Group Land Belief (ENYCLT). As well as, the overwhelming majority of residential items in lien sale properties are owned by absentee landlords, so the method places renters susceptible to dropping their houses as properly.
The town’s Division of Finance (DOF) not too long ago posted the 2025 property tax lien checklist for all 5 boroughs — a primary since 2021. Former Governor Andrew Cuomo and New York State Legal professional Basic Letitia James determined to cancel the lien sale in response to outcry throughout the COVID pandemic in 2020. The subsequent lien sale is scheduled for Might 20, 2025.
Greater than 3,400 Brooklyn one- and two-family houses are at the moment included on the tax lien checklist.
Edwards’ late mom, Elenora Bernard, was killed on the age of 77 in her house in East Flatbush in 2022. After her dying, it was found that her home and funds had been in flux, stated Edwards, who’s the executor on her account after probate. The tax lien sale is extremely private for him this 12 months. “My mother would’ve turned 80 and it’s emotional for me as a result of now I’m seeing she had a $100,000 tax lien on water that she wasn’t even utilizing,” stated Edwards at a rally he held in entrance of her constructing on March 31 to lift consciousness concerning the coming sale.
“She was solely making $1,100 by way of her Social Safety a month, so there was no manner she was going to have the ability to sustain. And when she requested for assist, after all, I helped pay this invoice or that invoice however she didn’t even know,” he stated.
The DOF is meant to ship owners warning notices within the mail 90, 60, 30, and 10 days earlier than the sale. Many owners say they find yourself on the checklist with out being correctly knowledgeable by the Division of Environmental Safety (DEP) that they owe cash to town earlier than the 90 days, particularly in relation to unpaid water payments.
“I seen that my invoice was growing tremendously,” stated Margaux Jones-McDuffie, a Clinton Hill resident. “One of many meters that DEP has to learn was damaged. I didn’t know in any respect that the meter was damaged for 4 years since 2021. To my shock, I ended up with a invoice near $9,000. I by no means missed a cost in 29 years of proudly owning my constructing. I all the time paid on time. By no means had an issue, by no means had any disconnected notices despatched to me, so I used to be appalled.”
Jones-McDuffie stated that she pays on-line and by no means acquired a discover or letter informing her particularly of a damaged meter. As a substitute, she was given “estimates” on the again of her invoice. She needed to name DEP to get an agent to examine her home. She stated it’s ridiculous that the explanation for the estimated invoice isn’t highlighted on the entrance for customers to know what’s occurring.
Based on Richard Flateau, a licensed actual property dealer for the final 25 years, founding father of Flateau Realty Corp. in Brooklyn, and former chair of Group Board 3, considered one of his industrial properties had a meter downside and he acquired a excessive water invoice.
“It was manner worse earlier than,” stated Flateau concerning the lien course of. He labored with Dr. Annette M. Robinson, a former Brooklyn Council member who was in workplace from 1991 to 2000, and the late Mayor David Dinkins to deal with the housing lien disaster within the metropolis. Earlier than 1996, town would seize and foreclose on properties, typically changing buildings to cooperative possession or transferring them to not-for-profit entities with out the courtesy of the lien sale checklist, in keeping with the analysis temporary.
Jeffrey Golkin, a long-time property tax legal professional and reform advocate, stated he’s been struggling to reform tax legislation within the metropolis for the final 40 years. He additionally served below Dinkins on the previous mayor’s advisory council. Golkin defined that the tax lien course of was known as an In Rem Foreclosures then. No matter identify, Golkin stated town has had a penchant for “egregiously” overtaxing and over-assessing properties in misery for many years, likening the lien course of to an “animal uncontrolled.” He criticized town’s traditionally corrupt tax assessors for compounding the problem by sending out overpriced payments with out correct on-the-ground resourcing. He stated that the entire design is “fallout from dangerous coverage” and little political will from current mayors and the present Mayor Eric Adams to vary the system.
“Individuals can’t keep their buildings with the issue available in the market proper now,” stated Golkin. “It’s a systemic state of affairs. Older properties are arduous to keep up with utilities, insurance coverage, repairs, and it’s important to stay present in your taxes.”
Edwards has been canvassing Brooklyn houses on the lien sale checklist whereas campaigning, informing residents concerning the upcoming sale and the present exemptions that shield some property house owners. Residents who qualify for the Senior Citizen Householders Exemption, Veterans Householders Exemption, or Disabled Householders Exemption shouldn’t be included on the lien sale checklist, however are inspired to use prematurely to make sure their exemption is acknowledged earlier than the sale happens. Sure owners whose complete family earnings doesn’t exceed $107,300 and who don’t personal further properties additionally qualify for elimination from the lien sale checklist.
“Many owners are unaware that that is occurring or that they owe any debt to town. Seniors, veterans, and disabled owners typically don’t understand they’re presupposed to be shielded from this fully,” stated Edwards. “This lack of know-how is a results of the federal government’s failure to speak with the general public and assist owners keep away from potential displacement and monetary break.”
Advocates are all for abolishing the tax lien sale in favor a extra equitable debt assortment system. Within the meantime, Golkin suggested that getting into a cost settlement with DOF can gradual the lien course of down for owners, whereas tax attorneys like him problem unscrupulous property assessments in court docket and ideally get a property faraway from the checklist altogether.
Flateau urged that owners be as proactive as doable by reaching out to DOF and DEP instantly, getting into a cost plan, or attending academic boards concerning the tax lien course of typically held by nonprofits and elected officers.
“Placing a house on the lien sale checklist is a final resort, often as a result of we can’t attain a house owner or as a result of they refuse to speak with us,” stated Robert Wolejsza, DEP press secretary, in a press release. “Virtually all individuals on the lien sale checklist haven’t paid a invoice in at the very least a 12 months. DEP needs to work with owners and we provide versatile cost plans. Property house owners on the lien sale checklist can get off the checklist instantly by calling DEP and dealing with us to get right into a cost plan. Any buyer who believes their invoice is just not correct can file a dispute.”
Wolejsza stated that DEP routinely checks meters to make sure they’re recording consumption precisely and dealing correctly. He famous that prospects can examine their meters and payments in actual time by signing up for My DEP Account. Excessive water payments may be the signal of a leak, and property house owners who repair leaks promptly could also be eligible for a leak forgiveness program, he added.
Extra details about town’s tax lien sale course of is on the NYC 311 Portal. Householders who need assistance with their property on the tax lien checklist can name 311 or 212-NEW-YORK (212-639-9675). Extra free assets are on the Workplace of the Taxpayer Advocate or from nonprofits like Authorized Assist Society’s Foreclosures Prevention undertaking.
