This month, the NYC Division of Finance (DOF) will probably be sending out 90-day tax lien sale warning notices for the primary time since 2021. Which means property homeowners who owe years of excellent debt to the town will probably be notified that until they take motion, their excellent taxes and expenses may very well be offered to a debt assortment company.
What units the upcoming lien sale aside from earlier ones is the historic motion taken final 12 months by the partnership of the Adams administration and the New York Metropolis Council to guard susceptible householders. Collectively, we launched a groundbreaking coverage aimed toward prioritizing significant aid to those that genuinely can’t pay and require monetary help and enforcement in opposition to those that can afford to pay however refuse to take action.
The passage of the Dwelling Preservation and Debt Decision Reform Act represents New York Metropolis’s most substantial effort to this point to reform an outdated and inequitable property tax enforcement system that has lengthy disproportionately affected susceptible householders and communities of coloration.
Whereas property tax assortment is crucial for funding public companies, infrastructure, colleges, parks, and extra, the town’s earlier enforcement system usually prioritized income assortment over equity and empathy. Missed funds might shortly spiral right into a disaster, placing householders prone to dropping properties that had been of their households for generations.
By partnering with group leaders, nonprofit teams, advocacy organizations, and different key stakeholders, we’ve created a system that strikes a steadiness between fiscal accountability and safeguarding householders from undue hurt. These revolutionary modifications give homeowners extra time to resolve their money owed, provide reasonably priced fee plans, and strengthen tenant protections by elevated constructing inspections and the creation of a watchlist for landlords with repeat violations.
To achieve extra susceptible householders of their communities, the Adams administration and Council are committing assets from a number of metropolis companies to launch a complete, community-focused outreach initiative aimed toward assuaging monetary hardship and selling housing stability. We’re partnering with the Heart for New York Metropolis Neighborhoods, a well-respected nonprofit that promotes reasonably priced housing, to leverage trusted group voices and meet the person wants of householders.
So, let’s speak about what this implies and what homeowners ought to do in the event that they obtain a lien sale warning discover.
If you’re a property proprietor, please remember that if you don’t pay your property taxes, water and sewer charges, and different property-related expenses, you might be prone to being included in a lien sale. In a lien sale, the Metropolis of New York sells your debt to a licensed purchaser, giving the customer the appropriate to gather what you owe. This doesn’t imply that your property has been offered, but when you don’t resolve your excellent debt, the lien sale could be a first step towards non-public assortment efforts and foreclosures.
Recognizing that some New Yorkers want further time to handle their debt, DOF is providing a brand new “Easy Exit” program as a significant a part of these reforms. This initiative permits eligible householders to request elimination from the lien sale as much as 3 times inside a 36-month interval, providing essential aid to New Yorkers struggling to get forward financially.
To help householders who’re behind on their funds, we’ve a number of fee plan choices to assist homeowners resolve their debt over time. This contains the brand new “Circuit Breaker” deferral plan, which makes installment funds reasonably priced by permitting householders to defer property taxes that exceed 10% of their earnings. Eligible homeowners can select the plan that works greatest for them by way of a fee plan screening software on the DOF web site, or at any of our enterprise facilities and outreach occasions.
DOF additionally needs to remind householders that property tax exemptions can cut back your taxes and shield your property from being included in a lien sale. The Senior Citizen Householders’ Exemption (SCHE), Disabled Householders’ Exemption (DHE), Veterans Exemptions, Not-for-Revenue Exemption, and different advantages administered by the Division of Finance may help cut back your tax burden considerably.
Collectively, the modifications enacted by the Dwelling Preservation and Debt Decision Reform Act signify a change in how the town approaches property tax enforcement, marking a brand new period of equity, effectivity, and transparency. Our coalition of companies, council places of work, and advocates is steadfast in its dedication to sustaining public belief by offering common, detailed studies on our progress. These updates, which will probably be obtainable on the DOF web site and despatched to the Council, will provide clear insights into the effectiveness of our new methods and exhibit our ongoing dedication to upholding the very best requirements in property tax enforcement.
In New York Metropolis, property taxes are the town authorities’s largest income. To proceed offering the applications and companies on which numerous New Yorkers rely, we merely can’t afford to lose income from those that are able to paying their justifiable share.
With these complete reforms, we’re establishing a sturdy and efficient enforcement mechanism that holds people accountable. On the similar time, we’re taking deliberate steps to guard and help those that are genuinely experiencing monetary hardships. By balancing accountability with compassion, we’re constructing a stronger basis for a extra equitable future for all New Yorkers – one which helps, quite than penalizes, these going through monetary hardship.
