A Letter to Brooklynites: Protect Your Home from the Tax Lien Sale

Dear neighbors,
As we celebrate the arrival of Spring and the sense of joy and optimism it brings to our city, I am sorry to write with a dire warning.

On June 3rd, in just a few days, the City of New York will hold a tax lien sale on properties with unpaid debts such as property taxes, water/sewer bills, and other City charges. Once sold, homeowners will be on the hook to pay off debt with astronomical interest rates to private investors looking to make a quick buck.

And if the debt remains unpaid after one year (or even sooner in some cases), the owner of your debt is entitled to foreclose your property and force you out of your home. People who have lived in the same home for generations, who have built lives and legacies in their communities are now at risk of losing everything.

The threat to Brooklyn is massive. In Brooklyn alone, over 7,000 properties are on the sale list. Working-class communities with high homeownership rates like Bed-Stuy, Crown Heights, East New York, and Flatbush are especially at risk. While many residents in these communities are fortunate to own their homes, we know they are struggling enough as it is to make ends meet. The added burden of the lien sale will simply put countless homeowners over the edge.

For months, I’ve heard from too many families who are at risk of losing their homes. According to the Center for NYC Neighborhoods, Black homeowners are six times more likely to be on the tax lien sale than a comparable white homeowner. But let’s be clear, many of the folks on the list are not negligent property owners. We’re talking about older adults, first time homeowners, and working families who’ve fallen behind on bills as they try to stay afloat in the most expensive city on the planet.

The tax lien sale is not new. For decades, the City has relied on the tax lien sale to balance its books and, in the process, put often unwitting New Yorkers’ housing stability and generational wealth at risk. The last tax lien sale took place in December 2021, as the Mayor and City Council paused the practice amidst the economic turmoil from the pandemic.

Since then, the sky has not fallen. The City’s finances have not collapsed. We created a reality where the tax lien sale was not necessary, and yet the City wants to bring us back to the past.
Fortunately, there’s good news. Homeowners at risk have until May 19 to act and have their properties removed from the sale list.

First, visit the NYC Department of Finance website to find out if your property is on the list. If your property is on the list, there are multiple avenues for relief.
For long-term relief, you can sign up for a payment plan for up to 10 years to ensure you’re on track to pay off your debt. There are three kinds of payment plans that are designed to meet the unique circumstances of varying homeowners.

There are also several property tax exemptions that can keep your property out of the lien sale. If you are aged 65 or older, a person with disabilities, or a veteran, the NYC Department of Finance lists several applications for exemptions.

Finally, New York City recently created the Lien Sale Easy Exit Program to remove qualified homeowners from the lien sale for one year. To qualify you must own a one-, two-, or three-family home or condominium unit. The property must have been your primary residence for the past 12 months and you must not own any other properties in New York City. The combined annual income of all owners (whether they reside at the property or not) and of spouses who reside at the property must be no greater than $107,300.

Trust me, I know this is complicated. Fortunately, the City has partnered with the Center for NYC Neighborhoods which is offering free, one-on-one sessions with certified housing counselors and attorneys. You may call their Homeowner Help Desk at 1-855-HOME-456 for additional guidance and personalized support.

While I’m glad there is more support for homeowners, the tax lien sale should simply not exist. New York City should not be in the business of displacement. We can’t afford to balance our books on the backs of our most marginalized communities. The properties at risk aren’t just houses and Brooklynites aren’t just line items on a spreadsheet. This is about protecting the well-being and stability of the families who’ve built this city and preserving what limited pathways to generational wealth exist.

Please take action to make sure your home is protected. On my end, I will continue to fight displacement and the many ways it arrives in our communities whether it’s gentrification, deed theft, or the lien sale.
Sincerely,
Antonio Reynoso
Brooklyn Borough President