Mamdani halts NYC's 'predatory' private tax lien sale process

"Our current property tax lien sale process to collect overdue taxes and fees is broken - allowing predatory debt collectors to profit off the backs of working and middle-class homeowners, driving New Yorkers out of their homes."

"Since 1996, the city has sold property owners' unpaid tax liens and water debt at a discount to a private investor-backed trust that then attempts to collect the unpaid bills while hitting homeowners with additional fees. The system has faced sharp criticism for disproportionately affecting homeowners of color, especially in predominantly Black sections of Southeast Queens and Central Brooklyn."

New York City will halt its tax lien sale program, which has operated since 1996 by selling unpaid property tax and water debt to private investors who collect additional fees from homeowners. The system has faced criticism for disproportionately affecting homeowners of color in predominantly Black neighborhoods in Southeast Queens and Central Brooklyn. Mayor Mamdani, who previously called the practice "racism," will suspend the program for six months to conduct a comprehensive review and explore alternatives. The current system allows liens to be sold when owners owe as little as $5,000 in property taxes or $1,000 in water debt for condos. The suspension aligns with Mamdani's broader property tax reform agenda.

Read at Gothamist