The city’s property tax lien sale puts many homeowners at risk of losing their homes because it publicizes outstanding tax and sewer debts, particularly for Black and Brown individuals, seniors, and veterans.
“For most New Yorkers, the tax lien sale is a little-known process, but for far too many homeowners, many of whom should never have been on the list in the first place, it carries devastating consequences,” said Khari Edwards, a candidate for Brooklyn borough president this year. “The tax lien sale needs to be completely overhauled to protect New Yorkers who may be on the financial brink, and until it is, the city and state must put a moratorium on any future sales.”
When a property is on the tax lien sale list, it means the owner owes property taxes or has water, sewer, and other property-related charges. The city can then sell the debt to an authorized buyer who has the right to collect what’s owed, opening up homeowners to predatory debt collectors. Commercial properties can be on the list for one year, while a residential property can get up to three years before the city moves forward with foreclosure.
Between 2017 and 2021, tax lien sale-affected rental properties and units were concentrated in Black and Brown City Council districts, according to a research brief produced by the East New York Community Land Trust (ENYCLT). In addition, the vast majority of residential units in lien sale properties are owned by absentee landlords, so the process puts renters at risk of losing their homes as well.
The city’s Department of Finance (DOF) recently posted the 2025 property tax lien list for all five boroughs — a first since 2021. Former Governor Andrew Cuomo and New York State Attorney General Letitia James decided to cancel the lien sale in response to outcry during the COVID pandemic in 2020. The next lien sale is scheduled for May 20, 2025.
More than 3,400 Brooklyn one- and two-family homes are currently included on the tax lien list.
Edwards’ late mother, Elenora Bernard, was killed at the age of 77 in her home in East Flatbush in 2022. After her death, it was discovered that her house and finances had been in flux, said Edwards, who is the executor on her account after probate. The tax lien sale is incredibly personal for him this year. “My mom would’ve turned 80 and it’s emotional for me because now I’m seeing she had a $100,000 tax lien on water that she wasn’t even using,” said Edwards at a rally he held in front of her building on March 31 to raise awareness about the coming sale.
“She was only making $1,100 through her Social Security a month, so there was no way she was going to be able to keep up. And when she asked for help, of course, I helped pay this bill or that bill but she didn’t even know,” he said.
The DOF is supposed to send homeowners warning notices in the mail 90, 60, 30, and 10 days before the sale. Many homeowners say they end up on the list without being properly informed by the Department of Environmental Protection (DEP) that they owe money to the city before the 90 days, especially when it comes to unpaid water bills.
“I noticed that my bill was increasing tremendously,” said Margaux Jones-McDuffie, a Clinton Hill resident. “One of the meters that DEP has to read was broken. I didn’t know at all that the meter was broken for four years since 2021. To my surprise, I ended up with a bill close to $9,000. I never missed a payment in 29 years of owning my building. I always paid on time. Never had a problem, never had any disconnected notices sent to me, so I was appalled.”
Jones-McDuffie said that she pays online and never received a notice or letter informing her specifically of a broken meter. Instead, she was given “estimates” on the back of her bill. She had to call DEP to get an agent to inspect her house. She said it’s ridiculous that the reason for the estimated bill isn’t highlighted on the front for consumers to know what’s happening.
According to Richard Flateau, a licensed real estate broker for the last 25 years, founder of Flateau Realty Corp. in Brooklyn, and former chair of Community Board 3, one of his commercial properties had a meter problem and he received a high water bill.
“It was way worse before,” said Flateau about the lien process. He worked with Dr. Annette M. Robinson, a former Brooklyn Council member who was in office from 1991 to 2000, and the late Mayor David Dinkins to address the housing lien crisis in the city. Before 1996, the city would seize and foreclose on properties, often converting buildings to cooperative ownership or transferring them to not-for-profit entities without the courtesy of the lien sale list, according to the research brief.
Jeffrey Golkin, a long-time property tax attorney and reform advocate, said he’s been struggling to reform tax law in the city for the last 40 years. He also served under Dinkins on the former mayor’s advisory council. Golkin explained that the tax lien process was referred to as an In Rem Foreclosure then. Regardless of name, Golkin said the city has had a penchant for “egregiously” overtaxing and over-assessing properties in distress for decades, likening the lien process to an “animal out of control.” He criticized the city’s historically corrupt tax assessors for compounding the issue by sending out overpriced bills without proper on-the-ground resourcing. He said that the whole design is “fallout from bad policy” and little political will from recent mayors and the current Mayor Eric Adams to change the system.
“People cannot maintain their buildings with the difficulty in the market right now,” said Golkin. “It’s a systemic situation. Older properties are hard to maintain with utilities, insurance, repairs, and you have to remain current on your taxes.”
Edwards has been canvassing Brooklyn homes on the lien sale list while campaigning, informing residents about the upcoming sale and the existing exemptions that protect some property owners. Residents who qualify for the Senior Citizen Homeowners Exemption, Veterans Homeowners Exemption, or Disabled Homeowners Exemption shouldn’t be included on the lien sale list, but are encouraged to apply in advance to ensure their exemption is recognized before the sale occurs. Certain homeowners whose total household income does not exceed $107,300 and who do not own additional properties also qualify for removal from the lien sale list.
“Many homeowners are unaware that this is happening or that they owe any debt to the city. Seniors, veterans, and disabled homeowners often don’t realize they are supposed to be protected from this entirely,” said Edwards. “This lack of awareness is a result of the government’s failure to communicate with the public and help homeowners avoid potential displacement and financial ruin.”
Advocates are all for abolishing the tax lien sale in favor a more equitable debt collection system. In the meantime, Golkin advised that entering a payment agreement with DOF can slow the lien process down for homeowners, while tax attorneys like him challenge unscrupulous property assessments in court and ideally get a property removed from the list altogether.
Flateau suggested that homeowners be as proactive as possible by reaching out to DOF and DEP directly, entering a payment plan, or attending educational forums about the tax lien process often held by nonprofits and elected officials.
“Putting a home on the lien sale list is a last resort, usually because we cannot reach a homeowner or because they refuse to communicate with us,” said Robert Wolejsza, DEP press secretary, in a statement. “Almost all people on the lien sale list haven’t paid a bill in at least a year. DEP wants to work with homeowners and we offer flexible payment plans. Property owners on the lien sale list can get off the list immediately by calling DEP and working with us to get into a payment plan. Any customer who believes their bill is not accurate can file a dispute.”
Wolejsza said that DEP routinely tests meters to ensure they are recording consumption accurately and working properly. He noted that customers can check their meters and bills in real time by signing up for My DEP Account. High water bills can be the sign of a leak, and property owners who fix leaks promptly may be eligible for a leak forgiveness program, he added.
More information about the city’s tax lien sale process is on the NYC 311 Portal. Homeowners who need help with their property on the tax lien list can call 311 or 212-NEW-YORK (212-639-9675). Additional free resources are at the Office of the Taxpayer Advocate or from nonprofits like Legal Aid Society’s Foreclosure Prevention project.