Despite Concerns, NYC Tax Lien Sale Will Go Forward: De Blasio

NEW YORK CITY — A looming tax lien sale threatens thousands of vulnerable New York City homeowners in communities hit hard by the coronavirus and should be canceled, advocates and elected officials urged Mayor Bill de Blasio.

But de Blasio on Tuesday brushed off a rising tide of concerns and said the sale planned for Sept. 4 will go forward as planned.

The properties on the sale list had gone into arrears for unpaid debts before the pandemic, he said in response to a Patch reporter’s question.

“So, these are not situations caused by the coronavirus, these are situations that predate the coronavirus,” he said. “The challenge, of course, any time you put off something that would bring revenue in, is you need that revenue for everything we’re talking about, for health care workers, for educators, first responders, everything we’re trying to do now in real tough fiscal times. I believe the dollar figure projected is $57 million — that’s a serious amount of money.”

De Blasio’s response disappointed Council Member Adrienne Adams, who spearheaded a letter signed by 50 city and state elected officials that pleads with de Blasio to cancel the sale.

More than 5,000 properties on the sale list are small homes, the letter states.

Adams said normally the city would conduct outreach to those homeowners to offer them payment plans and other options to pay off the taxes.

But how do already-vulnerable New Yorkers enter a payment plan in a pandemic, she asked.

Her district covers Jamaica and has the second-highest number of one- to three unit homes — 296 — on the current lien sale list, according to records.

“This is going to devastate our community even further,” Adams said.

Yesterday, 50 of my colleagues in City and State government joined me to call on the @NYCMayor to cancel the 2020 tax lien sale. In middle of a pandemic it is unconscionable to move forward with the lien sale as it will compound the financial hardships of vulnerable New Yorkers. pic.twitter.com/0w5tDDynBL
— Adrienne Adams (@AdrienneEAdams) August 25, 2020

The tax lien sale — in which properties’ debts on taxes, bills and other charges are scooped up by collectors — has been twice postponed. De Blasio at the time said delaying the sale would give relief to struggling New Yorkers.

Advocates argue the Sept. 4 sale has approached without sufficient outreach to communities — just one virtual meeting per borough. Many homeowners may not know their properties are on the list, they argue.

And tax lien sales disproportionately affect Black and Brown communities, particularly in southeast Queens and Brooklyn, said Katrell Lewis, director of advocacy for Habitat For Humanity New York City.

“In a matter of seconds, after the tax lien is sold, thousands of single-family homeowners will be housing insecure,” he said.

Adams said a tax lien sale can have dire consequences for a family in a normal year. During a pandemic with record unemployment, it could only perpetuate the devastation, she said.

“I don’t want to speak for what’s in the mayor’s mind, but again his perspective is very insensitive,” she said.

Adams said officials are pushing for canceling the sale or exempting homeowners and small residential buildings. She also pointed to legislation recently introduced by State Sen. Leroy Comrie.

The bill would postpone New York City’s tax lien sale for one year after the COVID-19 state of emergency ends. It would also effectively take the decision out of de Blasio’s hands.

Comrie signed his name on the letter Adams sent de Blasio.

“While we understand the city must recoup the money it is owed, especially as it faces budgetary restraints, it cannot rebuild its coffers on the backs of our low to moderate income families,” the letter states.

Click here for more information about the tax lien sale.