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New York City Finance Department Postpones Tax Lien Sale Due to COVID-19

Dated Apr. 2, 2020

SUMMARY BY TAX ANALYSTS

The New York City Department of Finance has postponed its annual tax lien sale until the end of the summer due to COVID-19; the lien sale markets overdue property charges such as property taxes and water and sewer fees to a nonprofit trust.

The department recently issued a reminder about the various programs it offers for eligible property owners who have difficulty paying their property taxes due to hardships.

 DEPARTMENT OF FINANCE POSTPONES ANNUAL TAX LIEN SALE UNTIL LATE SUMMER

March 31, 2020 

NEW YORK — Mayor Bill de Blasio today announced that the Department of Finance will postpone the annual tax lien sale until late summer, as the City continues to cope with the COVID 19 outbreak.

“The coronavirus outbreak has significantly disrupted life for all New Yorkers, and it has put serious financial pressures on thousands of people across the City,” said Department of Finance Commissioner Jacques Jiha. “Our job in government is to assist and provide relief during a crisis – not to cause further harm — which is why the Department of Finance will postpone the lien sale until later this summer and at that point, reassess the best way to proceed.”

The lien sale is administered by the NYC Department of Finance, which sells overdue property taxes, water and sewer charges, and other property charges to a non-profit trust. The agency sends out four warning notices to property owners starting three months prior to the sale, alerting them that the property is at risk of being on the lien sale list. More than 80 percent of owners pay the full amount owed, enter into payment plans, or obtain an exemption that removes them from the at-risk pool. DOF also advertises at risk properties and conducts extensive outreach to property owners at risk of having their liens sold, often partnering with community groups and elected officials to reach as many property owners as possible.

Property owners who are facing hardships making their property tax payments can take advantage of several existing DOF programs. These include exemption programs to lower the amount of taxes owed, standard payment plans, or a new Property Tax and Interest Deferral (PT AID) program, for those who qualify. More information on those programs can be found on the agency's website.

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