NYC’s tax lien sale postponed, giving some Queens homeowners room for relief

Queens State Sen. Leroy Comrie, at podium, and Assemblymember David Weprin, left of podium, have introduced legislation to suspend the tax lien sale by at least a year. Photo courtesy of Comrie’s office

By David Brand

New York City’s annual tax lien sale was delayed Friday, after Mayor Bill de Blasio and Gov. Andrew Cuomo released dueling postponement decrees on the day the sale was set to take place.

De Blasio tweeted that he had suspended the delinquent debt sale until Sept. 25, but Cuomo did him one better, halting the sale via 30-day executive order until Oct. 4. Both announcements came around 3:30 p.m.

“COVID-19 caused enormous disruption in the daily lives of New Yorkers, including their ability to keep a roof over their head,” Governor Cuomo said. “The tax and water lien sale was delayed in May in recognition of this hardship, and given the current economic climate it makes sense to delay it again so that homeowners aren’t facing further uncertainty. 

The annual tax lien sale, initially scheduled for May, enables private servicing companies to purchase property tax debt with potentially dire consequences for some small homeowners. 

If the homeowner does not enter into a payment agreement with the debt collector that buys their lien, they risk having their property seized. They are also charged service fees and compounding daily interest rates.

A disproportionate number of properties eligible for tax lien sales are located in Southeast Queens communities where the population is predominantly Black.

Three of the four most affected council districts are located in Southeast Queens — Districts 28, 31 and 27 rank two, three and four on the list of most properties. Combined, they account for 585 properties, City Limits reported.

The district with the highest number of small properties on the list, 300, is north Brooklyn’s Council District 37.

Local lawmakers said the tax lien sale would jeopardize people’s housing during the COVID pandemic. State Sen. Leroy Comrie and Assemblymember David Weprin have sponsored legislation to suspend the sale until one year after New York lifts its COVID-related state of emergency.

Attorney General Letitia James had urged the city to suspend the sale for the past two weeks. She praised Cuomo’s executive order.

“It is the responsibility of government to relieve the financial hardships of the people wherever possible, not exacerbate them,” James said.

A spokesperson for de Blasio referred to the mayor’s tweet.