Owners & management · 11/09/2026, 4:38 PM
Mamdani Brings Back NYC Property Tax Lien Sale One More Time in 2027
Mayor Zohran Mamdani pledged to end the tax lien sale but will hold one last sale in mid-2027 after a six-month review. The Department of Finance sells liens for unpaid property taxes and water bills to private trusts that can foreclose. The city plans early outreach and payment plans, and local laws end the current process by 2028.
Reported by The City · HousingRead the original ↗
What happened
New York City will hold a property tax lien sale in mid-2027, City Hall confirmed, according to The City on 11/09/2026. Mayor Zohran Mamdani had campaigned on a promise to "stop the tax lien sale on Day One." Earlier this year he suspended the sale for a six-month review. The administration says it concluded that one more sale with more outreach to homeowners is a better choice than ending it right away. The city's authority to hold lien sales expires under a local law the following year.
The city Department of Finance (DOF) places liens, or legal claims, on properties for unpaid property taxes and water bills. Once the debt reaches a set amount, which depends on the property type and is typically $5,000 for taxes three years overdue, the city can sell the liens at a discount to privately managed trusts. Some of these trusts issue bonds to investors. The trusts try to collect the debt and can start foreclosure. Owners often owe added fees and interest on top of the original debt.
DOF Commissioner Richard Lee said the city will issue a 90-day notice list of tax-delinquent owners who may be eligible for the 2027 sale in early 2027. City Hall said outreach by the Mayor's Public Engagement Unit and nonprofit groups will start before that list goes out, so owners can start a payment plan or take other steps to avoid the sale. Cea Weaver, director of the Mayor's Office to Protect Tenants, said that continuing to delay the sale would only push struggling homeowners deeper into debt.
City laws enacted earlier this year end the current lien sale process by 2028. They allow the city to transfer debts to a land bank, which an official group is setting up. Then-Mayor Rudy Giuliani created the lien sale in 1996. It has raised about $80 million a year on average. Critics say it hits majority-Black and -Hispanic neighborhoods hardest. Most liens in the two most recent sales were sold in those neighborhoods. Critics also say the sale takes control of the debt away from the city.
Key facts
- Next lien sale
- Mid-2027
- Agency
- NYC Department of Finance (DOF), Commissioner Richard Lee
- Notice
- 90-day notice list of possibly eligible owners, expected early 2027
- Debts covered
- Unpaid property taxes and water bills
- Typical threshold
- $5,000 for property taxes three years overdue (varies by property type)
- Revenue
- About $80 million raised per year on average since 1996
- Program end
- Current lien sale process ends by 2028 under city laws enacted this year; debts may go to a land bank
- Outreach
- Mayor's Public Engagement Unit and nonprofits, starting before the notice list
What it means
Buyers and owners
Owners behind on property taxes or water bills could see their liens sold in mid-2027. That can add fees and interest and can lead to foreclosure. The city says owners can avoid the sale by paying or starting a payment plan before the sale.
Landlords
Small landlords with older unpaid DOF or water balances should check what they owe before the early 2027 notice list is issued. Watch for outreach from the city or nonprofit groups.
Caseworkers
Clients who own homes and have tax or water debt may be contacted by the Mayor's Public Engagement Unit or nonprofits ahead of the notice list. Caseworkers can help them respond early and ask about payment plans.
The highlights
- Liens typically qualify at $5,000 in property taxes three years overdue.
- DOF will issue a 90-day notice list of owners who may be eligible for the sale.
- City laws end the current lien sale process by 2028, with a land bank planned.
Why it matters Landlords
Owners with unpaid property taxes or water bills could have their debt sold to a trust that adds fees and can foreclose.
What to do: Check DOF records for unpaid taxes or water charges and set up a payment plan.
Not known yet
- The exact date of the 2027 lien sale and of the 90-day notice list
- Terms of the payment plans or other options that let owners avoid the sale
- When the land bank will be ready to take over city debts
- How many properties or how much debt may be included in the 2027 sale
Background
In New York City, the Department of Finance bills and collects property taxes, and unpaid water and sewer charges can also become liens on a property. Before a lien sale, the city usually sends owners several notices. Owners can generally keep their lien out of the sale by paying the balance in full or by entering a payment agreement with the city before the sale. After a lien is sold, the buyer collects the debt plus added interest and charges, and can go to court to foreclose if the debt is not paid.
Summary written by Bulwark from The City · Housing’s reporting. The original story is at thecityreporter.nyc. This is general information, not legal advice.
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Photo: Andre Carrotflower, CC BY-SA 4.0