File #: Int 1407-2025    Version: * Name: Sale of tax liens.
Type: Introduction Status: Committee
Committee: Committee on Finance
On agenda: 10/9/2025
Enactment date: Law number:
Title: A Local Law to amend the administrative code of the city of New York, in relation to the sale of tax liens
Sponsors: Adrienne E. Adams, Sandy Nurse, Justin L. Brannan, Amanda Farías
Council Member Sponsors: 4
Summary: This bill would eliminate the commissioner of finance’s general grant of authority to sell tax liens through December 31, 2028, and would instead impose ongoing conditions on the commissioner’s sale of tax liens. Competitive sales of tax liens would require approval by resolution of the council. Negotiated sales of tax liens to a city land bank would be authorized, and negotiated sales of tax liens to any other entity would require approval by resolution of the council. Additionally, this bill would subject any sale of tax liens to the term and condition that no purchaser of a tax lien may foreclose upon a lien encumbering a property owned by a primary resident and comprised of 1-3 dwelling units until the value of the lien reaches the lesser amount of 20% of the property value or $200,000, as well as the term and condition that every purchaser shall regularly send bills of the amount due on the lien and other pertinent information to the property owner.
Attachments: 1. Summary of Int. No. 1407, 2. Int. No. 1407, 3. October 9, 2025 - Stated Meeting Agenda

Int. No. 1407

 

By The Speaker (Council Member Adams) and Council Members Nurse, Brannan and Farías

 

A Local Law to amend the administrative code of the city of New York, in relation to the sale of tax liens

 

Be it enacted by the Council as follows:

 

Section 1. The opening paragraph of subdivision b of section 11-320 of the administrative code of the city of New York, as amended by local law number 82 for the year 2024, is amended to read as follows:

b. The commissioner of finance, on behalf of the city, may sell tax liens, either individually, in combinations, or in the aggregate, pursuant to the procedures provided [herein] in this chapter. [The] Subject to the provisions of this chapter and the terms of the resolution adopted by the council to approve the sale of a tax lien or tax liens, the commissioner of finance shall establish the terms and conditions of [a] such sale [of a tax lien or tax liens]; provided that any such sale shall include in such terms and conditions a prohibition against the purchaser of the commencement of a foreclosure action to enforce such lien or liens against any residential property comprised of 3 or fewer dwelling units and that is the primary residence of the owner of such property, unless the amount of the lien on such property, as attached pursuant to section 11-301, reaches the lesser amount of 20 percent of the market value of such property, as reflected on the final assessment roll delivered most recently to the council pursuant to section 11-218, or $200,000; and provided further that any such sale shall include in such terms and conditions a requirement that the purchaser shall send a bill of the amount due on such lien or liens to the debtor, at least quarterly, and that each such bill shall include the details of any legal actions the purchaser has commenced in connection with such lien or liens, information regarding options to resolve such lien, and information on how to identify any other outstanding municipal taxes, assessments, rents, or charges assessed against the property. [Enactment of the local law that added this sentence shall be deemed to constitute authorization by the council for the commissioner of finance to conduct a sale or sales of tax liens through and including December thirty-first, two thousand twenty-eight. Subsequent to December thirty-first, two thousand twenty-eight, the city shall not have the authority to sell tax liens.]

§ 2. Subparagraph (i) of paragraph 1 of subdivision b of section 11-320 of the administrative code of the city of New York, as added by local law number 26 for the year 1996, is amended to read as follows:

1. (i) The commissioner of finance may[, in his or her discretion,] sell a tax lien or tax liens through a competitive sale upon the adoption of a resolution by the council approving such sale. Upon the commissioner’s determination that a competitive sale of a tax lien or tax liens would be in the best interests of the city, the commissioner of finance shall submit to the council a request for authorization to sell a tax lien or tax liens through a competitive sale. Such request shall set forth: a description of the tax lien or liens proposed for sale; the proposed terms and conditions of such sale including, but not limited to, terms and conditions intended to exclude purchasers with a demonstrated history of poor property management; an explanation of the proposed sale’s impact on housing preservation; and the details of the commissioner’s determination that a competitive sale would be in the best interests of the city. In addition to the advertisement and notice required to be provided pursuant to this section [11-320 of this chapter], the commissioner of finance or his or her designee shall cause to be published a notice of intention to sell a tax lien or tax liens through a competitive sale, which notice shall include the terms and conditions for such sale, the criteria by which bids shall be evaluated, and a request for any other information or documents that the commissioner of finance may require. Such notice shall be published in one newspaper of general circulation in the city, not less than fifteen days prior to the date designated by the commissioner for the submission of bids. 

§ 3. Subparagraph (i) of paragraph 2 of subdivision b of section 11-320 of the administrative code of the city of New York, as amended by local law number 98 for the year 1997, is amended to read as follows:

2. (i) The commissioner of finance may[, in his or her discretion,] sell a tax lien or tax liens through a negotiated sale to a land bank established pursuant to article 16 of the not-for-profit corporation law or, upon a resolution adopted by the council, to an entity approved to purchase tax liens through negotiated sales. The commissioner of finance shall submit to the council a request to approve an entity to which the commissioner may sell tax liens. Prior to seeking such approval, the commissioner shall determine that the sale of tax liens to such entity would be in the best interests of the city. In addition to the advertisement and notice required to be provided pursuant to this section [11-320 of this chapter], the commissioner of finance or his or her designee shall cause to be published a notice of intention to sell a tax lien or tax liens through a negotiated sale, which notice shall advise that a request for statements of interest is available at the office of the department of finance, and which may require the submission of any information or documents that the commissioner deems appropriate, provided, however, that if the negotiated sale is to a trust or other entity created by the city or in which the city has an ownership or residual interest, then the requirement that the notice advise that a request for statements of interest is available at the office of the department of finance shall not apply. Such notice shall be published in one newspaper of general circulation in the city, not less than fifteen days prior to the date designated by the commissioner for the receipt of statements of interest, or if the negotiated sale is to such trust or other entity, then such notice shall be published not less than fifteen days prior to the date of sale. For purposes of this subparagraph, the words “date of sale” shall have the same meaning provided in subdivision e of this section [11-320 of this chapter]. 

§ 4. This local law takes effect immediately.

 

 

LS #4736, 17117, 19694, 20430

10/7/2025