After nearly four years, the city’s lien sale is on.
The sale was slated for May 20, but the Adams administration agreed to delay it to June 3. As of Monday evening, the administration had made no announcement about delaying the sale again.
Properties wind up in the lien sale when they have long-overdue property taxes and/or water and sewer bills. The debt is sold to a private trust, and owners are saddled with an up to 18 percent interest rate (if their property has an assessed value of more than $250,000). If the owner cannot pay, the trust can move to foreclose and eventually take control of the property.
The last lien sale was in December 2021. The City Council reauthorized the sale last July, making several amendments to the controversial process. As part of the new lien sale program, the City Council created an off-ramp for some properties, dubbed “Easy Exit.” That program allows certain one- to three-unit and condo building owners to have their property removed from the lien sale up to three times within 36 months. Owners can also opt for foreclosure and have their property transferred to an approved nonprofit.
The lien sale has long had its critics, and the latest iteration is also inspiring calls for significant reform.
During a City Council hearing in April, Rachel Geballe, an attorney with Brooklyn Legal Services, testified that “Easy Exit” had proven not-so-easy to navigate. She said the Department of Finance was not informing eligible homeowners that the program was an option. She also said that owners who were denied access to the program received rejection emails that did not provide information on how to appeal the decision.
“DOF thrives as a collection agency but stumbles in its efforts to make protective programs available to the people who need them,” she said.
Albert Scott, a founding member of the East New York Community Land Trust, testified that the new lien program still offloads the city’s responsibilities “to hold bad landlords accountable and transfer them to responsible ownership.”
On Monday, the Small Property Owners of New York called on the Adams administration to once again postpone the sale. Ann Korchak, SPONY board president, said the amendments approved in July focused on owners of one- and three-family buildings, without providing enough aid to owners of four-plus units.
She also said some property owners have racked up debt while dealing with multiple housing court cases involving non-paying tenants.
“To me, it is just grossly unfair,” Korchak said in an interview. “So many people are on that list because they have been unable to collect rent.”
When the City Council reauthorized the sale, it also mandated the creation of a task force that must explore better ways for the city to collect outstanding debt. The group recently released preliminary recommendations.
What we’re thinking about: How will the new developers of Pacific Park change plans for the final stage of the megadevelopment? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: Bill Pulte was the only descendant of 14 children and 25 grandchildren to inherit money from his grandfather, William J. Pulte. He received $15 million. Be sure to check out my colleague Suzannah Cavanaugh’s cover story about the FHFA.
Elsewhere in New York…
— Lieutenant Gov. Antonio Delgado announced Monday that he plans to run against Gov. Kathy Hochul next year, the New York TImes was first to report. In his launch video, Delgada says the state needs a “vision” for housing. “Housing should not be the playground of corporate power,” he states. He concludes the video with: “The powerful and well-connected have their champions. I’m running for governor to be yours.”
— On Friday, the New York Working Families Party, after reportedly perseverating over whether to release a ranking at all, has ranked Assembly member Zohran Mamdani as its number one pick for mayor. The progressive party ranked Comptroller Brad Lander second, followed by Speaker Adrienne Adams, Sen. Zellnor Myrie and Sen. Jessica Ramos.
— A new survey found that Democratic primary voters would choose City Council Speaker Adrienne Adams over Andrew Cuomo in a general election, in the event that Adams runs on the Working Families Party line in November, Politico New York reports. The poll was conducted by Upswing Research & Strategy, at the behest of the Working Families Party.
Closing Time
Residential: The top residential deal recorded Monday was for a penthouse unit at 215 Chrystie Street for $15.7 million. The Lower East Side condo is 4,200 square feet and listed by Compass’ Hudson Advisory Team.
Commercial: The top commercial deal recorded was $69 million for 2864 Atlantic Avenue. Housing developer Camber Property Group bought the 180-plus unit from The Jay Group. The space also has over 5,000 square feet of commercial space with plans for an affordable housing site in partnership with The Institute for Community Living, per reports.
New to the Market: The highest price for a residential property hitting the market was $16.5 million for a 5,800-square-foot townhouse at 250 West 73rd Street on the Upper West Side. The Oxford Property Group’s Doron Kless has the listing.
Breaking Ground: The largest new building application filed was for a 56,374-square-foot, 13-story building at 942 Woodycrest Avenue in the Bronx. Nikolai Katz of Nikolai Katz Architect is the applicant of record.
— Joseph Jungermann
