NYC Grapples with Record Property Tax Delinquency

Property tax delinquency in New York City has surged to record-breaking levels, surpassing $880 million by the end of June, a staggering 30% increase from just three years ago. This sharp rise is attributed to the expiration of the tax-lien sales program in 2022 and the unprecedented vacancy rate in Manhattan office spaces, which hit 22.5% in November.

The absence of consequences for nonpayment has exacerbated the issue, prompting concerns from city officials like Finance Commissioner Preston Niblack, who stressed the need for action to address the growing problem. Previously, the city could sell liens on properties after a period of nonpayment, but critics argue that this unfairly targeted low-income property owners. Efforts are now underway to reauthorize tax-lien sales legislation, ensuring homeowners are not unfairly burdened with foreclosure or eviction.

As of March 8, single-family homes and condos accounted for a third of delinquencies, while rentals and commercial properties made up the remainder. Notably, a 16-unit rental building in Cobble Hill, Brooklyn, owes a staggering $52.2 million, underscoring the widespread nature of the issue across the city.