NYC will hold one more property tax lien sale in 2027, reversing Mamdani's 'Day One' pledge

New York City will hold one more property tax lien sale in mid-2027, City Hall confirmed to THE CITY on Monday, Nov. 9. It's a turn for Mayor Zohran Mamdani, who promised as a candidate to "stop the tax lien sale on Day One."

In a lien sale, the city sells unpaid property tax and water bills, at a discount, to a privately managed trust. The trust then collects the debt, adds its own fees and interest, and can start foreclosure. It does not mean the house itself is sold, the Department of Finance notes, but it can be a first step toward losing it.

What changed

Mamdani suspended the sale in March for a six-month review, with his office calling the system "broken." Officials told THE CITY the review concluded that a sale with more outreach to homeowners made more sense than ending it right away, and that the city needs to keep collecting overdue taxes. Property taxes are the city's largest source of revenue. Gothamist reported in March that skipping the sale would cost the city about $80 million.

The 2027 sale is meant to be the last of its kind. City laws passed by the Council end the current trust-based system, with the city's authority to hold these sales running out in 2028, and the city may transfer debts to a new land bank that an official group is now setting up.

Timeline and new limits

• Late February or early March 2027: the city publishes the 90-day notice list of tax-delinquent owners who may be included, Finance Commissioner Richard Lee told THE CITY. Under past rules, warning letters go out 90, 60, 30 and 10 days before the sale.
• Before the list: the Mayor's Public Engagement Unit and nonprofits will contact owners, City Hall said, with more texts and emails and extra follow-up for people still on the list within 10 days of the sale.
• Higher bar for small homes: two- and three-family homes need at least $5,000 in water and sewer debt overdue a year or more to be eligible, up from $3,000. Tax debt is typically sold at $5,000 owed for three years.
• Foreclosure limits: a lienholder can move to foreclose only a year after the sale and only once the lien reaches $70,000 or 15% of the property's value, whichever is less, under the new law.

Who's for it, who isn't

The last sale, in 2025 under Mayor Eric Adams, sold more than 4,500 liens worth $220 million, THE CITY reported, citing the Independent Budget Office, and 85% of eligible owners got off the list before the sale. Critics have long pointed out that most liens are sold in majority-Black and Hispanic neighborhoods, especially Southeast Queens and Central Brooklyn.

The Abolish the Tax Lien Coalition said holding any sale falls short of its demand to end trust-based sales. Council Member Sandy Nurse of Brooklyn told THE CITY the new rules add guardrails and that the city still has to collect municipal debt.

How to stay off the list

Based on the Department of Finance's lien sale page, which still describes the 2025 sale, owners can avoid a sale by:

• Paying at least the minimum on the warning notice (property taxes through CityPay, water and sewer through DEP).
• A payment plan: a standard plan of one to 10 years for any owner; a PT AID plan for owner-occupied one- to three-family homes and condos; or a PT AID "Circuit Breaker" plan if your tax bill is more than 10% of your income and the assessed value is $250,000 or less.
• Exemptions: approval for exemptions such as the Senior Citizen Homeowners' Exemption (SCHE) can keep a property out of the sale or cancel it within 90 days.

Questions go to 311 or the Department of Finance. Owners who think they may be on next year's list don't have to wait for the letter to set up a plan.