NYC 2020 Lien Sale Virtual Outreach August 2020 1 Lien Sale - - PowerPoint PPT Presentation
NYC 2020 Lien Sale Virtual Outreach August 2020 1 Lien Sale Overview v What is a lien Sale v Lien Sale Eligibility Criteria v How to Avoid the Lien Sale o Payments o Statutory Exemptions o Payment Agreements Agenda 2020 Lien Sale v
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vWhat is a lien Sale vLien Sale Eligibility Criteria vHow to Avoid the Lien Sale
vTimeline vOutreach Sessions vResources
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vA legal claim against real property for unpaid property taxes, water and sewer charges, and other property-related municipal charges, including the interest due on these charges.
vWhen debt has been delinquent for a legally specified period
vThe City creates a non-profit Trust and sells the liens – NOT the property – to the Trust, which pays the City upfront for the debt and hires an authorized private collector.
vThe Trust’s private collector has the authority to collect the money that was previously owed to the City plus other fees and interest.
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Level playing field
§ 98% of property owners pay their bills on time. The lien sale ensures that everyone pays their fair share for City services.
Enforcement tool
§ The lien sale is the City’s primary tool to collect delinquent debt owed by property owners.
Effective revenue generator
§ Over 83% of property owners noticed in the lien sale pay off their debt or enter a payment plan prior to the lien sale.
Beneficial to City residents
§ The City has received over $9 billion in additional property taxes and water payments as a result of the lien sale process.
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Note 1: If you own a 1-family house and only owe water/sewer charges but not property taxes, the City may NOT sell a lien on your property. Although the water/sewer debt may not be sold, DEP may contract with a Third-Party collection agency to attempt to collect the outstanding debt. Note 2: We will not sell the liens if your property is a 1- to 3-family house or a residential condominium, if it is owner-
Type of Property Property Tax Debt Water/Sewer Debt AEP Debt * ERP Debt * May Be Excluded (Note 2) Minimum Amount Years Overdue Minimum Amount Years Overdue Minimum Amount Years Overdue Minimum Amount Years Overdue 1 Family - Owner Occupied $1,000 3 (Note 1) (Note 1) N/A N/A N/A N/A YES 1 Family - Non-Owner Occupied $1,000 3 N/A N/A $1,000 1 NO 2-3 Family - Owner Occupied $1,000 3 $2,000 1 N/A N/A N/A N/A YES 1-3 Family - Non-Owner Occupied $1,000 3 $2,000 1 $1,000 1 $1,000 1 NO Residential Condominium $1,000 3 $1,000 1 $1,000 1 $1,000 1 YES Residential Cooperative Building $1,000 3 $1,000 1 $1,000 1 $1,000 1 NO Vacant Lot Zoned Residential $1,000 3 N/A N/A $1,000 1 $1,000 1 NO Small Store or Office with 1 or 2 Apartments Above $1,000 3 $2,000 1 $1,000 1 $1,000 1 YES Housing Development Fund Corporation (HDFC) Rental Building $5,000 2 $5,000 2 $5,000 2 $5,000 2 NO All other $1,000 1 $1,000 1 $1,000 1 $1,000 1 NO
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Property owners receive several notices at different milestones during the Lien Sale. A 120- notice, 90-day notice, a 60-day notice, 30-day notice, 10-day notice and publication. The 30-day notice was mailed on July 31, 2020.
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§ Pay outstanding debt § Enter into a payment agreement with Finance and/or DEP § Apply to receive a property exemption that will statutorily exclude a property owner from the lien sale
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Customers have many options for paying their bill:
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*Finance and HPD Property taxes, ERP charges, and other charges DEP: Water and sewer charges Online nyc.gov/liensale nyc.gov/dep or “MY DEP” mobile app Phone (212) 291-2930 (866) 622-8292 Mail NYC Dept. of Finance P.O. Box 680 Newark, NJ 07101-0680 NYC Water Board P.O. Box 11863 Newark, NJ 07101-8163 In person* Finance Business Centers Limited number of slots available by appointment only. Call DEP's Collections Unit at (718) 595-7890 to make an appointment.
* DOF collects AEP and ERP charges on behalf of HPD.
vSenior Citizen Homeowner Exemption (SCHE) vDisabled Homeowner Exemption (DHE) vVeterans Exemption vEligible for Extenuating Circumstances (DEP) vEligible for Water Debt Assistance Program (DEP) vActive duty military personnel may also request an exemption from the lien sale by completing an affidavit available at www.nyc.gov/liensale.
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Property Tax and Water Debt Interest Reduction Interest Rate Assessed Value
Effective Dates 3.25% Less than $250,000 1St Quarter - July 1, 2020 through September 30, 2020 5.0% Less than $250,000 Quarters 2-4 - October 1, 2020 through June 30, 2021 18.0% Greater than $250,000 Through June 30, 2021
§ Payment agreement terms
vNo down payment required v20% down on a defaulted payment plan OR file an extenuating circumstance Payment Plan Reinstatement Request. vMonthly or quarterly payments for up to 10 years. vNew bills must be paid in full for a payment agreement to remain current
§ Interest Rates
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§ Who can enter into a payment agreement?
vFor property taxes and other charges, an owner or a person with a legitimate and documented interest in a property can enter a payment agreement vFor water and sewer charges, only an owner or authorized representative may enter a payment agreement – more information at nyc.gov/dep
§ Default
vIf a customer is not current for 7 months or more, the payment agreement is considered “in default” vA default can be cured by paying off all outstanding balances, including interest vIf a default is not cured prior to the date of sale, the property owner will not be eligible to enter into another payment agreement for five years vThere is an exception to the five year limit if someone can prove specific extenuating circumstances or pay 20% down on all outstanding charges, fees, and interest.
§ How to enter into a payment agreement?
vProperty Taxes and Emergency Repair Charges : download application at www.nyc.gov/dofpaymentplan, submit application and supporting documentation to PTAID@finance.nyc.gov. vWater and Sewer Charges: CollectionsUnit@dep.nyc.gov or call 718-595-7890.
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Local Law 45 of 2019, gives the City the authority to establish three new payment plans that allow for eligible applicants to defer property tax and
be $58,399 or less. § The three PT AID payment plans are: 1)Low-Income Senior 2)Fixed-term income-based 3)Extenuating circumstances income-based § Property type: 1)Tax Class 1 (1- to 3-unit residential) 2)Condominium § Deferral cap: 1)Tax class 1 – 25% net equity 2)Condos – the higher of 25% net equity on appraisal value or 50% net equity on DOF market value
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Date Time Host Borough Link to All Events Event Number Audio Conference August 4 6:00pm Brooklyn www.nyc.gov/liensale 129 899 2006 Password: 2020LS +1-408-418-9388 Access code 129 899 2006 August 12 6:00pm Queens www.nyc.gov/liensale 129 143 2825 Password: 2020LS +1-408-418-9388 Access code 129 143 2825 August 20 6:00pm Staten Island www.nyc.gov/liensale 129 221 8659 Password: 2020LS +1-408-418-9388 Access code 129 221 8659 August 24 6:00pm Bronx/ Manhattan www.nyc.gov/liensale 129 644 9964 Password: 2020LS +1-408-418-9388 Access code 129 644 9964 August 29 11:00am All Boroughs www.nyc.gov/liensale 129 627 1660 Password: 2020LS +1-408-418-9388 Access code 129 644 9964
You can attend any event, in any borough, no matter where your property is located.
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§ Customers can call 311 for questions related to the lien sale § Questions about property taxes can be directed to DOF:
vTax Lien Ombudsman: (212) 291-4414 vEmail: taxlien@finance.nyc.gov vEmail: PTAID@finance.nyc.gov for payment agreements vTo locate property tax exemptions visit www.nyc.gov/ownerexemption
§ Questions about water and sewer charges can be directed to DEP:
vDEP Call Center: (718) 595-7000 vOmbudsman’s Office: (718) 595-6628 vRequest a payment agreement by emailing CollectionsUnit@dep.nyc.gov or calling 718-595-7890
§ Questions about ERP or AEP charges can be directed to HPD:
vCall (212) 863-6020 or email hpderp@hpd.nyc.gov for questions and inquiries about charges.
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This presentation is for informational purposes
intended as legal advice or as a statement of the law. For more information about what is required, see the Multiple Dwelling Law, Housing Maintenance Code, and the Rules of the City of New York.
Updated July 2020
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It is much easier and less expensive to deal with maintenance issues BEFORE the Emergency Repair Program gets involved.
Owners can save By listening to
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§ Owners must register their property and keep their contact information updated in order to receive communications from HPD, including notification of Class C emergency repair violations. § Without current and valid registration, owners cannot:
v certify the correction of HPD violations. v file a Dismissal Request for the re-inspection of overdue violations. v file actions in Housing Court.
§ By law, Property Registration is required annually. § The Property Registration is due to HPD between June and August 31st each year for:
v All multiple dwellings (buildings with three or more residential units). This includes condominium buildings (not units), cooperatives, and hotels. v One and two family homes only if neither the owner nor any family member lives there.
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§The registration form is available through the Property Registration Online System at www.nyc.gov/hpd, by emailing HPD at register@hpd.nyc.gov, by calling the Registration Assistance Unit at 212-863-7000, or at any borough office. §HPD recommends that Owners choose to include an email address with their building’s contact info. Benefits include:
v Immediate email notification when a complaint is filed. v Email notification when Notices of Violation are mailed. v Important updates regarding key topics such as lead-based paint, mold and pests, and property registration deadlines.
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vExample: schedule regular maintenance for heat and hot water systems during the summer months to prevent breakdowns in the winter.
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§ Notice of Violation (NOV) is mailed to the last validly registered
carefully and, after correcting the condition, certify correction of the condition. § HPD will attempt to reach the registered managing agent by phone and/or email. § Postponements for lead-based paint violations may be available if an owner cannot correct the violation within the deadline – see the NOV for more details. § Owner is responsible to file a Certification of Correction with HPD. Timely correction and certification:
v Is free v Avoids mandatory re-inspection for violation clearance (except for Lead-Based Paint, mold and pest violations) v Prevents the violation from being referred to ERP
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vAs with any overdue violation, HPD may seek civil penalties against the property in housing court. vThe Class C emergency repair violation will be referred to the Emergency Repair Program. ERP’s staff may:
encourage compliance.
necessary repairs if the work hasn’t been done.
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§If ERP finds that the repairs have already been completed properly, ERP may bill a service charge if a vendor was dispatched. §HPD bills an owner once HPD’s vendor is paid, not when the work is done. As a result, there may be a delay from when the work is done to when the
§Once the contractor’s invoice is paid by the City, ERP bills the owner through the Department of Finance (DOF) for the full cost of the work, as well as significant administrative fees. The City is subject to laws governing procurement, contracting, and wages that may make such work significantly more expensive than the price that owners could obtain themselves.
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v NYC Dept. of Finance Website v HPDOnline
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v Owners must file their protest in writing before the due date of the charges. The due date will be listed on the property tax bill and on the building’s online account history with DOF. By law, HPD cannot consider an
v HPD Research and Reconciliation Unit 100 Gold Street, Section 6C New York, NY 10038
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§ HPDOnline (www.nyc.gov/hpd) has all historical information about charges. Once a charge has been transferred to DOF (see last column), DOF is the source of information regarding what has been paid and what is currently due (including interest). § The Building Charge Report below provides details about the source of ERP charges. There are several important notes at the bottom of the report that owners should read carefully.
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Click on ‘Charges’ in the left nav bar to view this report Rows contain detailed information about each charge
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