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 Timeline v Outreach Sessions v Resources § HPD’s Emergency Repair Process 2
§ What is a Lien? v A 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. § What is the Lien Sale? What is v When debt has been delinquent for a legally specified period the Lien of time, the City is allowed to sell the debt—this is a lien sale. Sale? v The 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. § What happens after the sale? v The Trust’s private collector has the authority to collect the money that was previously owed to the City plus other fees and interest. 3
Why Do We Need the Lien Sale? 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 Why Do § The lien sale is the City’s primary tool to collect delinquent debt owed by We Need property owners. Effective revenue generator the Lien § Over 83% of property owners noticed in the lien sale pay off their debt or Sale? 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. 4 4
Property Tax Debt Water/Sewer Debt AEP Debt * ERP Debt * May Be Type of Property Minimum Years Minimum Years Minimum Years Minimum Years Excluded Amount Overdue Amount Overdue Amount Overdue Amount Overdue (Note 2) 1 Family - Owner Occupied $1,000 3 N/A N/A N/A N/A YES (Note 1) (Note 1) 1 Family - Non-Owner Occupied $1,000 3 N/A N/A $1,000 1 NO Which 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 Properties Residential Condominium $1,000 3 $1,000 1 $1,000 1 $1,000 1 YES are Residential Cooperative Building $1,000 3 $1,000 1 $1,000 1 $1,000 1 NO Eligible 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 for the $1,000 3 $2,000 1 $1,000 1 $1,000 1 YES Apartments Above Housing Development Fund $5,000 2 $5,000 2 $5,000 2 $5,000 2 NO Corporation (HDFC) Rental Building Lien Sale? All other $1,000 1 $1,000 1 $1,000 1 $1,000 1 NO 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- occupied and if you qualify for one or more of the exemptions listed on Slide 13. 5
Property owners receive several notices at different milestones during the Lien Sale. A 120- Notices to notice, 90-day notice, a 60-day Property notice, 30-day notice, 10-day notice Owners and publication. The 30-day notice was mailed on July 31, 2020. 6
To prevent the sale of a lien, the debt must be resolved by September 3, 2020 through one of the How to following Avoid the methods: Lien Sale § 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 7
Customers have many options for paying their bill: *Finance and HPD DEP: Property taxes, ERP charges, Water and sewer charges and other charges Avoid the Online nyc.gov/liensale nyc.gov/dep or “MY DEP” mobile app Lien Sale: Phone (212) 291-2930 (866) 622-8292 Mail NYC Dept. of Finance NYC Water Board Pay Your P.O. Box 680 P.O. Box 11863 Newark, NJ 07101-0680 Newark, NJ 07101-8163 Debt 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. 8
§ Property owners with the following exemptions are excluded from the lien sale Avoid the v Senior Citizen Homeowner Exemption (SCHE) Lien Sale: v Disabled Homeowner Exemption (DHE) Apply for v Veterans Exemption an v Eligible for Extenuating Circumstances (DEP) Exemption v Eligible for Water Debt Assistance Program (DEP) v Active duty military personnel may also request an exemption from the lien sale by completing an affidavit available at www.nyc.gov/liensale. 9
§ Payment agreement terms v No down payment required v 20% down on a defaulted payment plan OR file an extenuating circumstance Payment Plan Reinstatement Request. v Monthly or quarterly payments for up to 10 years. Avoid the v New bills must be paid in full for a payment agreement to remain current Lien Sale: § Interest Rates Payment Property Tax and Water Debt Interest Reduction Agreements Interest Assessed Value Effective Rate of Property Dates 1 St Quarter - July 1, 2020 3.25% Less than $250,000 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 10
§ Who can enter into a payment agreement? v For property taxes and other charges, an owner or a person with a legitimate and documented interest in a property can enter a payment agreement v For water and sewer charges, only an owner or authorized representative may enter a payment agreement – more information at nyc.gov/dep § Default Avoid the v If a customer is not current for 7 months or more, the payment agreement is considered “in default” Lien Sale: v A default can be cured by paying off all outstanding balances, including interest Payment v If 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 Agreements v There 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? v Property Taxes and Emergency Repair Charges : download application at www.nyc.gov/dofpaymentplan, submit application and supporting documentation to PTAID@finance.nyc.gov. v Water and Sewer Charges: CollectionsUnit@dep.nyc.gov or call 718-595-7890. 11
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 interest. Property must be owner occupied. Annual income of owners must be $58,399 or less. Property § The three PT AID payment plans are: Tax and 1)Low-Income Senior Interest 2)Fixed-term income-based 3)Extenuating circumstances income-based Deferral § Property type: Program 1)Tax Class 1 (1- to 3-unit residential) 2)Condominium (PTAID) § 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 12
February 12: 90-Day Publication March 13: 60-Day Mailing July 31: 30-Day Mailing 2020 Timeline August 20: 10-Day Publication and Mailing September 3: Last Day to Pay September 4 : Lien Sale Effective Date 13
Date Time Host Borough Link to All Events Event Number Audio Conference +1-408-418-9388 129 899 2006 Access code August 4 6:00pm Brooklyn www.nyc.gov/liensale Password: 2020LS 129 899 2006 +1-408-418-9388 129 143 2825 August 12 6:00pm Queens www.nyc.gov/liensale Password: 2020LS Access code 129 143 2825 Outreach +1-408-418-9388 129 221 8659 Sessions August 20 Password: 2020LS Access code 6:00pm Staten Island www.nyc.gov/liensale 129 221 8659 +1-408-418-9388 129 644 9964 Password: 2020LS Bronx/ Access code August 24 6:00pm www.nyc.gov/liensale Manhattan 129 644 9964 +1-408-418-9388 129 627 1660 Access code August 29 11:00am All Boroughs www.nyc.gov/liensale Password: 2020LS 129 644 9964 You can attend any event, in any borough, no matter where your property is located. 14
§ Customers can call 311 for questions related to the lien sale § Questions about property taxes can be directed to DOF: v Tax Lien Ombudsman: (212) 291-4414 v Email: taxlien@finance.nyc.gov Resources: v Email: PTAID@finance.nyc.gov for payment agreements Telephone v To locate property tax exemptions visit www.nyc.gov/ownerexemption § Questions about water and sewer charges can be directed to DEP: and Email v DEP Call Center: (718) 595-7000 Contacts v Ombudsman’s Office: (718) 595-6628 v Request 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: v Call (212) 863-6020 or email hpderp@hpd.nyc.gov for questions and inquiries about charges. 15
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