New York landlords have applauded Governor Andrew Cuomo and
Attorney General Letitia James for forcing the city to postpone a planned tax lien
sale.
“The tax lien sale would have done permanent damage to thousands of struggling building owners and their tenants,” said Jay Martin, executive director of the Community Housing Improvement Program (CHIP).
“But this is just a temporary measure. Renters in New York
still badly need help from the federal government. It is past time that
Congress acted.”
Governor Cuomo signed a new Executive Order last Friday that
prevents the city from holding its annual tax and water lien sale.
With an estimated 9,100 property owners behind on their
water and tax bills, the sale was expected to bring in some $57 million to city
coffers.
But in a statement, Cuomo said New Yorkers deserved a break
in the wake of the “enormous disruption” caused by the coronavirus pandemic.
“COVID-19 caused enormous disruption in the daily lives of
New Yorkers, including their ability to keep a roof over their head,” said the Governor.
“The tax and water lien sale was delayed in May in recognition of this
hardship, and given the current economic climate, it makes sense to delay it
again so that homeowners aren’t facing further uncertainty.”
Mayor Bill de Blasio had planned to hold the sale of
thousands of liens on September 25 after initially delaying it from May, 2020.
However, the Governor’s executive order supersedes city mandate.
He said postponing the lien sale would give property owners more
time to work with the city on a “path forward.”
CHIP, a group that represents the owners of 400,000 rent
stabilized apartments in the city, has argued that the lien sale will wipe out
decades of equity built up by working-class immigrants who have borne the brunt
of the COVID-19 pandemic.
The group said building owners who have fallen behind in
their property tax payments are almost exclusively mom-and-pop shops and many
have renters who have not paid any rent for more than four months.
Announcing the latest delay, Attorney General James aid, “As
the economic impacts of COVID-19 rage on, the tax lien sale puts an unnecessary
financial burden on New York’s homeowners, and especially communities of color.
“It is the responsibility of government to relieve the
financial hardships of the people wherever possible, not exacerbate them. I am
proud that my office worked with Governor Cuomo and his team to take immediate
action to protect hardworking homeowners during this stressful time.”
Under the new executive order, the tax lien sale is
suspended for at least 30 days, but it can be renewed in a month as the
governor has done with other pandemic-related orders.
