In the past, the City's real property tax policy resulted in long-term City ownership and management of large numbers of tax delinquent residential properties. Not only did the policy fail to address the underlying reasons for tax delinquency and abandonment, but the City was unable to quickly resell the properties to responsible private owners.

In 1996, in an effort to more effectively link property tax enforcement and housing preservation policies, the City obtained legislative changes that have altered the process by which the City forecloses on tax delinquent properties.

• Local Law #26 of 1996 now permits the Commissioner of Finance to sell the tax liens of properties which have tax arrears, but are not distressed;

• For distressed and other buildings, under Local Law #37 of 1996, DOF can initiate an in rem foreclosure proceeding that will require the owner to pay his or her taxes or face the loss of his or her property;

• If the taxes are not paid, the City can convey a tax delinquent residential property to a qualified third party after a Court-rendered in rem judgment.

HPD's Anti-Abandonment staff and Neighborhood Preservation Consultants work with owners of buildings designated for in rem actions to encourage them to pay their taxes in full or in installments, if acceptable to the Department of Finance (DOF). These owners are also referred for loan assistance, code enforcement, education and/or other targeted assistance.

PHONE NUMBER: (212) 863-6562

Supplementary Materials:

• HPD invites qualified individuals and organizations to submit descriptions of their qualifications to acquire, rehabilitate and manage residential properties through HPD's Third Party Transfer Program. Read more about this Request for Qualifications.

• Tenants may petition HPD for tenant ownership of their building. The following documents are used in completing the tenant petition process: the Tenant Petition, Sponsor Letter and a list of previously qualified not-for-profit developers (in PDF). For further information on the tenant petition process, please see the RFQ described in the above bullet.

• For an in-depth discussion of the history, development, and implementation of the Third Party Transfer initiative, read Breaking the Cycle of Abandonment Using a Tax Enforcement Tool to Return Distressed Properties to Sound Private Ownership (in PDF). This paper was the winner of the Pioneer Institute's Year 2000 Better Government Competition.

• A description of the Third Party Transfer Process (in PDF)

• Properties that remain active in the 2005 (Round 7) (in PDF) third party transfer in rem foreclosure actions.