New York City Mayor Zohran Mamdani is facing criticism after his administration confirmed that the city will resume its controversial property tax lien sale program in mid-2027, despite his campaign promise to end the practice.
According to The City Reporter, Mamdani’s administration decided to hold one final sale following a six-month review of the program.Â
During his campaign, Mamdani pledged to stop property lien sales on his first day in office, arguing that the system allowed private debt collectors to profit from financially struggling homeowners.
Under the program, the city sells liens for unpaid property taxes, water and sewer bills to privately managed trusts. These investors can collect additional interest and fees and ultimately pursue foreclosure if property owners fail to settle their debts.
The Department of Finance plans to issue a 90-day notice list in early 2027 identifying properties potentially eligible for the sale.Â
The administration says it will work with nonprofit organizations and the Mayor’s Public Engagement Unit to help homeowners arrange payment plans and avoid having their debts sold.
The decision is controversial because the program has disproportionately affected Black and Hispanic neighborhoods.Â
Mamdani’s reversal raises questions about his commitment to a central campaign promise to protect homeowners from predatory debt collection.
The administration says the 2027 sale will be the last under the current system, with a city land bank expected to take over the process afterward.
