Good morning Chair Brannan and thank you for holding this hearing today. I am here representing Brooklyn Borough President Antonio Reynoso. In November, our office testified at a joint hearing of the Committees on Consumer and Worker Protection and Aging regarding deed theft, where we encouraged the Council to hear the bills on today’s agenda. Thank you Chair for acting quickly to make this hearing happen.
As was discussed at length at the November hearing, deed theft is a pressing issue in Brooklyn, especially for older adult homeowners in communities of color such as the Central and Eastern parts of the borough. Deed theft scammers target these communities through illegal tactics such as refinancing scams, equity stripping, and foreclosure bailout loans, resulting in the displacement of our neighbors and the loss of generational wealth.
Additionally, DOF and the City Council unfortunately reinstated the Tax Lien Sale last year, albeit with significant updates to help homeowners avoid having their liens sold and new options for keeping people in their homes. Still, any sale of liens to private purchasers can put property owners at risk of foreclosure and open the door for predatory actors.
For example, an article from law firm Rosenberg and Estis, P.C. titled “How Savvy Investors Can Spot Distressed Properties Before NYC’s 2025 Tax Lien Sale” advises their clients to watch DOF’s lists of at-risk properties in order to, “focus on prospects most likely to entertain offers as interest accumulates and deadlines loom” because, “They may be more willing to accept an offer below market value if it means avoiding runaway interest costs and the eventual transfer of their lien.”
Preventing criminals and speculators from preying on vulnerable property owners requires inter-agency coordination at the City and State levels, including policy changes, increased funding for legal assistance, and expanded outreach and education. Today’s hearing focuses on the latter, where the City’s Department of Finance is a key partner.
The goal of all today’s proposals is to ensure that homeowners have the tools and information they need to protect their homes.
- Intro 782-A: Every property owner gets a quarterly property tax bill from DOF. This proposal would require DOF to include important information about available exemptions – which, in addition to saving property owners money, will exempt them from the lien sale – as well as the opportunity to sign up for the ACRIS Alert system, an important tool for awareness if someone has made unauthorized changes to property documents.
- Intro 1086: Builds on this by requiring DOF to conduct more proactive outreach to property owners when deed- or mortgage-related documents are recorded against their property, including by email, text, and mail, depending on what information DOF has for that homeowner. While the ACRIS Alert system is helpful, it is important that homeowners don’t have to rely on it alone to receive this important information.
- Intro 889: Creates a role for the City Council to assist with outreach when changes to these documents impact a long-term homeowner in their district.
- Intro 783: Would require DOF to record tax liens in ACRIS once the lawful debt on the property exceeds five thousand dollars past due for a period of more than three years, even when that lien continues to belong to the City and is not sold. This can alert property owners to accruing debt about which they may not be aware and help them avoid the lien sale, speculation, and foreclosure. This would be a change to current practice, where municipal debt liens are only recorded when the City sells them to a third-party trust through the process I described earlier, exposing owners to predatory actors.
- Resolution 327: Calls on the State to allow property tax exemption and abatement programs to apply retroactively for eligible property owners, including older adults and veterans. Property owners should not be responsible for debts accrued because they were unaware of these opportunities.
Thank you again for your attention to these important proposals. Borough President Reynoso encourages the Council to move quickly to pass them and looks forward to your continued partnership on protecting our communities from displacement.
