Good afternoon, Chairs Hudson and Menin and members of the committees, and thank you for holding this hearing today. I am here representing Brooklyn Borough President Antonio Reynoso.
Deed theft is a pressing issue in Brooklyn, especially for older adult homeowners in the Central and Eastern parts of the borough. Homeownership is one of the most important pathways to building and sustaining wealth. When deed theft scammers target these communities, they are trying to displace our neighbors and lock Black and Brown families out of homes that they have had for generations.
Last month, our office held a workshop at Medgar Evers College with Brooklyn Legal Services and Grow Brooklyn to educate homeowners on their rights and how to avoid scams. According to BLS, the most common scams these homeowners may face are refinancing scams, equity stripping, and foreclosure bail out loans. In short, these scammers take advantage of vulnerable homeowners who may be having trouble making mortgage payments, have bad credit, and/or are at risk of foreclosure.
Education is the best preventative measure we can take, which is why we are bringing information directly to communities. Borough President Reynoso also wants to shout out Attorney General Tish James for all the advocacy she has done on this issue, and the State legislature for reforms that went into effect this summer to make deed theft a crime, extend the statute of limitations on prosecuting these crimes, and grant more oversight to the Office of the State Attorney General.
These were important reforms that we are hopeful will have a real impact in our communities, but there is still more we can do.
- Further extend the Statute of Limitations on prosecution. The new State law dictates that prosecution must begin within five years of the theft or two years after the rightful owner realizes their deed was stolen, whichever occurs later. The State should extend this two-year window further to allow time for homeowners who realize their deed has been stolen additional time to report to law enforcement so that prosecution can begin, since they are also addressing civil issues and figuring out their options.
- Expand access to legal services.
- Create a Tangled Title Fund modeled on Philadelphia’s. The City of Philadelphia supports this program through its Division of Housing and Community Development. An independent Advisory Committee oversees the fund, which is administered through a non-profit called Philadelphia VIP. The fund provides up to $4,000 each for qualified homeowners to cover administrative, legal, and other costs that may arise in resolving a homeownership issue. BP Reynoso commends the City Council for starting to think about what this would look like through its Estate Planning Initiative, but the required funding to make this work at scale is much more than provided so far.
- Increase funding for community lawyers generally. In addition to the Tangled Title Fund work, local legal services organizations provide educational outreach, workshops, and other critical legal support. They are an important line of defense against these scammers, and we must prioritize them in FY 2026 budget negotiations.
- Pass legislation to expand outreach and education: Both bills being heard today will help accomplish this. However, a few important bills are in the Finance Committee and are not being heard today. These are:
- Intro 0067, sponsored by Public Advocate Williams, would specifically require the Department of Finance, in consultation with HPD and DCWP, to conduct outreach and education regarding deed fraud and foreclosure prevention assistance fraud, including referral resources for legal assistance.
- Intro 782, sponsored by Council Member Nurse, would require DOF to send information with property tax bills, including availability of exemptions such as SCRIE and DRIE; and about how to register for the ACRIS Alert system so they will receive an alert when deeds, mortgages, and other documents are recorded against their property.
- Intro 1086, sponsored by Council Member Williams, would require 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.
Borough President Reynoso encourages the Council to convene the Finance Committee to hear these bills before the end of the year and looks forward to working with you all on these and other efforts to keep New Yorkers in their homes. Thank you.
