Research Question:
What were the impacts of tax lien sales on residents and
property values in New York City from 2011 to 2021?
What is a Tax Lien Sale?
The NYC tax lien sales program was a legal policy that allowed the
Department of Finance to lay claim to properties with unpaid municipal
charges like property taxes and water bills. Properties with tax liens
were then auctioned in an annual sale to both public and private
investors. Investors can impose additional interest and fees to the
property owners — eventually, many investors end up foreclosing on the
lien and taking control over the property.
Why study it now?
The program in NYC began in 1996 and
sunsetted in February 2022, resulting in
widespread debate currently on the future
of tax liens. Our research seeks to address
key concerns around the impacts that this
program had on specific demographics and
property values.
