Lien Sale Outreach and HELP NIGHT

What is a lien sale?

A lien is a legal claim against real property for unpaid property taxes, water, sewer or other property charges, as well as the interest due on these taxes and charges. If property owners have received a lien sale notice, or if the property was on a published lien sale list, City records showed that property owner had this kind of debt.

If property owners are behind in their taxes and/or water/sewer charges for certain periods, the city can put a lien on the property.  Property owners who are 3 years or more behind in their taxes are in danger.  In addition, in 2007, the Department of Environmental Protection (DEP) began placing liens on property where the owner was one year and at least $1,000 behind in water and/or sewer charges.  The sell is, if the charges are not paid within the specified time frame, the city can transfer the liens to a single authorized buyer who hires collection agencies.  The lien holder then attempts to collect the debt.  The lien holder can place additional charges, including a 5% surcharge and up to 18% in interest during this period, which is usually between 6 months and one year. After that time, if all debts are not paid, the property can be foreclosed and sold.

How do you know if you are on the lien sale list?

90 days prior to the actual lien sale, the city publishes a list of all delinquent properties in the newspaper, and on the NYC Department of Finance’s website. Find the list at: http://www.nyc.gov/html/dof/html/property/property_bill_taxlien.shtml.The last day to prevent the sale of a lien on the property by paying the debt or entering into a payment agreement has been extended to August 3, 2011.  No down payment is required for a payment agreement. 

How does the lien sale impact property owners in Bedford Stuyvesant?

Bedford-Stuyvesant has one of the largest homeownership rates in the New York City.  We are justly proud of the men and women, who, from one generation to the next, have maintained family and community ties that are rooted in the tradition of owning a home. That rich history dates back to the men and women of African descent who helped to build this great city, and who settled in communities such as Weeksville and became proud citizens.  Families have scrimped and saved to make certain that mortgages and taxes were paid so that a precious legacy could continue. However, the harsh economic down-turn has left residents in communities of color such as Bedford-Stuyvesant, in serious peril, and the 2007 bill which spawned the water lien added yet another threat to people who were already struggling.

What organizations are doing to HELP Bedford Stuyvesant?

The Brownstoners of Bedford-Stuyvesant, Inc is a not-for-profit, volunteer service organization that is dedicated to the continued preservation, revitalization and enhancement of the community of Bedford-Stuyvesant.

Over the past thirty-three years we have been active in Bedford Stuyvesant by promoting literacy through our Reading Awareness initiative which includes the distribution of more than 10,000 reading pledge cards to adults. Our Open School Welcome Project posts teams of volunteers in area primary schools for community outreach.  We have been conducting non-partisan voter registration drives since our inception.  This year, we will be hosting our thirty-third annual house tour. Proceeds from the past house tours have funded over $100,000 to scholarship funds. More than fifty scholarships have been awarded to college-bound graduates of Boys and Girls High School who attend historically black colleges or universities. We also use the house tour proceeds to award the graduates of programs from the Brooklyn Academy High School.

Perhaps the most compelling of our initiatives is the Lien Sale Outreach Project, which was started over eight years ago, at the request of then Councilmember Annette M. Robinson, who expressed great concerns about the high numbers of residents who were in danger of losing their homes due to tax arrears.  She had already established an event which is now known as HELP NIGHT.  HELP NIGHT involves bringing representatives from the Department of Finance to a central location in the community so that residents can pay arrears, make installment arrangements, apply for exemptions or check their status.  However, not many homeowners were taking advantage of this incredible resource.  Brownstoners put our heads together, and the Lien Sale Outreach Project was born.  The project is a simple, but powerful grass-roots effort that takes teams of Brownstoners to the door of every homeowner on the lien list within District 36. The teams leave packets of “home saving” information along with an invitation to the annual HELP NIGHT. When Councilmember Albert Vann took office, he continued to support the project, and he has been unwavering in making certain that all elements are in place for an effective initiative.

Members of the Brownstoners undertake everything from dividing the huge lien list into block-size parcels to assembling the thousands of copies that go into the packets for the homeowners.  Through the years, these neighbor-to-neighbor visits have resulted in saving hundreds of homes that would have gone into the lien sale process.  The annual HELP NIGHT routinely brings out over one hundred residents, and this turn-out is the direct result of the door-to-door outreach.  One must actually witness the relieved faces and words of thanks to understand the impact of this endeavor.

Six years ago, Councilmember Vann established the “Know the Facts Don’t Loose Your Home” Collective in order to provide homeowners with local technical assistance from community development agencies. Bridge Street Development Corporation was the first to get on board. The organizations that followed were Neighborhood Housing Services of Bedford Stuyvesant, Bedford Stuyvesant Restoration Corporation, Pratt Area Community Council and Community Board #3.  

What effect does water/sewer liens have on Bedford Stuyvesant?

The Brownstoners neighbor to neighbor outreach and partnership with the “Know the Facts” Collective was an invaluable service to the Bedford Stuyvesant community. Together, we were able to slowly reduce the numbers on the tax lien list.  Then, along came the 2007 legislation that established delinquent water and sewer bills as a benchmark for liens. We all know what happened as a result. 

In the past four years, we found ourselves not only right back where we started, with so many of our neighbors in danger of losing their property, but we are in even more dire straits. The water lien has been particularly devastating to Bedford Stuyvesant. Mainly because of seniors who own their homes free and clear, and to those of the next generations who have inherited property with no outstanding mortgages. They pay their property taxes, but still are not familiar with the water tax and lien process.  Brownstoners’ experiences also document the large number of owners who no longer live in their homes, and who may not be aware of this new situation.

What's new in the fight to HELP Bedford Stuyvesant homeowners?

Councilman Vann remained diligent in the collaborative fight to save homes. He had voted against the 2007 legislation to include water liens. In 2010, he proposed Int. 26. The bill would provide much-needed relief to our neighbors.  During our door-to-door outreach, Brownstoners found that many of our senior and disabled residents did not know that they could qualify for exemptions, and the approach outlined in the legislation would put more of the onus on the Departments of Finance and Environmental Protection to establish eligibility.  Seniors who are owners of Class I properties who are enrolled in the Enhanced Star Program would be able to take advantage of the higher income ceiling.  The three year benchmark for inclusion in the lien sale would provide time for additional notification to homeowners, along with the opportunity for homeowners to become more familiar with the lien process. 

This year, there was a noticeable decrease in the lien sale numbers in District 36 homes. HELP NIGHT 2011 was a tremendous success. The event was held at the Bedford Stuyvesant Restoration Corporation located at 1368 Fulton Street. The event was held on Monday July 25^th from 5pm-8pm. The event was lead by Bridge Street Development Corp and the Office of Councilmember Vann. Some 126 homeowners were served by representatives from NYC Finance and DEP. Many of the homeowners qualified for exemption, applied for programs or made payment arrangements to save their properties from the lien sale. Additional community support was present with representatives from the “Know the Facts Don’t Loose Your Home” Collective, CIBS, Gateway BID, Office of Councilmember Albert Vann and the Comptroller’s Office.

The reforms stipulated in Int. 26 were not only vital to individual homeowners in our community, but they also protect the culture and stability of one of the jewels in New York City’s crown of ethnic neighborhoods.