Transfer Tax Liens to NYC Land Bank
Enacted on Jul 31, 2026Signed into law by the Mayor.
Signed into Law
Local Law 2026/065
✦ Plain-Language Summary
This law requires companies that buy unpaid property tax debts to transfer those debts to the NYC Land Bank, a nonprofit that can help stabilize struggling properties. It focuses especially on old, long-held tax liens that have kept properties in limbo for decades. This can help free up distressed properties for affordable housing or community use instead of leaving them in legal and financial limbo.
Details
- Introduced
- Oct 9, 2025
- Passed Council
- Jan 29, 2026
- Enacted
- Jan 29, 2026
- Body
- Committee on Finance
- Type
- Introduction
- Status
- Enacted
Official Description
This bill would require the commissioner of finance to require purchasers of tax liens to make best efforts to transfer such liens to the New York city land bank (land bank) upon certain triggering events. Lien purchasers would be required to make best efforts to transfer any liens held in a trust established earlier than 1999 (known as the “graveyard trust”) no later than six months after the establishment of the land bank, and to make best efforts to transfer any other liens after all debt obligations secured by such liens are satisfied. In the event that legal or financial obstacles would prevent the transfer of a lien, the purchasers would be required to report to the City the specific liens and relevant obstacles, and identify when such obstacles may no longer prevent the transfer of such liens in the future. Purchasers who identify liens prevented from transfer would be required to again make best efforts to transfer such liens to a land bank no later than two years after having first been required to attempt such transfer.