NYC to Pay $60 Million to Owners of Tax-Seized Buildings

New York City has reached a $60 million settlement with owners of 64 properties that were taken by the municipal Third Party Transfer program for unpaid tax debts. The agreement, lodged in Manhattan federal court, resolves claims that the city seized the homes without providing just compensation and without proper notice, violations alleged in a class-action lawsuit filed in 2019. City representatives maintain the transfers were lawful but chose to settle to close the protracted case.

The compensation will be paid to the owners of properties seized in 2019, though the broader lawsuit still includes over 500 additional properties. Mayor Zohran Mamdani has indicated plans to revive the program as part of his "Fix the City" housing initiative. Attorneys for the plaintiffs hope future court decisions will produce similar outcomes for the remaining cases.