New York City is facing a mounting crisis affecting its housing stock, particularly concerning older rent-regulated apartment buildings, many of which are owned by small, local landlords.
Approximately 1.7 million residents live in pre-1974 rent-stabilized units predominantly situated in the outer boroughs.
However, many of these properties are in severe financial distress as rental income fails to cover rising operational expenses, a situation that is becoming increasingly dire if the Rent Guidelines Board continues to approve rent increases that lag behind inflation.
To cope with these financial challenges, numerous landlords have resorted to delaying payments on property taxes along with water and sewer bills.
The city’s Department of Finance is preparing to collect on these mounting debts, which could trigger a wave of foreclosures and a detrimental downward spiral in the housing market.
After pausing tax-lien sales during the COVID-19 pandemic, the department planned to resume them but postponed the first sale in years from May 20 to June 3, as officials gained a clearer picture of the crisis.
In tax-lien sales, the city receives cash upfront while investors gain rights to collect the owed debt, charging high interest rates and penalties.
With owners struggling to meet these financial obligations alongside regular bills, vital building maintenance is often deferred; some ultimately abandon their properties, leaving them with all existing debts, while others face foreclosure.
This breakdown in property management leads to disrepair and puts tenants in a precarious position, especially if these buildings fall into the hands of predatory speculators.
As Sean Campion from the Citizens Budget Commission noted during his recent testimony to the Rent Guidelines Board, the market value of pre-’74 buildings is declining sharply as net incomes from these properties dwindle.
The situation has become further complicated by adverse city and state housing policies, which impose costly mandates related to climate change and sanitation, along with the ramifications of the COVID “eviction moratorium.”
Moreover, landlords are now restricted by the 2019 state Housing Stability and Tenant Protection Act, making it nearly impossible to secure financing for renovations once a long-term tenant vacates.
Additionally, the Housing Court is so overwhelmed that even straightforward eviction cases can take an inordinate amount of time, further complicating the plight of these landlords.
Surprisingly, these landlords—many of whom are minority and immigrant property owners—have remained largely invisible in discussions among Democratic mayoral candidates regarding the city’s housing challenges.
Campion has cautioned that if the Rent Guidelines Board continues to sanction below-inflation rent increases, the crisis will only worsen.
To address this escalating situation, reasonable proposals have been suggested by the Small Property Owners of New York, including:
Reforming Housing Court to ensure that non-paying tenants are not able to live rent-free for extended periods while awaiting eviction hearings.
Amending state housing laws to provide landlords with greater flexibility to upgrade apartments.
Expanding existing rental assistance programs and creating new targeted initiatives to help those in need.
Implementing caps on property taxes and other costs akin to the rent increase limits set by the Rent Guidelines Board for stabilized apartments.
The Finance Department is also urged to delay lien sales for a significant duration, beyond just two weeks, to prevent a profound crisis that could decimate this essential housing stock.
Without timely interventions, New York City risks losing a significant portion of its affordable apartments.
image source from：https://nypost.com/2025/05/24/opinion/tax-lien-sales-by-nyc-threaten-to-worsen-the-affordable-housing-crisis/
