Unless the context requires otherwise, as used in these rules:
"Administrative Code" shall mean the Administrative Code of the City of New York.
"Commissioner" shall mean the Commissioner of Finance of the City of New York.
"Date of sale" shall have the meaning provided in Administrative Code § 11-320(e).
"Tax lien" shall have the meaning provided in Administrative Code § 11-301.
The Commissioner, on behalf of the City of New York, may sell tax liens, either individually, in combinations, or in the aggregate, pursuant to the procedures provided in Chapter 3 of Title 11 of the Administrative Code, and is authorized by law to establish the terms and conditions of a sale of a tax lien or tax liens. The Commissioner may, in his or her discretion, sell a tax lien or tax liens through a competitive sale or a negotiated sale, including the negotiated sale of tax liens to a trust or other entity created by the City or in which the City has an ownership or residual interest. The Commissioner shall sell such tax liens at a purchase price that, in the determination of the Commissioner, is in the best interests of the City. The amount of a tax lien that is sold shall be the unpaid amount of the lien as of the date of sale, including: any interest and penalties thereon, any taxes, assessments, sewer rents, sewer surcharges, water rents, any other charges that are made a lien subject to the provisions of Chapter 3 of Title 11 of the Administrative Code, the costs of any advertisements and notices given to effectuate the sale, any other charges that are due and payable, any surcharge imposed by law, and interest and penalties thereon, or such component of the amount thereof as shall be determined by the Commissioner, notwithstanding the amount paid for purchase of the tax lien or component of the amount thereof.
(a) Generally. A property owner, or other eligible person as defined in subdivision (i) of this section, may enter into an installment agreement with the Department of Finance that allows for the payment in installments of any delinquent real property taxes or any charges that are made a lien on real property under Chapter 3 of Title 11 of the Administrative Code, excluding any delinquent sewer rents, sewer surcharges and water rents that are collected by the New York City Water Board. Except as provided in subdivision (g) of this section, when a property owner or other eligible person enters into an agreement with the Department of Finance for the payment of any such lien(s), any proposed sale of a tax lien(s) on a property will be cancelled.
(b) Down payment. The property owner or other eligible person is not required to remit a down payment for an installment agreement with the Department of Finance. However, the property owner or other eligible person may elect to remit a down payment in any amount.
(c) Payment schedule. An installment agreement must provide that the property owner or other eligible person make payments on a quarterly or monthly basis as determined by the Commissioner.
(1) Monthly installments: If an installment agreement requires monthly payments, then payments must be made by the first day of each month.
(2) Quarterly installments: If an installment agreement requires quarterly payments, then payments must be made by January 1, April 1, July 1 and October 1.
(d) Term of agreement. Installment agreements are for a term that is no less than eight years and no more than ten years. However, a property owner or other eligible person may elect for a term that is less than eight years.
(e) Default.
(1) Definition of default: The property owner or other eligible person will be in default of such agreement, if any installment required under an installment agreement remains unpaid for a period of six months from the date payment is required to be made under subdivision (c) of this section, or if any other tax or charge that becomes due on the property during the term of such agreement remains unpaid in whole or in part for a period of six months.
(2) Consequences of default; cure of default: In the event of default of an installment agreement pursuant to paragraph (1) of this subdivision, the agreement may be cancelled and the tax lien(s) on the property that were required to be paid under the agreement, including any tax liens that became due during the term of the agreement, may be sold.
However, such default may be cured upon payment, prior to the date of the first tax lien sale that occurs following a default, of all past due installments required by the agreement, and all other charges that became due during the term of the agreement that are past due and unpaid at the time of the default, including interest and fees.
(3) Bar from executing future installment agreements: If a default is not cured as described in paragraph (2) of this subdivision prior to the date of the first tax lien sale that occurs following such default, the owner of the affected property and any other eligible person acting on behalf of the owner will not be eligible to enter into an installment agreement with the Department of Finance for the affected property for five years from the date of such sale, unless there is a finding of extenuating circumstances by the Department of Finance as described in paragraph (4) of this subdivision.
(4) "Extenuating circumstances" for purposes of paragraph (3) of this subdivision:
(i) "Extenuating circumstances" shall mean (1) the death of the signatory to the agreement, of any person named on the deed for the property or of a contributing household member, (2) a loss of income to the signatory, to any person named on the deed for the property or to a contributing household member due to his or her involuntary absence from the property for any consecutive period of six months or more for treatment of an illness, for military service, or pursuant to a court order, that results in a default of the agreement or inability to cure the default prior to the date of sale of the tax lien or tax liens, (3) a loss of income to the signatory to the agreement, to any person named on the deed for the property or to a contributing household member due to his or her unemployment for any consecutive period of six months or more that results in a default of the agreement or inability to cure the default prior to the date of sale of the tax lien or tax liens, or (4) active enrollment in, that is, enrolled and up-to-date with payments, as well as compliance with, the requirements of the New York City Department of Environmental Protection's water debt assistance program as authorized by the New York City Water Board and Wastewater Rate Schedule which is set forth in Part VIII, section 4 of Appendix A of 15 RCNY Chapter 42.
(ii) For purposes of this paragraph, "contributing household member" shall mean any person eighteen years of age or older who has lived in the property that is the subject of the installment agreement at least since the execution of the agreement and has paid household expenses since the execution of the agreement in an amount equal to at least fifty percent of each installment amount due under the agreement.
(iii) An application for a finding of extenuating circumstances may be made only on a form prepared by the Commissioner or his or her designee and shall include a certification by the applicant that extenuating circumstances exist. The Department of Finance may require additional documentation to support a claim of extenuating circumstances by a property owner or other eligible person. If the Department of Finance determines that the applicant has provided inaccurate information in the application, any installment agreement entered into based on the finding of extenuating circumstances shall be revoked and the property owner and other eligible person shall not be eligible to enter into an installment agreement with the Department for the subject property for five years from the date of sale. The determination on an application for a finding of extenuating circumstances or on the accuracy of such application will be made by the Payment Operations Division of the Department of Finance. If the application is denied or if the information in the application is determined to be inaccurate, the property owner or other eligible person may appeal the determination within 30 days to the Commissioner or his or her designee.
(iv) No signatory to an installment agreement who has defaulted on such agreement and who, as a result of a finding of extenuating circumstances, has been allowed to enter into a second installment agreement for the subject property, shall be eligible to enter into any subsequent agreement on the subject property by applying for a finding of extenuating circumstances for the default of such second installment agreement. The same restriction shall apply to any other person whose change of circumstances was the basis, in whole or in part, for the original finding of extenuating circumstances.
(f) Information regarding exemptions. Before a property owner or other eligible person enters into an installment agreement, the Department of Finance will give the owner or other eligible person information regarding eligibility for real property tax exemption programs. The Department of Finance may give such information to the owner or other eligible person in a manner that may include, but is not limited to, providing the information within the text of an installment agreement and with lien sale notices.
(g) Property with multiple qualifying tax liens; installment agreements with the Department of Environmental Protection. Notwithstanding the execution of an installment agreement with the Department of Finance, any tax liens that are not made subject to the installment agreement with the Department of Finance will remain subject to the laws regarding eligibility for the sale of tax liens.
Example: Under the Administrative Code, real property tax liens that are on property classified as class two, that is not a condominium or cooperative, may be sold if the real property tax liens are at least one year past due. Also under the Administrative Code, for the same type of class two property, tax liens for water and sewer charges may be sold if the liens have been unpaid for at least one year and total at least $1,000.
If such a class two property has real property tax liens that have been unpaid for at least one year, and also has water and sewer liens that have been unpaid for at least one year and total at least $1,000, the Department of Finance will cancel the tax lien sale of those real property tax liens when the owner of the property or other eligible person enters into an installment agreement with the Department of Finance to pay the unpaid real property tax liens that are subject to the proposed tax lien sale. However, the water and sewer liens may still be sold in a tax lien sale unless they are paid or the owner or other eligible person enters into an installment agreement with the Department of Environmental Protection to pay those water and sewer liens pursuant to that agency's rules for installment agreements.
(h) Effect on in rem foreclosure. Entering into an installment agreement pursuant to § 11-322(b) of the Administrative Code and this section will have no effect on whether a property will be excluded or severed from an in rem foreclosure action brought under Chapter 4 of Title 11 of the Administrative Code. Notwithstanding any other provision of these rules, the terms of installment agreements entered into with the Department of Finance that affect whether a property will be included in an in rem foreclosure action will continue to be governed by the provisions of Chapter 4 of Title 11 of the Administrative Code.
(i) Other eligible person. For purposes of § 11-322 of the Administrative Code and this section, an "other eligible person" who may enter into an installment agreement on behalf of an owner includes (1) a fiduciary acting (i) with respect to the administration of the property of an estate of a decedent who owned the real property as to which an installment agreement is sought, or (ii) on behalf of a beneficiary of such real property from such estate; and (2) such an estate beneficiary. A fiduciary may include an administrator, executor, preliminary executor, administrator d.b.n. (de bonis non), administrator c.t.a.d.b.n. (cum testamento annexo de bonis non), administrator c.t.a. (cum testamento annexo), ancillary executor, ancillary administrator and ancillary administrator c.t.a. (cum testamento annexo).
(j) Documentation verifying eligibility to execute a payment agreement. An other eligible person entering into an installment agreement under this section must submit to the Department of Finance, prior to entering into such agreement, the following documentation to verify his or her eligibility.
(1) Fiduciary. A fiduciary entering into an installment agreement must submit a copy of a document issued by the Surrogate's Court that evidences his or her appointment as a fiduciary of the property of the estate of the decedent who owned the real property for which an installment agreement is sought. Such documents may include but are not limited to copies of Letters Testamentary or Letters of Administration.
(2) Estate beneficiary. A beneficiary of real property belonging to a decedent's estate and for which an installment agreement is sought, who is therefore an owner of the property, must submit:
(i) If the decedent had a will, a copy of the decedent's death certificate or other documentation which, in the determination of the Department of Finance, substantiates the death of the owner of the real property for which an installment agreement is sought, and:
(A) a copy of the will that indicates that the beneficiary was bequeathed the decedent's entire estate or a share thereof containing the real property for which an installment agreement is sought, or was devised the real property or a share of the real property for which an installment agreement is sought; or
(B) a notarized letter signed by the court-appointed fiduciary of the decedent's estate providing that the beneficiary has inherited from the estate the real property or a share of the real property for which an installment agreement is sought, together with a copy of a document issued by the Surrogate's Court, such as Letters Testamentary, that evidences the appointment of the fiduciary; or
(C) if there have been no documents filed with the Surrogate's Court and no fiduciary has been appointed by the Surrogate's Court with respect to the decedent's estate, documentation issued by a government agency which, in the determination of the Department of Finance, substantiates the beneficiary's claim that he or she inherited the real property or a share of the real property for which an installment agreement is sought, making such beneficiary an owner of the property.
(ii) If the decedent died without a will, a copy of the decedent's death certificate or other documentation which, in the determination of the Department of Finance, substantiates the death of the owner of the real property for which an installment agreement is sought, and:
(A) a copy of the document filed with or issued by the Surrogate's Court naming the beneficiary as an heir of the decedent's entire estate or a share thereof containing the real property for which an installment agreement is sought; or
(B) a notarized letter signed by the court-appointed fiduciary of the decedent's estate providing that the beneficiary is an heir of the real property or a share of the real property for which an installment agreement is sought, together with a copy of a document issued by the Surrogate's Court, such as Letters of Administration, that evidences the appointment of the fiduciary; or
(C) if there have been no documents filed with the Surrogate's Court and no fiduciary has been appointed by the Surrogate's Court with respect to the decedent's estate, documentation issued by a government agency which, in the determination of the Department of Finance, substantiates the claim that the beneficiary is an heir of the decedent and inherited the real property or a share of the real property for which an installment agreement is sought, making such beneficiary an owner of the property.
(k) Hardship installment payment agreement combined income exclusions. For the purposes of determining an applicant's eligibility to enter into a hardship installment payment agreement or a renewal hardship installment payment agreement, or in order to calculate the combined income of all property owners for any other purpose set forth in § 11-322.1 of the Administrative Code, an applicant may submit a written request to the Department of Finance to exclude from such combined income calculation the income information of one or more property owners pursuant to the procedures set forth below. Such request shall be made on a form prescribed by the Department of Finance. The Commissioner may request additional information concerning the basis for exclusion if the Commissioner deems such information relevant to approving such a request.
(1) If a property is owned in part by a spouse, ex-spouse, or domestic partner of an applicant, such spouse, ex-spouse, or domestic partner no longer resides at the property, and the applicant for a hardship installment payment agreement is a victim of domestic violence, then such spouse, ex-spouse, or domestic partner's income shall not be considered for the purposes of calculating the combined income of the property owners. An applicant will be deemed to be a victim of domestic violence if he or she has been issued either a temporary or final order of protection by a court of competent jurisdiction against such spouse, ex-spouse, or domestic partner and such applicant provides a copy of such temporary or final order of protection with his or her application or renewal application or as an addendum to such application.
(2) If the application for a hardship installment payment agreement or a renewal hardship installment payment agreement is for the property of an estate of a decedent, then the income of a beneficiary that cannot be located shall not be included for the purposes of calculating the combined income of the property owners. In order for the beneficiary's income to be excluded, the applicant must submit documentation in his or her application for the hardship installment payment agreement, and in all subsequent renewal applications, demonstrating that the applicant has exercised due diligence in attempting to locate such beneficiary and that the applicant has not been able to locate the beneficiary or communicate with the beneficiary during the period in which the property has been part of the estate.
(l) Hardship installment payment agreement conversion.
(1) Where an installment agreement is in effect pursuant to § 11-322 of the Administrative Code and no installment payments required under the agreement or current charges on the property are unpaid, a property owner may apply to convert the agreement into a hardship installment payment agreement.
(2) A property owner may have only one hardship installment payment agreement in effect at one time, but a property owner with a hardship installment payment agreement in effect may have other installment agreements in effect on other parcels of real property.
(3) A property owner may request that the type of hardship installment payment agreement in effect be changed to a different type of hardship installment payment agreement, but such a request may be made only once during any six month period. The terms of a hardship installment payment agreement may also be adjusted once during any six month period. Any request for a change or adjustment that is made during the two months immediately preceding the date that a renewal application is required to be submitted will take effect subsequent to the date that a renewal application is required to be submitted. In order to be eligible to change the type of hardship installment payment agreement in effect, no installment required under the existing installment agreement shall be unpaid, and the property owner shall meet the qualification requirements set forth in § 11-322.1 of the Administrative Code. Notwithstanding any contrary provision of this paragraph, an applicant who has entered into a senior low-income installment agreement pursuant to subdivision l of such section may switch from an installment agreement without a fixed time period to an installment agreement with a fixed time period, or from an installment agreement with a fixed time period to an installment agreement without a fixed time period, at any point.
(m) Hardship installment payment agreement determinations and appeals. The Department of Finance will notify an applicant in writing concerning any determination rendered by the Department of Finance regarding that applicant's hardship installment payment agreement application or hardship installment payment agreement renewal application. If such application is not approved, such notice will inform such applicant as to the reasons for the Department of Finance's determination. Such applicant may appeal a determination rendered by the Department of Finance on a form prescribed by the Department of Finance no later than 90 days after the date on the Departments' determination letter. Such appeal shall be considered by the Commissioner or his or her designee, and the Department of Finance shall notify such applicant in writing concerning the appeals determination rendered by the Commissioner or his or her designee. The Department of Finance's appeals determination is reviewable pursuant to Article 78 of the New York Civil Practice Law and Rules.
(n) Terminology and applicability of this rule to hardship installment payment agreements.
(1) Subdivisions (b), (c), and (d) of this section shall not apply to hardship installment payment agreements.
(2) For the purposes of this subdivision and subdivisions (k) through (m) of this section:
(i) the terms "applicant," "income," "income tax year," "property," and "property owner" have the meanings provided for in § 11-322.1 of the Administrative Code; and
(ii) the term "hardship installment payment agreement" means an installment agreement entered into pursuant to § 11-322.1 of the Administrative Code.
(3) For the purpose of subdivision (n) of § 11-322.1 of the Administrative Code, “extenuating circumstances” has the meaning set forth in subparagraphs (i) and (ii) of paragraph (4) of subdivision (e) of this section. An application for a finding of extenuating circumstances submitted pursuant to subdivision (n) of § 11-322.1 of the Administrative Code is subject to the requirements and procedures set forth in subparagraph (iii) of paragraph (4) of subdivision (e) of this section.
(o) Hardship installment payment renewal self-certification. An applicant seeking renewal of their hardship installment agreement may, in their application, self-certify that they are eligible to renew their agreement and meet the requirements set forth in paragraph (2) of subdivision (h) of Administrative Code § 11-322.1. In addition to the termination provisions set forth in subdivision (k) of such section, the Commissioner or a designee of the Commissioner may void any installment agreement where the Commissioner or a designee of the Commissioner determines that an applicant has intentionally made a material misstatement in their application and the Department of Finance relied on such misstatement in good faith in approving such application.
(Amended City Record 6/19/2017, eff. 2/1/2017; amended City Record 3/17/2020, eff. 4/16/2020; amended City Record 2/11/2025, eff. 2/11/2025)
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