State Foreclosure Law Library

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New York County (Manhattan), New York — Tax Sale & Surplus Procedure

Local operations layer. The legal framework (redemption periods, surplus rights, statutes, case law) lives on the parent page → new-york. This page covers how New York County / New York City actually runs it. Legal information, not legal advice. Last verified: 2026-06-01.

Critical jurisdictional note. New York County is one of New York City’s five boroughs (Borough of Manhattan, ACRIS borough code 1). NYC does not use the statewide RPTL Article 11 in rem tax-foreclosure scheme described on new-york. Instead the NYC Department of Finance (DOF) runs an annual tax-lien sale: it bundles delinquent tax/water/sewer/ECB liens and sells them in bulk to a private NYCTL trust, which may then foreclose the purchased lien as if it were a mortgage under RPAPL Article 13. This changes where surplus is filed (New York County Supreme Court, not an Art. 11 enforcing officer) and the interest mechanics. NYC separately operates a Third Party Transfer (TPT) in rem program (DOF + HPD) for severely distressed, tax-delinquent buildings — historically the source of the post-Tyler equity-retention controversy in NYC. Authority: NYC Administrative Code Title 11, Ch. 3 (§§ 11-301 et seq.; lien sale § 11-319; purchaser rights § 11-332).

C0. Identity

  • County seat / recording unit: Manhattan is the Borough of Manhattan; the county is New York County, a New York City borough / county whose recording function is performed by the NYC Office of the City Register (DOF), not an independent county recorder.
  • Population: ~1.6 million (2020 census ~1.69M).
  • FIPS: 36061
  • Parent legal framework: new-york — but see the critical note above: NYC operates under the NYC Administrative Code Title 11, Chapter 3 lien-sale regime, not RPTL Article 11.

C1. Local Tax Sale

  • Conducts own sale? Yes — citywide, run by NYC Department of Finance, not by New York County itself. The mechanism is a tax-lien sale (bulk sale of liens to a trust), not a property/deed auction and not an online parcel auction. NYC DOF Lien Sale
  • Platform / venue: No public bidding platform. DOF sells the lien pool to a single authorized buyer (the NYCTL trust structure). There is no GovEase / RealAuction / Bid4Assets parcel auction for NYC tax liens; the public-facing event is publication of the eligible-properties lien sale list and the sale of the pool to the trust. NYC DOF Lien Sale
  • Calendar / frequency: Annual (paused 2020–2024 during the COVID-era lapse and authorization gap; resumed 2025). The 2025 lien sale was held June 3, 2025 (originally scheduled May 20, 2025, then extended by DOF). 2025 was the first year in four that DOF republished the eligible list for all five boroughs, including Manhattan. DOF 2025 lien-sale extension · City Limits
  • Next known sale: 2026 date not yet published as of 2026-06-01 (DOF typically posts a preliminary eligible list ~90 days ahead, then 60/30/10-day updated lists). Check the DOF lien-sale page. Flagged — exact 2026 date pending. NYC DOF Lien Sale
  • Statutory authorization / sunset: Local Law 82 of 2024 (the Home Preservation & Debt Resolution Reform Act) re-authorized the lien sale through December 31, 2028, with reforms (Easy Exit, payment-plan expansion, outreach). A November 2025 City Council package restructures the program toward sale of liens to the NYC Land Bank rather than a financial trust. Land-bank transition details flagged. NYC Council press, 2025-11-13
  • Eligibility to be in the sale (debt thresholds): governed by the DOF “Lien Sale Eligibility Chart,” which sets per-class thresholds — generally 1–3 family homes (Class 1) enter only at a higher delinquency threshold (and minimum number of delinquent quarters) than larger/commercial classes. Exact current thresholds flagged — the DOF eligibility-chart page returned HTTP 403 on direct fetch and could not be read in full. DOF Lien Sale Eligibility Chart (not read — 403)
  • Interest / surcharge once a lien is sold: the lien-holder/trust is entitled to a 5% surcharge plus interest that accrues daily; the interest rate is tiered by assessed value (lower rate for smaller assessed-value parcels, higher rate — reported in the 16–18% range — for higher assessed values), per NYC Admin Code §§ 11-224.1 / 11-264 / 11-319 / 11-332. Exact current rate tiers flagged (DOF page 403; secondary sources disagree on the exact tiers).
  • Bidder requirements / registration / deposit: N/A for the public — there is no open auction; the pool is conveyed to the designated trust. Property owners do not “bid”; they pay or enter a payment agreement to be removed from the list. NYC DOF Lien Sale
  • Delinquent / lien-sale list location: DOF publishes the “Properties Eligible for the Lien Sale” lists (90/60/30/10-day notice lists) on the lien-sale page, searchable/PDF by borough (Manhattan included); the 2025 cycle published a “60 Day Notice List” by borough/block/lot. Historical lists are on NYC Open Data. NYC DOF Lien Sale · NYC Open Data — Tax Lien Sale Lists

C2. Local Redemption → framework: right-of-redemption

  • Where/how to redeem (before the lien sale): pay the delinquent taxes/water/sewer/ECB charges, or enter a payment agreement, with NYC DOF (online via CityPay, by phone via 311, or at a DOF Business Center) to be removed from the lien-sale list before the sale date. Property bills & payments
  • After the lien is sold: the owner redeems by paying the trust/servicer the lien amount + 5% surcharge + accrued daily interest + administrative/legal fees; this is no longer a payment to the City. If unredeemed, the trust may commence an RPAPL Article 13 foreclosure in New York County Supreme Court, where the owner’s right-of-redemption continues up to the foreclosure sale (New York has no post-sale statutory redemption — see new-york).
  • Local fees: 5% statutory surcharge + tiered daily interest + servicer/legal fees (see C1). Exact figures flagged.
  • Redemption contact: NYC DOF via 311 (212-639-9675 from outside NYC); lien-sale unit reachable through the DOF lien-sale page. NYC DOF Lien Sale
  • Deviations from state default: The RPTL § 1110 two-year statutory redemption period and the RPTL Art. 11 enforcing-officer redemption mechanic on new-york do not govern NYC — redemption here runs against the trust/servicer under the Admin Code Ch. 3 lien-sale model, then through the RPAPL Art. 13 mortgage-style foreclosure.

C3. Local Surplus / Excess Proceeds → framework: surplus-funds

  • How surplus arises: when the trust forecloses a sold tax lien as a mortgage and the foreclosure-sale price exceeds the lien debt + costs, the excess is “surplus monies.” This is the post-tyler-v-hennepin-county recovery target for Manhattan tax-lien foreclosures.
  • Claim filing venue: New York County Supreme Court (Civil Term) — surplus monies from a New York County foreclosure are paid into court and claimed via a surplus-money proceeding under RPAPL §§ 1361–1362, filed in the foreclosure action with the New York County Clerk at 60 Centre Street, Room 161. This is the mortgage-foreclosure surplus track, not the RPTL § 1196/1197 enforcing-officer track used by upstate Art. 11 counties. New York County Clerk’s Office · RPAPL § 1361 (Justia)
  • Claim form: the NY Unified Court System “Foreclosure Action Surplus Monies Form” (fillable) is completed and filed with the County Clerk; for an e-filed case it is uploaded to NYSCEF as a “Foreclosure Action Surplus Monies Form.” The UCS also publishes a tax-foreclosure-specific “Instructions to Claim Surplus Monies.” UCS Surplus Monies Form (fillable PDF) · UCS — Instructions to Claim Surplus Monies (PDF) · UCS Foreclosure / Surplus Monies Forms index
  • Who may claim: the prior owner, a judgment creditor (docketed, unpaid judgment against the property), or a lien holder of record at the time of the foreclosure judgment (RPAPL § 1361; UCS surplus-monies instructions). UCS Foreclosure / Surplus Monies Forms index
  • Where records live: the foreclosure case file is held by the New York County Clerk at the Supreme Court Building, 60 Centre Street, Room 161, New York, NY 10007; archived/old foreclosure records are with the County Clerk Division of Old Records, 31 Chambers Street, 7th Floor. New York County Clerk’s Office
  • Local deadline notes: a surplus claim is filed in the foreclosure action; a referee/court adjudicates priority before distribution. NYC-specific deadline and whether the residential ≥3-year window of RPTL § 1197 has any analog in the lien-foreclosure track flagged — the lien-foreclosure surplus runs under RPAPL Art. 13, not RPTL § 1197.
  • Unclaimed-funds list published? Surplus monies left unclaimed in court are ultimately reportable to the NY State Comptroller Office of Unclaimed Funds; there is no NYC/DOF tax-lien “surplus list” portal confirmed as of last_verified. Flagged. NY Comptroller Unclaimed Funds
  • Contact: New York County Clerk / Supreme Court Civil Term (see C4); surplus questions are handled by the court, not DOF.

C4. Offices & Contacts

OfficeNameAddressPhoneURL
Tax Collector (citywide)NYC Department of FinanceDOF Business Centers citywide; mail per bill311 (212-639-9675 outside NYC)https://www.nyc.gov/site/finance/index.page
Lien Sale / payment removalNYC DOF Lien Sale Unitvia DOF lien-sale page311https://www.nyc.gov/site/finance/property/property-lien-sales.page
Clerk of Court (surplus venue)New York County Clerk (Supreme Court, Civil)60 Centre St, Room 161, New York, NY 10007646-386-5955https://ww2.nycourts.gov/courts/1jd/county-clerk/index.shtml
Recorder / Register of DeedsNYC Office of the City Register — Manhattan (New York County)66 John St, 13th Fl, New York, NY 10038ACRIS Contact Center 212-487-6300https://www.nyc.gov/site/finance/property/acris.page
SheriffNYC Sheriff (does not conduct tax-lien foreclosure sales; a court referee does)citywide311https://www.nyc.gov/site/finance/about/contact-the-sheriff.page

Manhattan ACRIS / City Register documents recording = borough code 1; ACRIS Contact Center 212-487-6300. County Clerk Division of Old Records: 31 Chambers St, 7th Fl, 646-386-5395. ACRIS

C5. Local Procedure Notes

  • NYC Admin Code Ch. 3 lien-sale regime, not RPTL Art. 11 — the single most important deviation from the new-york state default. (NYC Admin Code §§ 11-301 et seq., 11-319, 11-332.)
  • No public parcel auction / no online bidding platform — NYC sells liens to a trust; there is nothing for an investor to bid on in the DOF lien sale.
  • Foreclosure is mortgage-style (RPAPL Art. 13) — surplus therefore flows to New York County Supreme Court and is claimed under RPAPL §§ 1361–1362 (UCS surplus-monies form filed with the New York County Clerk), not via an RPTL § 1196 enforcing-officer surplus determination.
  • Third Party Transfer (TPT) in rem program — separate from the lien sale, DOF + HPD can foreclose severely tax-delinquent, distressed buildings in rem and transfer them to third-party owners. This was the focus of post-Tyler equity controversy (owners losing buildings worth far more than the arrears). A 2026 City Council effort would revive/redesign TPT with a ranking system targeting the most distressed buildings. Program in legislative flux — flagged. DOF TPT In Rem (not read — 403) · HPD Tax Delinquency
  • Local Law 82/2024 reforms — Easy Exit (low-income owners can apply to remove a home for three years without payment), expanded payment plans, mandatory CBO outreach, building inspections for chronically listed buildings.
  • Sunset / land-bank pivot — lien-sale authority ends 12/31/2028; a Nov. 2025 Council package shifts future lien sales toward the NYC Land Bank. Mechanics flagged — in transition as of 2026. NYC Council, 2025-11-13
  • Quirk: the post-2024 reforms mean a Manhattan owner’s most reliable “exit” is often a DOF payment agreement or Easy Exit before the sale, not a post-sale redemption from the trust at 5% surcharge + daily interest.

C6. Records Access

C7. Meta

Legal information, not legal advice. This page summarizes New York City’s tax-lien sale and foreclosure operations as of the last_verified date and may be incomplete or out of date; NYC’s lien-sale program is in active legislative transition (Local Law 82/2024, a 2025–2026 land-bank restructuring, and a 2026 Third Party Transfer revival). Several DOF pages could not be fetched directly and are cited from official URLs via search; verify against the cited sources and consult a licensed New York attorney before acting. Last verified: 2026-06-01.

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