NYC Department Of Finance Offers To Help Property Owners With Hardship Pay Property Taxes

The New York City Department of Finance offers several programs to assist property owners who face hardships making their property tax payments. These include exemption programs to lower the amount of taxes owed, standard payment plan options as well as the new Property Tax and Interest Deferral (PT AID) program, for those who qualify.

“These are unprecedented times for New Yorkers, many of whom now find themselves struggling to make ends meet,” said Department of Finance Commissioner Jacques Jiha. “Through our programs, DOF hopes to ensure we do our part to help those who are struggling have one less burden to deal with as we work toward economic recovery.”

Exemption Programs

The Department of Finance administers several benefits in the form of tax exemptions, abatements, and money-saving programs. Exemptions lower the amount of tax owed by reducing a property’s assessed value. Abatements reduce taxes by applying credits to the amount of taxes owed. Exemptions administered by DOF include the Coop & Condo Abatement for qualifying property owners, as well as a number of programs for seniors, disabled and veterans. More information and application information for those programs can be found here.

Standard Payment Plans

The Department of Finance offers flexible payment plans programs that are personalized to each property owner. Under a payment plan, property owners agree to pay the total amount owed over time instead of paying the full amount all at once. A payment plan will also prevent enforcement from occurring against a property.

DOF offers standard payment plans to owners of all properties. Standard payment plans require a down payment as low as zero dollars and can spread out the repayment of what is owed over a period that can be as long as ten years. While the payment plan is in effect, interest is charged on the outstanding balance and the property owner is required to pay newly occurring property taxes in full.  

Property Tax and Interest Deferral program (PT AID)

Property owners who qualify for the Property Tax and Interest Deferral program can defer their property tax payments, or pay only a small percentage of their income, to ensure they stay in their home. The PT AID program defers property tax payments for a given length of time, depending on each applicant’s situation. Through the program, payment of property taxes can be deferred for a fixed length of time for a temporary hardship, or for a longer period due to a chronic hardship. The amount each property owner can defer paying is limited to a maximum of 25% of the owner equity of a one-, two-, or three-family home, or up to 50% of the equity of a condominium unit. The program is open to one-to three-family home and condominium owners who have fallen behind on their property tax payments.

Below are the three payment plan options:

Extenuating Circumstances Income-Based (ECI) Plan

Homeowners experiencing extenuating circumstances can enter into a payment plan which limits their payments to a maximum 8% of their adjusted gross income while the hardship persists. The Department of Finance defines “extenuating circumstances” as involving the death or serious illness of a property’s owner or immediate family member, loss of income, or enrollment in the Department of Environmental Protection’s Water Debt Assistance Program

Eligibility criteria:

• • The property must be a one- to three-unit tax class 1 residential property, or a condominium.
  • The property must have been the applicant’s primary residence for at least one year.
  • Applicants must have a federal adjusted gross income (AGI) of $58,399 or less.
  • Applicants must be able to document an extenuating circumstance such as the death or serious illness of a property’s owner or immediate family member, loss of income, or enrollment in the Department of Environmental Protection’s Water Debt Assistance Program.

Low-Income Senior Plan

Senior homeowners experiencing hardship can fully or partially defer payment of their delinquent and future property taxes for either a fixed or indefinite period of time. Property owners can choose to pay 0% (full deferral), 25%, 50%, or 75% of the delinquent and future property taxes.

Eligibility criteria:

• • Property owner must be 65 or older.
  • Property must be a one- to three-unit tax class 1 residential property, or a condominium.
  • The applicant must have been using the property as their primary residence for at least one year.
  • Applicants must have a federal adjusted gross income (AGI) of $58,399 or less.

Fixed-Term Income-Based plan

Property owners can enter into a payment plan which limits their payments to a maximum of 8% of their adjusted gross income. The plan may include only the delinquent amount or the delinquent amount plus charges projected to be due over the next year.

Eligibility criteria:

• • The property must be a one- to three-unit tax class 1 residential property, or a condominium.
  • The property must have been the applicant’s primary residence for at least one year.
  • Applicants must have a federal adjusted gross income (AGI) of $58,399 or less.

Applications and more information about property payment plan applications can be found here; information and the application for the PT AID program can be found here. Completed applications and supporting documentation for both standard payment plans and the PT AID program can be emailed to PTAID@finance.nyc.gov or mailed to:

Department of Finance, Payment Plans, 59 Maiden Lane, 28^th Floor, New York, NY 10038

In addition, the Department of Finance has an online payment plan calculator to help property owners estimate how much they would pay under the various potential terms of each plan. The tool uses applicants’ information about their property and income to help make the estimate.

New York City property taxes are administered by the NYC Department of Finance. Properties with assessed values less than $250,000 are billed quarterly, and the next payment is due on April 1. These property owners are entitled to a grace period allowing them to pay their balance free of interest until April 15. Properties with assessed values more than $250,000 are billed semi-annually and the next payment is due July 1.  More information on property bills and payment dates can be found online.