COVID-19: Programs Available to Assist With Property Taxes

With many people out of work due to the coronavirus (COVID-19) pandemic, the City Department of Finance (DOF) is offering several programs to assist property owners who are having a hard time 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 DOF 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

DOF offers flexible payment plan 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.

PROPERTY TAX AND INTEREST DEFERRAL PROGRAM

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 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.

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 DOF defines “extenuating circumstances” as involving the death or serious illness of a property 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 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 that 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.govor mailed to:
    • Department of Finance
    • Payment Plans
    • 59 Maiden Lane, 28th Floor
    • New York, NY 10038