NY City Council Freezes Delinquent Property Tax Interest

12 minutes read

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Hello, let’s get into the latest news at the intersection of policy and real estate:

The City Council kept interest rates on delinquent property taxes unchanged for the 2027 fiscal year, rejecting city recommendations for increases.
A new state bill seeks to give municipalities broader authority to waive fees on delinquent property taxes.
A proposed City Council bill could simplify requirements for e-bike charging stations across commercial and residential buildings.

In this edition we mention: Council member and finance committee chair Linda Lee, Nassau County Assembly member Judy Griffin, Council member Oswald Feliz and others.

We Heard

Frozen interest: The City Council voted to keep interest rates on delinquent property taxes unchanged for fiscal year 2027, rejecting the New York City Banking Commission’s recommendation to raise rates across the board. In resolutions sponsored by Council Finance Committee Chair Linda Lee, the Council cited a decline in tax-delinquent properties since 2023 to justify maintaining the status quo. The rates, unchanged since fiscal year 2025, range from 6 percent to 16 percent annually based on a property’s value. Properties worth more than $450,000 face a 16 percent interest rate; those valued between $250,000 and $450,000 are charged 9 percent; and properties worth $250,000 or less pay 6 percent. Owners enrolled in Department of Finance payment plans will continue to pay 2.5 percent annually.
Tax relief? Meanwhile, at the next state legislative session, municipalities could get wider latitude to waive interest and penalties on delinquent property taxes under a proposal aimed at easing pressure on struggling owners. The bill, introduced by Nassau County Assembly member Judy Griffin, would allow local governments to grant relief to taxpayers who can show a history of on-time payments, financial hardship or extraordinary circumstances, including a natural disaster, serious illness or the death of an immediate family member. If enacted, the measure would also give municipalities discretion to waive fees on a case-by-case basis — or establish broader rules for doing so across the board.
Code tweak: A City Council bill introduced by Bronx Council member Oswald Feliz would scrap a requirement that e-bike charging stations (indoors or outdoors) be physically separated from servicing areas by a fire-resistant barrier, a rule that can complicate installation and can limit charging setups in buildings. If approved, the change would ease the buildout of charging infrastructure across commercial and residential properties. The measure, however, keeps a suite of safety requirements in place, including adequate electrical capacity, proper ventilation and enough outlets so each device can be charged individually. Power strips and extension cords would still be prohibited, while battery packs and other removable storage batteries could not be stacked or charged in enclosed cabinets unless those cabinets are specifically approved by the city for that purpose.

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Bill Tracker

Bill Number	Lead Sponsor(s)	Summary	Committee
A11584	Assembly member Judy Griffin	Authorizes municipalities to cancel interest and penalties on delinquent property taxes for owners demonstrating financial hardship or extraordinary circumstances	Referred to Assembly’s Real Property Taxation Committee
Intro. 0961	City Council member Oswald Feliz	Streamlines requirements for e-bike charging spaces in buildings	Referred to Committee on Fire and Emergency Management

The Agenda

The city’s Department of Finance will hold an online hearing on proposed rules to implement the pied-à-terre tax Thursday beginning at 11 a.m. More details on how to join here.

The City Council’s subcommittee on landmarks will hold a hearing on multiple land use items on Thursday at 11 a.m. More details here on the agenda and how to join in person or online.

The Catch-Up
The Mamdani administration is targeting faster construction permitting and procurement reforms for city infrastructure projects as it explores new amendments to the New York City Charter, reports The Real Deal’s Ben Miller.

New York City added 38,682 units to its housing stock last year — the most new apartments completed in a single year for the city since 1965, reports The Wall Street Journal.

The same year proved to be a big one for evictions. City data shows marshals evicted 17,791 households in all of 2025 — the highest total since 2018, reports Gothamist.

Last year there were also about 57,000 vacant rent-stabilized apartments reported by the city, out of about a million, representing an approximate 5.6 percent vacancy rate. In 2016, the citywide vacancy rate was 3.7 percent, reports The City Reporter.

The Kicker

“I’m not going to name legislators, but I had Democrats — influential Democratic legislators — tell me that they’re not on board with this,” said Housing Providers of New York State Executive Director Rich Lanzarone, a landlord advocate, on the fate of the REST Act.