Tax Lien Securitization

Detailing how the combination of tax lien securitization and third party transfer through in rem foreclosure have combined for an effective program.

In 1996 New York City put into place a new method for collecting real estate taxes. The 1996 legislation allowed for the sale of residential tax liens and at the same time identified buildings with both tax liens and housing problems that would be better preserved through transfer to new ownership with the appropriate rehabilitation finance and subsidies to ensure its financial viability.

At the time the approach was innovative and ambitious as it sought to improve real estate tax collection, derive value from tax liens rather simply foreclose on them, and at the same time apply the extensive experience in housing preservation and rehabilitation to save the most at risk buildings and ensure their long term survival.

CHPC’s report, The Invisible Transformation, details the extent to which the combination of tax lien securitization and third party transfer through in rem foreclosure have combined for a uniquely effective program.

Latest Insights
February 18, 2011 - by CHPC
Support CHPC

Your contribution will provide critical support for our research and advocacy efforts, which shape key policies that improve housing throughout the city.

Donate