New York City to pay $60M over seized property dispute

New York City will pay $60 million to compensate property owners whose assets were seized under the Third Party Transfer (TPT) program, following a class-action lawsuit that alleged inadequate compensation and due process violations. The settlement covers 64 properties that were taken by the city over unpaid property taxes and other outstanding debts.

The TPT program, which allowed the city to transfer tax-delinquent properties to third parties to recover outstanding obligations, faced significant legal challenges from affected property owners who claimed they were not properly compensated for their seized assets. The lawsuit argued that the program denied owners fair market value and violated their legal rights.

Mayor Zohran Mamdani's administration is now exploring options to revive the TPT program with reformed procedures and safeguards. Officials are examining ways to restructure the initiative to address previous concerns while maintaining its core objective of recovering unpaid taxes and municipal debts.

The settlement represents a significant development in the ongoing debate over property seizure policies in the city. Officials have indicated that any revival of the program would incorporate stronger protections for property owners and improved transparency in the seizure and compensation process.