Black NYC Homeowners’ Suit Challenging Tax Sales Advances (1)

A proposed class action by Black property owners facing foreclosure due to tax delinquencies largely survived New York City’s latest attempt at dismissal.

The homeowners challenged the Third Party Transfer program, which authorizes the city to foreclose on properties with overdue taxes and transfer ownership of those properties free of charge to designated partners, who then develop and manage the properties.

The US District Court for the Southern District of New York dismissed the homeowners’ facial due process and New York conspiracy allegations, but allowed the bulk of their constitutional, state law, and federal conspiracy claims to proceed.

Ropes ...