NYC homeowners sue Mamdani over new pied-à-terre tax rollout
A group of New York City homeowners has taken legal action against Mayor Zohran Mamdani and the city’s finance authorities over the rollout of a new pied-à-terre tax, arguing that the administration wrongly identified some primary residences as potential second homes.
The lawsuit was filed on Friday by homeowners Simon Hedley, Rachel O’Brien and Carmine Morano. The plaintiffs are not challenging the legality of the tax itself. Instead, their case focuses on how city officials identified properties and made information about potentially affected homeowners publicly available.
The dispute follows the publication of a city property tax roll containing the names and addresses of more than 900,000 property owners. Although most of those properties are not subject to the new surcharge, nearly 17,000 homeowners received notices warning that their properties could potentially fall under the tax.
The homeowners allege that the city’s process has incorrectly flagged primary residences and unnecessarily exposed private information.
O’Brien said her family’s permanent home was identified as a possible second residence despite records indicating that the property was their primary residence. She described the situation as unreasonable and questioned why homeowners were publicly listed when their properties might not ultimately be subject to the tax.
The plaintiffs have asked the court to declare the notices and the publicly released property information unlawful. They are also seeking restrictions on public access to the list.
In addition, the homeowners want the city to suspend response requirements and halt enforcement measures while the legal proceedings are underway.
A spokesperson for Mayor Mamdani said the administration was committed to ensuring that the tax process remained clear and accessible. The spokesperson added that the city’s Law Department was prepared to defend the administration against the lawsuit.
The pied-à-terre tax targets qualifying non-primary residences valued at more than $5 million, along with certain cooperative apartments valued at $1 million or above. The surcharge was included in Mamdani’s fiscal 2027 budget as part of efforts to address New York City’s budget shortfall.
The rollout has triggered significant criticism from affected homeowners. In response, Mamdani extended the deadline for property owners to demonstrate that their homes are their primary residences by four weeks.
The new deadline is now September 18, giving homeowners additional time to challenge their classification and provide documentation to city authorities.
