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NYC homeowners sue over pied-à-terre surcharge exemption process
The lawsuit says the Department of Finance sent about 17,000 notices that required owners to apply and prove primary residence status, even though state law directs the agency to use existing records.
A group of New York City homeowners has filed suit challenging how the city rolled out its high-value second home surcharge, commonly referred to as a pied-à-terre tax. HousingWire reports the plaintiffs do not dispute the tax itself, but argue the Department of Finance should have determined primary residence status using existing information rather than requiring owners to apply for exemptions.
According to the lawsuit, the city mailed roughly 17,000 homeowners notices saying their properties may be subject to the surcharge. The notices instructed owners to apply for an exemption and provide proof that they occupy their homes, which homeowners and brokers say is difficult and unclear.
HousingWire reports Mayor Zohran Mamdani previously warned owners of second homes valued at $5 million or more to check their mail, and the city later extended the proof submission deadline to mid-September, citing summer travel among many wealthy homeowners.
The suit also follows other legal action tied to the Mamdani administration, including a separate landlord case filed last month over the Rent Guidelines Board’s freeze on about 1 million stabilized apartments. HousingWire says the homeowners’ attorney, Randy Mastro, is also co-counsel in the rent freeze lawsuit, and Mastro previously served as deputy mayor under former Mayor Eric Adams.