A group of New York City homeowners sued Mayor Zohran Mamdani and the city’s finance director over the rollout of the new pied-à-terre tax Friday. Three petitioners, Simon Hedley, Rachel O’Brien and Carmine Morano, allege “the City incorrectly identified their homes as potentially subject to the surcharge despite those properties serving as their primary residences,” according to a news release. Though the lawsuit itself does not challenge the legality of the surcharge, it does scrutinize the city’s release of a tax roll that included names and addresses of over 900,000 New York City homeowners, even if they were not subject to the tax, as well as the distribution of notices sent to some of those residents. According to the city’s Department of Finance, the roll includes family homes as well as co-ops and condominium units but noted “the vast majority of properties and units listed” are not subject to the surcharge. 17,000 property owners received the letters alerting them that they were possibly subject to the tax. One of the homeowners bringing the lawsuit says she was wrongly listed on the property roll. “It is absolutely absurd that the City publicly identified our home as a possible second residence when my husband and I live here, raise our family here, and have made it our permanent home,” petitioner Rachel O’Brien said in the news release. “The City had records available that could have confirmed that before publishing our name and address. Families should not be forced to correct the government’s mistakes because the administration rushed a politically convenient rollout.” The plaintiffs are represented by Randy Mastro, who served as first deputy mayor for former New York City Mayor Eric Adams. The lawsuit is asking the court to declare the notices and the Finance Department’s property roll as unlawful, as well as seeking immediate removal of the list publicly. The plaintiffs are also seeking to pause any obligation for homeowners who received the notices to respond while the case moves forward and prevent further enforcement until the court reaches a decision. Matt Rauschenbach, a spokesperson for Mayor Mamdani said in a statement, “As the mayor has said, we also know that whenever government asks something new of New Yorkers, we have a responsibility to make the process clear, transparent and accessible. That is why the Department of Finance has been working around the clock to answer questions, provide assistance and ensure those subject to the surcharge have the information they need.” He added, “the Law Department is prepared to vigorously defend the city against this suit.” The pied-à-terre tax, which places a surcharge on non-primary residences in New York City valued over US$5 million as well as co-ops valued at $1 million or more, was rolled out as part of Mayor Mamdani’s 2027 fiscal year budget in an attempt to close the city’s budget gap. Gov. Kathy Hochul backed Mamdani on this idea. The administration was scrutinized by homeowners across New York City for the public list that was posted online last month, listing names and addresses of residents across the five boroughs, even if their properties were not subject to the tax. The tax roll is released annually but received heightened awareness surrounding the new tax. Residents who were subject to the tax received a letter from the city’s Department of Finance, stating they would need to prove their homes as their primary residence by a date listed to avoid the surcharge. Following backlash, Mamdani announced over the weekend the deadline would be extended by four weeks, until Sept. 18. By Katherine Koretski, CNN
