By: Alyssa Wilson

Black residents in New York City are fighting the city’s controversial Third Party Transfer program, which allows private property to be seized because of unpaid bills or conditions.  

According to the New York City Department of Finance, “The Third Party Transfer Program is a public-private partnership created by New York City local law to rehabilitate buildings with significant delinquent municipal charges and poor housing conditions, and to ensure that residents remain in place with affordability and rent stabilization protections.”  

Under the policy, a person’s home can be subject to foreclosure if a person’s property taxes or other property-related charges are unpaid for an extended period of time. There are also certain tax specifications that could also make the property subject to foreclosure.  

Sherlivia Thomas-Murchison is one of the three lead plaintiffs in a class-action lawsuit against New York City and the partnering developers of the program, NBC News reported. They allege the program unfairly helps gentrification and is pushing Black and Brown residents out of the community.  

In June, the 2nd U.S. Circuit Court of Appeals said the lawsuit could move forward. Matthew L. Berman, an attorney representing one of the plaintiffs, said, “Our clients, working families, had their generational wealth, their homes, snatched from them by the City of New York under its Third Party Transfer Program. They were not given any compensation for these illegal and unconstitutional takings and even though the City tried to get our lawsuit tossed, the Court has now acknowledged that our suit should continue to move forward.”  

Thomas-Murchison’s mother worked for decades to ensure her family had a permanent home in Brooklyn. Their work was shattered in 2018 when the building, where the apartment she owned resided, was signed over to a developer. She was left without a place to call home, NBC News reported. 

She and the other plaintiffs in the case say the city seized properties that did not meet the program’s criteria. They also allege the city did not notify nearly 700 homeowners, most of whom were Black and Latino, in a timely manner that their property was at risk of being confiscated. It is unlikely they will get their homes back, but in the lawsuit they are asking for payment in the amount of lost equity, which they estimate to be about $1 billion.  

If you or someone you know is struggling from trauma triggered by this story, resources are available here.