NYC Homeowners Sue City Over "Second Home Tax" Registry Mix-Up

What Happened?

A group of New York City homeowners has filed a lawsuit against Mayor Zohran Mamdani and the city’s Finance Director. They are upset about two things:

1. A brand-new tax on second homes.
2. A public list published by the city that includes the names and addresses of over 900,000 property owners—even though most of them don’t owe the new tax.

Important Point: The lawsuit does not argue that the tax itself is illegal. Instead, it focuses on how the city handled the public registry and the warning letters sent to homeowners.

Who Is Suing?

The plaintiffs (the people suing) are three homeowners:

• Simon Hedley
• Rachel O’Brien
• Carmine Morano

They claim the city wrongly flagged their primary residences as potential "second homes" subject to the new tax surcharge.

Rachel O’Brien’s Story

“It is absolutely absurd that the city publicly identified our house as a possible second residence when my husband and I live here, raise our family here, and have made it our permanent home.”

She also questioned why the city didn’t check its own records before publishing the list.

What Is the "Second Home Tax"?

This tax is part of NYC’s Fiscal Year 2027 budget. It targets:

• Homes that are not the owner’s primary residence.
• Properties valued at over $5 million.
• Certain co-ops valued at $1 million or more.

Goal: Help close the city’s budget gap.
Backed by: Mayor Mamdani and Governor Kathy Hochul.

What Is the Controversial Registry?

The Department of Finance published a list including:

• Single-family homes
• Cooperatives (co-ops)
• Condominiums

But here’s the catch:

The department admits the vast majority of properties on the list are not subject to the tax.

• 900,000+ owners had their names and addresses made public.
• Only ~17,000 received warning letters saying their home might be taxed.

What Do the Homeowners Want?

Their lawyer, Randy Mastro (former First Deputy Mayor under ex-Mayor Eric Adams), is asking the court to:

1. Declare the warning letters and the public registry illegal.
2. Remove the list from public view immediately.
3. Pause the deadline for homeowners to respond to the letters.
4. Stop any enforcement actions while the case is ongoing.

How Did the City Respond?

Matt Rauschenbach, a spokesman for Mayor Mamdani, defended the administration:

“The Department of Finance is working to answer questions and assist those who may be subject to the surcharge. The Law Department is prepared to vigorously defend the city against this lawsuit.”

Why Is This a Big Deal?

• The city publishes tax info every year, but this time attention exploded because of the new tax.
• Homeowners across all five boroughs are criticizing the move.
• Privacy concerns: Names + addresses of nearly a million people were posted publicly—most of whom owe nothing.

Summary

FAQ

Does this lawsuit try to cancel the second home tax?

No. The lawsuit challenges the publication of the registry and the warning letters, not the tax law itself.

Why were 900,000+ people listed if only ~17,000 might owe the tax?

The city published a broad list of potential properties, but admits most aren’t actually subject to the surcharge. Plaintiffs say this was careless and violated privacy.

What information was made public?

Names and home addresses of over 900,000 property owners across all five boroughs.

Who is Randy Mastro?

He’s the plaintiffs’ lawyer. He previously served as First Deputy Mayor under former Mayor Eric Adams.

What happens next?

The court will decide whether to:

• Order the list taken down
• Pause response deadlines
• Block enforcement actions
  …while the case moves forward.

Bottom Line: This isn’t really about the tax—it’s about how the city rolled it out. Homeowners say their privacy was violated and the city acted sloppily. The city says it’s just doing its job and will fight the suit. Stay tuned!