Mamdani Administration Announces Debt Demolisher: Relief Program for Small Businesses and Homeowners

 

Eligible New Yorkers can clear interest and outstanding debt at reduced cost during 90-day window beginning October 13  

  

New Yorkers should visit nyc.gov/debtdemolisher or call 311 for more information and to see if they qualify 

Mayor Zohran Kwame Mamdani and New York City Department of Finance (DOF) Commissioner Richard Lee announced Debt Demolisher, a fine relief program for small businesses and homeowners across the five boroughs. Beginning today and running for the next 90 days, the program will allow eligible New Yorkers to resolve debt accrued from City fines at a reduced cost and avoid future penalties. Debt Demolisher will also help the City collect outstanding fines that may have otherwise gone unpaid. 

  

“City government shouldn’t saddle New Yorkers with endless fines and interest,” said Mayor Mamdani. “When the city issues a fine, the goal is to incentivize compliance with the rules that keep all of us safe and healthy, not make it impossible to grow your business or repair your home. Debt Demolisher makes it more affordable for small business owners and homeowners to get back into good standing, move forward and avoid future penalties. Building a city every New Yorker can afford means tackling not just the major expenses, but the small fines and fees that make it harder to call the five boroughs home.” 

  

“This program gives New Yorkers a more affordable way to clear longstanding city debt and move forward, while helping businesses put old fines behind them and focus on serving their communities,” said Commissioner Lee. “Our city is better off when outstanding fines are resolved, New Yorkers and businesses come into compliance, and revenue that might otherwise go uncollected is recovered. By removing financial barriers to compliance, we are bolstering local businesses, strengthening neighborhoods and supporting our essential city services.”  

  

“As we continue to confront affordability challenges, we must explore every available option to help small businesses remain operational, and homeowners remain in their homes,” said Council Member Linda Lee, Chair of the Committee on Finance. “The passage of Local Law 147 offers New Yorkers a pathway to address outstanding fines and manage accumulated debt, while generating much-needed revenue for the City. By providing practical avenues for individuals to resolve violations and come into compliance with agency regulations, this program helps ease financial burdens and supports a more affordable New York City.” 

  

Debt Demolisher provides New Yorkers with an opportunity to address Environmental Control Board (ECB) judgments, which stem from unpaid violations issued by a number of city agencies, including the Department of Sanitation, Department of Buildings and Department of Transportation. Infractions can range from building code violations to failure to properly dispose of a mattress.  

  

Under Debt Demolisher, New Yorkers with eligible outstanding debt can have accrued interest waived and resolve their debt at a discounted rate. Program participants will be required to come into compliance with outstanding agency violations associated with their judgments. Debt Demolisher is projected to bring in $25 million that would have likely gone otherwise uncollected by the city.  

  

All outstanding ECB judgments are eligible for Debt Demolisher except those where any of the below apply:  

•    It was entered in court (docketed) after July 15, 2026. 

•    It was included in an agreement with the Sheriff’s Office or a New York City Marshal, the corporation counsel or a contractor of the corporation counsel. 

•    It is for a violation that was issued pursuant to a citizen’s complaint, such as for idling or noise violations, served upon a city agency. 

•    An execution has been issued for enforcement to the Sheriff’s Office or a New York City Marshal. 

•    The violation has been converted to a tax lien. 

•    The violation is the subject of a criminal investigation. 

  

Debt Demolisher will run from October 13 through January 10, 2027. New Yorkers can visit nyc.gov/debtdemolisher to confirm eligibility, review frequently asked questions and resolve eligible judgments. Customers who need assistance can also call 311, visit a Department of Finance Business Center, contact Department of Finance Collections through eServices or call the Collections Call Center. 

  

“This administration promised to be a true partner to New York City’s entrepreneurs, and that’s why Mayor Mamdani’s Executive Order 11 directed DOF, OMB and SBS to work together to deliver fine reductions for small businesses,” said SBS Commissioner Kenny Minaya. “Today’s launch of the Debt Demolisher makes that promise real, wiping away interest and penalties for thousands of small businesses that come into compliance. Thank you, Mayor Mamdani, for your commitment to our small business community. Our expanded NYC Business Express Service Team (NYC BEST) stands ready to help every interested business get into compliance and take advantage of this program.”  

  

“Resolving open violations helps property owners protect the safety of their tenants and other occupants while bringing their buildings into compliance,” said Buildings Commissioner Ahmed Tigani. “Through the Debt Demolisher program, the Department of Finance is helping property owners take meaningful steps toward resolving outstanding DOB violations by providing incentives that can make it easier to address these issues, reduce outstanding debt and improve the safety and condition of their properties. By supporting owners in taking action, we’re helping create safer buildings and stronger communities for all New Yorkers.” 

  

“New York City’s sanitation rules help to keep our streets clean and our neighborhoods vibrant. We always seek to achieve compliance by balancing engagement and education with fair, effective enforcement,” said Sanitation Commissioner Gregory Anderson. “This new amnesty and compliance program strikes an important balance — giving small businesses and others a much needed break, while ensuring incentives remain for stores and property owners to follow the law and keep their spaces clean. DSNY is proud to join this effort as we work to keep New York City clean, safe and healthy.” 

  

“Fire safety is a shared responsibility, and compliance with fire safety regulations is essential to protecting the lives of New Yorkers and the buildings where they live and work,” said Fire Commissioner Lillian Bonsignore. “We encourage eligible New Yorkers to take advantage of this program, resolve outstanding obligations and take the necessary steps toward compliance and safer communities.”  

  

“This program reflects Mayor Mamdani's commitment to creating a city where small businesses can thrive and working New Yorkers have a fair shot at getting ahead,” said New York City Economic Development Corporation (NYCEDC) President and CEO Anthony Shorris. “For too many business and property owners, outstanding fines and mounting interest can create barriers to growth and stability. Debt Demolisher offers a practical path to resolve old debt, positioning New Yorkers to better serve their communities, grow their businesses and live in this city with dignity.” 

  

“We know that outstanding ECB debt and accumulating interest can create real challenges for New Yorkers and businesses,” said DOF Deputy Commissioner for Customer Operations Annette Hill. “This program offers an opportunity to resolve longstanding judgments at a more affordable rate, and I encourage interested participants to visit a Department of Finance Business Center or contact DOF Collections through eServices to learn more. Our customer service teams stand ready to help New Yorkers understand their eligibility, navigate the process and get the relief available to them.”