Outstanding NYC violations? Now may be the time to clear the slate—and save.

New York City’s newly launched “Debt Demolisher” Program offers property owners and businesses a limited-time opportunity to resolve eligible Environmental Control Board (ECB) judgments at significantly reduced costs. With waived interest, reduced penalties and potential savings for those preparing to buy, sell or finance property, the program presents a valuable opportunity to address outstanding liabilities. But the clock is ticking. Property owners and businesses have until January 10, 2027, to take advantage of the relief, and certain violations may require corrective action before the deadline. Here’s what you need to know about eligibility, potential savings and the steps required to participate.

Overview

On October 13, 2026, New York City Mayor Zohran Mamdani announced the launch of the Environmental Control Board (“ECB”) Amnesty and Compliance Program, also known as the “Debt Demolisher” Program. The program, established pursuant to Local Law 147 of 2026, provides property owners and businesses with an opportunity to resolve outstanding ECB judgments at significantly reduced amounts. The program started October 13, 2026 and will run for 90 days through January 10, 2027.[1]

The program applies to eligible judgments arising from violations issued by various New York City agencies, including the Department of Buildings, Department of Environmental Protection, Fire Department, Department of Sanitation, and Department of Transportation.

Who Qualifies?

Generally, to qualify for the program, an ECB judgment must have been entered on or before July 15, 2026. Excluded judgments include those converted into tax liens, those subject to Sheriff or City Marshal enforcement or agreements with the City’s enforcement authorities, those arising from citizen complaints (such as noise violations) and those associated with criminal investigations.

What Relief Is Available?

The program offers two forms of relief depending on the type of judgment:

  • Default Judgments: For judgments entered as a result of failing to appear at a hearing, participants may resolve the judgment by paying 100% of the base penalty, with default penalties and accrued interest waived.
  • Judgments Following a Hearing: For judgments entered following a hearing and finding of liability, participants may resolve the judgment by paying 75% of the imposed fine, with accrued interest waived.
How to Participate

Eligible parties can participate through the New York City Department of Finance’s (“DOF”) online portal or at a DOF business center by identifying qualifying judgments, accepting the program’s terms, and paying each selected judgment in full in a single payment (payment plans are not available).

It is important to note that, for violations requiring corrective action, payment alone is insufficient. The issuing agency must approve the correction, and the DOF must receive confirmation before the program ends.

Participants may select individual eligible judgments without being required to resolve all outstanding judgments, and a judgment may be paid by anyone even if they are not named on the judgment. Importantly, paying a default judgment is deemed an admission of liability, and participants waive the right to challenge any judgment paid through the program.

Key Takeaways

The program offers New York City property owners and small businesses a limited-time opportunity to reduce outstanding liabilities and resolve eligible ECB judgments. Parties contemplating acquisitions, sales, or financing transactions should consider reviewing their outstanding ECB judgments as part of due diligence.

Given the limited duration of the program and the potential need for corrective action, property owners and businesses should evaluate their eligibility well in advance of the January 10, 2027 deadline. Judgments not resolved by then revert to the full amount owed.

Sources:

https://www.nyc.gov/site/finance/property/ecb-amnesty-compliance-program.page

https://www.nyc.gov/site/finance/property/ecb-amnesty-compliance-program-faqs.page

https://www.nyc.gov/mayors-office/news/2026/10/mamdani-administration-announces-debt-demolisher–relief-program

https://design2147.com/news/new-york-city-opens-90-day-window-to-resolve-old-ecb-judgments

[1] January 10, 2027 falls on a Sunday. We suggest that participants complete all applicable payment and compliance requirements by Friday, January 8, 2027, to avoid any potential issues arising from the weekend deadline.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication. No aspect of this advertisement has been approved by the highest court in any state.