A one-year moratorium for foreclosures due to unpaid taxes could be put in place in New York due to a U.S. Supreme Court ruling. 

New York lawmakers this week gave final legislative approval to a measure that would pause most "in rem" foreclosures in the state until June 30, 2024. It now heads to Gov. Kathy Hochul's desk for her consideration. 

Tax foreclosures can occur in New York when a property owner is delinquent in their taxes and fails to pay up by a redemption date. As a result, municipal governments can either initiate foreclosure proceedings on the property and sell it at auction or use a tax lien sale where those liens are sold to a third party purchaser. 

A Supreme Court ruling, however, is not compatible with aspects of New York's foreclosure laws. As result, lawmakers and policymakers need time to develop to develop ways of changing the existing law, said state Sen. Kevin Thomas. 

The lawmaker also wants to make it easier for people who are delinquent in their taxes to remain in their homes. 

"The current process contributes to the displacement of longtime homeowners, which is often concentrated amongst communities of color and senior citizens already facing high foreclosure rates and targets of predatory lenders," he said.