What began as a satirical response to New York City's pied-à-terre tax has evolved into a project with real-world applications for comedian Madison Walser. Her website, Aura Investments, pitched a concept where struggling artists would occupy vacant luxury apartments, thereby enabling wealthy second-home owners to bypass the city's new tax on properties valued at $5 million or more.
Walser created Aura Investments in May, initially as a "joke" after Mayor Zohran Mamdani's tax proposal was announced. The website's copy humorously offered itself as a "solution to the vacancy tax." However, the idea quickly garnered significant attention, with Walser reporting approximately 4,000 artist applications and around 25 homeowner submissions, of which eight or nine were considered legitimate.
"I think we're close to 4,000 submissions," Walser told Curbed, referring to artist applicants. "For properties, we had 25, and after I checked, we had eight or nine that were legitimate."
The concept stems from Walser's background in software development and her previous experience as a professional pet sitter. She explained on Threads that she offered to "sign a lease and live in the property of someone who's avoiding the tax so they don't have to pay it." Using AI coding tools, she developed the website, which gained widespread attention after a friend reposted it.
Now, Walser is working to make the venture legally viable. She is seeking legal counsel and a co-founder to manage logistics, emphasizing the need for background checks for both artists and property owners, as well as verifying property ownership. She also plans to engage a leasing agent to ensure artists have tenant rights.
Two potential business models are being explored. One model involves artists living rent-free, with homeowners paying Aura a placement fee equivalent to 10% of their potential tax liability. This fee would fund operations and a redistribution pool for other artists. The second model suggests artists would cover only utility costs in exchange for housing.
Walser frames the arrangement as mutually beneficial, suggesting it offers a way for the wealthy to feel they are providing a service, which in turn benefits artists and frees up housing.
New York City officials have cautioned that leases entered into solely to avoid the tax will not be considered valid. Walser acknowledged this warning, noting its recent release, and humorously speculated that the city might have seen her website. Despite this, she has not ruled out the possibility of directly engaging with city officials, including the mayor, to discuss the concept.
Walser believes the concept has potential beyond New York City, with interest expressed from individuals in France and other locations. She is also considering adapting the model for commercial vacancy taxes, such as California's proposed tax, by matching small businesses with empty storefronts.
Her immediate goal is modest: to successfully match one artist with one home, viewing this as a validation of the concept's potential for growth. The website draws an analogy to historical art patronage, likening the venture to 21st-century support for creatives.
Mamdani's pied-à-terre tax aims to generate revenue for public services like parks, schools, and libraries by taxing owners of high-value second homes who primarily reside elsewhere. The city has begun notifying affected homeowners and providing information on its Department of Finance website.