The New York State Senate Coalition Report: How Zombie Properties Impact Homeowners

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The New York State Senate Coalition Report: How Zombie Properties Impact Homeowners

INTRODUCTION

In December 2015, the Independent Democratic Conference (IDC) began highlighting problems caused by bank-owned foreclosed homes and zombie properties in communities throughout the Statei. This report illustrates the negative effect on privately-owned neighboring property values that this crisis is causing for communities throughout Monroe County.

The IDC first examined the problem in New York City and Westchester County. For this report the IDC, in conjunction with the Offices of Senator Rich Funke and Joseph Robach, studied the impact placed by bank-owned foreclosed homes and zombie properties on communities across the City of Rochester and Monroe County. Based on our analysis, 108 foreclosed properties owned by financial institutions and federal agencies were identified in the City of Rochester. This report also uncovered a possible 592 zombie properties across all of Monroe County, including 425 possible zombie properties in the City of Rochester. Based on academically sound studies on the effects of foreclosures on neighboring property values, we estimate that bank and federally owned foreclosed properties and possible zombie properties in the City of Rochester may have depreciated the value of surrounding properties by as much as $10.96 million. The report also estimates property value damage caused by zombie properties throughout Monroe County as a whole, and the report found that all zombie properties across Monroe County, including those in the City of Rochester, may have decreased the value of surrounding property in the county by as much as $9.4 million.

As these numbers show, the damage that this crisis is having on communities throughout Monroe County is substantial. Members of the Majority Coalition of the New York State Senate are trying to address this problem and a number of potential legislative solutions have been introduced in the Senate. These possible solutions include legislation that would strengthen existing legal provisions regarding the maintenance of properties that have been foreclosed upon; legislation that would expedite the foreclosure process when a home has become vacant or abandoned; legislation aimed at ensuring that zombie properties are properly maintained, and legislation that would create a fund that the State could use to acquire properties to put them back into the housing market or to ensure that properties can be put to use in a way that strengthens our communities.

KEY FINDINGS

  • There are 533 properties across the City of Rochester that are likely negatively affecting the property values of an estimated 9,897 surrounding homes.
  • Bank and federally-owned foreclosed homes and zombie properties in the City of Rochester are estimated to lower neighboring property values by as much as $2.36 million and $8.6 million respectively, for a possible total loss of $10.96 million.
  • There are an estimated 592 zombie properties in Monroe County, including those in the City of Rochester, and these properties may be affecting the property value of an estimated 7,999 neighboring properties.
  • Zombie properties in Monroe County could be responsible for up to $9.4 million in property value depreciation.

Full report below…

If you are in New York and are looking for help with foreclosure, call The Law Offices of Robert E. Brown, P.C. at (718) 979-9779 or fill out their online form to request a FREE CONSULTATION. Let the lawyers and staff at The Law Offices of Robert E. Brown, P.C. serve you!

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4closureFraud.org

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The New York State Senate Coalition Report: How Zombie Properties Impact Homeowners

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