Photo: Assemblyman Phil Goldfeder has announced an agreement between major financial institutions to adopt new industry best practices to combat the rise of abandoned “zombie properties” affecting Sandy-devastated communities across southern Queens and Rockaway. Courtesy of Assemblyman Goldfeder’s Office.
Assemblyman Phil Goldfeder (D-Howard Beach) this week announced an agreement by major financial institutions to adopt new industry best practices to combat the rise of abandoned “zombie properties” affecting Superstorm Sandy-devastated communities across southern Queens and Rockaway.
According to Goldfeder’s office, 11 banks, mortgage companies and credit unions have agreed to regular inspection of delinquent properties and compliance with a new Goldfeder-proposed abandoned properties registry to be developed by the Department of Financial Services.
“Having this ramshackle house next-door reflects on us neighbors and the overall character of the community. We spend so much time and money to maintain our yards and keep our homes in good condition and it’s disturbing to have this abandoned property on our block,” said Howard Beach resident Susan Finnegan, who reached out to Goldfeder.
Under the new set of best practices, Goldfeder said, participating financial institutions agree to conduct exterior inspections of properties within 60 days of delinquency to assess possible vacancy or abandonment, and then every 30 days after that. In cases where properties are deemed vacant or abandoned, the institutions will regularly take steps to secure the property and maintain safety for the surrounding community, including the replacing or boarding up of windows and changing locks. In addition, the banks and lenders will monitor properties to ensure compliance with applicable New York maintenance codes requiring minimum sanitary conditions and structural safety.
The plan also calls for the creation of a new state abandoned properties registry to be overseen by DFS. These new best practices are applicable to first-lien mortgages on residential properties, and would be subject to existing laws, and insurer and investor guidelines, Goldfeder noted.
“Zombie properties not only have the potential to affect our families’ health and drive down property values, they also slow our long-term recovery from the devastation caused by Sandy. I applaud banks and lenders for stepping forward as true community partners and agreeing to take the necessary steps to fight the growth of zombie properties and improve quality of life for thousands in southern Queens and Rockaway,” Goldfeder said.
Last year, Goldfeder unveiled a three-point plan to fight the growing zombie-property crisis, which included sponsoring the Abandoned Property Neighborhood Relief Act of 2014 to increase enforcement by the state and place requirements on banks to maintain their real estate holdings; endorsement of a City Council plan to combat mold, pests and other health hazards stemming from zombie properties; and the creation of a citywide abandoned property registry. According to his office, many of Goldfeder’s proposals will now fall under the terms of the new agreement.
By Forum Staff
