Senate bill co-sponsored by Addabbo to address foreclosed vacant dwellings passes NYS Senate

Legislation (S.5321) co-sponsored by NYS Senator Joseph P. Addabbo, Jr., requiring banks and financial institutions responsible for foreclosed properties, to actively rehabilitate and maintain vacant dwellings or face maximum civil penalties, was approved by the NYS Senate.

“Vacant properties are not only an eyesore in neighborhoods but they can also become the site of undesirable mischief or criminal behavior,” Addabbo said. “Homeowners who take pride in their residence should not be forced to live amongst dilapidated, unkept structures that are known to lower property values of homes within a ⅛ mile radius, through no fault of their own. These increased fines will prove costly to institutions if they continue to disregard the law,” added Addabbo.

The Foreclosure Relief Act was enacted to hold banks accountable for these foreclosed properties but unfortunately, it has not been effective. When citizens fall behind on their mortgages due to an unforeseen financial crisis, many leave or abandon their homes. The bank or financial institution that foreclosed on the property is obligated by law to take control of the property and bear responsibility for its upkeep and maintenance.

These vacant properties can have a negative impact on the surrounding neighborhoods necessitating new measures to further compel these foreclosure institutions to obey the statute. This new law gives local governments authority to require foreclosure banks to act, without delay, in providing upkeep or rehabilitating the vacant dwelling or face an increased civil fine from the current $500 to $1000 each day they are found to be in violation.

After passing the Senate, the bill was delivered to the Assembly Housing Committee for consideration.