Proposed Bill Takes Aim At Cleanup Costs For 'Zombie Homes' In New York
WESTCHESTER COUNTY, N.Y. (CBSNewYork) -- Seven years after the height of the financial crisis and housing bust, so-called "zombie homes" are still causing problems in both poor and affluent neighborhoods in Westchester County.
As CBS2's Lou Young reported, the home on Purchase Street in upscale Harrison has seen better days since its famous former owner walked away from his mortgage.
Former NBA player Latrell Sprewell left belongings behind, but his mansion remains as perhaps the grandest zombie home in suburbia.
"The banks, or owners, or current owners, or previous owners are very difficult to track down," said Harrison Mayor Ron Belmont.
These zombie homes dot the suburban New York landscape, abandoned by occupants and languishing in various states of foreclosure, and driving down property values.
Suburban towns and cities have begun using taxpayer money to clean them up. In Westchester, foreclosures that are not being maintained are costing taxpayers a total of $9.2 million.
"We deal with zombie properties probably on a weekly basis," said Yonkers Mayor Mike Spano.
It's estimated $20 million in home equity value has vanished in Westchester alone because they're too close to abandoned properties.
"I don't know who owns it. Why is it there? Why hasn't it been sold? Why hasn't it been cleaned up and put on the market? I don't know. It's a mystery," said Harrison resident Tom Moroney.
Usually, it's fallout from financial distress -- a home that's worth less than the mortgage, and the bank doesn't really want it, Young reported.
New legislation sponsored by state Sen. Jeffrey Klein, with urging from Mount Vernon Mayor Richard Thomas, would force banks to follow the law and maintain the property. It would also allow local governments to get reimbursed for any cleanup costs.
"By the banks not maintaining these properties, they are really having an impact on the American dream of home ownership, and I think we need to do something about it and sort of force the banks to abide by the law and maintain these properties as they should," said Klein.
If the legislation passes, it wouldn't be too soon for the people on Country Ridge Road in Harrison, where one zombie home is slated to be demolished at town expense. The cost of demolition would be added to the unpaid tax bill.
