Gov. Cuomo Signs Bill To Combat 'Zombie Properties'
ALBANY, N.Y. (CBSNewYork/AP) -- New York is imposing new requirements on mortgage lenders to maintain abandoned houses before foreclosure.
The law signed Thursday by Gov. Andrew Cuomo threatens banks with civil penalties up to $500 a day for failing to maintain residential properties once they're aware of vacancies.
The old law required they take responsibility following a foreclosure judgment. Cuomo said that has left hundreds of "zombie properties'' across the state.
"For many New Yorkers, homes are our single most important investment, but that investment can be undermined by the blight of neglected and abandoned properties," Cuomo said. "For each zombie home that we cure and for each that we prevent with this legislation, we are saving entire neighborhoods from the corrosive effect of blight and neglect."
The new law also establishes an electronic statewide registry of abandoned homes, establishes a state hotline where neighbors can report them and requires notices to mortgage borrowers emphasizing their right to stay in houses until foreclosure.
A related measure establishes a State of New York Mortgage Agency fund to buy and sell abandoned properties at below-market rates and demolish those beyond repair.
(TM and © Copyright 2016 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2016 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
