New York Legislative Update
- In August, we reported on S5079A Zombie Property Remediation Act of 2019, while it awaits the Governor’s signature (or veto) a recent editorial in the Daily Gazette suggests that the “Governor should veto it and force legislators to fix issues raised by opponents
To view the editorial please click here.
In the interim, Governor Cuomo has signed into law several pieces of legislation pertaining to housing, vacant properties and blight.
The three (3) bills are;
- Preventing Deed Fraud and Mortgage Scams (A.5615/S.1688)
This law provides better protections for homeowners whose homes are either in default or in foreclosure. It closes loopholes to prevent deed fraud and mortgage scams, increasing the likelihood that a victim will have the opportunity to seek recovery in court. - Requiring Payment of Homeowners’ Association Fees (S.4182/A.1800)
This measure requires banks or mortgage holders of vacant and abandoned residential properties to continue paying homeowners’ association fees or cooperative fees as needed to maintain a property when it has been abandoned during the foreclosure process. This will help to ensure properties do not become dilapidated before the foreclosure is finalized. - Reforming Bank Obligations During Sale of Mortgage (A.92A/S.5017A)
Consumers who are looking at loan modification options are often in difficult financial situations and are acting to save their homes from foreclosure. The process can be stressful and complicated, and sales or transfers of their loans in the midst of this process can be confusing and additionally stressful. This bill will provide consumers with certain protections if their loan is sold or transferred during the modification process. First, if the loan is transferred during the application process for a loan modification, the original holder of the loan must provide the consumer with a list of all the application documents provided to the buyer or transferee. Second, the bill ensures that that if the loan is sold or transferred after a homeowner has been approved for a modification of their mortgage that the subsequent mortgage servicer honors the terms and conditions of the approval.
For additional information, please click on the following media links.
The Metropolitan Omaha Property Owners Association sued the city, the Mayor and several other city officials, calling the Vacant and Abandoned Property Ordinance “unconstitutional.”
The claim “centers around a 2015 consent decree that was part of a settlement agreement in an earlier lawsuit by property owners against the city. The group said the city’s ordinance goes beyond the scope of the consent decree, which was supposed to govern housing code enforcement.”
To view media coverage, please click on the following links:
To view the ordinance, please click here.
To view a summary of the ordinance from a local non-profit please click here
On August 19th, the Corpus Christi Caller Times ran a report titled “Mayor calls upkeep of vacant homes waste of taxpayer money”.
It appears that he spoke out of a valid frustration of having to maintain a particular property for 10 years. For that property he is absolutely correct, but there is also a lot of truth regarding all vacant and abandoned properties. For those neighbors affected by the blight caused by abandonment it is money well spent. However for the municipal government, there are many other places to effectively utilize the funding.
Creative partnerships, proactive approaches and tools and creative thinking can minimize the effect to government’s budget.
“Clean and Lien” can work but for the subject property at Glazebrook and Austin streets, is that the answer. Will the City ever recoup its expenditures?
To view the article, please click here.
Foreclosure Database
Following a conditional veto, on June 24th, Governor Phil Murphy signed A5000 into law.
A5000 orders the Department of Community Affairs to create a statewide database of all homes under foreclosure as a tracking system so state officials can observe larger trends and target services to those in need.
Please click here for text of the new legislation.
For a report from WHYY, please click here.
Land Bank Law
S1214 was signed by Governor Murphy on July 11th.
The New Jersey Land Bank Law, which will allow New Jersey towns and cities to designate a land bank entity to obtain vacant, abandoned, and neglected properties for productive reuse purposes.
This new law received significant press coverage. For some of the reports please see below links.
To view the Governor’s press release, please click here.
Please click here for the text of the new legislation.
WPIX NJ towns can now use land banks to turn over abandoned properties
NJ Patch NJ Land Banking Law Will Help Newark Combat Blight: Gov. Murphy
In 2012 In order to help city leaders engage in foreclosure prevention efforts, NLC’s Center for Research and Innovation created “Managing Foreclosures and Vacant Properties, a Municipal Action Guide” that includes strategies for preventing vacancy, managing vacant property, rehabilitation, and re-use of vacant lots after demolition.
Listed in the category “Preventing Vacant Property Deterioration” is first and foremost “vacant property registration”
To view the guide, please click here
A recent article in the Morning Call, discusses a new anti-blight ordinance passed in June 2019.
Alicia Miller Karner, city director of community and economic development said “the city will be modifying its permit applications, and owners will have to attest that they do not hold any property that is tax delinquent or has code violations. If they do, an explanation is required why they are delinquent or not up to code.. Anyone giving false information could be subject to third-degree misdemeanor charges, which can be punishable by a $1,000 fine.”
This stems from the concern that “comes in when buildings are owned by various partnerships and companies, making it difficult to ascertain whether the partners or officers in those companies own other property that is behind on taxes or has code violations.”
This is one recommendation in a 2018 blight report which includes keeping a vacant property registration, issuing quality of life tickets for violations like overgrown weeds and trash and asking the county to create a housing court.
This approach is similar to that of the late Judge Ray Pianka (Cleveland OH Housing Court) who refused to allow evictions by landlords who fail to come to court to answer charges on any of their properties.
To view the article, please click here.
To view the new ordinance, please click here.
The Abandoned to Vacant (A2V) project, a collaboration between Kansas City, MO and the University of Missouri-Kansas City, uses open data to map abandoned houses and give potential buyers a sense of the surrounding neighborhood.
Government Technology partnered with MetroLab Network and featured the A2V Project in its July 2019 edition as part of its MetroLab Innovation of the Month Series.
To view the article in its entirety, please click here
On August 6th, the New York State Senate Committee on Investigations & Government Operations issued a report titled, Investigative Report on Code Enforcement in New York State.
Per the press release from Senator James Skoufis, Chair of the Senate Committee on Investigations & Government Operations “The six month investigation found a systemic failure to prioritize code enforcement at all levels of government. The investigative report identifies common shortfalls, recommends sweeping legislative and regulatory changes, and urges both municipalities and the state to take code enforcement more seriously.”
Key findings include:
- Inadequate training for code enforcement personnel;
- Inadequate record keeping for tracking code cases;
- Insufficient penalties for violations;
- Difficulties associated with properties owned by LLCs;
- Persistent vacant and abandoned buildings;
- An upsurge in illegally converted properties;
- Excessive delays and adjournments of cases; and
- An overall lack of resources and support available to assist code enforcement programs;
Legislative recommendations include:
- Provision of financial assistance to local governments;
- Fulfillment of Code Council vacancies;
- Department of State reforms;
- Minimum statewide penalties for violations;
- Cracking down on illegal housing;
- Adequate remedies for noncompliance;
- Limited liability company (LLC) disclosure and accountability;
- Strengthening minimum standards of code enforcement personnel;
- Rental property registries;
- Vacant and abandoned building reforms; and
- County government intervention
To view the press release, please click here.
To view the report, please click here.
To view a related media article from the Times Herald-Record, please click here.
In February, we reported on a LSU Department of Sociology study showing a statistical connection between homicide, blighted buildings and convenience stores in Baton Rouge, LA.
In a recent article, Newsweek discusses a study in the August Journal of Behavioral Medicine which demonstrates that demolishing abandoned buildings may help lower gun violence.
To view the report in its entirety, please click here.
To view the article from Newsweek, please click here.
Missouri Senate Bill 203 was signed on July 9th by Missouri Governor Michael Parson. In a news release from Thompson Coburn LLP the various benefits of this new legislation is discussed.
Senate Bill 203 makes significant changes to the existing nuisance statute which grants individuals and neighborhood organizations in the City of St. Louis and Kansas City legal standing to enforce building codes and municipal ordinances against nuisance properties through private lawsuits.
With this new legislation, “it is now easier for neighborhood organizations to qualify for legal standing to bring a lawsuit under the statute.” In addition;
- the amended statute “makes clear that injunctive relief is available to enjoin a nuisance without a showing that the plaintiff suffered damage because of the nuisance.”
- it includes a “new provision that authorizes the court to award attorneys’ fees to a prevailing plaintiff in an action against commercial and industrial properties. The potential for an award of attorneys’ fees will make it possible for underserved neighborhoods to hire counsel to represent them in lawsuits under the statute on a contingent fee basis.”
- includes a new “provision that authorizes residents of neighborhoods in the City of St. Louis and Kansas City to go onto the grounds of vacant buildings to pick up trash, clear weeds, and secure unsafe conditions for the protection of neighborhood property values.”
To view the text of the bill, please click here.
To view the full release, please click here.