News

A.G. Schneiderman Announces New Grant Program For Communities To Combat Zombie Homes | www.ag.ny.gov

ag_seal(ATTORNEY GENERAL OFFICE) July 24, 2016 — $13 Million Grant Initiative Made Possible By Schneiderman’s $3.2 Billion Settlement Agreement With Morgan Stanley

Schneiderman: This Office Will Continue To Help Communities Emerge From The Foreclosure Crisis And Its Enduring Legacy Of Zombie Homes

Attorney General Eric T. Schneiderman announced a new grant initiative to address the growing statewide problem of so-called “zombie homes” – vacant and abandoned homes that are not maintained during a prolonged foreclosure proceeding.

The Zombie Remediation and Prevention Initiative will provide $13 million in grants to local governments throughout the state through a competitive application process. The 100 communities with the greatest problem of zombies and vacancy have been invited to apply for the funds. The money will address housing vacancy and blight by bolstering municipalities’ capacity for housing code enforcement, for tracking and monitoring vacant properties, and for legal enforcement capacity to ensure banks and mortgage companies comply with local and state law.  The grants also require communities to develop innovative programs and policies and connect at-risk homeowners to services so they can avoid foreclosure and stay in their homes. The initiative coincides with the recent passage of the Abandoned Property Neighborhood Relief Act, a bill that was authored by Attorney General Schneiderman, championed by Senator Jeff Klein (D-Bronx) and Assemblywoman Helene Weinstein (D-Brooklyn), and signed into law by Governor Cuomo on June 23rd.

“Too many communities across this state have been hit hard by the proliferation of zombie properties,” said Attorney General Schneiderman. “This new grant initiative puts tools directly in the hands of towns and cities across the state to reverse course, rebuild from the foreclosure crisis, and put zombie homes in the rear-view mirror.”

Funding for the initiative will be drawn from the $3.2 billion settlement agreement with Morgan Stanley that Schneiderman, as co-chair of the federal-state working group on residential-mortgage-based securities, negotiated in February. That settlement generated $550 million in cash and consumer relief for New Yorkers.

Source: A.G. Schneiderman Announces New Grant Program For Communities To Combat Zombie Homes | www.ag.ny.gov