Saving Homes & Preserving Neighborhoods

Dear Reader,

Nearly three years ago a group of constituents contacted my office concerned about a foreclosed, unmaintained home on their tree-lined Bronx street. When I met with them they described their frustration at watching the home deteriorate into a tremendous eyesore, a haven for rowdy teenagers and a hotspot for drugs and other suspicious criminal activity. After our meeting, my office searched for the bank responsible for keeping the property and we discovered a gray area in New York State law—once a property entered into a judgment of foreclosure and sale, the law did not clarify the person or party responsible for maintaining it.

In the months that followed, as the foreclosure crisis continued to sweep through our state, I made it a top priority to close this loophole in the law. I proposed legislation that required lending institutions to maintain foreclosed properties at the time of judgment and sale. I am pleased to announce that the landmark legislation was signed into law last December by Governor Paterson and will go into effect on April 15th.

Beginning this week, banks will be responsible for cleaning and maintaining foreclosed properties the moment they enter the foreclosure process. This law will eliminate eyesores across our communities and help stabilize property values across our neighborhoods. The law also states that any tenant, board of managers of a condominium or homeowners association in the municipality where the home is located may enforce the obligation.

With this law now on the books, our communities will receive a much needed shot in the arm to ensure that we keep the dream of homeownership alive and preserve our neighborhoods.

Senator Jeff Klein

Deputy Majority Leader

D-Bronx/Westchester