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City To Receive Second Zombie House Grant

“Zombies 2.0” sounds like the name of a movie or TV show, but instead it’s a state program that will provide an additional $200,000 to city officials.

Wednesday, New York State Attorney General Letitia James announced the recipients of $9 million in grants to address the statewide issue of zombie homes, which are vacant or abandoned houses that are not maintained during prolonged foreclosure proceedings. The funding from “Zombies 2.0” will provide 48 municipalities with the resources to address housing vacancy and blight. The grants will provide funds to municipalities to increase housing code enforcement, track and monitor vacant properties, and bolster legal enforcement capacity to ensure banks and mortgage companies comply with local and state law.

“Too many communities throughout New York state are blighted by abandoned homes that decrease property values and threaten the safety of our neighborhoods,” James said. “These grants will go a long way in supporting municipalities and ensuring they have the resources they need to combat this nuisance. Revitalizing our communities is always a priority and I am proud that my office can help turn these abandoned properties into valuable assets.”

Sam Teresi, Jamestown mayor, said he wanted to thank James for continuing the worthwhile and successful program throughout the state, and specifically in Jamestown.

“We will continue to build off of the results we’ve seen from round one of the funding, which has helped us combat blight and hold institutions and individuals responsible for the properties they own,” he said.

In February, Vince DeJoy III, city development director, announced city officials were in the process of applying for a second Zombie and Vacant Properties Remediation and Prevention Initiative program grant. At the time, DeJoy said city officials were looking to expand their legal capacity, specifically to go after those responsible for maintaining an abandoned house so it does not fall into disrepair.

In October 2016, city officials received its first state zombie grant for just under $150,000. The funds from the first Zombie Remediation and Prevention Initiative program addressed 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 grant 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 “Zombies 2.0” program is a result of the Office of the Attorney General’s $500 million settlement with the Royal Bank of Scotland in 2018 over the bank’s deceptive practice and misrepresentations to investors relating to the packaging, marketing, sale and issuance of residential mortgage-backed securities that can lead to financial crisis. To be eligible, cities, towns and villages had to individually or for joint applications combined have at least 5,000 residents and more than 100 vacant properties.

The creation of the Zombie and Vacant Properties Remediation and Prevention Initiative coincided with the passage of the state Abandoned Property Neighborhood Relief Act of 2016, also known as the “Zombie Law,” which required banks and other mortgagees to externally maintain vacant one-to-four family houses during the foreclosure process or face a potential penalty of up to $500 per day per property. Zombie grantees used funds to bolster legal efforts to enforce the law by issuing citations to noncompliant mortgagees or in some cases taking mortgagees to court to enforce the law.

The Local Initiatives Support Corporation handles the program with funds given by Enterprise Community Partners.

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