Schumer Reveals: NY Inexplicably Left Out Of Critical Federal Housing Programs That Could Slow the Rising Tide of Vacant Homes Plaguing Western New York

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Schumer Reveals: NY Inexplicably Left Out Of Critical Federal Housing Programs That Could Slow the Rising Tide of Vacant Homes Plaguing Western New York

As Local Vacant Housing Crisis Slams Western New York, Key Housing Incentives Not Offered in NYS - But Available in Several Other States Potential Incentives Include Generous Sales Allowances and Reduced Down Payments -Exactly What Buffalo Needs Right Now Schumer Demands HUD Works to Offer Critical Incentives in High Need Areas Like WNY and Develop A Comprehensive Outreach Campaign Specifically Targeting High Need Areas Like Western New York

U.S. Senator Charles E. Schumer today revealed that New York State is inexplicably being left out of critical federal vacant housing programs that could help to slow the rising tide of vacant homes plaguing Buffalo. While U.S. Department of Housing and Urban Development (HUD) subcontractors offer housing incentives for legitimate buyers to buy a HUD-owned house, they are not offered in New York.

In response, and in a continued effort to halt the mounting vacant housing crisis, Senator Schumer urged the U.S. Department of Housing and Urban Development (HUD) to immediately work to offer these critical incentives and initiate a comprehensive outreach campaign specifically targeting high need areas like Western New York.

"It is outrageous that at a time when vacant houses are wreaking havoc on our neighborhoods we are not offering critical federal programs that could slow the rising tide of vacant houses," Schumer said. "New York State should not be left in the dark when other states are taking advantage of widely-offered incentives. We must work to harness incentive programs in New York State so that vacant buildings stop poisoning Buffalo's neighborhoods."

Over 7,000 vacant properties in Buffalo choke neighborhood rejuvenation, drag down property values, and drain resources. The problem costs the area significant resources in lost taxes, debris removal, inspections and policing. Vacant houses are also sources for arson, drug dealing, and other crimes. Scholars and housing advocates argue the problem of vacant housing is a major barrier in efforts to rejuvenate neighborhoods and raise property values across an area. Moreover, due to the current subprime foreclosure crisis, the problem threatens to seep into surrounding suburban areas.

The U.S. Department of Housing and Urban Development's subcontractors currently offer housing incentives in Ohio, Michigan and Florida for buyers, including low down payments, sales allowances and broker bonuses when the HUD-owned vacant buildings are sold to owner-occupants. These incentives, however, are inexplicably not offered in New York State.

To ensure these critical incentives are made available to owner-occupants in New York State and that they are clearly promoted to potential buyers, Senator Schumer wrote a personal letter to HUD Secretary Steven C. Preston calling for the agency to immediately direct its subcontractors to initiate housing incentives in New York State, as well as a develop a comprehensive outreach program that would target high-need areas like Western New York. Schumer also urged HUD to set minimum guidelines for its contractors to offer these incentives to owner-occupants.

"As the ripple effects of the subprime foreclosure crisis force more homes to become vacant, providing key incentives and properly advertising them is something that HUD can do quickly and easily," Schumer said. "It is necessary that they move on this fast to make sure homes are resold to owner-occupants who will help restore vibrancy in our neighborhoods so devastated by vacant and foreclosed homes."

Senator Schumer has long worked to put a stop to the growing vacant housing crisis. In February, Schumer urged HUD to take the necessary steps to ensure that owner occupants would buy the majority of home that HUD sells. In March, Schumer announced that he successfully secured an agreement from the Secretary of HUD to work together to find a way to fix a federal program that was contributing to the vacant housing problem by selling vacant properties to online speculators instead of to responsible owner-occupants who have a stake in the community.

In the letter, Schumer wrote: "I urge HUD to set strong minimum standards for these owner-occupant incentives across the hardest hit states, both to ensure that potential homebuyers can take advantage of these benefits, and that communities can achieve the greatest number of stable, owner-occupied homes as they begin to recover from the housing crisis. In these areas with high vacancy and foreclosure rates, HUD should also be taking additional steps to ensure that potential buyers are aware of all of the resources available to enable owner occupants to purchase HUD homes."

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