Foreclosed Condos Converted into Affordable Homes in New York City
July 20th, 2009
Foreclosed condos are being converted into affordable homes in New York City. On 8th July Wednesday this new programme was announced aiming to convert the vacant or half-finished condo developments into affordable units. Consumer advocates have been suggesting this for many years.
About 400 units have been targeted. Grants will be sanctioned to real estate agents and lenders so as to give a push to the project if the owners are amenable to the idea of turning the buildings in to rentals for families having modest income. In New York it translates to a maximum income of $126,720 for a family comprising of four members.
$20 million from city funds will be set aside for this project. If there are initial signs of success then the funds would be increased.
Marc Jahr of the city’s Housing Development Corporation said, “It’s not going to solve all of these problems by any means but it allows us to throw out a net and see what we pull in. We see an opportunity here to really capture affordability at a relatively inexpensive price to the public and to do it in a timely manner.”
The step is being taken against a background of many cities across the country dealing with the blight of empty foreclosed homes and condos. Communities are being destabilized. In New York City over 140 projects have come to a halt before being completed.
Across USA nearly 51,000 condos were up for sale in May. More are coming in. In this year 93,000 new condo units will be finished. Of these 12,000 are in New York and New Jersey In Miami (downtown 23,000 fresh units have come up since 2003 but of these only 13,000 have occupants according to Condo Vultures.
The experiment in New York is being closely watched by other metro cities as they suffer the same trauma of vacant condos. Many cities are thinking along similar lines for utilization of federal grants aimed at making habitable derelict houses and complex units.
The officials of New York City said they will primarily focus on the foreclosure concentrated pockets where the condo projects are lying half finished. One of the worst spots is Harlem in upper Manhattan and the outer boroughs of the city.
A major eyesore is a condo complex on 23 Carton Place in Brooklyn. The developer filed bankruptcy and the lender foreclosed upon it. The local people are angry and eager for steps to be taken.
- Wells Fargo Wins Auction Bid for Foreclosed Apartment Complex in Harlem
- Moral, Social and Financial Issues Behind Borrower’s Decision to Walk Away From Foreclosures
- Foreclosures are Persisting While Price Slump Too is Continuing
- Foreclosures Somewhat Halted by Loan Modification Programme
- Experts Fail to Reach a Consensus on the Severity of the Foreclosure Crisis in New Jersey
- Foreclosures are Spawning a New Set of Landlords
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