City of Buffalo Issues Summonses to Banks
Holding Mortgages on Abandoned Properties
Buffalo, a city which has less than 300,000 people, has an estimated
5,000 to 10,000 abandoned properties, according to a report in
BusinessWeek by Michael Orey quoted in The Wall Street Journal
on January 5. A local housing court judge has deemed that New
York State’s law saying that property owners include those
who have “control” over property means that lenders
have responsibility for vacant properties. The City issued fines
of high as $15,000 to the banks holding the loans. Community service
sentences are also being considered. In addition, the banks might
be subject to liens that would prevent them from buying or selling
other properties in the area, according to the report. These tactics
have been applied to reduce blight in Cleveland.
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