Anthony J. Santino, the Town Supervisor of Hempstead, announced the new proposed law that requires all of the lenders of business properties have to provide a deposit or security funding to the town of any and all of the vacant properties that are in need of upkeep. These commercial properties, since vacant, are known as the zombies throughout the town. When the banks foreclose on these properties, they sit there for some time and nothing is done with them. They essentially take a lot from the town in order to just sit and not be used.
The Town Clerk and Councilmen for the area were also at the meeting and agreed with the proposed law to get these banks to pay the security funding to ensure that the town continues to run smoothly, without allowing these vacant buildings to sit and deteriorate without having anything in them, which can scare potential businesses away.
The law does not only apply to the vacant properties that are currently foreclosed on, but those that are starting the foreclosure process. This is to protect the town against these zombie building effects that so many other towns have stumbled over for so many years. This payment is for any non-residential and commercial properties that are being taken by the bank and the payments are not the responsibility of the owners, but of the banks that are taking the properties from the owners.
How Does This Work?
Once in the foreclosure stage, the bank then has to start paying the payments to the town for the zombie commercial property that they hold. If they sell the property and it becomes occupied, the payments for that specific commercial building no longer have to be paid for. This payment is then used by the town to keep the building up and running and to keep it up to code. This means grass cutting, pruning and maintenance of the building itself.
Those banks that refuse to pay the amounts would face an additional $1,500 per day until the payment has been received by the town. This to ensure that no one is scared of coming into the town and to reduce the signs and effects of aging throughout it. No one wants to come in and stay or do business with a town that is falling apart. These payments will ensure that this does not happen.