THE NEW YORK STATE

SENATE COALITION

Devaluing Monroe County:

How Zombie Properties
Impact Homeowners
JUNE 2016
Senator Jerey D. Klein
Independent Democraic Conference Leader &
Coaliion Co-Leader
34th Senate District
Senator Rich Funke
55th Senate District
Senator Joseph E. Robach
56th Senate District

INTRODUCTION
In December 2015, the Independent Democratic Conference (IDC) began highlighting problems caused
by bank-owned foreclosed homes and zombie properties in communities throughout the Statei. This
report illustrates the negative effect on privately-owned neighboring property values that this crisis is
causing for communities throughout Monroe County.
The IDC first examined the problem in New York City and Westchester County. For this report the IDC,
in conjunction with the Offices of Senator Rich Funke and Joseph Robach, studied the impact placed by
bank-owned foreclosed homes and zombie properties on communities across the City of Rochester and
Monroe County. Based on our analysis, 108 foreclosed properties owned by financial institutions and
federal agencies were identified in the City of Rochester. This report also uncovered a possible 592
zombie properties across all of Monroe County, including 425 possible zombie properties in the City of
Rochester. Based on academically sound studies on the effects of foreclosures on neighboring property
values, we estimate that bank and federally owned foreclosed properties and possible zombie
properties in the City of Rochester may have depreciated the value of surrounding properties by
as much as $10.96 million. The report also estimates property value damage caused by zombie
properties throughout Monroe County as a whole, and the report found that all zombie properties
across Monroe County, including those in the City of Rochester, may have decreased the value of
surrounding property in the county by as much as $9.4 million.
As these numbers show, the damage that this crisis is having on communities throughout Monroe
County is substantial. Members of the Majority Coalition of the New York State Senate are trying to
address this problem and a number of potential legislative solutions have been introduced in the Senate.
These possible solutions include legislation that would strengthen existing legal provisions regarding the
maintenance of properties that have been foreclosed upon; legislation that would expedite the
foreclosure process when a home has become vacant or abandoned; legislation aimed at ensuring that
zombie properties are properly maintained, and legislation that would create a fund that the State could
use to acquire properties to put them back into the housing market or to ensure that properties can be put
to use in a way that strengthens our communities.
KEY FINDINGS

There are 533 properties across the City of Rochester that are likely negatively affecting
the property values of an estimated 9,897 surrounding homes.

Bank and federally-owned foreclosed homes and zombie properties in the City of
Rochester are estimated to lower neighboring property values by as much as $2.36
million and $8.6 million respectively, for a possible total loss of $10.96 million.

There are an estimated 592 zombie properties in Monroe County, including those in the
City of Rochester, and these properties may be affecting the property value of an
estimated 7,999 neighboring properties.

Zombie properties in Monroe County could be responsible for up to $9.4 million in

property value depreciation.

PART I: BANK AND FEDERALLY OWNED PROPERTIES IN CITY OF ROCHESTER

The Duty to Maintain
On December 15, 2009 Governor Paterson signed into law one of the strongest foreclosure protection
bills in the nation. This legislation was sponsored in the New York State Senate by Senator Klein. This
law included a provision, known as the property maintenance requirement, that requires that property
owners, including those that have been awarded a judgment of foreclosure, be responsible for meeting
the property maintenance standards, as prescribed by the New York State Property Maintenance Code
Chapter Three. Furthermore, the provision gives municipalities, tenants, or boards of managers, with
regards to condos, the right to enforce the duty to maintain as well as have a cause of action to recover
costs incurred as a result of maintaining the property.
Identifying Bank and Federally Owned Properties
In spring 2016, the IDC and the Offices of Senators Funke and Robach researched bank-owned
properties in the City of Rochester. Analysts used the reputable real estate tracking website
RealtyTrac.com to identify all real estate owned (REO) properties in the district. Using the sites
database on all real estate-owned properties, a total of 451 properties were identified. This means a
financial institution or federal agency such as Fannie Mae or Freddie Mac had been awarded a judgment
of foreclosure on each of the 451 properties, possibly making them responsible under the property
maintenance requirement obligations referenced above for maintenance of these properties if they are
the owners.
The IDC and Offices of Senators Funke and Robach then sought to confirm the list of 451 owners
retrieved from the RealtyTrac.com site, to confirm that each property is in fact bank-owned. To do so,
analysts searched each property on the City of Rochester Property Information online application. After
going through this process, properties owned by private citizens, state agencies, non-financial
corporations, and limited liability companies were removed in order to isolate the set of properties
owned by financial institutions both public and private. In the end, 108 properties were confirmed to
be owned by financial institutions and the federal government at the time of our investigation.
House Value Depreciation
Every homeowner wants to guarantee the value of their home, which is usually their primary asset.
Maintaining a home in a safe and habitable condition is critical to ensure the best possible home value.
Home values are also strongly affected by the surrounding community, and proper maintenance of
neighboring homes positively contributes to the conditions of a homes surrounding community and its
positive effect on home value. Homes surrounded by well maintained and cared-for properties will see
their value maximized while properties located in neighborhoods where neighboring homes are not
being properly maintained or are in violation of the property maintenance code will depreciate in value.
Since the start of the subprime mortgage crisis, myriad studies have been conducted to measure the
effect that foreclosed homes owned by financial institutions and the federal government have on the
house value of surrounding homes. A paper published in 2012 by the Center for Responsible Learning
cites the study, The Contagion Effect of Foreclosed Properties, where the authors, Harding et al.,
estimate that, on average, a foreclosed home reduces the house price value of homes located within a

300-foot radius by 1.3 percent.1 Ultimately, they concluded that this results in a house price value
depreciation of, on average, $5,000 per property within a 300-foot radius.
Utilizing the methodology from this study, analysts conducted a data analysis to create a good estimate
of the number of homes in the City of Rochester whose values have depreciated due to surrounding bank
or federallyowned properties. First, all properties were categorized by zip code. Then, each zip code was
entered into the American Fact Finder website, managed by the United States Census Bureau, to extract
the number of one-to-four family units located in each zip code. Next, using the site ProximityOne.com,
which provides land area information for each zip code using 2010 census data, the square mileage of
each zip code was converted into square footage. By dividing the total number of one-to-four family
units in the zip code by the total square footage of the zip code, the analysts were able to determine the
number of one-to-four family units per square foot. Finally, by multiplying the number of one-to-four
family units per square foot by the area of a 300-foot radius, the analysts were able to estimate that a
total of 2,318 properties lay within a 300-foot radius of a bank-owned home in the City of Rochester.
After the initial analysis, the analysts calculated the approximate depreciation value of each privatelyowned home within a 300-foot radius of a property identified as being owned by a financial institution
or federal agency based on City of Rochester property records. Each zip code containing at least one
such home was once again entered into the American Fact Finder website to extract the median value of
homes in each zip code. Multiplying the median house value by the statistically estimated 1.3 percent
depreciation figure provided the analyst an estimated value of depreciation for each home located in
each zip code analyzed. Finally, by multiplying the estimated value of depreciation per home by the
number of privately-owned homes within a 300-foot radius of a home owned by a financial institution or
federal agency in each zip code, an estimated aggregate value of depreciation per zip code was
calculated. This analysis concluded that the 2,318 privately-owned properties within a 300-foot
radius of a home owned by a financial institution or federal agency in the City of Rochester have
experienced an estimated aggregate depreciation of approximately $2,364,898.
Table I. Summary of house value depreciation associated with bank and federally owned properties in City of Rochester
Zip Code

Bank-Owned
Properties

Total
Properties
Affected

14605

96

$56,200

$731

$70,176

14606

96

$104,300

$1,356

$130,176

14607

102

$162,200

$2,109

$215,118

Average
Property
Depreciation

Total
Depreciation

14608

52

$65,300

$849

$44,148

14609

22

528

$89,300

$1,161

$613,008

14611
14612

10
8

240
64

$60,000
$138,000

$780
$1,794

$187,200
$114,816

14613
14615

17
2

136
22

$68,000
$91,100

$884
$1,184

$120,224
$26,048

14616
14619

2
7

38
287

$96,300
$75,200

$1,252
$978

$47,576
$280,686

14620
14621

1
22

19
638

$132,600
$58,200

$1,724
$757

$32,756
$482,966

Total:

Median House
Price Value

$2,364,898

Harding, J., Rosenblatt, E., Yao, V. (2008). The Contagion Effect of Foreclosed Properties. Journal of Urban Economics, Vol. 66, No. 3, pp. 164-178.

Depreciation in the City of Rochester

By Bank and Federally Owned
Properties-- Top 5
$459.011

$883.452

Wells Fargo
$311.541

$203.855

$260.609
$246.430

HSBC Bank
Fannie Mae
Citi Bank
Midfirst Bank
Others

The analysis of the

property records found
that while a diverse group
of over a dozen private
financial institutions and
federal institutions such as
Freddie
Mac
had
ownership of one or more
of
the
108
homes
identified through City of
Rochester
property
records, five financial
institutions, including a
federal agency, owned the
majority of those homes.

PART II: ZOMBIE PROPERTIES IN CITY OF ROCHESTER

Department of Financial Services Agreement
As a part of an ongoing effort to reduce blight and alleviate the burdens on local communities beyond
just bank-owned properties, the Office of the Governor, in conjunction with the New York Division of
Financial Services (NYDFS), prioritized the issue. In May 2015, NYDFS entered into an agreement
with 11 financial institutions, representing nearly 70 percent of the New York State housing market, to
address the problems associated with zombie propertiesii.
The agreement called for NYDFS and lending companies to use a set of best practices beginning in
August 2015. These best practices suggest that: (1) financial institutions will conduct an exterior
inspection of a property within 60 days, and then 30 days thereafter, upon bankruptcy filing, cease and
desist order, threats of violence, or active loss mitigation efforts; (2) financial institutions will perform
their due diligence to determine vacancy and abandonment; (3) financial institutions will secure all
properties seven days after it is legally found to be vacant and abandoned; (4) financial institutions will
take the necessary steps to maintain properties secured as vacant and abandoned; and (5) financial
institutions will, within 30 days of securing the property, notify NYDFS who will, upon review, then
share the information with local authorities.
Zombie Property Legislation
As noted, the agreement brokered by NYDFS includes 11 financial institutions that are responsible for
financing nearly 70 percent of the housing market in New York State. This agreement is an important
step that allows NYDFS to use its wide ranging authority over the financial industry to attempt to ensure
compliance with existing laws. At the same time, not every financial institution has chosen to abide by
this agreement, leaving a gap, and additional legislative steps can be taken to help ensure compliance
with existing laws and to make changes to the law that will help mitigate the damage this crisis is doing
to our communities.

To that end, Senator Klein proposed zombie property maintenance legislation that will require that all
mortgagees and loan servicing companies maintain vacant and abandoned properties from the point in
time it is discovered that the property is vacant or abandoned. Additionally, the legislation asks to
establish and maintain a statewide registry of vacant and abandoned properties with pertinent contact
information for each property. The legislation calls for the attorney general to set up a toll-free hotline
for neighbors and community residents to report properties they believe to be vacant and abandoned,
report problems associated with the properties, inquire about the foreclosure status of these properties.
And lastly, the legislation grants the Attorney General the right to impose a $1,000 daily fine against
mortgage providers that fail to maintain their zombie properties. The funds are to be transferred to a
State Comptroller fund for localities to access upon submitting a written request detailing their efforts to
eliminate blight.
Senator Funke has introduced and strongly supports legislation that tackles a contributing factor to the
ongoing problem. His legislation seeks to expedite the foreclosure process when a property is found to
be vacant or abandoned. When a homeowner chooses to abandon a home once a foreclosure proceeding
has begun they also generally stop participating in the legally prescribed foreclosure process. This
failure to participate leads to a drawn out process when mandatory settlement conferences are repeatedly
adjourned under the vain hope that individuals who may have often moved completely out of the area
will finally return to participate. The longer an abandoned home stays in foreclosure, the greater the
chances of blight, resulting in deterioration in value to the property itself and the neighborhood at large.
The Department of Financial Services noted in a May 2015 report that, Approximately 31 percent of
homes in the foreclosure process upstate started out vacant or became vacant at some point during
foreclosure, compared with approximately eight percent downstate. Senator Funkes bill recognizes the
damage done by dragging out the process this way and seeks to address it in a way that will get these
abandoned or vacant properties out of foreclosure and back up for sale faster.
Identifying Zombie Properties
Zombie properties are properties that have become abandoned or vacant during the foreclosure process
and prior to a judgment of foreclosure. A list of zombie properties in the City of Rochester was obtained
from RealtyTrac.com. Properties were deemed abandoned if the owners had moved or vacated the
premises. RealtyTrac.com receives information from the United States Postal Service (USPS) that they
utilize to determine whether a
property is abandoned or vacant.
Public and Private Lenders with Zombie
Forwarding USPS mail is used
as a proxy for an owner having
Properties in the City of Rochester
moved, and a property not
Responsible for $8.6 million in Property
receiving mail any longer is used
Depreciation
as a proxy for an owner having
vacated the premises. This
database revealed that as of
Others HSBC
January 2016, there are 425
19%
25%
properties identified as zombie
Wells Fargo
16%
properties in the City of
Deutsche
Rochester.
Bank
6%
JP Morgan
8%
US Bank
11%

Bank of
America
15%

House Value Depreciation

Vacant and abandoned properties have a deleterious effect on local property values. Zombie properties,
which by definition are vacant or abandoned, will depreciate the value of homes in their surrounding
areas just as vacant homes that have gone through foreclosure and are owned by a financial institution or
federal agency do. Our analysis chose to use the same methodology based on the Harding, et. al paper to
create a similar estimate of the possible damage to home values that zombie properties cause to
neighborhoods. After carrying out the same calculations outlined previously for each zip code in which
at least one zombie property is believed to exist, the investigation concluded that the estimated 425
zombie properties in the City of Rochester may have negatively affected the property value of an
estimated 7,579 neighboring properties possibly by as much $8.6 million.
Table II. Summary of estimated house value depreciation caused by zombie properties in the City of Rochester
Zombie
Properties

Total
Properties
Affected

14605

144

$56,200

$731

$105,264

14606

38

418

$104,300

$1,356

$566,808

14607

33

$162,000

$2,106

$69,498

14608

130

$65,300

$849

$110,370

14609

68

1632

$89,300

$1,161

$1,894,752

14610
14611

4
28

44
644

$157,200
$60,000

$2,044
$780

$89,936
$502,320

14612
14613

38
11

304
330

$138,000
$68,000

$1,794
$884

$545,376
$291,720

14615
14616

27
25

270
500

$91,100
$98,300

$1,184
$1,278

$319,680
$639,000

14617
14618

11
11

132
77

$125,900
$192,500

$1,637
$2,503

$216,084
$192,731

14619
14620

32
9

1312
171

$75,200
$132,600

$978
$1,724

$1,283,136
$294,804

14621
14622

33
12

924
144

$58,200
$109,900

$757
$1,429

$699,468
$205,776

14623
14624

11
35

44
175

$115,200
$127,300

$1,498
$1,655

$65,912
$289,625

14625
14626

3
17

15
136

$168,000
$135,200

$2,184
$1,758

$32,760
$239,088

Zip Code

Total:

Median House
Price Value

Average
Property
Depreciation

Total
Depreciation

$8,654,108

When looking at the companies that finance these properties according to RealtyTrac.coms data we
found a pattern similar to the one found for homes that we confirmed as owned by financial institutions
and the federal government. While over twenty different private and federal financial institutions, were
involved in the financing of one or more of these properties in the City of Rochester, just six institutions
had financed seventy five percent of these properties. An additional five lenders, including Fannie Mae,
accounted for twenty one percent of the depreciation value. Another eleven financial institutions
accounted for the remaining four percent.

PART III: ZOMBIE PROPERTIES IN MONROE COUNTY

Identifying Zombie Properties
With the data on zombie properties obtained from RealtyTrac.com, analysts were also able to identify
zombie properties across the whole of Monroe County. As of January 2016, based on the
RealtyTrac.com information, the investigators found 592 zombie properties in Monroe County in total,
including the 425 previously mentioned properties in the City of Rochester.
House Value Depreciation
Our analysts utilized the methodology mentioned previously to create an estimate of the possible effect
zombie properties across Monroe County have had on the property values of properties within a 300foot radius. According to our analysis, these 592 identified zombie properties in Monroe County may
have caused the value of an estimated 7,999 neighboring properties to fall by up to as much as $9.4
million.
Table III. Summary of house value depreciation estimate caused by zombie properties in Monroe County, including
Rochester (Specifics for Rochester provided in Table II).
Municipality

Brockport
Churchville
East Rochester
Fairport
Hamlin
Henrietta
Hilton
Holley
Honeoye Falls
Le Roy
North Chili
Penfield
Pittsford
Rush
Scottsville
Spencerport
Webster
West Henrietta
Rochester

Total
Properties
Affected

Zip code

Zombie
Properties

14420
14428
14445
14450
14464
14467
14468
14470
14472
14482
14514
14526
14534
14543
14546
14559
14580
14586

14
4
8
8
8
3
10
1
4
1
1
7
9
2
6
10
17
4

14
4
144
40
8
9
10
1
4
1
6
35
36
2
6
20
68
12

multiple

425

7,579

Median House
Price

$128,700
$145,200
$99,400
$188,900
$105,800
$143,100
$136,200
$92,200
$234,700
$107,100
$146,800
$167,500
$244,100
$172,400
$130,200
$151,800
$182,200
$165,600

Average
Property
Depreciation

Total
Depreciation

$128,700
$145,200
$99,400
$188,900
$105,800
$143,100
$136,200
$92,200
$234,700
$107,100
$146,800
$167,500
$244,100
$172,400
$130,200
$151,800
$182,200
$165,600
Total:
Total:

$23,422
$7,552
$186,048
$98,240
$11,000
$16,740
$17,710
$1,199
$12,204
$1,392
$11,448
$76,230
$114,228
$4,482
$10,158
$39,460
$161,092
$25,836
$818,441
$8,654,108
$9,472,549

Total:

PART III: POTENTIAL LEGISLATIVE SOLUTIONS

Policy Proposal I: Bank and Federally Owned Property Legislation Proposed by Senator Klein.
Section Six of Chapter 507 of the New York State Real Property Law extends the duty to maintain
property to owners, such as financial institutions that were awarded a judgment of foreclosure, and
allows municipalities, tenants, or boards of managers with regards to a condo, the right to enforce the
duty to maintain after at least seven days notice, unless emergency repairs are required, as well as to
7

have a cause of action to recover costs incurred as a result of maintaining the property. However,
evidence shows that municipalities face many difficulties in identifying lenders when attempting to
enforce the duty to maintain; and the legal process for municipalities to recover the costs incurred has
proven to be cumbersome and costly. In an effort to increase transparency for municipalities and hold
financial institutions accountable for their actions, the bank-owned property legislation would:
1. The Department of Financial Services establish a registry that tracks bank and federally owned
properties in New York State, recording the owner of each property and for those properties with
mortgages, tracking the name and direct contact information for individuals responsible for the
property on behalf of the lien holder and mortgage servicer.
2. Local governments be granted permission to use the registry to track complaints and violations
accumulated by each bank and federally owned foreclosed property to enforce their right to
maintain and recover all costs incurred.
3. Upon filing a Freedom of Information Law request, nonprofits, homeowners associations, and all
other non-government entities have access to the bank and federally owned properties database
to enforce the duty of maintenance requirement.
4. The Department of Financial Services set up a toll-free hotline for neighbors and community
residents to report properties they believe to be foreclosed and vacant or abandoned, report
problems, as well as to find out information regarding the foreclosure status of these properties.
5. The Office of the Attorney General use the registry to track complaints and violations
accumulated by foreclosed properties. The Attorney General can impose a $1,000 per property
fine against financial institutions that fail to uphold their duty to maintain and initiate any legal
procedures against such financial institutions.
Policy Proposal II: Expedited Foreclosure Legislation Proposed by Senator Funke.
The longer an abandoned home stays in foreclosure, the greater the chances of blight, resulting in
deterioration in value to the property itself and the neighborhood at large. The longer an abandoned or
vacant property languishes in foreclosure the more likely it will drag down the neighborhood it is in as
well, through delinquency, blight and distressed pricing in those areas. High concentrations of vacant
properties in certain parts of the State are taking a heavy toll on our towns and communities.
Senator Funkes legislation would apply to vacant and abandoned residential properties pursuant to a
newly articulated definition in the bill. Such property would be deemed vacant and abandoned when a
mortgagee can prove so according to several factors listed in the bill and pursuant to court finding. The
bill would allow for bypassing of the referee stage and/or settlement conference stage (where
appropriate) of the foreclosure process for such properties. In such cases, after a foreclosure complaint is
filed and the time for all defendants to answer has expired, the plaintiff would be authorized to move for
judgment and sale, with the court compelled to compute the sum due in the judgment. This possible
solution seeks to get these properties back into the market for sale as soon as possible. Financial
institutions want to get properties back into the home market as quickly as possible and this legislation
would help speed up that important goal.

Policy Proposal III: Zombie Property Maintenance Legislation Proposed by Senator Klein and
Attorney General Schneiderman.
The conversation on vacant and abandoned properties has recently shifted to include properties that are
not just bank or federally owned, but also properties that are deemed vacant and abandoned and stalled
somewhere in the foreclosure processcolloquially known as zombie properties. At the request of New
York State Attorney General Eric Schneiderman, Senator Klein introduced legislation to address the
blight associated with vacant and abandoned properties and zombie properties in New York. However,
much to the Senator and Attorney Generals dismay, the zombie property legislation has failed to move
forward over the past two years. As a first step, and with the instruction of the executive, the NYDFS
entered into an agreement with 11 financial institutions to use best practices that would reduce blight
and alleviate burdens on local communities by identifying, reporting, and maintaining zombie
properties. But as the IDC reports highlight, financial institutions currently fail to maintain properties
they legally possess. Who is to say they will adhere to the terms of the agreement and maintain, for
example, the 361 zombie properties in Dutchess and Putnam Counties they do not yet legally own if
there is no duty or penalty of law? To that end, the zombie property legislation would:
1. Require mortgagees and their loan servicing agents to maintain vacant and abandoned properties
from the point in time that it is discovered that the property is vacant and abandoned.
2. Create a statewide registry of vacant and abandoned properties, recording the owner of each
property and for those properties with mortgages, tracking the name and direct contact
information for an individual responsible for the property on behalf of the lien holder and
mortgage servicer.
3. Require the Attorney General to set up a toll-free hotline for neighbors and community residents
to report properties that they believe to be vacant and abandoned, report problems, as well as find
out information regarding the foreclosure status of these properties.
4. Grant the Attorney General the right to file an injunction or restraining order if a mortgagee and
their loan servicing agent fail to maintain a zombie property they are in the process of
foreclosing. If the court determines the mortgage provider violated section 1307 of Real Property
Actions & Proceedings Law, the duty to maintain, the court can impose a civil fine of up to
$1,000 per day for each day the violation has persisted.
5. Demand the State Comptroller establish the Abandoned Property Neighborhood Relief Fund to
be funded with the civil penalties imposed on mortgagees and their agents for failure to timely
report vacant and abandoned property to the Attorney General's registry or if the mortgagees and
their agents fail to maintain vacant and abandoned property. Localities can access the funds upon
submitting a written request to the Attorney General with details of their efforts to address the
problem of vacant and abandoned real property in the locality.

Policy Proposal IV: Community Reinvestment Program Proposed by Senator Savino and the
Independent Democratic Conference.
New Yorks communities have been devastated by the dramatic increase in foreclosures since the 2008
financial crisis. Tens of thousands of homeowners are working to keep their homes, but faced with a
mortgage servicing system moving too slowly. Communities across the state struggle to cope with
9

vacant and abandoned properties that, if repaired and returned to the market, would be affordable
housing and generate tax income for municipalities.
Over the last year, the approach to markets like New York States has shifted dramatically at the
investor level. Fannie Mae, Freddie Mac, and the FHA are now selling distressed loans at sizable
discounts to investors, primarily private equity firms. While small quantities of loans go to nonprofits
and other mission-driven purchasers, they are dwarfed by sales to private equity firms that are driven
only by the bottom line. If the state does not step in, tens of thousands of once-affordable homes will go
to investors, unlikely to ever return to the middle-class. The Community Reinvestment Program would:
1. Create the Community Reinvestment Program, and its associated fund and council. The fund
council will be composed of housing experts across the state and representatives of the executive
and legislative branches.
2. Use funds to refinance mortgages to keep mortgage holders in their properties.
3. Use funds to acquire properties from federal distressed asset stabilization programs to convert
them to affordable housing, refinance them, repair them, or demolish as necessary to reduce
community blight and vacant properties.
4. Allow localities, non-profits, land banks, etc. to identify properties they would like to acquire,
request those properties from the council, and the council request those properties/notes from the
federal pools.
CONCLUSION
Foreclosed homes owned by financial institutions and federal agencies and zombie properties continue
to burden many communities throughout New York State. The 108 properties identified as being owned
by financial institutions and federal agencies in the City of Rochester have caused an estimated $2.36
million in property value depreciation, and the estimated 592 zombie properties found throughout
Monroe County, including the City of Rochester, may be responsible for up to an additional $9.4 million
in property value depreciation. Given the magnitude of the problem, it is critical that we find
comprehensive solutions. This report outlines several possible legislative options that would address the
various aspects of this crisis and the expectation is that they will all be fairly considered as the
Legislature works in a bi-partisan manner to provide assistance to our municipalities, struggling property
owners and the communities impacted by this crisis.

Previous reports in the IDC series include NYC, available at

https://www.nysenate.gov/sites/default/files/the_next_great_american_bank_robbery_full_report.pdf,
Westchester available at:
https://www.nysenate.gov/sites/default/files/next_great_american_bank_robbery_westchester_full_report.pdf
Putnam and Dutchess available at: https://www.nysenate.gov/sites/default/files/next_great_american_bank_robbery__40th_sd.pdf ,
Rockland County available at: https://www.nysenate.gov/sites/default/files/next_great_american_bank_robberyrockland.pdf
ii

Agreement between NYDFS and Financial Institutions is available here:

http://www.dfs.ny.gov/banking/best_practices_vac_aban_properties_nys.pdf

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