The city of Newburgh, struggling to get out from under its massive property tax increases, has opened the door to developers to buy city-owned properties.
The City Council waived restrictions that called for city-owned properties to be bought and refurbished by buyers on the condition they live on the property.
The result of last year”™s auction, which netted the city under $10,000, may have prompted a change in the rules.
The city”™s decision to waive the owner-occupancy requirement will open the door to dozens of developers who have the means and the money to rehabilitate buildings and sell them at a profit. One volunteer from Newburgh”™s Habitat for Humanity said some of the houses the organization rehabilitated were in such dire shape, “I can”™t imagine anyone coming in without the know-how or the finances to bring these houses up to code.”
The city will sell 50 properties at auction April 14. A PowerPoint presentation and details can be found at cityofnewburgh-ny.gov and more information will be available at absoluteauctionrealty.com, according to the city”™s news release.
Incentives for buyers include a property tax exemption for first-time homebuyers whose improvements exceed $3,000, and properties in the city”™s historic district may qualify for property tax exemptions for exterior and interior improvements.
Building permits must be obtained within 12 months and a certificate of occupancy is required within 19 months for existing structures. Vacant properties not immediately redeveloped do not require a building permit, but the property must be kept clean in accordance with city code.
Properties substandard in lot size bought by an adjacent property owner must be merged with the owner”™s property. Some contiguous properties will be sold as a package with a requirement to merge them.
