Foreclosures cause rise in building violations for neighbors, too

New York /
Feb.February 02, 2012 09:30 AM

Apartment buildings in foreclosure aren’t the only one’s that eventually suffer from building violations — their neighbors get hit hard, too.

According to a report to be released today by the Citizens Housing & Planning Council and Enterprise cited by the Wall Street Journal, buildings within 250 feet of a foreclosed property averaged a 14 percent increase in Class C violations, determined by the city’s Housing Preservation and Development Department.

The Journal pointed to the infamous Milbank Real Estate portfolio of 10 Bronx apartment buildings overrun with violations. The study found that violations also spiked in 16 surrounding apartment buildings that were not over-leveraged or in foreclosure.

While it’s difficult to prove causation, especially since most of the distressed buildings are located in poorer neighborhoods, the report shows that it’s not just single-family neighborhoods that are blighted by foreclosures.

“Buildings in severe physical distress, whether in foreclosure or not, can act as an undermining force in neighborhoods that have historically struggled to maintain their housing stock,” said a housing department spokesperson. [WSJ]


Related Articles

arrow_forward_ios
City subsidizing rent at deed fraudster’s properties: report
City subsidizing rent at deed fraudster’s properties: report
City subsidizing rent at deed fraudster’s properties: report
Foreclosures in an uptick
Foreclosures and mortgage delinquencies tick up in June
Foreclosures and mortgage delinquencies tick up in June
Extell's Gary Barnett, Robert Gans and an aerial of 616 11th Avenue (Robert’s Steakhouse, Google Maps)
Investor Robert Gans files for bankruptcy to thwart Barnett, Eli Tabak
Investor Robert Gans files for bankruptcy to thwart Barnett, Eli Tabak
15 West 43rd Street (Google Maps)
Lender files to foreclose on Princeton Club of New York
Lender files to foreclose on Princeton Club of New York
Parkview’s Paul Rahimian with 1800 Avenue at Port Imperial (LinkedIn, Handel Architects)
Lender plans unusual loan sale on Chinese developer’s troubled NJ project
Lender plans unusual loan sale on Chinese developer’s troubled NJ project
Parkview’s Paul Rahimian and 1800 Avenue at Port Imperial (Parkview Financial, Handel Architects, Illustration by Kevin Cifuentes for The Real Deal)
Chinese developer Hongkun faces foreclosure on luxury NJ condo
Chinese developer Hongkun faces foreclosure on luxury NJ condo
Joseph Chetrit and 98 Montague Street in Downtown Brooklyn (Credit: Getty Images and Google Maps)
Brooklyn’s iconic Bossert Hotel facing foreclosure
Brooklyn’s iconic Bossert Hotel facing foreclosure
Related's Stephen Ross, the Gregory Hotel at 42 West 35th Street and Meadow Partners’ Jeffrey Kaplan (Getty, Google Maps, Meadow Partners)
Related sues Meadow after foreclosure on Garment District hotel
Related sues Meadow after foreclosure on Garment District hotel
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...