YIDA Takes Final Action to Restore Tax Delinquent Morris Street Apartment House and Return To Paying Tax Rolls

WASHINGTON, D.C. – April 28, 2015 – (RealEstateRama) — The Yonkers Industrial Development Agency gave final approval today to a plan that returns a tax delinquent and condemned apartment house on Morris Street to taxpaying status, providing housing for 18 tenants in the future.

“This is a success story that directly results from our policy of holding deadbeat landlords responsible for their properties and insisting they pay their taxes like anyone else,” said Mayor Mike Spano who chairs the YIDA.

“This will take a building that is currently empty and make it a home for 18 households,” said YIDA President Ken Jenkins, adding, “This is housing that is badly needed in Yonkers, and it strengthens the entire neighborhood.”

MMR Holdings, of Clifton, New Jersey, purchased the building for $600,000 in February, following a city tax lien foreclosure, and will spend an estimated $530,000 on rehabbing the property. The project is estimated to take seven months to complete.

The YIDA approved a $44,388 sales tax exemption on materials used in construction, and estimated $22,500 mortgage tax exemption, and negotiation of a limited property tax abatement.

The previous owner of the property had failed to pay taxes for many years and had failed to properly maintain it. As a result the City instituted foreclosure proceedings, as it has against numerous parcels throughout the City whose owners have continue to collect income from their properties, even as they fail to pay property taxes that they owe.

“Some dead beat owners seem to calculate they can make more by pocketing unpaid taxes than a property is actually worth,” noted Spano. “By failing to enforce collection of taxes in the past, the City enabled these schemes. But those days are over. If you are a landlord who doesn’t pay taxes we will foreclose so that the property can be bought by someone who will.”

Several months ago 53 Morris Street was also condemned by the City due to dangerous conditions. Since that time it has been empty.