The Newburgh Housing Remediation Fund is focused on increasing the supply of safe, decent affordable housing for families in targeted locations in the City of Newburgh as part of a broad community redevelopment effort. This initiative is a partnership with JP Morgan Chase & Co., the City of Newburgh, the Newburgh Land Bank, and local community financial institutions. The Fund has two components:
Developers are reluctant to invest in the cost of lead and asbestos inspections when the results may be that the amount of remediation needed makes the building economically infeasible at this time. The Feasibility Fund addresses that problem by providing loans up to $5,000 to for profit and not for profit developers to cover the cost of lead and asbestos inspections on properties they are considering buying in the target area. If the findings are such that the project can be successfully developed with affordable residential units, the developer will repay the loan at the close of construction financing. If, on the other hand, the cost of remediation makes the possibility of rehabilitating the building infeasible in the current market, with the developer unable to recapture the high cost of remediation through rents or sale prices, the loan will be forgiven.
In some cases, the inspections will demonstrate that a building is not economically viable, but the building itself will be key to area redevelopment. If a building is impeding the revitalization of a block or area, or if it has critical historic or architectural significance, it may be eligible for a Remediation Grant. Grants will be made to foster strategic impact by closing “the budget gap” on parcels determined to be critical to community redevelopment.
City of Newburgh- Vacant Properties