Rotterdam, NY – In response to rising home prices and a slowdown in new listings, Assemblyman Angelo Santabarbara announced legislation that would force banks and mortgage lenders to sell foreclosed properties within 180 days. The bill, crafted after discussions with Rotterdam Town Supervisor John Polimeni, seeks to return bank‑owned homes to the market more quickly, giving families greater access to affordable housing.
Why the bill matters for local families
“Housing prices are too high, and families need relief. Banks holding onto homes for years keep those properties out of buyers’ reach,” Santabarbara said. “Those homes need to get back on the market, so families have more choices and a better opportunity to find a home they can afford.”
Data from the town of Rotterdam shows the median home sale price climbed to $310,000 through August 2026, up from $289,000 the previous year. At the same time, new listings fell 7.9 percent, according to the Greater Capital Association of Realtors, tightening the pool of available homes for prospective buyers.
Key provisions of the proposal
- Covered banks and mortgage lenders would have 180 days to sell single‑ and two‑family homes acquired through foreclosure or other debt‑recovery actions.
- During that period, lenders must actively market the properties, ensuring they are visible to potential buyers.
- If a home remains unsold after the deadline, the law would require a public auction, with penalties and court enforcement for non‑compliant lenders.
- Transferring a property to a related company would not restart the 180‑day clock.
New York law already obliges lenders that acquire foreclosed properties to offer them for sale or other occupancy within set time limits, but it does not mandate a completed sale. Santabarbara’s bill would add a firm deadline and an enforced auction process for homes that remain on the market beyond the 180‑day period.
Local officials endorse the approach
Supervisor Polimeni echoed the sentiment, emphasizing that addressing housing costs involves preserving existing homes as well as building new units. “We need policies that ensure housing remains available to the people who want to live here, work here, and contribute to the future of our town,” he said.
The proposal aligns with broader efforts across the state to increase housing supply without sacrificing affordability. By compelling banks to move quickly, the bill aims to reduce the number of vacant, bank‑owned homes that sit idle while families search for affordable options.
Potential impact and next steps
If enacted, the legislation could create a more predictable timeline for families seeking to purchase a home, potentially easing price pressure in high‑cost areas like Rotterdam. Faster turnover of foreclosed homes may also stimulate local real‑estate activity, benefiting agents, contractors, and related businesses.
The bill will be introduced to the Assembly later this month and referred to the Housing Committee for review. Lawmakers, housing advocates, and banking representatives are expected to weigh in during the committee hearings.
Community response
Local residents have expressed cautious optimism. Many see the measure as a practical step toward expanding the pool of affordable homes, while some lenders have raised concerns about the administrative burden of meeting the new deadline.
Regardless of the debate, the legislation reflects a growing consensus among New York officials that timely access to existing housing stock is essential for families striving to achieve the American dream of homeownership.
Original reporting: CBS 6 WRGB Albany (local) — read the source article.
