ELLENVILLE – With interest in both village commercial and residential real estate on the rise, Ellenville mayor Jeff Kaplan said it's prime time for attention to shift to "zombies," or those properties abandoned both by homeowners and banks through the foreclosure process.

"Our problem is no greater than average in the Hudson Valley," village building inspector Brian Schug added. He noted that there are approximately twenty properties that fall into the "zombie" category in Ellenville, homes that are not officially foreclosed upon, but not bank-owned either. An example, he added, would be 30 Park Street, which village police started the eviction process on last week, moving out squatters who had taken up residency there.

According to Realty Trac, an online real estate information company, there are 98 properties in the village involved in the foreclosure process to some degree. There are nine in Wawarsing.

Contending with properties abandoned through foreclosure is problematic. The village, Schug explained, treats those properties like any other building, following codes designed for vacant and abandoned buildings. The building department notifies title owners of violations through certified mail, or mortgage holders, and after due process village officials can enter the building to secure the premises.

It's a lengthy process, Schug added, and more often than not village officials hit a wall and properties remain neglected and become a 'nuisance.'

Earlier this month, Governor Cuomo announced $100 million available to combat "zombie properties," expand homeownership opportunities and renovate homes. Of that funding, available through NYS Homes and Community Renewal (HCR), $22 million has been earmarked for the new Neighborhood Revitalization Program (NRP) to assist low and middle-income residents throughout the state buy and renovate vacant, distressed properties.

"This is the initial rollout of the NYS Homes and Community Renewal Neighborhood Revitalization Program. There are six communities across the state — with Middletown and Kingston in the Mid-Hudson region," HCR Vice President of Communications, Charni Sochet, said. "Foreclosure is a very important issue across the state. After the pilot phase is launched, we anticipate expanding the program to other regions of the state."

According to Realty Trac, there are 999 properties in Middletown at some level of foreclosure with another 333 in Kingston the same. There are nearly a million properties across the nation in foreclosure proceedings.

The NRP, financed through JPMorgan Chase settlement funds, will assist buyers in purchasing and renovating 500 foreclosed and abandoned properties. The program will be administered by HCR's State of NY Mortgage Agency.

Ellenville and the town of Wawarsing, though, are not eligible for that funding.

Additional money, up to $27 million, has been earmarked to assist existing eligible homeowners with renovations, repairs and improvements to remain in their homes. Homes belonging to the elderly, veterans, Medicaid recipients, people with disabilities, and low-income families and individuals would be eligible. Local municipalities and non-for-profit agencies would apply for funding through programs administered by NYS HCR starting June 27, and then funnel monies to eligible applicants in their areas.

Ellenville village manager Joseph Stoeckeler said he is looking into the funding possibilities and eligibility requirements for participation in the program.

This past week, on the heels of funding incentives, Governor Cuomo signed sweeping legislation to combat vacant and abandoned properties, calling for expedited foreclosure proceedings and enhanced communication between local municipalities and foreclosing parties. In addition, the new legislation would enhance mandatory settlement conferences, establish a consumer bill of rights, create a Community Restoration Fund, require banks and servicers to maintain properties at the on-set of the foreclosure process or face mounting fines, and create an electronic database of foreclosed properties and their status.

The new CRF, the press statements explains, is a tool for the State of NY Mortgage Agency to assist homeowners facing foreclosure. CRF will purchase defaulted mortgage notes from lenders and modify those notes to keep owners in their homes.

The legislation goes on to require expedited foreclosure proceedings... foreclosing parties will be required to move to auction within 90 days of obtaining a foreclosure judgment and to take action to ensure the property is reoccupied within 180 days.

The Ellenville building department, in conjunction with village attorney Abby Osgood, has been reviewing local municipal laws — specifically those adopted in Newburgh and Horseheads, in the Southern Tier — to determine to what extent Ellenville can govern its foreclosure processes.

Meanwhile, Schug says that development in the village is on the rise and notes how various businesses are in the process of expanding, including Mobile Media and Sook House. He added that the Ellenville zoning structure — different than the surrounding Town of Wawarsing's — allows for easier development, including changes of use.

In most cases, especially in those instances where applicants are interested in changing businesses in already established lots, applicants need only apply through the building department. In stark contrast, Schug explained, the process is much different in the town where, most times, applicants are required to make multiple appearances at planning board meetings before obtaining approval for projects.