BUFFALO, N.Y. (WKBW) — A Buffalo councilmember wants to ensure foreclosed properties go to those seeking affordable housing, not outside 'house flippers.'
The city can sell foreclosed properties, delinquent in taxes, at public auctions each year in a process known as an in-rem sale. It is common for out-of-town property moguls to scour foreclosure lists looking for a deal, but Masten District representative Zeneta Everhart doesn't want that.
"I understand the City of Buffalo needs to offload these properties, but we need to do it responsibly," she said.
Everhart's proposal, co-sponsored by Councilmember Rasheed Wyatt, aims to prioritize neighborhood residents over outside buyers.
"We wanna put families back in houses. We don't want people coming in buying up houses, selling them to the highest bidder," Everhart said. "Why wouldn't we be responsible and actually reach out to the residents living in these neighborhoods, making sure they get access to these properties?"
WATCH: Buffalo councilmember pushing to keep foreclosed homes out of out-of-town investors' hands
There are currently 6,000 properties up for foreclosure, according to city officials. But owners will have ample opportunity to pay any money owed to the city before a foreclosure sale. Everhart emphasizes that the proposal is not about kicking people out of their homes.
"All the way until the day your house is going to be auctioned off, you have the opportunity to make those payments," Everhart explained.
The Ryan administration plans to take $10 million from foreclosure sales this upcoming fiscal year, with the in-rem sale scheduled for April 2027, according to a city spokesperson. That's an increase from $4.3 million taken in 2019, according to the Investigative Post in 2022.
The Ryan administration plans to review the feasibility of Everhart's proposal under a 2023 U.S. Supreme Court ruling, which states governments cannot confiscate private property and keep the surplus equity beyond tax debt.
"We're open to any creative ideas that will help us return vacant properties to productive use and expand access to affordable homeownership. The administration will review the feasibility of this proposal given its intersection with the U.S. Supreme Court's ruling on Tyler v. Hennepin, which limits our flexibility with regard to properties acquired through tax foreclosure."
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