WITH NEARLY 8,000 ‘ZOMBIE HOUSES’ PLAGUING ROCHESTER, SCHUMER CALLS ON FEDS TO IMMEDIATELY RENEW HUD PARTNERSHIP – EXPIRING IN LESS THAN 30 DAYS – FOR CITY TO TRANSFORM ABANDONED HOUSES INTO HOMES FOR FIRST-TIME BUYERS

Amid Nationwide Housing Shortage, Schumer Says Preserving HUD Partnership - Which Expires July 1 - Is Win-Win-Win For Getting Rid Of Zombie Houses, Revitalizing Neighborhoods & Creating Good-Paying Jobs For Monroe County

City Of Rochester Has Transformed Over 850 Vacant Homes With Help From Agreement With HUD; With Contract Expiring In Less Than 30 Days, Schumer Calls On HUD To Act Quickly Before This Agreement Expires

Schumer: Renewing This HUD-Rochester Agreement Is Vital So Rochester Can Transform Abandoned ‘Zombie Houses’ Into Homes For First-Time Home Buyers

With the City of Rochester’s contract set to expire in less than 30 days, U.S. Senator Chuck Schumer called on the U.S. Department of Housing and Urban Development (HUD) to immediately renew its contract to convert abandoned “zombie houses” across Rochester into high-quality affordable housing for first-time homebuyers. Through this partnership, the City of Rochester has transformed hundreds of abandoned properties while creating good-paying construction jobs. Schumer said that with over 8,000 vacant houses across Rochester, HUD needs to cut the red tape and renew this agreement to support Rochester families, neighborhoods, and jobs.

“With nearly 8,000 abandoned homes plaguing Rochester, we cannot let the City’s federal housing partnership expire in less than 30 days. HUD must cut the red tape and immediately approve the City’s plan to breathe new life into these zombie homes,” said Senator Schumer. “Thanks to this contract, we’ve already turned hundreds of abandoned ‘zombie houses’ into family houses for first-time homebuyers while creating good-paying construction jobs in Monroe County. With the nationwide housing shortage hitting Rochester hard, HUD renewing this agreement before it expires next month is the difference between hope and despair for countless Rochester families seeking the dream of home ownership.”

The City of Rochester has a contract with HUD’s Asset Control Area Program to purchase vacant HUD-foreclosed homes and convert them to high-quality affordable housing for first-time homebuyers through a partnership with the Rochester Housing Development Fund Corporation (RHDFC). Since 2005, Rochester has renovated over 850 vacant homes through this program, boosting neighborhood property values by an average of $15,000 per house and generating more than $33.5 million in local contracting work creating good-paying construction jobs for Monroe County. As of the most recent census in 2020, there are more than 8,000 vacant homes in the City of Rochester. The City’s contract ends on July 1, and they are looking to renew the contract with HUD to help address the housing shortage in the region.

“Securing this renewal will enable us to turn boarded-up, vacant houses into dream homes for first-time buyers and generate steady work for our skilled tradespeople and local contractors,” Rochester Mayor Malik D. Evans said. “With Senator Schumer urging HUD to act, we stand ready to patch the holes in the fabric our city’s housing inventory, breathe hope into every block, and build the safe, equitable, and prosperous Rochester our residents deserve.”

In a letter to HUD Secretary Scott Turner, Schumer urged the department to cut the red tape, renew this contract, and work with Rochester to identify new HUD-foreclosed abandoned homes for inclusion in the program to maximize the number of properties covered by the partnership and further boost the supply of housing. The senator said amid the nationwide housing shortage that has hit the Rochester-Finger Lakes region hard, this contract is essential to helping buyers find and purchase homes while driving millions of dollars of new development into local neighborhoods.

Schumer’s letter to U.S. Department of Housing and Urban Development Secretary Scott Turner can be found HERE or below:

Dear Secretary Turner:

I write to request the U.S. Department of Housing and Urban Development’s (HUD) prioritize and swiftly work with the City of Rochester to renew the Asset Control Area (ACA) Agreement between HUD and the City of Rochester that is now slated to lapse in less than 30 days on July 1, 2025. Without immediate full renewal, Rochester will lose access to being able to acquire and rehab now vacant HUD-foreclosed homes, transforming these “zombie properties” into safe, affordable housing for first-time homebuyers. If this contract is not renewed, a two decades-old partnership that has transformed 796 abandoned properties in the City of Rochester into quality homes for families and residents will be halted, at a time when Rochester, like much of the country, is facing a housing supply crisis. Because new homebuyers are struggling to find new affordable housing since demand now far exceeds housing inventory in Rochester, I request HUD structure the renewed ACA to make more of HUD’s vacant foreclosed homes available in the ACA pipeline.  This month, the National Association of Realtors ranked Rochester as the fifth most competitive housing market in the nation underscoring the new barriers prospective homeowners are confronting in the Rochester market.

Since 2005, the ACA Agreement between HUD, the City of Rochester, and the Rochester Housing Development Fund Corporation (RHDFC) has enabled the City to acquire hundreds of vacant, FHA-foreclosed single-family homes, transfer them to RHDFC for rehabilitation, and sell them to income-qualified buyers through the HOME Rochester program. That initiative has rehabilitated over 850 “zombie homes”, the majority made possible through the ACA agreement, boosting neighboring property values by an average of $15,000 per house, generating more than $33.5 million in local contracting work, and creating good-paying jobs for Monroe County.

Today, Rochester homebuyers face fresh headwinds in its housing market. In recent years, despite many vacant homes plaguing Rochester neighborhoods, a dwindling supply of quality housing has made it exceptionally challenging for buyers to find and purchase homes, leading to frustration and difficulty for those trying to navigate the market. As a result of these conditions, programs like HOME Rochester – the City’s vehicle for acquisition, rehabilitation, and resale – have become an even more vital pathway to homeownership for working families. Yet, beginning in 2020, the pipeline of HUD-foreclosed homes available through the ACA began to decrease, with just one property acquired in 2020 and one in 2021, compared with 29 acquisitions between 2017 and 2020. 

Therefore I urge you to:

1. Renew Rochester’s ACA Agreement for another two-year term, so that property acquisitions and HOME Rochester rehabilitations can proceed uninterrupted.

2. Partner directly with the City of Rochester, RHDFC, and the Greater Rochester Housing Partnership to review the current inventory of HUD-foreclosed homes, identify new properties for inclusion, and structure a renewal that maximizes the number of properties, and the neighborhoods, covered under the agreement.

3. Streamline HUD’s approval process by permitting bulk submission of property lists and rehabilitation plans – rather than negotiating each property one at a time – to eliminate red tape and accelerate delivery of homes to first-time buyers.

Renewing this agreement and making more HUD vacant foreclosed homes available for rehabilitation can be the difference between hope and despair for countless Rochester families seeking their dream of homeownership and a boost to strengthen Rochester by reviving now-abandoned houses and driving millions of dollars of new development into local neighborhoods. 

Thank you for your prompt attention to this urgent matter.

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