Buying Property from the City of Newburgh
What Does the City Own?
There are a number of properties that the City of Newburgh obtains throughout the year which may be available for purchase. City-owned properties are generally acquired through tax foreclosure.
The latest list of available properties can be found here.
This list and the minimum purchase prices are subject to change at any time. The City of Newburgh, at its discretion and for any reason, may remove properties from this list and revise minimum purchase prices.
Who is a Qualified Purchaser?
A qualified purchaser must be in good standing with all municipal obligations. The purchaser must not have any outstanding tax or property-related liens, must not have any significant unremediated violations of City codes or ordinances, and ideally has not been an owner in a completed City of Newburgh tax foreclosure proceeding.
It should be noted that many of the properties on the City's list need considerable repair work. Often the costs to rehabilitate a property can range from $50,000 to over $250,000 - depending on the size and condition of the building. Prospective owners must rehabilitate the property within 18 months of closing.
A qualified purchaser is one that not only has the financial means to purchase the property but must have proven financial resources to repair the property, has realistic plans for development, and can demonstrate the ability to complete the work proposed and maintain the property in accordance with all municipal codes and ordinances. Further guidelines are specified in the application.
All prospective new purchasers are required to complete a Private Owner Development Application (PODA). The application can be downloaded and printed by clicking on this link: Private Owner Development Application (PODA). Once received, the PODA is reviewed. The Department reserves the right to reject applications from potential purchasers that do not meet the guidelines and/or do not submit an acceptable offer price. The Department retains the right to extend a time period in which applications can be received for any property (or properties), especially if no acceptable offer has been submitted or if the Department anticipates receiving multiple offers.
During the purchasing process, a credit report is usually required. The credit report application must be accompanied by a fee of $21.40 - for each single applicant; $42.80 for a married couple. The only acceptable form of payment for the credit report is by money order. Any applicant should contact the Planning & Development Department before ordering a credit report.
Property Inspection & Research
Only applicants who have submitted a PODA that meets the criteria outlined above will be able to schedule an appointment for a property inspection. Property inspections are generally scheduled on Fridays - by appointment only - through the Planning and Development Office.
All applicants must have a signed waiver of liability on file prior to scheduling an appointment and/or before entering a property.
When visiting property, it is advisable to wear work boots (or other appropriate shoes) and to bring a flashlight, camera, and/or notebook. It is also recommended that you bring your contractor or architect. Any contractor, architect or associate of the applicant must also sign a waiver of liability before entering the building.
The Department of Planning & Development strongly encourages each individual to research thoroughly the property or properties they wish to buy, prior to making an offer. It is also recommended that each individual contact the building department to discuss the feasibility of their plans. The Department also suggests a title search preceding the purchase of a particular property.
Orange County’s department of Real Property offers a helpful online tool to find out more property details: http://www.orangecountygov.com/content/124/1368/4136.aspx - Image Mate Online search tool provides property information, tax maps and tax information.
Development Resource Guide
The City of Newburgh's Planning and Development Department has published a guide to assist property purchasers in finding financing and funding resources, closing costs assistance, tax exemptions, tax credits and providing other property research resources. The City of Newburgh - 2016 Development Resource Guide for Purchasing/Rehabilitating Properties will be updated and edited periodically.
Purchasing, Approval and Closing Process
After the applicant has viewed the property, the initial PODA can be revised. Applicants need to include a more detailed estimate of the repairs needed for the application to be considered complete. Once the revisions are made, the PODA is reviewed by the Department of Planning and Development.
If the application is deemed complete, the PODA is presented to the City Council at their Thursday Work Session and then voted on by the City Council at the subsequent Monday night Council Meeting. If approved, the purchaser will be notified by mail by the Corporation Counsel's office with a copy of the resolution and instructions on arranging a closing.
Title insurance, though not required, is also recommended. The purchaser may also wish to engage an attorney - especially if he or she is inexperienced in real estate transactions.
At closing, in addition to the purchase price, any new purchaser will be required to pay the current year's school taxes, current year's County tax and a prorated amount of the current year's City tax. Any potential purchaser should review the City's Standard Terms and Conditions of Sale. These Standard Terms and Condtions of Sale are subject to modification and/or addition prior to "sale approval" by the Newburgh City Council.
Upon closing, purchasers are urged to contact the Building Department for information on beginning the permit application process. Since most purchasers need to obtain a Certificate of Occupancy within 18 months of closing, the purchaser needs to act in a timely manner to start the necessary renovation work.
If a purchaser elects to renege on a purchase offer after a resolution has been passed, the purchaser may be barred (at the discretion of the Planning and Development Department) from being considered for purchasing other City-owned property.
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The Newburgh Community Land Bank is also another resource for purchasing vacant and/or abandoned properties in the City of Newburgh.
- Community Development
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- Buying Property from the City of Newburgh
- Community Development Document Library
- Five Year Consolidated Plan 2015-2019
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- Buying Property from the City of Newburgh
- Development Resource Guide for Purchasing/Rehabilitating Properties
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- River of Opportunities - Commercial Property Resource