Buying Property from the City of Newburgh
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.
Some City-owned properties are being listed exclusively by River Realty Services Inc. These are not being offered for sale through the City of Newburgh's Planning and Development Department. You can view these listings here:
Access City-Owned properties available for sale through River Realty. Please contact River Realty at 845-564-2800.
Information sheets on other currently available City-owned properties that are not listed through River Realty but are available for sale through the City of Newburgh's Planning and Development Department:
Please be aware that the minimum purchase prices and a property's availability are subject to change at any time. The City will only accept applications for purchase for properties that are listed as "available".
Some properties are offered for sale only through a Request for Proposals (RFP) process. These properties have very specific requirements for redevelopment. Current RFPs are available on the RFQs and Property RFPs page.
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 or a history of code violations, and has not been an owner in a completed City of Newburgh tax foreclosure proceeding. Please refer to the Disposition Policy (PDF) for more information.
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 $300,000 - 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.
It is recommended that prospective purchasers make a drive-by inspection of the front of any City-owned property that is of interest to them. Prospective purchasers should not trespass on or enter any City-owned property without prior authorization. Under no circumstances should any prospective purchaser contact any tenant who occupies a City-owned property.
Application / Bid Process
All prospective new purchasers are required to complete a Private Owner Development Application (PODA) (PDF) before they can make an appointment to get inside a building. A completed PODA must include sufficient proof of funds (current bank statements, lines of credit, lender pre-approval forms, etc.) to cover the purchase price as well as the estimated cost to repair. 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. Strong preference is given to owner-occupant purchasers and to full-time employees of the City of Newburgh.
Applicants are strongly urged to submit an Informational Report request early in the process if they are considering a change or use, building expansion or if the building lacks a current Certificate of Occupancy. They must submit a form to the Building Department for the Information Report (PDF). This can be completed before a Private Owner Development Application (PODA) (PDF) is submitted or at the same time of a PODA submission.
During the purchasing process, a credit report is usually required. The Credit Report Authorization Form (PDF) must be accompanied by a fee of $28.55 - for each single applicant; $57.10 for a married couple. The only acceptable form of payment for the credit report is by money order. The credit report authorization form as well as the required money order needs to be submitted to the Department of Planning and Development. It should not be submitted to PathStone.
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 by appointment only through the Planning and Development Office.
All applicants must have a signed waiver of liability (PDF) on file prior to scheduling an appointment and/or before entering a property.
When Visiting Property
When visiting the 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 and 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 potential purchasers contact the building department to discuss the feasibility of their plans. The Building Department file on a particular parcel can be examined by an applicant as long as they obtain a signed FOIL form from the City Clerk's Office on the first floor of City Hall (83 Broadway).
If a property is located in the City of Newburgh's East End Historic District (EEHD) or in the Colonial Terrace Architectural Design District, the prospective buyer is strongly urged to familiarize themselves with the Architectural Design Guidelines of the relevant district. The Design Guidelines can be found on the Architectural Review Commission's (ARC) webpage.
Orange County's Department of Real Property offers a helpful online tool to find out more property details: 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 (PDF) will be updated and edited periodically.
Resources for Home-ownership
Various organizations offer resources to assist Homeowners in purchasing and maintaining properties. The City of Newburgh's Planning and Development Department lists resources as we know them to come available on our Housing and Homeowning page.
Purchasing, Approval & Closing Process
After the applicant has viewed the property, the applicant needs to include a more detailed estimate and the timeline for the required repairs. The application is not considered to be complete until a satisfactory repair estimate has been submitted. Once the revisions are made, the PODA is again reviewed by the Department of Planning and Development to consider the reasonableness of the repair estimate and the adequacy of the funding sources provided. Refer to the Disposition Policy for more details.
If the application is deemed complete, the PODA is presented to the City Council at a 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. The approved purchaser will have 90 days from the date of the resolution to close on the property. All closings are arranged through the Corporation Counsel's Office.
Title insurance, though not required, is recommended. The purchaser may also wish to engage an attorney - especially if he or she is inexperienced in real estate transactions. Again, it is not required but recommended. If the purchaser is using an attorney, it is recommended that their attorney contact our Corporation Counsel's Office to coordinate a closing date.
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 (PDF). These Standard Terms and Conditions of Sale are subject to modification and/or addition prior to "sale approval" by the Newburgh City Council.
Rental License & Vacant Property Ordinance
Purchasers are reminded that if the property being sold is occupied, the parcel is sold subject to the City's Rental License Ordinance. At closing, the purchaser will be required to register the property (PDF) and remit the rental license fee. If the property is vacant and unoccupied, the parcel is being sold subject to the City's Vacant Property Ordinance. At closing, the purchaser will be required to register the property and remit the vacant property fee. If the purchaser is buying a vacant property which will become a rental property, the owner will be required to obtain a rental license from the City of Newburgh for that property once renovations are completed.
Before or upon closing, purchasers are urged to contact the Building Department for information on beginning the permit application process. Purchasers can request an Informational Report from the Building Department either before or after their closing. They are strongly urged to submit an Informational Report request early in the process if they are considering a change or use, building expansion or if the building lacks a current Certificate of Occupancy. They must submit a form to the Building Department for the Information Report (PDF) along with the required fee. 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.
The Newburgh Community Land Bank is also another resource for purchasing vacant and/or abandoned properties in the City of Newburgh.