The Governor’s Office of Storm Recovery (GOSR) recently announced the upcoming auction of 155 Long Island residential properties, to take place on Tuesday, Nov. 17, 2015 at the Hyatt Regency Long Island at 1717 Motor Pkwy., in Hauppauge). The 81 Nassau County and 74 Suffolk County properties−which were all substantially damaged by Superstorm Sandy, Hurricane Irene or Tropical Storm Lee−have been acquired from interested homeowners by the Housing Trust Fund Corporation (HTFC), in connection with GOSR’s NY Rising Acquisition Program. Bidders will receive the opportunity to inspect available properties prior to the auction, during pre-scheduled open house events beginning Oct. 13 through Oct. 22.
“Through the NY Rising Acquisition Program, the State offers properties at a fraction of their pre-storm value, while instituting measures to improve the resiliency of the State,” said Interim Executive Director of GOSR, Lisa Bova-Hiatt. “With this auction begins a new chapter in New York’s housing recovery process, as we continue our efforts to build back in a reimagined way.”
Once purchased, the homes will be redeveloped in a stronger manner− thereby demonstrating Governor Andrew M. Cuomo’s continued commitment to the economic, social and physical resiliency of storm-impacted communities. Paramount Realty USA (PRUSA), the Long Island-based real estate company hired by the State to direct and oversee the proceedings, represents owners in the marketing and sale of real estate, specializing in auctions.
“The sale of these properties by auction represents an important step in the rebuilding of our communities and we at Paramount Realty USA are pleased to be playing a role,” said Misha Haghani, the company’s managing principal.
The properties are primarily single-family homes, as well as two-family homes and land parcels. More than half of the properties are waterfront or have water views. The properties to be auctioned were purchased for pre-storm values ranging from $113,000 to $875,000. All sales at auction will be subject to minimum bids as low as $43,000.
Following the sale of the properties, redevelopment must be consistent with local use and zoning regulations and must be completed−as evidenced by a duly issued final Certificate of Occupancy from the local building department−three years from the date of the closing. In the case that these conditions are not met, the property will revert back to the HTFC.
The November event will be GOSR’s second PRUSA-managed auction of the year− with sales for the NY Rising-acquired properties sold on May 19 and May 20, 2015 totaling approximately $22 million. To date, 127 (93 percent) of these properties have closed.
In the Spring, hundreds of bidders were in attendance including major area and regional builders and developers, as well as local contractors and families seeking to build new homes for themselves. Based on the success and continued progress of the Acquisition and Auction program, GOSR anticipates even greater participation on Nov. 17.
Bidders interested in participating on Nov. 17 must purchase (for $50) access to due diligence information from PRUSA at www.prusa.com; the materials include appraisals, surveys, title reports, photographs, terms of sale, and a copy of the purchase and sale agreement that winning bidders will sign at the auction. Bidders must also bring to the auction certified or cashier’s checks in the amount of $25,000—one check for each property they wish to purchase.