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Hempstead to require banks to make $35,000 deposit on vacant businesses

Hempstead Supervisor Anthony Santino sits in his Town

Hempstead Supervisor Anthony Santino sits in his Town Hall office on Jan 14, 2016. Photo Credit: Newsday / J. Conrad Williams Jr.

Banks that own vacant, foreclosed businesses will now be required to put down a $35,000 deposit to Hempstead town workers to keep them from falling into disrepair.

The town board unanimously passed the bill during Tuesday’s meeting requiring the deposit be paid as soon as a commercial property enters into foreclosure.

Town officials said the funds will be used to repair broken doors and windows, remove graffiti and cut lawns of businesses that are left empty.

Hempstead Supervisor Anthony Santino said the measure is needed to maintain the character of downtowns and streets where blighted buildings can drive down neighboring property values.

The law follows a similar zombie home law passed last month, which requires a $25,000 deposit to maintain homes whenever banks take possession of a property.

Banks that do not supply the deposits will be subject to a $500 to $1,500 per day fines until they comply.

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