Neglected Bronx Buildings to Get New Owner

New York, NY —

Tenants living in more than a dozen severely neglected Bronx buildings could see improvements soon. The buildings are in foreclosure and a developer of affordable housing is expected to take them over.

In August, lender Fannie Mae agreed not to auction the buildings off and instead worked with the city's housing department to find a responsible owner. Through a bidding process, developer Omni New York, led by former Mets player Mo Vaughn, was selected. Managing Director Eugene Schnuer says $1 million will immediately be used for emergency repairs but ultimately it will take $30 million to fix the buildings.

"This rehab process can only start when we become the owners. I mean at this point all we've purchased is the debt from Fannie Mae and we have to go through the foreclosure process and become the owners of the property," Scnuer says.

The 14 buildings with over 400 apartments are scattered throughout the South Bronx. The debt on the properties was $24 million. Schnuer says his group agreed not to reveal the purchase price.