Banks to Pressure Landlords to Make Repairs

New York, NY —

Two major banks have agreed to crackdown on neglectful landlords who leave their buildings in disrepair. Housing advocates call the move unprecedented and a national model.

Housing advocates say New York Comunity Bank lends to some of the worst slumlords in the city. After months of negotiations and public protests, the bank has said it will identify troubled buildings and put pressure on landlords to make repairs. Citigroup has agreed to do the same.

Housing groups and the city's department of housing will give banks information on troubled buildings. The banks also say they will look at a potential borrower’s track record before lending to them and force them to fix problems before closing on loans.

The city and state comptrollers and the head of the state banking department support the agreement. The officials met with over 20 major banks yesterday and encouraged them to do the same.