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Land Bank Funding

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Vivian Moon View Drop Down
MUSA Council
MUSA Council


Joined: May 16 2008
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Vivian Moon Quote  Post ReplyReply Direct Link To This Post Topic: Land Bank Funding
    Posted: Aug 27 2015 at 8:22am

Posted: 7:00 p.m. Wednesday, Aug. 26, 2015

County land bank beats blight-busting funding deadline

By Denise G. Callahan

Staff Writer

BUTLER COUNTY 

The city of Hamilton is working to quickly purchase 40 blighted properties before a September deadline so as not to risk losing future federal funding for the county land bank program.

The Butler County Land Bank is already at the 80-parcel quota to receive $2 million in federal funds.

“Our concern is if we don’t maximize the funding, the next time any funds are available, that they’re not going to look and say well they did their 40 properties,” said Chris Hacker, the acting land bank administrator for Hamilton. “That they’re going to say they only spent $1.2 of the $2 million we granted. And we don’t want to miss out if there is any more money available because it looked like we weren’t trying.”

In Hamilton, 59 blighted properties have been secured and seven property transfers are pending. In Middletown, 21 eyesores have been acquired for a total of the requisite 80. The cities are fronting the money and so far Hamilton has deposited $428,000 with the land bank for eventual reimbursement of federal funds and Middletown has spent $80,000 with another $100,000 forthcoming, according to land bank Executive Director Mike McNamara.

Hacker said the $2 million was based on a maximum $25,000 per-demolition cost, but in reality they have only been paying in the neighborhood of $16,000. He said they hope to raze a total of 100 eye sores in Hamilton alone, under the federal blight program.

Under the Moving Ohio Forward grant, Butler County spent $4.6 million razing 511 ailing structures in Hamilton and Middletown. For the federal blight elimination program, they needed to acquire 40 blighted properties collectively by March 31 and another 40 by the end of September, in order to keep a $2 million in Hardest Hit Fund monies. They ended up culling 44 by the first deadline.

McNamara said in Hamilton 215 properties were demolished with Moving Ohio Forward monies. Hacker said 51 parcels have been re-purposed and seven more will be presented to the city council for consideration in September. Middletown up until this point had not assumed ownership of any properties because officials said the city shouldn’t be in the real estate business.

Middletown Mayor Larry Mulligan said the city has had a hard time culling properties that qualify under the parameters of the federal program, but the funding has allowed them to make a dent in downing dilapidated buildings.

“We’ve made progress but there is more work to do,” he said. “Every dollar we can put towards addressing it (blight) either through demolition or rehab is going to help improve the city.”

Up until now the two major cities have been the only beneficiaries of the blight elimination dollars. Last summer the Butler County commissioners agreed to siphon 1 percent of delinquent tax and assessment collection funds (DTAC) to bolster the land bank and open up services for the entire county. DTAC funds are late payment penalties on real estate taxes. County Treasurer Nancy Nix estimated the 1 percent would garner about $155,000.

The land bank now has signed memorandum of understanding with Fairfield, Liberty and Ross townships and the city of Trenton. The land bank board is expected to sign a deal with Hanover Twp. at its Monday meeting. Township Administrator Bruce Henry said the township has been eyeing a couple rough properties they would like to tear down and the countywide tool would be beneficial.

“If you didn’t have any of these funding sources you attach a lien to the property, which we have done in the past, we’ve condemned a property, essentially leveled it and cleaned up the site and then attached a substantial lien on the property,” he said. “But in our case it took us over five years to recover that lien and we’re not big enough to take that hit. So that’s why we’re looking at the land bank and other sources of community block grant funding.”


Disposition of properties obtained by Hamilton through the land bank

Properties Hamilton wants to keep for future projects: 82

The city has sold: 37

Parcels donated: 14

Sale or possible donation pending: 12

Properties available: 196

Total: 341

Source: City of Hamilton

 

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Perplexed View Drop Down
MUSA Citizen
MUSA Citizen


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Post Options Post Options   Thanks (0) Thanks(0)   Quote Perplexed Quote  Post ReplyReply Direct Link To This Post Posted: Aug 27 2015 at 1:53pm
To Doug Atkins -

How many additional homes are you planning to demolish in Ward 2? How many of the properties that you have already/will be removing be put to productive reuse? Will you be requiring even more municipal funding to control tall grass and weeds plus garbage illegally dumped thereon? What are your overall neighborhood improvement goals? Do they include population decline, accumulation of more green space (city maintained and funded), etc.?
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Vivian Moon View Drop Down
MUSA Council
MUSA Council


Joined: May 16 2008
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Vivian Moon Quote  Post ReplyReply Direct Link To This Post Posted: Aug 27 2015 at 2:09pm
"Middletown up until this point had not assumed ownership of any properties because officials said the city shouldn’t be in the real estate business."

Ya got to just love this line in the above article after their royal screwup and give aways of the Thatcher buildings...mercy
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Vivian Moon View Drop Down
MUSA Council
MUSA Council


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Post Options Post Options   Thanks (0) Thanks(0)   Quote Vivian Moon Quote  Post ReplyReply Direct Link To This Post Posted: Sep 02 2015 at 9:48am

Posted: 6:08 p.m. Tuesday, Sept. 1, 2015

Land bank won’t ask for bigger cut of delinquent taxes for now

By Denise G. Callahan

Staff Writer

BUTLER COUNTY 

Members of the Butler County Land Bank agreed this week that it’s too soon to bump up the percentage of delinquent tax money being funneled into the blight-eliminating program, despite growing interest from local communities.

Board member Dan Acton raised the prospect of doubling the percentage of delinquent taxes that currently come into the program from 1 percent to 2 percent.

Butler County commissioners agreed last summer to take 1 percent of delinquent tax and assessment collection funds (DTAC) to bolster the land bank and open up services for the entire county. DTAC funds are late payment penalties on real estate taxes. The blight eradication agency is expected to collect about $155,000 from it’s first annual installment of DTAC funds.

Acton asked if they shouldn’t explore asking the commissioners to raise the percentage given the growing number of jurisdictions — Fairfield, Hanover, Liberty and Ross townships and the city of Trenton — that have joined since the the economic development tool was opened up countywide.

“Perhaps down the road with the other participating communities, not to take it up to the five, but see how this goes, obviously the interest and the need is there,” Acton said. “It doesn’t appear as though any more large chunks (of funding) are coming in anytime soon, so perhaps we should have that chat at some point, about going up just a little bit, maybe to two (percent).”

County Treasurer Nancy Nix, who chairs the land bank board, said Butler County is one of few, if the not the only land bank to only take 1 percent, the rest in the state get 5 percent. A jump to 5 percent would garner about $775,584, and 2 percent would just about double current DTAC revenues.

Up until now the county’s two largest cities have been the sole beneficiaries of $4.6 million in outside funding, but Hamilton and Middletown also chipped in $1.2 million apiece in matching money to get the $2.6 million Moving Ohio Forward funds. The land bank just recently awarded DTAC funds to Ross Twp. for up to $5,000 to demolish a building and up to $16,000 to Hamilton to take down a ramshackle house that is sandwiched between two commercial buildings on Main Street.

Executive Director Mike McNamara recommended the board wait on asking for more money until it sees the results of a Miami University study being conducted on the land bank program to date.

“It might give us an idea how successful we’ve been, and what we could do with increased funding,” he said.

Middletown City Manager Doug Adkins also urged patience.

“I think there is an advantage to running where we’re at just for the short term and showing some more successes just at the one percent,” Adkins said. “The time I think to make that ask is when the one percent is tapped, and we still have more need and requests we can’t fulfill.”

Nix said depending on when they might ask and the commissioners might grant an increase, there could be about a year delay before they would receive new funding.

County Administrator Charlie Young said the commissioners are always keeping “a close eye” on the land bank because their foremost concern is whether the expenditure benefits the taxpayers.

“It’s got to prove that it’s worth the investment,” Young said.

The entity most impacted by the diverted DTAC funds are the Lakota Schools. They took a $28,000 hit with the 1 percent, and a 2-percent hike would take their revenue reduction to almost $56,000. The statewide norm of five percent would suck almost $140,000 out of Lakota’s budget.

Lakota spokesman Randy Oppenheimer said there is more than one way of looking at the diverted funds.

“The amount of money is what the amount of money is, if it’s another $28,000 that’s $28,000,” he said. “We understand that the county commissioners are trying to support needs throughout the county, and often times those needs benefit the schools in another way. Good economic development is good for schools.”

 

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Post Options Post Options   Thanks (0) Thanks(0)   Quote VietVet Quote  Post ReplyReply Direct Link To This Post Posted: Sep 02 2015 at 9:59am
Lakota spokesman Randy Oppenheimer said there is more than one way of looking at the diverted funds.

“The amount of money is what the amount of money is, if it’s another $28,000 that’s $28,000,” he said. “We understand that the county commissioners are trying to support needs throughout the county, and often times those needs benefit the schools in another way.


"Good economic development is good for schools.”


Unfortunately Randy, we don't have either one here in Middletown.
I'm so proud of my hometown and what it has become. Recall 'em all. Let's start over.
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MUSA Citizen


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Post Options Post Options   Thanks (0) Thanks(0)   Quote Perplexed Quote  Post ReplyReply Direct Link To This Post Posted: Sep 02 2015 at 6:47pm
So, it seems that Middletown is now spending up to $28,000 for a home demolition. Only six to seven years ago, the typical cost was $6-7,000. What's the explanation City officials for this quantum leap in demolition costs? After all, lavishly spending taxpayer's money is always the best joy of being a bureaucrat. What say you Dougie or Fuchie?

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