Posted: 12:00 a.m.Tuesday, Jan. 20, 2015

Deadline looms for $2 million land bank grant

By Denise G. Callahan

Staff Writer

BUTLER COUNTY — 

With$2 million on the line, officials in Hamiltonand Middletownare working feverishly to acquire 40 blighted and abandoned buildings to meet aMarch 31 federal grant deadline.

The Butler Countyland bank and the county’s two biggest cities must get control of 40 blightedbuildings by the end of March and another 40 by September so they can hang ontoa $2 million federal grant they were awarded in August. It seemed like animpossible task in such short time frame until the county commissionerssanctioned an expedited foreclosure process, just for this grant.

MiddletownCity Manager Doug Adkins said they don’t have any properties in the pipelineyet, but they are striving to meet the grant quota.

“Itis a difficult timeline to meet,” he said. “Now that we have a chance atsuccess with the change in policy on abbreviating the foreclosure process,every Middletown city resource will be working on finding donations, purchases,and foreclosures far enough along in the process and in the target areas tomeet the initial March 31 deadline.”

Commentsat a land bank meeting a couple weeks ago caused some confusion, when peoplewere under the impression two sheriff’s sales would still be required. County TreasurerNancy Nixinformed the land bank members this week that is not the case.

“Thereis a narrow definition of abandoned properties that meet strict criteria toqualify for the alternative redemption method…,” she said. “The commissionershave affirmed their support for the alternative redemption method for the smallnumber of affected properties that qualify for the Hardest Hit Funds grant.”

Hamilton’s Assistant Law Director Kathy Dudley said hercity has already been acquiring properties to meet the grant deadline and shebelieves they can cull between 20 and 30, which would make up the difference ifMiddletown hasa shortfall.

Usingthe expedited alternative redemption tool isn’t the only way Dudleysaid they are going to meet the Hardest Hit Fund quota.

“Wehave also developed relationships with various banks and others to donateproperty, and then there are some properties, I think we bought one for a$2,000, where the people just don’t want them anymore,” Dudleysaid. “The properties we’re talking about are ones that are just pretty muchthe orphans, vacant, abandoned properties out there that the banks aren’t doinganything with and the people have walked away from.”

CountyAdministrator Charlie Young said the commissioners have been loathe to sidestepthe sheriff sale, but they also don’t want the county to lose out on $2 millionto get rid of blight.

“Wehave been conservative in approaching this because of the concern for propertyrights,” he said. “There is kind of a tension between the desire to be able tomove very quickly, and the desire to protect property rights for individualproperty owners.”

Anumber of factors have contributed to what has now become a race against time. Dudley said the county is three to six months behindother land banks because they were not awarded a grant in the first go-around.After the county commissioners agreed to siphon 1 percent of delinquent tax andassessment collection funds (DTAC) to bolster the land bank, giving it a sourceof income, they were successful in their second application for federal funds.

Adkinssaid Middletownhas been hesitant about acquiring properties up until now, because they didn’twant to be left owning a pack of properties. The expedited process has allayedsome concerns.

“Thecity has been cautious in taking title to all property as City Council hasstated on multiple occasions that the city should not be in the real estatebusiness,” Adkins said. “City Council has amended that policy to allow us toacquire property for this grant.”

Hesaid he has been told the county will not be granted more time by the OhioHousing Finance Agency (OHFA). Dudley said theprocesses attached to this grant are very complicated, and it is unclear whatthe consequences will be if they can’t meet the quota in time. She said theOHEA estimated it takes $25,000 per property to banish blight and maybe theywill just subtract dollars from the award as a sanction for not meeting thedeadline.

“Whatthat sanction would be depends on where they think you are, do you have thismany under title, then we’ll give you money up to this amount and take the restaway,” she said. “They could terminate it totally; but if what you have is 38instead of 40, I don’t think there’s going to be a sanction.”

ProsecutorMike Gmoser said he is “cautiously optimistic” the county will be able to makethe deadline.

With$2.7 million it received in Moving Ohio Forward grants from the state, Butler Countyformed its land bank two years ago to deal with blighted buildings. The citiesof Hamilton and Middletown each gave $1.1 million to the landbank fund as well. Approximately 500 blighted buildings have been torn downthrough the land bank program.