Richland CountyLand Reutilization Corporation

Why do Counties need a Land Bank?

This is your house!

This is your next door neighbor,

or this is just down the road,

or.. the next street over!

How much does blighted properties hurt home’s value ?

“Vacant lots left in the wake of housing abandonment and

demolition often have significant and adverse effects on a

neighborhood’s quality of life, attracting refuse and vandals…

Our findings indicate that adjacency to a neglected Vacant lot subtracts 20% of value from a

home”

Academic research conducted by Wharton School of Business at the University of Pennsylvania

DeWine, in a telephone interview (By Henry J. Gomez, Northeast Ohio Media Group, The Plain Dealer on October 10, 2013 at 2:00 PM) said “demolitions were a top priority because they help improve property values by clearing foreclosure-ravaged neighborhoods of blight”. When DeWine won nearly $94 million from a national mortgage settlement national mortgage settlement, he saved the largest chunk to demolish vacant homes.

Attorney General Mike DeWine

Foreclosures result in distressed sales that further depress property values and continue the downward spiral, too often resulting in Vacant and Blighted homes.

Demolition funding is available to counties that have

established Land Banks.

Taking Back OUR Vacant Properties

Historically speaking, Land Banking is

relatively new concept.

It first emerged in the 1960s as an urban planning tool. Over the past two decades, land banking has become an increasingly important tool for cities challenged by vacant and abandoned properties.

• In August 2011, the nation's banks, along with Fannie Mae and Freddie Mac, had an inventory of more than 816,000 foreclosed properties on their books, all waiting for buyers.

• An additional 800,000 properties were in the midst of the foreclosure process

Banking Crisis

The goal of Land Banks is to stabilize property values by removing and greening Vacant and Blighted properties in an effort to prevent future foreclosures for existing homeowners.

In Ohio, 31% of homeowners with loans owe at least 125% more than their estimated home value.

When negative equity combines with other factors such as loss of income, the risk of foreclosure is high because homeowners do not have the option to sell a home they can no longer afford.

• In Ohio, a new form of land banks has been established as a strategic response to our urban vacancy crisis.

• Ohio General Assembly authorized the creation of this new form of land bank in 2008.

A New Type of Land Bank

What Makes Todays Land Banks Different?

COLLABORATION

GovernmentalEntities

LocalNonprofits

ConcernedCitizens

CommunityGroups

Working together we are making a difference.

Vacant and abandoned properties will, in the short run, cease to be a nuisance and, in the long run, will become productive parcels once again.

Example of Collaboration – Main Street

Previously Across the Street from The Ritter Building

Currently Across the Street from The Ritter Building Richl

and

Count

y

Demoliti

ons

Private InvestorRehabilitation

Each municipality in the County is a

partner regarding

decisions about the future of properties within its borders.

By Statute:• County Treasurer• 2 County

Commissioners• Representative of

Largest City• Representative of

Largest Township

Land Bank Board of Directors

County Land Reutilization Corporation is a separate non-profit, government-purposed

entity tasked to:

• Apply for additional Land Bank grant monies• Strategically acquire blighted properties• Return blighted properties to productive use through• sale to private owners• demolition• preparation for traditional economic development• creative reuse such as gardening, green space, storm water

management

• Increase property values through these efforts• Support community goals• Improve the quality of life for Richland County's

residents.

Land Bank Funding

• Primary funding comes from the accumulation of penalties and interest on collected delinquent real estate taxes and assessments.

• Grants

• Sale of acquired properties to qualified property owners

• Donations

• Recoupment of funds from various banks

A Government tasked Non-Profit organization whose mission is to strategically acquire

properties, return them to productive use, reduce blight, increase property values,

support community goals and improve the quality of life for county residents.

How does a land bank work?

Acquisition Disposition

CountyLand Reutilization

Corporation

Why does the property need to pass through the County Land Bank?

• To clear the title of past due taxes and liens.

• To clear properties of vacant, abandoned, and unsafe structures.

• To clear properties of debris and prepare lots for future ownership.

• To reduce “flipping” of low value properties.• To create an affordable side lot program.• To make these properties affordable for the

average person.

NO CLEAR TITLENO WAY TO PURCHASE PROPERTY

NO SALENO BODY TO MAINTAIN PROPERTY

NO PROPERTY TAXES PAID

County Land Reutilization Corporation will acquire vacant and abandoned foreclosed properties from:

• tax foreclosure• banks• government sponsored enterprises such as Fannie Mae• federal and state agencies, such as HUD• donated properties• gifts

ACQUISITION

• Demolition of all structures• Garbage, debris, and

tires removed and deposed of according to EPA regulations• Lot leveled and graded• Slow growing grass

seed is planted, straw is placed on top of seed

* Only the trees that need to be removed in order for the demolition contractor to safely demolish structures will be removed.

Greening ProcessWhat happens after a structure has been demolished.

• Homeowners with vacant, abandoned, and tax-delinquent properties adjacent on either side or to the rear of their owner occupied home have the option to purchase the property.

• Property owners with vacant, abandoned, and tax-delinquent properties adjacent on either side or rear of business or rental properties have the option to purchase the property.

• Note prices will be set by the Board of Directors at a later date.

Side Lot Program

Giving property owners the opportunity to expand the their yard.

Room for a garage, a garden, for children’s play area, fence in for dog, or just to have additional green space. The uses are endless.

Giving businesses the opportunity to expand or to add additional parking.

Local non-profit organizations the opportunity to develop community gardens.

Opportunity for Redevelopment

THE PERFECT OPPORTUNITY….

for Land Banks to work with Habitat

Rehabilitation• Richland County has

opted to donate properties to Habitat for rehabilitation or for new built for owner occupant housing

Deconstruction• Richland County is

working with Habitat to deconstruct housing materials for resale in their Restore.

The Result……

Better maintained neighborhoods.

Higher Property Values

Richland County… Repairing communities, properties, and neighborhoods that time has neglected.

“It is the neglect of timely repair that makes rebuilding necessary".Richard Whately (Feb. 1, 1787, London Eng.— Oct. 8, 1863, Dublin, Ire.), Anglican archbishop of Dublin and Educator