News
News Home
Quick Bites
Exploradio
News Archive
News Channel
Special Features
NPR
nowplaying
On AirNewsClassical
Loading...
  
School Closings
WKSU Support
Funding for WKSU is made possible in part through support from the following businesses and organizations.

Northeast Ohio Medical University

Lehmans


For more information on how your company or organization can support WKSU, download the WKSU Media Kit.

(WKSU Media Kit PDF icon )


Donate Your Vehicle to WKSU

Programs Schedule Make A Pledge Member BenefitsFAQ/HelpContact Us
Economy and Business


Half-billion-dollar Ohio foreclosure fund causes dispute
Should the money to prevent foreclosures be diverted to demolition?
by WKSU's STATEHOUSE BUREAU CHIEF KAREN KASLER


Reporter
Karen Kasler
 
Jim Rokakis set up the Cuyahoga County Land Bank, which became a model for the state.
Download (WKSU Only)
In The Region:
A $570 million fund set up in Ohio to help people facing foreclosure is being eyed by others who’ve been working on the housing crisis. Ohio Public Radio’s Karen Kasler reports on a spat over how best to use that money.
LISTEN: Foreclosure fund lobbying (abbreviated)

Other options:
Windows Media / MP3 Download (1:01)


LISTEN: Foreclosure fund dispute (extended version)

Other options:
Windows Media / MP3 Download (3:21)


In 2009, the federal government set aside $8 billion to help with the foreclosure crisis in 18 troubled states. Ohio’s share of the so-called Hardest Hit Fund was $570 million – the largest award of any Midwestern state and a sign of how bad the crisis has been here.

Bill Faith leads the Coalition on Homelessness and Housing in Ohio, and says the fund has done great work in three years. 

“It helped more than 10,000 homeowners stay in their homes, and only 0.5 percent have lost their homes. I mean, I’ve never seen a program where you only have ... half-a-percent failure rate.”

Demolition gets a share?
Faith acknowledges the fund been slow to get started, so there’s still about $375 million remaining in it. Andhe says that’s allowed advocates on another critical issue in the crisis to set their sights on the pool of money. That other issue  is the demolition of thousands of homes that are some of the very visible casualties of the crisis.

When Jim Rokakis was Cuyahoga County's treasurer, he was one of the first officials to warn of the coming foreclosure crisis. Rokakis is now the vice president of the Western Reserve Land Conservancy, and has been appealing to officials at the state and federal level to make money available for teardowns. 

“The only way you get ahead of this problem is by aggressively moving after these vacant structures. If you don’t, the structures that are not vacant in those neighborhoods will become vacant. That’s not even a ‘maybe’ – that’s a ‘for sure.' Why would you live in a neighborhood where every other house is vacant? You wouldn’t. You’d leave.”

Some money is already targeting demos
Seventy-five million came in from to the state the nationwide settlement with mortgage lenders to help with demolition, but Rokakis says abandoned homes are a billion dollar problem in Ohio. Rokakis is getting support from Republican U.S. Sen. Rob Portman, who’s proposed a bill that would allow money from the Hardest Hit Fund to be put toward demolition, and sets no limit on how much could be taken from it.

That scares Bill Faith, who says with more than 70,000 new foreclosures in Ohio each year, the crisis isn’t over yet. 
“Don’t go rob Peter to pay Paul. Does it really make sense to add to the demolition load by not preventing preventable foreclosures and adding more stock to those that may fall into vacant and abandoned properties?”

Just a share
Rokakis says he’s never asked for all the money in the Hardest Hit Fund, but in a time of government austerity, he says funds for demolition need to be found quickly to slow down the foreclosure crisis that Faith is warning about. 

“If we don’t deal with these distressed properties, there are parts of Cleveland and Dayton and Toledo and Youngstown that will end up looking like Detroit.”

If Sen. Portman’s bill doesn’t move, it may be up to Gov. John Kasich to decide if the money in the Hardest Hit Fund can be diverted from assistance to delinquent homeowners to tearing down abandoned properties -- and if so, how much.

Michigan just ordered $100 million of its fund for demolition. Ohio’s other U.S. senator, Democrat Sherrod brown, has stepped in, asking Kasich to move only as much as a quarter of the remaining Hardest Hit Funds toward demolishing vacant homes.

 

 


Add Your Comment
Name:

Location:

E-mail: (not published, only used to contact you about your comment)


Comments:




 
Page Options

Print this page

E-Mail this page / Send mp3

Share on Facebook




Stories with Recent Comments

Ohio Supreme Court hears arguments on school funding
That's not true. Other school districts HAVE followed this law and done this. Oakhills is one of them and how they were able to provide technology for their s...

Death and beauty at Cleveland's Museum of Contemporary Art
What a disgusting story to air at lunch time.

Ohio Supreme Court grills attorneys on flooding and million-dollar fixes
Perhaps the State of Ohio should take the lead and implement state wide water shed districts that would collect minimum fees. The funds could then be distribute...

More Ohio schools are adding STEM + arts to come up with STEAM
STEM is Science, Technology, Engineering and Math. Not Education! Your first sentence and intro to this article is incorrect. Please correct this inaccuracy....

Body found in Brecksville park identified as Hillary Sharma
When will we learn the cause of death? We live here and if there's foul play, we have a right to know.

FitzGerald isn't giving up, but many Stark voters are worried, wary and weary
SB5 stands for "Snow Ball 5" because voters have about a snow ball's chance of remembering what it was.

Columbus groups are trying to pass a Bill of Rights to combat fracking
Its about time we make a stand against the criminal actions of an entire Indsutry.

Crystal Ball says Ohio governor's race is done
How much is the Kasich campaign paying you to keep repeating the phrase "woman who is not his wife"? Fitzgerald was in the car with a friend who happens to be f...

Plane that crashed killing Case students is a popular training aircraft
The following is incorrect. The last few words should read "UNDER maximum gross take-off weight." “They have a normal take-off speed and all those take-off...

Exploradio: The never-ending war against superbugs
Super Federico ,we are so proud of you ,and very lucky to be among your friends . Keep it up human kind needs people like you to survive .Thanks for being so d...

Copyright © 2014 WKSU Public Radio, All Rights Reserved.

 
In Partnership With:

NPR PRI Kent State University

listen in windows media format listen in realplayer format Car Talk Hosts: Tom & Ray Magliozzi Fresh Air Host: Terry Gross A Service of Kent State University 89.7 WKSU | NPR.Classical.Other smart stuff. NPR Senior Correspondent: Noah Adams Living on Earth Host: Steve Curwood 89.7 WKSU | NPR.Classical.Other smart stuff. A Service of Kent State University