Contractors Will Be Able Place Liens, Improve and Foreclose on 163 Brick Properties

Legislation Update
August 25, 2016

Brick officials are moving forward with a plan to allow contractors to place liens and foreclose on 163 abandoned properties in the township after they demolish or improve them.

The action by the township council this week to formally adopt and publish a list of abandoned homes is the latest step in a years-long battle against abandoned homes that have plagued neighborhoods and led to complaints from adjacent
residents. The actions against abandoned homeowners – most of which are properties already in foreclosure or bank-owned – is allowed under a state law passed in 2014.

Mayor John Ducey said this week that Brick will be only the second town in New Jersey to move ahead and publish an abandoned home list publicly. Property owners will then have 60 days to make improvements, or the township will take action similar to a tax sale, where liens will be sold on the properties. The liens can be purchased by licensed contractors, who can then improve or demolish the properties and foreclose on them in an accelerated fashion.

The list the 163 properties has not yet been published. Shorebeat will publish the entire list when it is formally released.

“The average time to do a foreclosure in New Jersey is three years, but this lessens it to six months,” said Ducey.

In order for a home to be declared legally abandoned, it cannot have been occupied for at least six months, and must fill one of four additional parameters. The home must be in disrepair, construction must have stopped for more than six months, property taxes are delinquent or the property has been declared a nuisance by the township’s code official.

“We really do need to some teeth put into these abandoned properties,” said George Scott, a member of the township’s property maintenance board who, himself, has been dealing with a dangerous abandoned home on his street for years. “This is a big problem in Brick. We send out Code Enforcement, they do a good job, but then getting the money is the difficult part.”

In a traditional tax lien sale, an investor may purchase a homeowner’s delinquent tax debt. If the debt isn’t paid after two years, the investor may foreclose on the property. But under the abandonment law, contractors who buy code enforcement liens may begin foreclosure proceedings virtually immediately, said Township Attorney Kevin Starkey.

“They can immediately go to court and foreclose, and they can immediately go on the property to secure the property and undertake efforts to maintain it,” Starkey said.

Ducey said this week that when Brick officials first began compiling the abandoned homes list, there were 292 properties on it. Now, it is down to the 163 figure.

Source: Brick Shorebeat

Additional Resources:
Brick Township, NJ (Abandoned Property List Resolution [pdf])

State of New Jersey (Abandoned Properties Rehabilitation Act [pdf])

Housing and Community Development Network of New Jersey (Procedures for Creating and Maintaining an Abandoned Property List)

CFPB Adds Another Layer to Controversial Complaint Database

Industry Update
August 1, 2016

Seeks comment by Sept. 30

The Consumer Financial Protection Bureau’s complaint database could get another adjustment, as the bureau seeks comments on a proposed addition to the current complaint intake form.
 
According to an article by Tristram Wolf in the CFPB Monitor, the CFPB filed a request for information in Monday’s federal register.

“The purpose of this information collection is to incorporate a short survey into the complaint closing process. Consumers will have the option to provide feedback on the company’s response to and handling of their complaint via all channels including online, phone, fax, and mail,” the filing stated.
 
“The results of this feedback will be shared with the company that responded to the complaint to inform its complaint handling. The feedback will also be used to inform CFPB’s work to supervise companies, enforce Federal consumer financial laws, write better rules and regulations and monitor the market for consumer financial products and services.”
 
The bureau noted that it will evaluate the data collected from consumer feedback before publication on the Consumer Complaint Database. And it will only publish those feedback narratives for which opt-in consumer consent is obtained, and to which robust personal information scrubbing standard methodology is applied.
 
As the CFPB Monitor describes the change, “The proposed feedback field would replace the existing ‘dispute’ function that currently allows consumers to indicate their dissatisfaction with a company’s response. Instead, consumers will have the option to score the company’s response from 1 to 5 and to provide a narrative description of the rationale for the number they selected.”
 
The bureau first proposed the consumer complaint database a little more than two years ago.
 
Under that proposal, when consumers submitted a complaint to the CFPB, they then had the option to share their account of what happened in the CFPB’s public-facing Consumer Complaint Database.
 
But the industry did not welcome the idea, with the bureau receiving numerous objections from the mortgage finance industry that publishing unvetted, anonymous complaints on a government website could be problematic. The bureau, however, decided the move ahead with its plan. 
 
In its latest change to the database, the bureau said it is seeking comment on the following:

  • Whether the collection of information is necessary for the proper performance of the functions of the Bureau, including whether the information will have practical utility
  • The accuracy of the Bureau’s estimate of the burden of the collection of information, including the validity of the methods and the assumptions used
  • Ways to enhance the quality, utility and clarity of the information to be collected; and
  • Ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology.

Written comments must be received on or before Sept. 30, 2016 to be assured of consideration.
 
This isn’t the only issue up for discussion on the complaint database.
 
Rep. Matt Salmon, R-AZ, recently introduced a bill, entitled the CFPB Data Accountability Act, into the House of Representatives in June, saying that the CFPB’s database, in its current format, is confusing to consumers and is not as usable as it could be.
 
“My bill would improve the current database by requiring the CFPB to verify the facts of each complaint and present this information in an aggregated format so that consumers have better access to CFPB-collected data and can make better decisions about their financial futures,” Salmon said.
 
Salmon’s bill is currently set for review by the House Financial Services Committee. If it passes out of committee, it will proceed to the full House for review.

 Source: CFPB Monitor

Source: HousingWire

Bills Proposed to Protect Reverse-Mortgage Borrowers

Legislation Update
August 29, 2016

New York lawmakers are working to increase the protections put in place for reverse-mortgage borrowers in the foreclosure process, according to a recent report from the New York Post.

The report states that Assemblywoman Helene Weinstein (D-Brooklyn) and Senator Jeff Klein (D-Bronx/Westchester) have introduced bills whose purpose is to provide reverse-mortgage holders with the same protections as first-mortgage borrowers during a foreclosure.

“We need to extend the consumer protections that exist for homeowners facing foreclosure to this most vulnerable population,” Weinstein said in the report. “Sometimes they are getting foreclosed upon over small amounts … losing their home … the major asset they’ve worked all their lives for, because the law doesn’t protect them, and obviously lenders are taking advantage of them.”

In these bills, there are two key changes according to the report. The first of these changes is the requirement for a written notification, including a notice with contact information for free nonprofit foreclosure-prevention assistance, to the borrower 90 days before the lender files a foreclosure case. The second of the changes is to mandate a settlement conference for both the borrower and the lender in order to try to work out a deal under an appointed judge or court-appointed mediator.

The report also states that Weinstein doesn’t expect this particular legislature to be back in session before the end of the year, but she does say that she plans to push for the law as well as “plug the hole” when it does come to session next year.

Additionally, the report also states that in the last legislative session, Weinstein tried to include some new protections for reverse-mortgage holders as part of a package of foreclosure-related bills. This was reportedly halted though by other issues that took priority. The report states that this included fines of up to $25,000 for lenders who fail to negotiate in good faith at settlement conferences. The report states that those sanctions take effect in this December.

Source: DS News

Additional Resources:
New York Post (Lawmakers eye protections for reverse mortgage borrowers)

The New York Senate (S8177 full text)

New York State Assembly (A10745 full text)

Servicers Must Get Current on Flood Insurance Requirements

Industry Update
July 1, 2016

To ensure that homes are accurately insured against floods, and to avoid failed audits in the flood industry by regulators, mortgage servicers must either establish internal measures to make knowledge of the Minimum Flood Insurance Requirements a priority, or engage with a third-party, specialty insurance provider.

A better understanding of MFIR increases accuracy in servicers’ work and helps maintain compliance. With the proper education around MFIR, servicing organizations ensure accurate coverage on loans within their portfolios while avoiding regulatory scrutiny and major financial losses for their clients.

Recent expansion of the allowable limits under the National Flood Insurance Program has drastically impacted the flood insurance industry. For instance, the Biggert-Waters Act of 2012 increased the civil monetary penalties from $385 to $2,000 per violation, as well as removed the annual cap on the amount of CMPs that can be assessed against a financial institution. Unfortunately, many servicers are unaware of these changes and are literally paying the price for it.

Examples of this exist specifically within the flood insurance industry, where there has been a recent surge of inaccurately insured homes and failed audits. In one case, reported by Insurance Journal, a bank was charged with paying $31 million to settle a class-action lawsuit that claimed mortgage borrowers had been forced to maintain excessive flood insurance coverage. In order to prevent cases like this and ensure properly processed flood insurance claims, servicers in this industry need to gain a better understanding of MFIR analysis.

The biggest mistake that a better understanding of MFIR can prevent is using incorrect property values when processing claims on flood insurance. For instance, there is a significant difference between replacement cost value and actual cost value. RCV is used if the property is owner-occupied, and results in the insurance company paying the exact amount of money it costs to replace the structure. Alternatively, ACV is used if the property is tenant-occupied, and is calculated by subtracting depreciation from the purchase price.

Understanding the difference in these values is imperative in determining what is the appropriate amount of flood insurance coverage to place on a property, since the way to determine appropriate coverage results in using the lesser of three values; either the ACV or RCV, the unpaid balance of the loan or NFIP limits. If servicers are not aware of these values, or of the fact that the coverage requirements allow for the lowest of the three, they may be over spending on insurance or not in compliance.

In addition to using incorrect values, a lack of resources and education contribute to compliance errors when validating coverage amounts. Not only is an advanced knowledge of MFIR important for all servicers entering the flood industry, but there must be a system of continual education within the servicing organization to ensure that all employees are current on the latest industry rules and regulations.

Understanding these regulatory compliance issues should be a specific focus as flood insurance coverage is not usually a core competency of servicers. It is also imperative to provide servicers with the right resources to handle the process. Whether someone is hired to monitor the compliance and effectiveness of internal determinations or to track changing regulations in order to prevent regulatory scrutiny, servicers must be equipped with the proper knowledge and assistance.

However, sometimes servicers lack the resources to manage the nuances of MFIR internally. If that is the case, they should consider outsourcing compliance to a third-party, specialty insurance provider who is able to focus on understanding MFIR.

The correct specialty insurance provider will employ staff with extensive MFIR knowledge, and can customize a program specific to the bank or servicer, regardless of size and volume. The provider’s top concern is compliance in order to protect both the servicer and the borrower. By taking compliance seriously and following these steps, servicers will reduce their errors, as well as their potential liability, brought on by thorough regulatory examinations.

Collin Harbour is the vice president of business development at DIMONT, a specialty insurance and loan administration service provider.

Source: National Mortgage News

Pitcairn Council Approves Borough Joining Land Bank

Land Bank Update
July 12, 2016

Pitcairn Council voted Monday to join a land bank that will work to rehabilitate blighted properties.

The multi-municipality land bank is part of the Steel Valley, Twin Rivers and Turtle Creek Valley councils of governments.

The borough will have to pay about $2,800 to buy into the land bank. After the buy-in, the land bank will take care of paying any liens on property, getting it up to code and reselling it.

Council President Jack Bova said joining the land bank will require little involvement on the borough’s end.

“We want to support the COG and their efforts to get properties renovated,” Bova said.

The borough has been working to clean up blighted properties in the area this year. This could provide an additional resource for that effort.

Liz Kozub, special projects coordinator for the Turtle Creek Valley Council of Government, said five school districts, including Gateway School District, and 19 municipalities have joined the land bank.

“Essentially we have all the legislative bodies that we need to really get this thing formed,” Kozub said. “We’re very excited about that.”

Kozub said Allegheny County recently approved its ordinance allowing the land bank.

The next step will be to form a land bank board along with municipal and school district advisory committees that will make recommendations to the board.

The borough has the opportunity to leave the land bank after one year. If it opts to stay in, it will pay the buy-in fee each year.

Source: Trib Live

Petrarca Measure to Help Land Banks Rehabilitate Blighted Properties Passes

Legislation Update
July 13, 2016

HARRISBURG, July 13 – As the Pennsylvania House of Representatives cast the final vote on the tax code bill, positioning it to become law, so too did the House vote on exempting land banks from the state realty transfer tax.

House Bill 1198, which passed today, contains Rep. Joseph Petrarca’s proposal to exempt from the state portion of the realty transfer tax all real estate transactions involving a land bank.

Land banks are entities that focus on converting vacant, abandoned, tax-delinquent and foreclosed properties into productive use. When the law was passed in 2012, Petrarca said the intent was to exempt land banks from all state and local taxes, including the realty transfer tax. However, the Revenue Department continues to assess the tax on land banks for certain transactions.

“We want to encourage redevelopment of blighted properties in our communities, not hinder it, which is what the assessment of the realty transfer tax does. My legislation was designed to correct that oversight, and I am pleased this proposal to eliminate collection of the state realty transfer tax has received support in the General Assembly,” said Petrarca, D-Westmoreland/Armstrong/Indiana.

“Today’s action is progress for community land banks, but I will continue to work to address the elimination of the local realty transfer tax, as well.”

Petrarca said that land banks do good work in communities. For example, in his district, the Westmoreland County Land Bank actively pursues opportunities to return blighted properties to the tax rolls, with both commercial and housing developments. In fact, it became the first land bank in the commonwealth to sell a formerly vacant and blighted property to a new owner.

Recently, the Westmoreland County Land Bank acquired seven properties from a family estate and it plans to market the parcels as a multi-family housing complex for moderate income families in Latrobe.

With House and Senate approval, the bill now goes to the governor where it is expected to become law.

Source: Office of Representative Joseph Petrarca

Additional Resource:
HB 1198 (full text)

Land Banking Legislation Introduced in New Jersey

Legislation Update
July 5, 2016

c.     At present, many vacant, abandoned and other problem properties, rather than being productively reused, remain vacant despite frequent changes in ownership, and continue to have a blighting effect on their surroundings;
d.    The State’s municipalities can benefit from more effective tools to control the inventory of vacant, abandoned, and other problem properties, in order to both minimize the harm that they do in their present condition and to facilitate their restoration to productive use;
e.     In order to most effectively engage the local community in identifying problem properties, the State’s municipalities can also benefit from the publication of interactive online mapping databases of vacant and abandoned properties;
f.     To ensure that land banking activities are conducted in an honest and open manner, the public can also benefit from the inclusion of properties subject to land banking agreements within the interactive online mapping databases regardless of whether or not such properties are vacant and abandoned; and
g.    It is, therefore, in the best interest of this State to allow municipalities to designate single entities to act on their behalf to acquire, maintain, and sell, lease and otherwise dispose of vacant, abandoned and problem properties, in order to carry out strategies to ensure that the reuse of these properties provides the greatest long-term benefit to the physical, social and economic condition of the municipality.

Source: New Jersey Legislature ( S2373 full text)

Irondequoit Must Turn Over “Zombie” Home Records, Judge Rules

Legislation Update
July 22, 2016

A judge has ruled that Irondequoit wrongly withheld records about the town’s vacant homes from the Democrat and Chronicle, which had filed a Freedom of Information Law request for the records.

The town had claimed that release of the records could endanger public safety because it could make criminal activity more likely at the vacant homes, often called “zombie homes.” However, state Supreme Court Justice Ann Marie Taddeo found that argument lacked specificity and ran afoul of the state’s public access laws.

” … An argument can be made that that public awareness of ‘zombie’ properties will only increase neighbors’ attentiveness and, perhaps, may result in a decrease of criminal activity,” Taddeo wrote in a decision released Friday.

Also, the judge ruled, the town cannot try to claim that a release of the records would be a violation of privacy because “disclosure of records relating to issues of real property shall not be deemed an unwarranted invasion of public privacy.”

Taddeo wrote that most of the information about the vacant properties would already be accessible online now.

Taddeo ordered that the town make the records available within 30 days. She declined to order the town to pay legal fees for the Democrat and Chronicle.

Town officials declined to comment Friday.

“We are pleased that the court recognized the purpose and intent of the law, especially here, given the public nature of property records and the frequently obvious nature of vacant property,” said Sarah Snyder Merkel of the Wolford Law Firm, who represented the Democrat and Chronicle in the lawsuit.

The original FOIL request was made by Democrat and Chronicle staff writer Meaghan M. McDermott, and was supported by comments from Bob Freeman, executive director of New York state’s Committee on Open Government.

Source: Democrat & Chronicle

Connecticut a Gentler Place to be Evicted

Legislation Update
July 8, 2016

NORWALK — The foremost concern of someone facing an eviction is where they’ll live next. Second on that list: the fate of their belongings.

In the throes of an eviction, a struggling tenant may have few places to go and fewer options for removing and storing a lifetime’s worth of personal effects.

Connecticut, however, has one of the nation’s most protective laws regarding possessions abandoned after an eviction: it’s the only state that requires municipalities to store a tenant’s property when they’re forced out of their home.

Norwalk had 54 evictions in fiscal year 2013-2014, 57 evictions in fiscal year 2014-2015 and 63 evictions in fiscal year 2015-2016. And although the current year just started July 1, the city has already been responsible for moving and storing the possessions of at least one Norwalk family.

Many states give landlords the right to sell or discard possessions after a certain amount of time. But here — where landlords have no role in storage — advocates hail third-party warehousing as a rare protection for tenants.

“Protecting the goods of tenants after an eviction and giving them the opportunity to get them back has long been a requirement of municipalities,” said Raphael Podolsky, a staff attorney with the Legal Assistance Resource Center in Hartford.

“For low-income people who don’t have resources — who don’t have a car or place to move — the fact that the municipality holds the property is an important way for them to get it back,” he said, adding that there’s little incentive for landlords to try and reunite evicted tenants with their belongings.

A few states have laws similar to Connecticut’s. In Idaho, the county sheriff’s office is responsible for moving and storing belongings, which if unclaimed can be sold to reimburse the landlord. In North Carolina, an officer removes and stores property at the landlord’s expense. In Massachusetts, a constable removes possessions and brings them to a public storage warehouse, where they will be auctioned after six months.

A financial burden

Although advocates say it’s a valuable service, Connecticut municipalities have fought for years to free themselves from what they see as a costly and burdensome directive to provide evictions storage.

“The towns say this is an unfunded state mandate,” Podolsky said.

In a 2009 testimony to the General Assembly, the Connecticut Conference of Municipalities stated, “There is no justifiable reason for towns and cities to be involved in a landlord-tenant issue. Since the state doesn’t have to foot the bill, it has been content to burden communities with the mandate. It’s the kind of mandate that leaves municipal officials flummoxed.”

Tom Closter, director of environmental services at the Norwalk Department of Health, oversees evictions storage and the city’s role in the process. He said the city becomes involved at the end of an eviction, once the case has already gone through housing court. The city works with people afterward to try and get them their things.

In Norwalk, if a tenant can’t take their things, they end up in a storage facility in Stamford, Fitts Moving and Storage located at 415 Fairfield Ave. If unclaimed after 15 days, state law requires cities to conduct an auction, with proceeds covering storage costs. Revenue above that can be claimed by the tenant within 30 days, though Closter said the revenue from an auction rarely covers even a significant portion of the storage fees.

“We’re only required by law to store their things for 15 days,” Closter said. “But we work with people. Our contract with Fitts is that we’ll store items for 30 days and we usually will store things for a few months. If someone calls and says they need more time we try to accomadate that. Obviously we can’t pay to store their stuff forever, but we do our best to help people.”

Closter said the city usually budgets about $50,000 per year to cover the costs of transportation, monthly storage, a storage removal fee, the dumping fee to the city for whatever isn’t sold at auction and auction fees. In the fiscal year 2015-2016 which just ended, the city spent $54,000 on evictions.

Some years the city spends less, sometimes it spends more. When the recession hit in 2008, evictions cost the city $61,000 in fiscal year 2008-2009, and almost $77,000 the next year.

Dire cases

Only 10 to 15 percent of eviction proceedings — usually the most dire cases — result in the removal of the tenant at the end of the process, Podolsky said.

A 2006 survey conducted by Podolsky’s organization showed that 20 percent of people across the state were able to reclaim their possessions from cities for a fee after an eviction. In Norwalk, the city charges $5 per day storage fee to reclaim belongings, which helps offset some of the cost to the city.

The remaining property is put up for auction, though some cities have argued the property is not worth the money to store or try to sell.

“There are kids’ bicycles. There are lamps, furniture,” Podolsky said. “It really does demonstrate that what is removed is not all junk.”

Podolsky notes that municipal sales are not designed to maximize profit. Any proceeds beyond the city’s cost of storage — in Norwalk it ranges from $100 to $500 depending on the amount stored and the length of time — can be claimed by the owner within 30 days. Podolsky said cities can do a better job of generating profit for tenants.

“You may get $100 or less on belongings worth $5,000,” he said.

Legislature

An eviction can happen to people of all ages and socioeconomic backgrounds, who live in apartments, affordable housing and homes in foreclosure.

“There could be any variety of reasons someone gets evicted,” Closter said. “It can happen to anyone.”

State Rep. Patricia Billie Miller, D-Stamford, said tenants here need protection because, in addition to not paying rent, residents can be evicted if for any reason a landlord decides not to renew a lease.

“One of the worst things in the world is to be evicted,” Miller said. “Sometimes tenants are evicted for matters that aren’t even in their control.”

Connecticut municipalities first became responsible for evictions storage in 1895, with the goal of protecting a tenant’s belongings and preventing confrontations between tenant and landlord.

If municipalities had their way, advocates say, they would have no part in landlord-tenant issues.

“They’ve always wanted to not have this responsibility at all,” Podolsky said. “We’ve fought hard to maintain the towns as a protective entity for the renters.”

Cities achieved their most significant victory to date in 1997 when they were removed entirely from the process of commercial evictions.

They won a smaller battle in 2010, when the General Assembly passed a change to the law no longer requiring cities to transport a person’s possessions from their home to storage. State marshals help to transport property — a cost that landlords can try to recoup later on from tenants.

In 2013, the legislature rejected a move that would have altogether eliminated the municipal role in evictions.

“I understand from the town’s point of view that every dollar is a dollar,” Podolsky said. “But we think this is an important function for municipalities. It’s really a very tiny piece of any municipality’s budget.”

In CCM’s 2009 testimony, municipalities reported paying $17,000 to $70,000 to store and transport items belonging to evicted residents.

Court proceedings

The eviction process always begins with a notice to quit, a legal document notifying a tenant they may soon have to leave.

Ellen Bromley, Stamford’s social services coordinator, said even though the notice to quit gives tenants a time frame to move, tenants should know that they do not have to leave right away, and that by staying they trigger court proceedings that can buy them more time.

“The notice to quit can be a scary document, because it basically says to the tenant you no longer have a lease,” she said. “It basically announces the beginning of a lawsuit.”

“We often get calls from people who have gotten a notice to quit and they’re panicked,” Bromley said. In which case she tells them, “No tenant in the state of Connecticut has ever had to move before a judge says you’re evicted. It doesn’t matter if you have a written lease, an oral lease, or if you live with your brother-in-law and he says you have to move.”

Cowan said the city provides resources for tenants who find themselves facing eviction. Often the city will refer them to a shelter or another outside agency.

“I always wish I could catch people before they get to the court stage,” she said. “If you receive a notice, try to talk to the owner or manager. Try to get some more clarity to see if there’s a way to work it out. It doesn’t go away if you don’t show up for court. The process just continues without you.”

Source: The Hour

Additional Resource:
Public Act No. 10-171 (full text)

Community Provides Mixed Input on Greene County Land Bank

Land Bank Update
July 12, 2016

XENIA — Community members provided mixed input to county officials Tuesday at sessions about the possible establishment of a land bank for Greene County.

While some praised the idea, which county officials have previously classified as a way to address blighted properties in Greene County, others criticized the plan, classifying it as “more bureaucracy.”

The land bank would act as a “pass through” entity that could acquire properties that were at least two years tax delinquent, clear them of those back taxes and turn the property over to a previously identified end user, according to Greene County Administrator Brandon Huddleson.

“We have a lot of properties within the county that the free market has not been able to rectify,” he said in a previous interview with this newspaper. “We have properties that are tax delinquent, and the amount of taxes due on the property doesn’t make it feasible for a developer to acquire the property, pay the back taxes, renovate or demolish and rebuild on the property.”

Xenia City Planner Brian Forschner spoke in favor of the idea Tuesday on behalf of city staff, saying that the land bank would cost “very little” and could result in a financial gain to local communities in the long term by reducing tax delinquency and increasing property values.

“The current system is simply not working,” he said. “No private party wants these properties due to back taxes and clouded titles. Many of their owners cannot even be reached. These properties will continue to sit and be a drain on resources for all levels of government, as well as the value and quality of life for surrounding neighborhoods, if we continue on our current path.”

Fairborn city representative Missy Frost also praised the idea, saying that the process would create redevelopment opportunities, “which ultimately will lead to a strong Greene County for all residents,” she said.

Some who spoke at the meeting, including Greene County resident Christ Georgakas, classified the land bank as “another level of bureaucracy.”

“They say, ‘Well, it’s not going to cost. It’s going to save money,’” he said. “I can’t remember any government program that was going to save money. That’s ridiculous.”

Xenia resident and real estate investor Diana Steen, opposed the idea, calling land banks a “political remedy to a problem and set of conditions caused by prior political decisions.”

Yellow Springs resident Marlene Johnson joined the voices in opposition: “The housing bubble is over, building is at a peak right now in the county and the prices are stabilizing, if not going up,” she said. “This problem is no longer in existence.”

Under draft legislation for the corporation, a project committee, made up of the county commissioners, the county treasurer, as well as representatives from the cities of Beavercreek, Fairborn and Xenia, in addition to one township representative and one representative from the balance of the political subdivisions in the county, would have the full authority to take action on the projects brought to the land bank.

Draft legislation for the corporation limits the number of properties the land bank could own to six per municipality and 20 on the aggregate.

The draft legislation for the corporation also contains a sunset provision, which would terminate the land bank after five years unless the Greene County Board of Commissioners voted to extend its life.

Source: Fairborn Daily Herald