1. Housing Policy Meeting #2
Global Topic 1
Tax Delinquent Property
Thursday, June 14, 2018

2. Global Issue 1: Tax Delinquent Property 1,276 Parcels
Property Taxes Due
374 accounts with water balances 60+ days
for $49,800.
137 accounts with delinquent income taxes
for $67,000.
304 accounts filed no income tax return for the past 2 years for $392,595 (median income
of $36,898).
Do We Tie Tax Delinquency to Other Variables? (age/size, etc.)
If They Are Tax Delinquent and Have Property Maintenance Issues, What is the Answer?
Housing Policy Meeting

3. Global Issue 1: Tax Delinquent Property Distribution of $6,189,484:
1,276 Parcels
$6,189,484* Delinquent
Property Taxes Due
Distribution of $6,189,484:
City: $590,477
School District: $4,572,172
County: $744,595
Others: $282,240
It’s Not Just the City That Suffers From
Delinquent Taxes.
*Opportunity Costs?
Housing Policy Meeting

4. Auditor’s Office initiates tax foreclosure on tax delinquent property.
Typical Pathway:
Auditor’s Office initiates tax foreclosure on tax delinquent property.
The property owner has a short period of time to redeem the property and stop the foreclosure.
If no redemption, then the property is foreclosed and deed is given to the Butler County Land Reutilization Corporation (BC Land Bank).
Taking the property through foreclosure and deeding to the land bank removes all delinquent taxes owed on the property, removes all liens on the property (mortgages, etc., except federal liens) and cleans the title for resale.
Once the land bank has removed all liens and has clear title, the property is donated to the City for rehabilitation or demolition as appropriate.
Housing Policy Meeting
Housing Policy Meeting

5. Columbus Area
Land Bank Impact
Housing Policy Meeting

6. Cleveland Area Land Bank Impact Housing Policy Meeting
Cuyahoga Land Bank acquires 4000th property; demolishes 2,500th property and renovates 860th property
May 22, 2014
Since opening its doors in 2009, the Cuyahoga Land Bank has acquired 4,000 properties. The Cuyahoga Land Bank acquires distressed properties from a variety of sources, including banks, government sponsored enterprises such as Fannie Mae, federal and state agencies, such as HUD, as well as real estate lost to tax foreclosure and donated properties. Houses acquired by the Cuyahoga Land Bank are either renovated or demolished.
Once slated for demolition, the Cuyahoga Land Bank acts swiftly to remove the nuisance property in order to speed the recovery and stability of the community in which that property is located. This week, The Cuyahoga Land Bank successfully completed its 2,500th demolition since starting operations in 2009.
The Cuyahoga Land Bank offers a variety of renovation programs, including the Owner Occupant Buyer Advantage Program (OOBA), the Advantage Plus Loan Program (Advantage Plus) and the HomeFront Veterans Home Ownership Program, which all target owner occupants, as well as the Deed-in-Escrow Program.
As of this month, 860 homes acquired by the Cuyahoga Land Bank from tax foreclosure, HUD and Fannie Mae have been renovated by private owners, using private dollars. These owners purchased the homes on strict conditions that the homes would be renovated in compliance with the Cuyahoga Land Bank’s Housing Quality Standards and Specifications, housing codes and applicable point of sale requirements. Nearly 40% of these sales are to owner-occupants.
Cleveland Area
Land Bank Impact
Housing Policy Meeting

7. Where possible, work from Least Intrusive to Most Intrusive
Planning Model
Where possible, work from
Least Intrusive to Most Intrusive
Vacant Property
Out of Town Landlords when Property Vacant
Local Landlords when Property Vacant
Homeowners
City can request Tax Foreclosure
Housing Policy Meeting

8. Look at Other Global Decisions
Planning Model
Look at Other Global Decisions
For Guidance
Size/Amenities and Housing Stock Balance
Industrial Buffer
Code Enforcement/ Nuisance Issues
High Crime Properties
Homeowners/Rentals
City can request Tax Foreclosure
Housing Policy Meeting

9. What are the Post Foreclosure Options?
Planning Model
What are the Post Foreclosure Options?
Rehabilitation and Sale to Homeowner
Resale to Qualified Owner as a Pass Through
Demolition for Green Space, Industrial or Infill Home
Demolition to Consolidate Lots for New Use or New Housing Density
City can request Tax Foreclosure
Housing Policy Meeting

10. City can request Tax Foreclosure
Do We Initiate Tax Foreclose in an Organized Sustainable Fashion?
By Neighborhood
Consistent with Planning Model
Consistent with Global Recommendations
If We are Unwilling to Initiate Tax Foreclosure Through the Land Bank, What is the Alternative to Dealing with These Properties?
City can request Tax Foreclosure
Housing Policy Meeting

11. Sample Policy
As Part of Overall Housing Goals, the City of Middletown Will Initiate Tax Foreclose in an Organized Sustainable Fashion.
Requests for Tax Foreclosure Shall be Completed from Least Intrusive to Most Intrusive Impact, Organized by Neighborhood, and Will be
Consistent with the Overall Housing Policy and Other Global Recommendations. Property received by the City from the Butler County Land Bank through Tax Foreclosure shall be Placed Back into Productive Use Consistent with Other Portions of This Policy Regarding Vacant Housing and Vacant Land.
Housing Policy Meeting

12. Global Issue 11: Unintended Consequences What are the Unintended
What Plans Should We Put in Place for Residents Displaced by Tax Foreclosure?
Owners
Renters
What is our City Obligation (actual or moral) to Assist?
What are the Unintended
Consequences of our Global
Plan and What Tools Are Available
To Help?
Housing Policy Meeting