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Ohio to dedicate $75M for demolishing abandoned homes

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By Laura A. Bischoff, Columbus Bureau 12:14 AM Friday, February 10, 2012

COLUMBUS — Ohio cities and nonprofits will soon have a $75 million pot of money to knock down blighted and abandoned properties that often drag down housing values and become neighborhood nuisances.

As part of the $25 billion state and federal government settlement with the nation’s five largest mortgage servicers, Ohio will receive $97 million that it may apply to any housing problem.

Attorney General Mike DeWine announced on Thursday that he will dedicate $75 million to a new grant program for demolition of abandoned houses, $20 million to a new grant program to help Ohio families who have lost their homes or are at risk of foreclosure and $2 million to expand the attorney general’s Economic Crimes Division.

“I believe that Ohio is going to lead the nation by example. By tearing down abandoned and vacant properties, we are actually building a future for this state. We are creating the opportunity for economic growth and development,” DeWine said on Thursday.

A conservative estimate pegs Ohio’s abandoned property problem at 100,000 houses, he said. Dayton alone reported 14,000 vacant structures with 1,600 in the condemnation process, DeWine said.

“This is great,” said Dayton City Commissioner Nan Whaley. “Any help is necessary for us to continue to fight this problem.”

The city knocked down a little more than 300 structures last year but only has enough money to demolish 150 buildings this year, she said.

Public opinion polls of Dayton residents ranks demolition as a high priority because empty buildings attract crime and arson and devalue nearby properties, she said.

Montgomery County Treasurer Carolyn Rice agreed.

“It would just be a big boost to the whole initiative of tackling the blight in our communities,” Rice said.

In 2010, Ohio enacted a new law that allows for an expedited tax foreclosure process and land banking of properties.

The law allows counties to quickly take control of abandoned properties that have been tax delinquent for at least a year, deal with nuisances or demolish structures, clear the titles and get the land ready to be resold for development.

DeWine said he wants the state money to be matched dollar for dollar with local funds. On average, it costs $7,000 to knock down an abandoned house, he said. If the state money is matched, it should provide enough money to demolish 21,000 structures across the state.

DeWine said he hopes to have the program running by summer.

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