Posted: 7:00 p.m. Wednesday, Aug. 26, 2015

County land bank beats blight-busting funding deadline

By Denise G. Callahan

Staff Writer

BUTLER COUNTY — 

The city of Hamilton is working to quickly purchase 40 blighted properties before a September deadline so as not to risk losing future federal funding for the county land bank program.

The Butler County Land Bank is already at the 80-parcel quota to receive $2 million in federal funds.

“Our concern is if we don’t maximize the funding, the next time any funds are available, that they’re not going to look and say well they did their 40 properties,” said Chris Hacker, the acting land bank administrator for Hamilton. “That they’re going to say they only spent $1.2 of the $2 million we granted. And we don’t want to miss out if there is any more money available because it looked like we weren’t trying.”

In Hamilton, 59 blighted properties have been secured and seven property transfers are pending. In Middletown, 21 eyesores have been acquired for a total of the requisite 80. The cities are fronting the money and so far Hamilton has deposited $428,000 with the land bank for eventual reimbursement of federal funds and Middletown has spent $80,000 with another $100,000 forthcoming, according to land bank Executive Director Mike McNamara.

Hacker said the $2 million was based on a maximum $25,000 per-demolition cost, but in reality they have only been paying in the neighborhood of $16,000. He said they hope to raze a total of 100 eye sores in Hamilton alone, under the federal blight program.

Under the Moving Ohio Forward grant, Butler County spent $4.6 million razing 511 ailing structures in Hamilton and Middletown. For the federal blight elimination program, they needed to acquire 40 blighted properties collectively by March 31 and another 40 by the end of September, in order to keep a $2 million in Hardest Hit Fund monies. They ended up culling 44 by the first deadline.

McNamara said in Hamilton 215 properties were demolished with Moving Ohio Forward monies. Hacker said 51 parcels have been re-purposed and seven more will be presented to the city council for consideration in September. Middletown up until this point had not assumed ownership of any properties because officials said the city shouldn’t be in the real estate business.

Middletown Mayor Larry Mulligan said the city has had a hard time culling properties that qualify under the parameters of the federal program, but the funding has allowed them to make a dent in downing dilapidated buildings.

“We’ve made progress but there is more work to do,” he said. “Every dollar we can put towards addressing it (blight) either through demolition or rehab is going to help improve the city.”

Up until now the two major cities have been the only beneficiaries of the blight elimination dollars. Last summer the Butler County commissioners agreed to siphon 1 percent of delinquent tax and assessment collection funds (DTAC) to bolster the land bank and open up services for the entire county. DTAC funds are late payment penalties on real estate taxes. County Treasurer Nancy Nix estimated the 1 percent would garner about $155,000.

The land bank now has signed memorandum of understanding with Fairfield, Liberty and Ross townships and the city of Trenton. The land bank board is expected to sign a deal with Hanover Twp. at its Monday meeting. Township Administrator Bruce Henry said the township has been eyeing a couple rough properties they would like to tear down and the countywide tool would be beneficial.

“If you didn’t have any of these funding sources you attach a lien to the property, which we have done in the past, we’ve condemned a property, essentially leveled it and cleaned up the site and then attached a substantial lien on the property,” he said. “But in our case it took us over five years to recover that lien and we’re not big enough to take that hit. So that’s why we’re looking at the land bank and other sources of community block grant funding.”

Disposition of properties obtained by Hamilton through the land bank

Properties Hamilton wants to keep for future projects: 82

The city has sold: 37

Parcels donated: 14

Sale or possible donation pending: 12

Properties available: 196

Total: 341

Source: City of Hamilton

 

"Middletown up until this point had not assumed ownership of any properties because officials said the city shouldn’t be in the real estate business."

Lakota spokesman Randy Oppenheimer said there is more than one way of looking at the diverted funds.

“The amount of money is what the amount of money is, if it’s another $28,000 that’s $28,000,” he said. “We understand that the county commissioners are trying to support needs throughout the county, and often times those needs benefit the schools in another way.


"Good economic development is good for schools.”


Unfortunately Randy, we don't have either one here in Middletown.