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Settlement bucks will help fund demolition

$75M from Ohio’s share of the pot is dedicated to razing vacant homes.

Attorney General Mike DeWine announced initiatives involving demolition of abandoned houses and aid for those at risk of foreclosure.

HANDOUT Attorney General Mike DeWine announced initiatives involving demolition of abandoned houses and aid for those at risk of foreclosure.

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By Laura A. Bischoff, Staff Writer 11:26 PM Thursday, February 9, 2012

COLUMBUS — Ohio cities and non-profits 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 a $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.

A conservative estimate pegs Ohio’s abandoned property problem at 100,000 houses, he said.

The city of Springfield demolished 85 structures in 2010. Through November of 2011, it had razed 67 and had plans to tear down 13 more.

Shannon Meadows, community development director for the city of Springfield, said city officials plan to work hard to capture matching grant funds to knock down blighted and abandoned properties.

“This could be something we can use for our Neighborhood Stabilization Program. Those grant dollars could be a tremendous benefit as we work to clean up our communities,” Meadows 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.

Staff Writer Tiffany Y. Latta contributed to this article.

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