Mike DeWine,
Ohio Attorney General

Moving Ohio Forward program stabilizes communities

Toledo Business Journal recently interviewed Ohio Attorney General Mike DeWine regarding the Moving Ohio Forward program. He shared the following thoughts:

Toledo Business Journal: What is the purpose of the Moving Ohio Forward program?

Mike DeWine: When the foreclosure crisis hit Ohio, there were many who were impacted, including borrowers who suffered abuse from mortgage servicers and those who were unfairly victimized by robosigning. People who stayed in their homes and paid their mortgages were also victimized when their former neighbors abandoned homes in their neighborhoods. Many of these homes fell into disrepair, causing blight, safety, and crime issues, as well as reducing the property values for those who stayed and played by the rules.

The Attorney General’s Moving Ohio Forward Demolition Grant Program helps these homeowners by working with local communities to demolish abandoned homes in these neighborhoods. The goal is that demolishing these abandoned houses will help stabilize these neighborhoods from further blight and safety issues.

TBJ: Can you explain the source of funding for this initiative?

MD: In February 2012, Ohio was one of 49 states which reached a $25 billion settlement with the five largest mortgage servicers in the country over robosigning and servicing abuse. Much of that settlement was devoted to providing direct relief to affected borrowers. However, each state received a portion of the settlement to address issues caused by the foreclosure crisis. I dedicated $75 million statewide to fund the Demolition Grant Program.

TBJ: Can you share an estimate of the number of houses in Ohio and in the northwest part of the State that need to be demolished?

MD: We don’t have exact figures, but a statewide estimate could be more than 100,000 homes in need of immediate demolition in Ohio.

TBJ: Can you provide an update of the grants that have been issued at this point in northwest Ohio?

MD: I am very pleased by how well northwest Ohio has utilized these demolition grants. Nineteen northwest Ohio counties were allocated and applied for more than $8.5 million in grants. To date, almost $5 million has been reimbursed through the program in northwest Ohio.

Many northwest Ohio counties are well on their way to using their grant allocations before the grant period expires. Fulton County has already completed using its allocation, and Lucas County has used all but $70,000 of its more than $3.67 million grant.

TBJ: What areas will this funding be used for and how many homes are involved?

MD: The grants in northwest Ohio have resulted in the demolition of 673 structures, including 511 in Lucas County. Statewide, the program has resulted in the demolition of 5,070 structures.

TBJ: Can you outline the application process for this program and explain key criteria involved for selection?

MD: The grants were awarded by county with only one entity per county able to apply. If a county had an established land bank, the program required that the land bank be the lead entity. The lead entity then works with other jurisdictions within the county to plan and fund demolitions.

Counties were allocated a portion of available funds based upon the percentage of foreclosures which took place in that county from 2008 to 2010. To maximize the effectiveness of the program, but also make sure all counties could benefit, matching grants are required for any grant funds greater than $500,000. Counties could apply for their full amount or a lesser amount based upon the needs of their county.

TBJ: What opportunities exist for additional funding to continue this program in the future?

MD: I recently announced that we are extending the program through May 31, 2014. This will give counties additional time to use their allotments.

TBJ: Are there any other issues that you wish to address?

MD: The Ohio Attorney General’s office can offer a variety of services to businesses, including a free complaint dispute resolution process for small businesses and nonprofits. For example, a northwest Ohio trucking company paid $2,400 for a business to file its taxes but services were never provided. After the business filed a complaint with our office, the taxes were completed and forwarded to the IRS.